[Congressional Record Volume 143, Number 160 (Thursday, November 13, 1997)]
[Extensions of Remarks]
[Pages E2356-E2357]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  H.R. 2292, THE INTERNAL REVENUE SERVICE RESTRUCTURING AND REFORM ACT

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                            HON. BILL ARCHER

                                of texas

                    in the house of representatives

                      Thursday, November 13, 1997

  Mr. ARCHER. Mr. Speaker, as the first session of the 105th Congress 
draws to a close, I rise to underscore my personal resolve and that of 
the Ways and Means Committee to complete work on needed reforms to the 
Internal Revenue Service when Congress reconvenes next year.
  Mr. Speaker, I have long advocated fundamental tax reform. Our tax 
system must be more fair, more simple, and permit the working families 
of America to keep more of their hard-earned money. Yet the Internal 
Revenue Code is too complex, too unwieldy, and too great an impediment 
to savings and investment. In short, the Internal Revenue Code is too 
broken to be fixed. The current tax system must be torn up by its roots 
and replaced. I am fully committed to carrying forward the critical 
work of fundamental tax reform, and hope to continue work towards that 
goal in the second session of the 105th Congress.
  In short, Mr. Speaker, America needs fundamental tax reform. However, 
I also wish to emphasize that there is much we can do more immediately 
to remedy some of the problems that now exist in our tax system. 
Towards that end, I am particularly proud of the work this House and 
the Ways and Means Committee have done on H.R. 2292, The Internal 
Revenue Service Restructuring and Reform Act.
  Mr. Speaker, the purpose of H.R. 2292 is to implement the 
recommendations of IRS Restructuring Commission chaired by 
Representative Portman and Senator Kerrey and to make sure that the IRS 
applies the tax laws of our country in a fair, equitable, and 
consistent manner.
  In fact, current law and sound tax policy require as much: For 
example, the IRS should not abuse its powers to seize property or its 
rule making authority; the IRS generally may not impose retroactive 
regulations; and the IRS should apply the tax laws in a consistent and 
reasonable manner, both among competitors and with respect to specific 
taxpayers from one year to the next. However, as was made clear in 
recent hearings by the House Ways and Means Committee and the Senate 
Finance Committee, the IRS often has failed to honor its duty to serve 
the taxpayer. H.R. 2292 builds on the procedural and administrative 
safeguards enacted as part of the taxpayers bill of rights I and the 
taxpayer bill of rights II to help ensure that the IRS faithfully 
carries out its duties to American taxpayers.
  Mr. Speaker, the IRS should act in a fair, equitable, and consistent 
manner simply because its right. Yet doing so also serves to promote 
sound tax policy. For example, failure to apply the tax laws 
consistently, like retroactive changes in the tax laws, undermines 
public faith in the system. If the IRS applies the laws differently 
among competitors, or changes the way it applies the law to taxpayers 
from year to year, those actions violate the duty of consistency the 
IRS owes to taxpayers and erodes taxpayers' trust in the system. That 
loss of confidence, in turn, discourages taxpayer compliance and makes 
administration of the Tax Code more difficult.

[[Page E2357]]

  The Internal Revenue Service Restricting and Reform Act of 1997 will 
help ensure that the IRS administers the tax laws as Congress intended. 
Enactment of the new safeguards included in H.R. 2292 will help the IRS 
will become the customer-friendly agency it was meant to be, and will 
help the IRS to apply the tax laws of our country in a just manner.
  Mr. Speaker, I thank my colleagues for their exceptional work on H.R. 
2292 and look forward to continuing to work with them to enact that 
legislation into law when Congress reconvenes.

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