[Congressional Record Volume 164, Number 63 (Wednesday, April 18, 2018)]
[House]
[Pages H3411-H3422]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TAXPAYER FIRST ACT
Mr. BRADY of Texas. Mr. Speaker, pursuant to House Resolution 831, I
call up the bill (H.R. 5444) to amend the Internal Revenue Code of 1986
to modernize and improve the Internal Revenue Service, and for other
purposes, and ask for its immediate consideration in the House.
The Clerk read the title of the bill.
The SPEAKER pro tempore. Pursuant to House Resolution 831, the
amendment in the nature of a substitute recommended by the Committee on
Ways and Means, printed in the bill, is adopted, and the bill, as
amended, is considered read.
The text of the bill, as amended, is as follows:
H.R. 5444
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Taxpayer
First Act''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; etc.
TITLE I--INDEPENDENT APPEALS PROCESS
Sec. 101. Establishment of Internal Revenue Service Independent Office
of Appeals.
TITLE II--IMPROVED SERVICE
Sec. 201. Comprehensive customer service strategy.
Sec. 202. IRS Free File Program.
Sec. 203. Low-income exception for payments otherwise required in
connection with a submission of an offer-in-compromise.
TITLE III--SENSIBLE ENFORCEMENT
Sec. 301. Internal Revenue Service seizure requirements with respect to
structuring transactions.
Sec. 302. Exclusion of interest received in action to recover property
seized by the Internal Revenue Service based on
structuring transaction.
Sec. 303. Clarification of equitable relief from joint liability.
Sec. 304. Modification of procedures for issuance of third-party
summons.
Sec. 305. Establishment of income threshold for referral to private
debt collection.
Sec. 306. Reform of notice of contact of third parties.
Sec. 307. Modification of authority to issue designated summons.
Sec. 308. Limitation on access of non-Internal Revenue Service
employees to returns and return information.
TITLE IV--ORGANIZATIONAL MODERNIZATION
Sec. 401. Modification of title of Commissioner of Internal Revenue and
related officials.
Sec. 402. Office of the National Taxpayer Advocate.
Sec. 403. Elimination of IRS Oversight Board.
Sec. 404. Modernization of Internal Revenue Service organizational
structure.
TITLE V--TAX COURT
Sec. 501. Disqualification of judge or magistrate judge of the Tax
Court.
Sec. 502. Opinions and judgments.
Sec. 503. Title of special trial judge changed to magistrate judge of
the Tax Court.
Sec. 504. Repeal of deadwood related to Board of Tax Appeals.
TITLE I--INDEPENDENT APPEALS PROCESS
SEC. 101. ESTABLISHMENT OF INTERNAL REVENUE SERVICE
INDEPENDENT OFFICE OF APPEALS.
(a) In General.--Section 7803 is amended by adding at the
end the following new subsection:
``(e) Independent Office of Appeals.--
``(1) Establishment.--There is established in the Internal
Revenue Service an office to be known as the `Internal
Revenue Service Independent Office of Appeals'.
``(2) Chief of appeals.--
``(A) In general.--The Internal Revenue Service Independent
Office of Appeals shall be under the supervision and
direction of an official to be known as the `Chief of
Appeals'. The Chief of Appeals shall report directly to the
Administrator of the Internal Revenue Service and shall be
entitled to compensation at the same rate as the highest rate
of basic pay established for the Senior Executive Service
under section 5382 of title 5, United States Code.
``(B) Appointment.--The Chief of Appeals shall be appointed
by the Administrator of the Internal Revenue Service without
regard to the provisions of title 5, United States Code,
relating to appointments in the competitive service or the
Senior Executive Service.
``(C) Qualifications.--An individual appointed under
subparagraph (B) shall have experience and expertise in--
``(i) administration of, and compliance with, Federal tax
laws,
``(ii) a broad range of compliance cases, and
``(iii) management of large service organizations.
``(3) Purposes and duties of office.--It shall be the
function of the Internal Revenue Service Independent Office
of Appeals to resolve Federal tax controversies without
litigation on a basis which--
``(A) is fair and impartial to both the Government and the
taxpayer,
``(B) promotes a consistent application and interpretation
of, and voluntary compliance with, the Federal tax laws, and
``(C) enhances public confidence in the integrity and
efficiency of the Internal Revenue Service.
``(4) Right of appeal.--The resolution process described in
paragraph (3) shall be generally available to all taxpayers.
``(5) Limitation on designation of cases as not eligible
for referral to independent office of appeals.--
``(A) In general.--If any taxpayer which is in receipt of
notice of deficiency authorized
[[Page H3412]]
under section 6212 requests referral to the Internal Revenue
Service Independent Office of Appeals and such request is
denied, the Administrator of the Internal Revenue Service
shall provide such taxpayer a written notice which--
``(i) provides a detailed description of the facts
involved, the basis for the decision to deny the request, and
a detailed explanation of how the basis of such decision
applies to such facts, and
``(ii) describes the procedures proscribed under
subparagraph (C) for protesting the decision to deny the
request.
``(B) Report to congress.--The Administrator of the
Internal Revenue Service shall submit a written report to
Congress on an annual basis which includes the number of
requests described in subparagraph (A) which were denied and
the reasons (described by category) that such requests were
denied.
``(C) Procedures for protesting denial of request.--The
Administrator of the Internal Revenue Service shall prescribe
procedures for protesting to the Administrator of the
Internal Revenue Service (personally and not through any
delegate) a denial of a request described in subparagraph
(A).
``(D) Not applicable to frivolous positions.--This
paragraph shall not apply to a request for referral to the
Internal Revenue Service Independent Office of Appeals which
is denied on the basis that the issue involved is a frivolous
position (within the meaning of section 6702(c)).
``(6) Staff.--
``(A) In general.--All personnel in the Internal Revenue
Service Independent Office of Appeals shall report to the
Chief of Appeals.
``(B) Access to staff of office of the chief counsel.--The
Chief of Appeals shall have authority to obtain legal
assistance and advice from the staff of the Office of the
Chief Counsel. The Chief Counsel shall ensure that such
assistance and advice is provided by staff of the Office of
the Chief Counsel who were not involved in the case with
respect to which such assistance and advice is sought and who
are not involved in preparing such case for litigation.
``(7) Access to case files.--
``(A) In general.--In the case of any specified taxpayer
with respect to which a conference with the Internal Revenue
Service Independent Office of Appeals has been scheduled, the
Chief of Appeals shall ensure that such taxpayer is provided
access to the nonprivileged portions of the case file on
record regarding the disputed issues (other than documents
provided by the taxpayer to the Internal Revenue Service) not
later than 10 days before the date of such conference.
``(B) Taxpayer election to expedite conference.--If the
taxpayer so elects, subparagraph (A) shall be applied by
substituting `the date of such conference' for `10 days
before the date of such conference'.
``(C) Specified taxpayer.--For purposes of this paragraph--
``(i) In general.--The term `specified taxpayer' means--
``(I) in the case of any taxpayer who is a natural person,
a taxpayer whose adjusted gross income does not exceed
$400,000, and
``(II) in the case of any other taxpayer, a taxpayer whose
gross receipts do not exceed $5,000,000.
``(ii) Aggregation rule.--Rules similar to the rules of
section 448(c)(2) shall apply for purposes of clause
(i)(II).''.
(b) Conforming Amendments.--
(1) The following provisions are each amended by striking
``Internal Revenue Service Office of Appeals'' and inserting
``Internal Revenue Service Independent Office of Appeals'':
(A) Section 6015(c)(4)(B)(ii)(I).
(B) Section 6320(b)(1).
(C) Subsections (b)(1) and (d)(3) of section 6330.
(D) Section 6603(d)(3)(B).
(E) Section 6621(c)(2)(A)(i).
(F) Section 7122(e)(2).
(G) Subsections (a), (b)(1), (b)(2), and (c)(1) of section
7123.
(H) Subsections (c)(7)(B)(i, and (g)(2)(A) of section 7430.
(I) Section 7522(b)(3).
(J) Section 7612(c)(2)(A).
(2) Section 7430(c)(2) is amended by striking ``Internal
Revenue Service Office of Appeals'' each place it appears and
inserting ``Internal Revenue Service Independent Office of
Appeals''.
(3) The heading of section 6330(d)(3) is amended by
inserting ``Independent'' after ``IRS''.
(c) Other References.--Any reference in any provision of
law, or regulation or other guidance, to the Internal Revenue
Service Office of Appeals shall be treated as a reference to
the Internal Revenue Service Independent Office of Appeals.
(d) Savings Provisions.--Rules similar to the rules of
paragraphs (2) through (6) of section 1001(b) of the Internal
Revenue Service Restructuring and Reform Act of 1998 shall
apply for purposes of this section (and the amendments made
by this section).
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall take
effect on the date of the enactment of this Act.
(2) Access to case files.--Section 7803(e)(7) of the
Internal Revenue Code of 1986, as added by subsection (a),
shall apply to conferences occurring after the date which is
1 year after the date of the enactment of this Act.
TITLE II--IMPROVED SERVICE
SEC. 201. COMPREHENSIVE CUSTOMER SERVICE STRATEGY.
(a) In General.--Not later than the date which is 1 year
after the date of the enactment of this Act, the Secretary of
the Treasury, after consultation with the National Taxpayer
Advocate, shall submit to Congress a written comprehensive
customer service strategy for the Internal Revenue Service.
Such strategy shall include--
(1) a plan to provide assistance to taxpayers that is
secure, designed to meet reasonable taxpayer expectations,
and adopts appropriate best practices of customer service
provided in the private sector, including online services,
telephone call back services, and training of employees
providing customer services,
(2) a thorough assessment of the services that the Internal
Revenue Service can co-locate with other Federal services or
offer as self-service options,
(3) proposals to improve Internal Revenue Service customer
service in the short term (the current and following fiscal
year), medium term (approximately 3 to 5 fiscal years), and
long term (approximately 10 fiscal years),
(4) a plan to update guidance and training materials for
customer service employees of the Internal Revenue Service,
including the Internal Revenue Manual, to reflect such
strategy, and
(5) identified metrics and benchmarks for quantitatively
measuring the progress of the Internal Revenue Service in
implementing such strategy.
(b) Updated Guidance and Training Materials.--Not later
than 2 years after the date of the enactment of this Act, the
Secretary of the Treasury shall make available the updated
guidance and training materials described in subsection
(a)(4) (including the Internal Revenue Manual). Such updated
guidance and training materials (including the Internal
Revenue Manual) shall be written in a manner so as to be
easily understood by customer service employees of the
Internal Revenue Service and shall provide clear
instructions.
SEC. 202. IRS FREE FILE PROGRAM.
(a) In General.--
(1) The Secretary of the Treasury, or the Secretary's
delegate, shall continue to operate the IRS Free File Program
as established by the Internal Revenue Service and published
in the Federal Register on November 4, 2002 (67 Fed. Reg.
67247), including any subsequent agreements and governing
rules established pursuant thereto.
(2) The IRS Free File Program shall continue to provide
free commercial-type online individual income tax preparation
and electronic filing services to the lowest 70 percent of
taxpayers by adjusted gross income. The number of taxpayers
eligible to receive such services each year shall be
calculated by the Internal Revenue Service annually based on
prior year aggregate taxpayer adjusted gross income data.
(3) In addition to the services described in paragraph (2),
and in the same manner, the IRS Free File Program shall
continue to make available to all taxpayers (without regard
to income) a basic, online electronic fillable forms utility.
(4) The IRS Free File Program shall continue to work
cooperatively with the private sector to provide the free
individual income tax preparation and the electronic filing
services described in paragraphs (2) and (3).
(5) The IRS Free File Program shall work cooperatively with
State government agencies to enhance and expand the use of
the program to provide needed benefits to the taxpayer while
reducing the cost of processing returns.
(b) Innovations.--The Secretary of the Treasury, or the
Secretary's delegate, shall work with the private sector
through the IRS Free File Program to identify and implement,
consistent with applicable law, innovative new program
features to improve and simplify the taxpayer's experience
with completing and filing individual income tax returns
through voluntary compliance.
SEC. 203. LOW-INCOME EXCEPTION FOR PAYMENTS OTHERWISE
REQUIRED IN CONNECTION WITH A SUBMISSION OF AN
OFFER-IN-COMPROMISE.
(a) In General.--Section 7122(c) is amended by adding at
the end the following new paragraph:
``(3) Exception for low-income taxpayers.--Paragraph (1),
and any user fee otherwise required in connection with the
submission of an offer-in-compromise, shall not apply to any
offer-in-compromise with respect to a taxpayer who is an
individual with adjusted gross income, as determined for the
most recent taxable year for which such information is
available, which does not exceed 250 percent of the
applicable poverty level (as determined by the Secretary).''.
(b) Effective Date.--The amendment made by this section
shall apply to offers-in-compromise submitted after the date
of the enactment of this Act.
TITLE III--SENSIBLE ENFORCEMENT
SEC. 301. INTERNAL REVENUE SERVICE SEIZURE REQUIREMENTS WITH
RESPECT TO STRUCTURING TRANSACTIONS.
Section 5317(c)(2) of title 31, United States Code, is
amended--
(1) by striking ``Any property'' and inserting the
following:
``(A) In general.--Any property''; and
(2) by adding at the end the following:
``(B) Internal revenue service seizure requirements with
respect to structuring transactions.--
``(i) Property derived from an illegal source.--Property
may only be seized by the Internal Revenue Service pursuant
to subparagraph (A) by reason of a claimed violation of
section 5324 if the property to be seized was derived from an
illegal source or the funds were structured for the purpose
of concealing the violation of a criminal law or regulation
other than section 5324.
``(ii) Notice.--Not later than 30 days after property is
seized by the Internal Revenue Service pursuant to
subparagraph (A), the Internal Revenue Service shall--
[[Page H3413]]
``(I) make a good faith effort to find all persons with an
ownership interest in such property; and
``(II) provide each such person with a notice of the
seizure and of the person's rights under clause (iv).
``(iii) Extension of notice under certain circumstances.--
The Internal Revenue Service may apply to a court of
competent jurisdiction for one 30-day extension of the notice
requirement under clause (ii) if the Internal Revenue Service
can establish probable cause of an imminent threat to
national security or personal safety necessitating such
extension.
``(iv) Post-seizure hearing.--If a person with a property
interest in property seized pursuant to subparagraph (A) by
the Internal Revenue Service requests a hearing by a court of
competent jurisdiction within 30 days after the date on which
notice is provided under subclause (ii), such property shall
be returned unless the court holds an adversarial hearing and
finds within 30 days of such request (or such longer period
as the court may provide, but only on request of an
interested party) that there is probable cause to believe
that there is a violation of section 5324 involving such
property and probable cause to believe that the property to
be seized was derived from an illegal source or the funds
were structured for the purpose of concealing the violation
of a criminal law or regulation other than section 5324.''.
SEC. 302. EXCLUSION OF INTEREST RECEIVED IN ACTION TO RECOVER
PROPERTY SEIZED BY THE INTERNAL REVENUE SERVICE
BASED ON STRUCTURING TRANSACTION.
(a) In General.--Part III of subchapter B of chapter 1 is
amended by inserting before section 140 the following new
section:
``SEC. 139G. INTEREST RECEIVED IN ACTION TO RECOVER PROPERTY
SEIZED BY THE INTERNAL REVENUE SERVICE BASED ON
STRUCTURING TRANSACTION.
``Gross income shall not include any interest received from
the Federal Government in connection with an action to
recover property seized by the Internal Revenue Service
pursuant to section 5317(c)(2) of title 31, United States
Code, by reason of a claimed violation of section 5324 of
such title.''.
(b) Clerical Amendment.--The table of sections for part III
of subchapter B of chapter 1 is amended by inserting before
the item relating to section 140 the following new item:
``Sec. 139G. Interest received in action to recover property seized by
the Internal Revenue Service based on structuring
transaction.''.
(c) Effective Date.--The amendments made by this section
shall apply to interest received on or after the date of the
enactment of this Act.
SEC. 303. CLARIFICATION OF EQUITABLE RELIEF FROM JOINT
LIABILITY.
(a) In General.--Section 6015 is amended--
(1) in subsection (e), by adding at the end the following
new paragraph:
``(7) Standard and scope of review.--Any review of a
determination made under this section shall be reviewed de
novo by the Tax Court and shall be based upon--
``(A) the administrative record established at the time of
the determination, and
``(B) any additional newly discovered or previously
unavailable evidence.'', and
(2) by amending subsection (f) to read as follows:
``(f) Equitable Relief.--
``(1) In general.--Under procedures prescribed by the
Secretary, if--
``(A) taking into account all the facts and circumstances,
it is inequitable to hold the individual liable for any
unpaid tax or any deficiency (or any portion of either), and
``(B) relief is not available to such individual under
subsection (b) or (c),
the Secretary may relieve such individual of such liability.
``(2) Limitation.--A request for equitable relief under
this subsection may be made with respect to any portion of
any liability that--
``(A) has not been paid, provided that such request is made
before the expiration of the applicable period of limitation
under section 6502, or
``(B) has been paid, provided that such request is made
during the period in which the individual could submit a
timely claim for refund or credit of such payment.''.
(b) Effective Date.--The amendments made by this section
shall apply to petitions or requests filed or pending on or
after the date of the enactment of this Act.
SEC. 304. MODIFICATION OF PROCEDURES FOR ISSUANCE OF THIRD-
PARTY SUMMONS.
(a) In General.--Section 7609(f) is amended by adding at
the end the following flush sentence:
``The Secretary shall not issue any summons described in the
preceding sentence unless the information sought to be
obtained is narrowly tailored to information that pertains to
the failure (or potential failure) of the person or group or
class of persons referred to in paragraph (2) to comply with
one or more provisions of the internal revenue law which have
been identified for purposes of such paragraph.''.
(b) Effective Date.--The amendments made by this section
shall apply to summonses served after the date of the
enactment of this Act.
SEC. 305. ESTABLISHMENT OF INCOME THRESHOLD FOR REFERRAL TO
PRIVATE DEBT COLLECTION.
(a) In General.--Section 6306(d)(3) is amended by striking
``or'' at the end of subparagraph (C), by adding ``or'' at
the end of subparagraph (D), and by inserting after
subparagraph (D) the following new subparagraph:
``(E) in the case of a tax receivable which is identified
by the Secretary (or the Secretary's delegate) during the
period beginning on the date which is 180 days after the date
of the enactment of this Act and ending on December 31, 2019,
a taxpayer who is an individual with adjusted gross income,
as determined for the most recent taxable year for which such
information is available, which does not exceed 250 percent
of the applicable poverty level (as determined by the
Secretary),''.
(b) Effective Date.--The amendments made by this section
shall apply to tax receivables identified by the Secretary
(or the Secretary's delegate) after the date which is 180
days after the date of the enactment of this Act.
SEC. 306. REFORM OF NOTICE OF CONTACT OF THIRD PARTIES.
(a) In General.--Section 7602(c)(1) is amended to read as
follows:
``(1) General notice.--An officer or employee of the
Internal Revenue Service may not contact any person other
than the taxpayer with respect to the determination or
collection of the tax liability of such taxpayer unless such
contact occurs during a period (not greater than 1 year)
which is specified in a notice which--
``(A) informs the taxpayer that contacts with persons other
than the taxpayer are intended to be made during such period,
and
``(B) except as otherwise provided by the Secretary, is
provided to the taxpayer not later than 45 days before the
beginning of such period.
Nothing in the preceding sentence shall prevent the issuance
of notices to the same taxpayer with respect to the same tax
liability with periods specified therein that, in the
aggregate, exceed 1 year. A notice shall not be issued under
this paragraph unless there is an intent at the time such
notice is issued to contact persons other than the taxpayer
during the period specified in such notice. The preceding
sentence shall not prevent the issuance of a notice if the
requirement of such sentence is met on the basis of the
assumption that the information sought to be obtained by such
contact will not be obtained by other means before such
contact.''.
(b) Effective Date.--The amendment made by this section
shall apply to notices provided, and contacts of persons
made, after the date which is 45 days after the date of the
enactment of this Act.
SEC. 307. MODIFICATION OF AUTHORITY TO ISSUE DESIGNATED
SUMMONS.
(a) In General.--Clause (i) of section 6503(j)(2)(A) is
amended to read as follows:
``(i) the issuance of such summons is preceded by a review
and written approval of such issuance by the Administrator of
the relevant operating division of the Internal Revenue
Service and the Chief Counsel which--
``(I) states facts clearly establishing that the Secretary
has made reasonable requests for the information that is the
subject of the summons, and
``(II) is attached to such summons,''.
(b) Establishment That Reasonable Requests for Information
Were Made.--Subsection (j) of section 6503 is amended by
adding at the end the following new paragraph:
``(4) Establishment that reasonable requests for
information were made.--In any court proceeding described in
paragraph (3), the Secretary shall establish that reasonable
requests were made for the information that is the subject of
the summons.''.
(c) Effective Date.--The amendments made by this section
shall apply to summonses issued after the date of the
enactment of this Act.
SEC. 308. LIMITATION ON ACCESS OF NON-INTERNAL REVENUE
SERVICE EMPLOYEES TO RETURNS AND RETURN
INFORMATION.
(a) In General.--Section 7602 is amended by adding at the
end the following new subsection:
``(f) Limitation on Access of Persons Other Than Internal
Revenue Service Officers and Employees.--The Secretary shall
not, under the authority of section 6103(n), provide any
books, papers, records, or other data obtained pursuant to
this section to any person authorized under section 6103(n),
except when such person requires such information for the
sole purpose of providing expert evaluation and assistance to
the Internal Revenue Service. No person other than an officer
or employee of the Internal Revenue Service or the Office of
Chief Counsel may, on behalf of the Secretary, question a
witness under oath whose testimony was obtained pursuant to
this section.''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by this section shall take effect on the date
of the enactment of this Act.
(2) Application to contracts in effect.--The amendment made
by this section shall apply to any contract in effect under
section 6103(n) of the Internal Revenue Code of 1986,
pursuant to temporary Treasury Regulation section 301.7602-1T
proposed in Internal Revenue Bulletin 2014-28, Treasury
Regulation section 301.7602-1(b)(3), or any similar or
successor regulation, that is in effect on the date of the
enactment of this Act.
TITLE IV--ORGANIZATIONAL MODERNIZATION
SEC. 401. MODIFICATION OF TITLE OF COMMISSIONER OF INTERNAL
REVENUE AND RELATED OFFICIALS.
(a) In General.--Section 7803(a)(1)(A) is amended by
striking ``Commissioner of Internal Revenue'' and inserting
``Administrator of the Internal Revenue Service''.
(b) Conforming Amendments Related to Section 7803.--
(1) Subsections (a)(1)(B), (a)(1)(C), (b)(3), (c)(1)(B)(i),
and (c)(1)(B)(ii) of section 7803 are each amended by
striking ``Commissioner of Internal Revenue'' and inserting
``Administrator of the Internal Revenue Service''.
(2) Section 7803(b)(2)(A) is amended by striking
``Commissioner's'' and inserting ``Administrator's''.
(3) Subsections (a)(1)(D), (a)(1)(E), (a)(2), (a)(3),
(a)(4), (b)(2)(A), (b)(2)(D), (b)(3),
[[Page H3414]]
(c)(2)(B)(iii), (c)(2)(C)(iv), and (c)(3) of section 7803, as
amended by the preceding paragraphs of this subsection, are
amended by striking ``Commissioner'' each place it appears
therein and inserting ``Administrator''.
(4) The heading of section 7803 is amended by striking
``commissioner of internal revenue'' and inserting
``administrator of the internal revenue service''.
(5) The heading of section 7803(a) is amended by striking
``Commissioner of Internal Revenue'' and inserting
``Administrator of the Internal Revenue Service''.
(6) The heading of section 7803(c)(3) is amended by
striking ``Commissioner'' and inserting ``Administrator''.
(7) The table of sections for subchapter A of chapter 80 is
amended by striking the item relating to section 7803 and
inserting the following new item:
``Sec. 7803. Administrator of the Internal Revenue Service; other
officials.''.
(c) Other Conforming Amendments to the Internal Revenue
Code of 1986.--
(1) Section 6307(c) is amended by striking ``Commissioner
of Internal Revenue'' and inserting ``Administrator of the
Internal Revenue Service''.
(2) Section 6673(a)(2)(B) is amended by striking
``Commissioner of Internal Revenue'' and inserting
``Administrator of the Internal Revenue Service''.
(3) Section 6707(c) is amended by striking ``Commissioner''
and inserting ``Administrator''.
(4) Section 6707A(d) is amended--
(A) in paragraph (1), by striking ``Commissioner of
Internal Revenue'' and inserting ``Administrator of the
Internal Revenue Service'', and
(B) in paragraph (3), by striking ``Commissioner'' each
place it appears and inserting ``Administrator''.
(5)(A) Subsections (a) and (g) of section 7345 are each
amended by striking ``Commissioner of Internal Revenue'' and
inserting ``Administrator of the Internal Revenue Service''.
(B) Section 7345(g) is amended--
(i) by striking ``Deputy Commissioner for Services and
Enforcement'' and inserting ``Deputy Administrator for
Services and Enforcement'', and
(ii) by striking ``Commissioner of an operating division''
and inserting ``Administrator of an operating division''.
(C) Subsections (c)(1), (d) and (e)(1) of section 7345 are
each amended by striking ``Commissioner'' each place it
appears therein and inserting ``Administrator''.
(6) Section 7435(e) is amended by striking ``Commissioner''
each place it appears therein and inserting
``Administrator''.
(7) Section 7409(a)(2)(B) is amended by striking
``Commissioner of Internal Revenue'' and inserting
``Administrator of the Internal Revenue Service''.
(8) Section 7608(c) is amended--
(A) in paragraph (1), by striking ``the Commissioner of
Internal Revenue (or, if designated by the Commissioner, the
Deputy Commissioner or an Assistant Commissioner of Internal
Revenue)'' and inserting ``the Administrator of the Internal
Revenue Service (or, if designated by the Administrator, the
Deputy Administrator or an Assistant Administrator of the
Internal Revenue Service)'', and
(B) in paragraph (2) by striking ``Commissioner'' and
inserting ``Administrator''.
(9) Section 7611(b)(3)(C) is amended by striking ``regional
commissioner'' and inserting ``regional administrator''.
(10) Section 7701(a)(13) is amended to read as follows:
``(13) Administrator.--The term `Administrator', except
where the context clearly indicates otherwise, means the
Administrator of the Internal Revenue Service.''.
(11)(A) Section 7804(a) is amended by striking
``Commissioner of Internal Revenue'' and inserting
``Administrator of the Internal Revenue Service''.
(B) Subsections (a), (b)(1), and (b)(2) of section 7804(a),
as amended by subparagraph (A), are each amended by striking
``Commissioner'' each place it appears therein and inserting
``Administrator''.
(12) Section 7811(c)(1) is amended by striking ``the
Commissioner of Internal Revenue, or the Deputy Commissioner
of Internal Revenue'' and inserting ``the Administrator of
the Internal Revenue Service, or the Deputy Commissioner of
the Internal Revenue Service''.
(d) Amendments to Section 8D of the Inspector General Act
of 1978.--
(1) Subsections (g)(2), (k)(1)(C), (l)(1), and (l)(2)(A) of
section 8D of the Inspector General Act of 1978 are each
amended by striking ``Commissioner of Internal Revenue'' and
inserting ``Administrator of the Internal Revenue Service''.
(2) Section 8D(l)(2)(B) of such Act is amended by striking
``Commissioner'' each place it appears therein and inserting
``Administrator''.
(e) Other References.--Any reference in any provision of
law, or regulation or other guidance, to the Commissioner of
Internal Revenue, or to any Deputy or Assistant Commissioner
of Internal Revenue, or to a Commissioner of any division or
region of the Internal Revenue Service, shall be treated as a
reference to the Administrator of the Internal Revenue
Service, or to the appropriate Deputy or Assistant
Administrator of the Internal Revenue Service, or to the
appropriate Administrator of such division or region,
respectively.
(f) Continuity.--In the case of any individual appointed by
the President, by and with the advice and consent of the
Senate, as Commissioner of Internal Revenue under section
7803(a)(1)(A) of the Internal Revenue Code of 1986, and
serving in such position immediately before the date of the
enactment of this Act, the amendments made by this section
shall be construed as changing the title of such individual
and shall not be construed to--
(1) require the reappoint of such individual under such
section, or
(2) alter the remaining term of such person under section
7803(a)(1)(B).
SEC. 402. OFFICE OF THE NATIONAL TAXPAYER ADVOCATE.
(a) Taxpayer Advocate Directives.--
(1) In general.--Section 7803(c) is amended by adding at
the end the following new paragraph:
``(5) Taxpayer advocate directives.--In the case of any
Taxpayer Advocate Directive issued by the National Taxpayer
Advocate pursuant to a delegation of authority from the
Administrator of the Internal Revenue Service--
``(A) the Administrator or a Deputy Administrator shall
modify, rescind, or ensure compliance with such directive not
later than 90 days after the issuance of such directive, and
``(B) in the case of any directive which is modified or
rescinded by a Deputy Administrator, the National Taxpayer
Advocate may (not later than 90 days after such modification
or rescission) appeal to the Administrator and the
Administrator shall (not later than 90 days after such appeal
is made) ensure compliance with such directive as issued by
the National Taxpayer Advocate or provide the National
Taxpayer Advocate with a detailed description of the reasons
for any modification or rescission made or upheld by the
Administrator pursuant to such appeal.''.
(2) Report to certain committees of congress regarding
directives.--Section 7803(c)(2)(B)(ii) is amended by
redesignating subclauses (VIII) through (XI) as subclauses
(IX) through (XII), respectively, and by inserting after
subclause (VII) the following new subclause:
``(VIII) identify any Taxpayer Advocate Directive which was
not honored by the Internal Revenue Service in a timely
manner, as specified under paragraph (5);''.
(b) National Taxpayer Advocate Annual Reports to
Congress.--
(1) Inclusion of most serious taxpayer problems.--Section
7803(c)(2)(B)(ii)(III) is amended by striking ``at least 20''
and inserting ``the 10''.
(2) Coordination with treasury inspector general for tax
administration.--Section 7803(c)(2) is amended by adding at
the end the following new subparagraph: .
``(E) Coordination with treasury inspector general for tax
administration.--Before beginning any research or study, the
National Taxpayer Advocate shall coordinate with the Treasury
Inspector General for Tax Administration to ensure that the
National Taxpayer Advocate does not duplicate any action that
the Treasury Inspector General for Tax Administration has
already undertaken or has a plan to undertake.''.
(3) Statistical support.--
(A) In general.--Section 6108 is amended by adding at the
end the following new subsection:
``(d) Statistical Support for National Taxpayer Advocate.--
The Secretary shall, upon request of the National Taxpayer
Advocate, provide the National Taxpayer Advocate with
statistical support in connection with the preparation by the
National Taxpayer Advocate of the annual report described in
section 7803(c)(2)(B)(ii). Such statistical support shall
include statistical studies, compilations, and the review of
information provided by the National Taxpayer Advocate for
statistical validity and sound statistical methodology.''.
(B) Disclosure of review.--Section 7803(c)(2)(B)(ii), as
amended by subsection (a), is amended by redesignating
subclause (XII) as subclause (XIII) and by inserting after
subclause (XI) the following new subclause:
``(XII) with respect to any statistical information
included in such report, include a statement of whether such
statistical information was reviewed or provided by the
Secretary under section 6108(d) and, if so, whether the
Secretary determined such information to be statistically
valid and based on sound statistical methodology.''.
(C) Conforming amendment.--Section 7803(c)(2)(B)(iii) is
amended by adding at the end the following: ``The preceding
sentence shall not apply with respect to statistical
information provided to the Secretary for review, or received
from the Secretary, under section 6108(d).''.
(c) Salary of National Taxpayer Advocate.--Section
7803(c)(1)(B)(i) is amended by striking ``, or, if the
Secretary of the Treasury so determines, at a rate fixed
under section 9503 of such title''.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall take
effect on the date of the enactment of this Act.
(2) Salary of national taxpayer advocate.--The amendment
made by subsection (c) shall apply to compensation paid to
individuals appointed as the National Taxpayer Advocate after
the date of the enactment of this Act.
SEC. 403. ELIMINATION OF IRS OVERSIGHT BOARD.
(a) In General.--Subchapter A of chapter 80 is amended by
striking section 7802 (and by striking the item relating to
such section in the table of sections of such subchapter).
(b) Conforming Amendments.--
(1) Section 4946(c) is amended by adding ``or'' at the end
of paragraph (5), by striking ``, or'' at the end of
paragraph (6) and inserting a period, and by striking
paragraph (7).
(2) Section 6103(h) is amended by striking paragraph (6).
(3) Section 7803(a) is amended by striking paragraph (4).
(4) Section 7803(c)(1)(B)(ii) is amended by striking ``and
the Oversight Board''.
(5) Section 7803(c)(2)(B)(iii) is amended by striking ``the
Oversight Board,''.
[[Page H3415]]
(6) Section 8D of the Inspector General Act of 1978 is
amended--
(A) in subsections (g)(2) and (h), by striking ``the
Internal Revenue Service Oversight Board and'',
(B) in subsection (l)(1), by striking ``or the Internal
Revenue Service Oversight Board'', and
(C) in subsection (l)(2), by striking ``and the Internal
Revenue Service Oversight Board''.
SEC. 404. MODERNIZATION OF INTERNAL REVENUE SERVICE
ORGANIZATIONAL STRUCTURE.
(a) In General.--Not later than September 30, 2020, the
Administrator of the Internal Revenue Service shall submit to
Congress a comprehensive written plan to redesign the
organization of the Internal Revenue Service. Such plan
shall--
(1) ensure the successful implementation of the priorities
specified by Congress in this Act,
(2) prioritize taxpayer services to ensure that all
taxpayers easily and readily receive the assistance that they
need,
(3) streamline the structure of the agency including
minimizing the duplication of services and responsibilities
within the agency,
(4) best position the Internal Revenue Service to combat
cybersecurity and other threats to the Internal Revenue
Service, and
(5) address whether the Criminal Investigation Division of
the Internal Revenue Service should report directly to the
Administrator.
(b) Repeal of Restriction on Organizational Structure of
Internal Revenue Service.--Paragraph (3) of section 1001(a)
of the Internal Revenue Service Restructuring and Reform Act
of 1998 shall cease to apply beginning 1 year after the date
on which the Administrator of the Internal Revenue Service
submits to Congress the plan described in subsection (a).
TITLE V--TAX COURT
SEC. 501. DISQUALIFICATION OF JUDGE OR MAGISTRATE JUDGE OF
THE TAX COURT.
(a) In General.--Part II of subchapter C of chapter 76 is
amended by adding at the end the following new section:
``SEC. 7467. DISQUALIFICATION OF JUDGE OR MAGISTRATE JUDGE OF
THE TAX COURT.
``Section 455 of title 28, United States Code, shall apply
to judges and magistrate judges of the Tax Court and to
proceedings of the Tax Court.''.
(b) Clerical Amendment.--The table of sections for such
part is amended by adding at the end the following new item:
``Sec. 7467. Disqualification of judge or magistrate judge of the Tax
Court.''.
SEC. 502. OPINIONS AND JUDGMENTS.
(a) In General.--Section 7459 is amended by striking all
the precedes subsection (c) and inserting the following:
``SEC. 7459. OPINIONS AND JUDGMENTS.
``(a) Requirement.--An opinion upon any proceeding
instituted before the Tax Court and a judgment thereon shall
be made as quickly as practicable. The judgment shall be made
by a judge in accordance with the opinion of the Tax Court,
and such judgment so made shall, when entered, be the
judgment of the Tax Court.
``(b) Inclusion of Findings of Fact in Opinion.--It shall
be the duty of the Tax Court and of each division to include
in its opinion or memorandum opinion upon any proceeding, its
findings of fact. The Tax Court shall issue in writing all of
its findings of fact, opinions, and memorandum opinions.
Subject to such conditions as the Tax Court may by rule
provide, the requirements of this subsection and of section
7460 are met if findings of fact or opinion are stated orally
and recorded in the transcript of the proceedings.''.
(b) Conforming Amendments to Section 7459.--
(1) Subsections (c), (d), (e), and (f) of section 7459 are
each amended by striking ``decision'' each place it appears
and inserting ``judgment''.
(2) The headings of subsections (c), (d), and (e) of
section 7459 are each amended by striking ``Decision'' and
inserting ``Judgment''.
(3) The item relating to section 7459 in the table of
sections for part II of subchapter C of chapter 76 is amended
to read as follows:
``Sec. 7459. Opinions and judgments.''.
(c) Other Conforming Amendments.--
(1) The following provisions are each amended by striking
``decision'' and inserting ``judgment'':
(A) Section 1313(a)(1).
(B) Section 6213(a).
(C) Section 6214(d).
(D) Section 6225(a)(2).
(E) Section 6226(g).
(F) Section 6228(a)(6).
(G) Subsections (a)(3)(B) and (c)(1)(A)(ii) of section
6230.
(H) Section 6247(d).
(I) Section 6252(e).
(J) Section 6404(h)(2)(C).
(K) Section 6503(a)(1).
(L) Section 6673(a)(1)(C).
(M) Subsections (c), (f), and (g) of section 6861.
(N) Section 6863(b)(3)(C).
(O) Section 7428(a).
(P) Section 7428(c)(1)(C)(i).
(Q) Section 7430(f)(3).
(R) Section 7436(c)(2).
(S) Section 7461(b)(2).
(T) Subsections (a)(4), (b), and (d) of section 7463.
(U) Subsections (a)(2)(B) and (b)(4) of section 7476.
(V) Section 7477(a).
(W) Section 7478(a)(2).
(X) Subsections (a)(2) and (c) of section 7479.
(2) The following provisions are each amended by striking
``decision'' each place it appears and inserting
``judgment'':
(A) Subsections (a) and (b)(3) of section 6215.
(B) Section 6226(h).
(C) Section 6247(e).
(D) Subsections (d) and (e) of section 6861.
(E) Section 6863(b)(2).
(F) Section 7422.
(G) Subsections (a) and (b) of section 7460.
(H) Subsections (a), (b), (c), and (d) of section 7463.
(I) Section 7482.
(J) Section 7483.
(K) Section 7485(b).
(L) Section 7481.
(3) Sections 7422 and 7482 are each amended by striking
``decisions'' each place it appears and inserting
``judgments''.
(4) Section 7430(f)(1) is amended by striking ``decision
or'' both places it appears.
(5) Subsections (a) and (b) of section 7460 are each
amended by striking ``report'' each place it appears and
inserting ``opinion''.
(6) Section 7461(a) is amended--
(A) by striking ``reports'' and inserting ``opinions'', and
(B) by striking ``report'' and inserting ``opinion''.
(7) Section 7462 is amended by striking ``reports'' each
place it appears and inserting ``opinions''.
(8) Section 7487(1) is amended by striking ``decisions''
and inserting ``judgments''.
(9) The headings of sections 6214(b), 7463(b), 7481(a),
7481(b), 7481(d), and 7485(b) are each amended by striking
``Decisions'' and inserting ``Judgments''.
(10) The headings of sections 6226(h), 6247(e), 6861(c),
6861(d), 7443A(c), 7481(a)(2), and 7481(a)(3) are each
amended by striking ``Decision'' and inserting ``Judgment''.
(11) The headings of sections 6863(b)(2), 6863(b)(3),
7430(f)(3), and 7482(a)(2)(B) are each amended by striking
``decision'' and inserting ``judgment''.
(12) The heading of section 7436(c)(2) is amended by
striking ``decisions'' and inserting ``judgment''.
(13) The heading of section 7460(a) is amended by striking
``Reports'' and inserting ``Opinions''.
(14) The heading of section 7462 is amended by striking
``reports'' and inserting ``opinions''.
(15) The heading of subchapter D of chapter 76 is amended
by striking ``Decisions'' and inserting ``Judgments''.
(16) The heading of section 7481 is amended by striking
``decision'' and inserting ``judgment''.
(17) The item relating to section 7462 in the table of
sections for part II of subchapter C of chapter 76 is amended
to read as follows:
``Sec. 7462. Publication of opinions.''.
(18) The item relating to subchapter D in the table of
subchapters for chapter 76 is amended to read as follows:
``subchapter d.--court review of tax court judgments''.
(19) The item relating to section 7481 in the table of
sections for part III of subchapter D of chapter 76 is
amended to read as follows:
``Sec. 7481. Date when Tax Court judgment becomes final.''.
(d) Continuing Effect of Legal Documents.--All orders,
decisions, reports, rules, permits, agreements, grants,
contracts, certificates, licenses, registrations, privileges,
and other administrative actions, in connection with the Tax
Court, which are in effect at the time this section takes
effect, or were final before the effective date of this
section and are to become effective on or after the effective
date of this section, shall continue in effect according to
their terms until modified, terminated, superseded, set
aside, or revoked in accordance with law by the Tax Court.
SEC. 503. TITLE OF SPECIAL TRIAL JUDGE CHANGED TO MAGISTRATE
JUDGE OF THE TAX COURT.
(a) In General.--Section 7443A is amended--
(1) by striking ``special trial judges'' in subsections (a)
and (e) and inserting ``magistrate judges of the Tax Court'',
(2) by striking ``special trial judges of the court'' in
subsection (b) and inserting ``magistrate judges of the Tax
Court'', and
(3) by striking ``special trial judge'' in subsections (c)
and (d) and inserting ``magistrate judge of the Tax Court''.
(b) Conforming Amendments.--
(1) The heading of section 7443A is amended by striking
``special trial judges'' and inserting ``magistrate judges of
the tax court''.
(2) The heading of section 7443A(b) is amended by striking
``Special Trial Judges'' and inserting ``Magistrate Judges of
the Tax Court''.
(3) The item relating to section 7443A in the table of
sections for part I of subchapter C of chapter 76 is amended
to read as follows:
``Sec. 7443A. Magistrate judges of the Tax Court.''.
(4) The heading of section 7448 is amended by striking
``special trial judges'' and inserting ``magistrate judges of
the tax court''.
(5) Section 7448 is amended--
(A) by striking ``special trial judge's'' each place it
appears in subsections (a)(6), (c)(1), (d), and (m)(1) and
inserting ``magistrate judge of the Tax Court's'', and
(B) by striking ``special trial judge'' each place it
appears other than in subsection (n) and inserting
``magistrate judge of the Tax Court''.
(6) Section 7448(n) is amended--
(A) by striking ``special trial judge which are allowable''
and inserting ``magistrate judge of the Tax Court which are
allowable'', and
(B) by striking ``special trial judge of the Tax Court''
both places it appears and inserting ``magistrate judge of
the Tax Court''.
(7) The heading of section 7448(b)(2) is amended by
striking ``Special trial judges'' and inserting ``Magistrate
judges of the tax court''.
[[Page H3416]]
(8) The item relating to section 7448 in the table of
sections for part I of subchapter C of chapter 76 is amended
to read as follows:
``Sec. 7448. Annuities to surviving spouses and dependent children of
judges and magistrate judges of the Tax Court.''.
(9) Section 7456(a) is amended--
(A) by striking ``special trial judge'' each place it
appears and inserting ``magistrate judge'', and
(B) by striking ``(or by the clerk'' and inserting ``of the
Tax Court (or by the clerk''.
(10) Section 7466(a) is amended by striking ``special trial
judge'' and inserting ``magistrate judge''.
(11) Section 7470A is amended by striking ``special trial
judges'' both places it appears in subsections (a) and (b)
and inserting ``magistrate judges''.
(12) Section 7471(a)(2)(A) is amended by striking ``special
trial judges'' and inserting ``magistrate judges''.
(13) Section 7471(c) is amended--
(A) by striking ``Special Trial Judges'' in the heading and
inserting ``Magistrate Judges of the Tax Court'', and
(B) by striking ``special trial judges'' and inserting
``magistrate judges''.
SEC. 504. REPEAL OF DEADWOOD RELATED TO BOARD OF TAX APPEALS.
(a) Section 7459 is amended by striking subsection (f) and
redesignating subsection (g) as subsection (f).
(b) Section 7447(a)(3) is amended to read as follows:
``(3) In any determination of length of service as judge or
as a judge of the Tax Court of the United States there shall
be included all periods (whether or not consecutive) during
which an individual served as judge.''.
The SPEAKER pro tempore. The bill, as amended, shall be debatable for
1 hour equally divided and controlled by the chair and ranking minority
member of the Committee on Ways and Means.
The gentleman from Texas (Mr. Brady) and the gentleman from Georgia
(Mr. Lewis) each will control 30 minutes.
The Chair recognizes the gentleman from Texas.
General Leave
Mr. BRADY of Texas. Mr. Speaker, I ask unanimous consent that all
Members have 5 legislative days within which to revise and extend their
remarks and include any extraneous material on H.R. 5444, currently
under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. BRADY of Texas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, today we are taking the biggest and boldest steps in 20
years, to redesign the IRS with a singular focus, taxpayer service.
This bill will redesign the IRS for the first time in two decades. It
refocuses the agency to live up to its mission of putting taxpayers
first. Finally, it will rein in its enforcement powers to prevent
future abuse.
There are two important pieces of legislation being considered before
the House today, H.R. 5444, the Taxpayer First Act; and H.R. 5445, the
21st Century IRS Act. These bipartisan bills, the product of 2 years of
work by the Committee on Ways and Means, will make the IRS a truly
taxpayer-first agency in a number of different ways.
First off, this bill puts an emphasis on customer service. We are
requiring the IRS to submit to Congress plans to restructure the agency
to improve efficiency, enhance cybersecurity, and better serve
taxpayers. This will guarantee that the IRS is living up to its
``quality service'' motto, while holding the agency accountable if it
fails to meet these standards.
In addition, our legislation encourages the IRS to adopt commonsense
customer service features commonly seen in the private sector, such as
a call-back option.
Secondly, we are overhauling the IRS' enforcement tools so families
and small businesses can't have property seized without fair notice and
due process. Over and over again, we have heard stories from across the
country of absolutely tragic abuses of power by the IRS.
For example, we heard from Andrew Clyde, who served three combat
tours in Iraq. Then he came home and opened a successful small business
in Georgia, only to have the IRS unfairly seize $950,000 from him. Our
legislation prevents outrageous enforcement abuses like this to protect
American taxpayers from unfair seizures.
Thirdly, the Taxpayer First Act reminds the IRS they are not just an
enforcement agency, they are also our tax administrator. That is why
this bill changes the title of the IRS chief from Commissioner to, more
accurately, Administrator.
Additionally, and this is important, Mr. Speaker, we are shifting the
burden of proof back onto the IRS when examining taxpayers. This
legislation establishes an Independent Office of Appeals within the
agency to ensure that taxpayers receive a fair and impartial review of
disputes they may have with the IRS.
It shouldn't take a Freedom of Information Act request to see what
evidence the IRS is bringing against you. This legislation will require
that the IRS provide you with your own case file prior to any review of
your dispute with the agency. It puts taxpayers on a level playing
field, which is where they deserve to be.
In the 21st Century IRS Act, we are revamping the IRS' nearly ancient
technology and better positioning the agency to proactively combat
cyber threats.
Right now, IRS technology is so outdated that some systems date to
the 1960s, and fax machines are still used for some official
communications. This bill modernizes the IRS and ensures the agency is
accountable for the billions of dollars in IT that it spends each year.
Lastly, the 21st Century IRS Act enhances the agency's ability to
combat identity theft tax refund fraud by strengthening the IRS'
partnership with States and with cybersecurity experts.
{time} 1345
This bill requires the IRS to practically partner with States in the
private sector that effectively combat identify thieves trying to steal
our refund.
I want to thank Oversight Subcommittee Chairman Lynn Jenkins and
Oversight Subcommittee Ranking Member John Lewis for their tireless
work on this important bill.
With the new Tax Code, it is time for a redesign of our tax agency.
This bipartisan legislation truly refocuses the IRS to make it a
taxpayer-first agency.
Finally, Mr. Speaker, before I turn over the floor, I would like to
recognize a good friend and trusted policy adviser, and by every
measure, one of the very best to ever serve the Ways and Means
Committee in the House, Mr. David Stewart.
David began his congressional journey in 2000, when he came to intern
for Ways and Means Committee member, Congressman Phil English. Over his
career as a staffer, David became a trusted voice on policy for Speaker
John Boehner, for Speaker Paul Ryan, and, 2\1/2\ years ago, for me,
when he joined the Ways and Means Committee as staff director.
This past year, with David's steady leadership and immutable resolve,
we were able to pass the first tax reform in a generation, which has
boosted our economy and helped so many American families. David's focus
has always been on making lives better for all Americans, and I stand
here to today to tell him: Job well done.
David is a selfless public servant. He sacrificed so much time away
from his family--his wife, Betsy, and his daughters, Grace and Poppy--
and yet he has served his nation so well.
To say David works hard is an understatement. Once, when he was asked
how many hours he worked per week, David replied, simply, with, ``A
lot.'' This also shows David's wit and his wry sense of humor that has
always made busy days brighter.
His dedication to mastering intricate policy is unmatched, and I
know, Mr. Speaker, I speak for all members and staff of the Ways and
Means Committee when I say: Thank you, David, for your service to the
House and the Committee on Ways and Means. You will be greatly missed
around here, my friend.
House of Representatives,
Committee on Financial Services,
Washington, DC, April 12, 2018.
Hon. Kevin Brady,
Chairman, Committee on Ways and Means, Washington, DC.
Dear Chairman Brady: I am writing to you regarding H.R.
5444, the ``Taxpayer First Act''. There are certain
provisions in the legislation which fall within the Rule X
jurisdiction of the Committee on Financial Services.
[[Page H3417]]
In the interest of permitting your committee to proceed
expeditiously to floor consideration of this important bill,
I am willing to waive this committee's right to sequential
referral. I do so with the understanding that by waiving
consideration of the bill the Committee on Financial Services
does not waive any future jurisdictional claim over the
subject matters contained in the bill which fall within its
Rule X jurisdiction. I request that you urge the Speaker to
name members of this committee to any conference committee
which is named to consider such provisions.
Please place this letter into the committee report on H.R.
5444 and into the Congressional Record during consideration
of the measure on the House floor. Thank you for the
cooperative spirit in which you have worked regarding this
matter and others between our respective committees.
Sincerly,
Jeb Hensarling,
Chairman.
____
House of Representatives,
Committee on Ways and Means,
Washington, DC, April 13, 2018.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services,
Washington, DC.
Dear Chairman Hensarling: Thank you for your letter
concerning H.R. 5444, the ``Taxpayer First Act'' on which the
Financial Services Committee was granted an additional
referral.
I am most appreciative of your decision to waive formal
consideration of H.R. 5444 so that it may proceed
expeditiously to the House floor. I acknowledge that although
you waived formal consideration of the bill, the Financial
Services Committee is in no way waiving its jurisdiction over
the subject matter contained in those provisions of the bill
that fall within your Rule X jurisdiction. I would support
your effort to seek appointment of an appropriate number of
conferees on any House-Senate conference involving this
legislation.
I will include a copy of our letters in the Congressional
Record during consideration of this legislation on the House
floor.
Sincerely,
Kevin Brady,
Chairman.
Mr. BRADY of Texas. Mr. Speaker, I yield the balance of my time to
the gentlewoman from Kansas (Ms. Jenkins), and I ask unanimous consent
that she may control that time.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Ms. JENKINS of Kansas. Mr. Speaker, I reserve the balance of my time.
Mr. LEWIS of Georgia. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I want to thank Chairman Brady for all of his great and
good work and for all of his help.
Mr. Speaker, I rise in strong support of H.R. 5444. I am proud to
join the gentlewoman from Kansas (Ms. Jenkins) in introducing the
Taxpayer First Act.
I would like to begin by thanking the chairwoman for her good and
great work on this bill. It was a wonderful opportunity and a great
pleasure to work with Ms. Jenkins.
I would also like to thank our friend and colleague, the gentleman
from Florida (Mr. Buchanan), for his determination to work together on
behalf of the taxpayers.
Finally, I would like to recognize our staff--Karen McAfee, Peg
McGlinch, Machalagh Carr, Rachel Kaldahl, Liz Navin, Lindsay Steward,
Meinan Gogo, Adam York, and Jamila Thompson--for all of their hard,
good, and great work, and we will never forget you.
Mr. Speaker, the process and the product should inspire each and
every Member of this body. For over a year, the Ways and Means
Oversight Subcommittee hosted hearings and roundtables. We listened and
asked questions. We asked Democratic and Republican Members to provide
feedback. We reached out to taxpayers and advocates. We negotiated. We
took our time, and, Mr. Speaker, I believe that we did it right.
Together, we developed a bill that improves the independent appeals
process and taxpayer services.
Last month, the gentlewoman from Kansas (Ms. Jenkins) and I released
a discussion draft of a bill that would strengthen the IRS and improve
taxpayers' services. We reviewed the comments and tried to include
fixes where there was agreement. The process was transparent and
inclusive, and the product is strong and timely.
H.R. 5444 also makes commonsense updates to the structure of the IRS
and the Tax Code. In particular, I am very proud of our work to improve
IRS enforcement. For example, we were able to address a shocking issue
that the National Taxpayer Advocate raised in her 2017 annual report to
Congress.
It is hard to believe that the private debt collection program costs
three times more than it collects. This flawed program targets and
abuses thousands of low-income taxpayers by enrolling them in
installment agreements that they simply cannot afford. That is not
right. That is not fair. By removing low-income taxpayers from the
private debt collection program, H.R. 5444 puts us on the right path.
Unfortunately, the IRS experienced serious system problems yesterday.
I am glad that the IRS acted quickly and extended the tax filing
deadline. These problems showed us that we need to have an honest talk
with ourselves about the work ahead.
We all know that Congress cut the agency's budget by almost $1
billion since 2010. This reduction harmed both taxpayer services and
tax administration. I have said time and time again that you cannot get
blood from a turnip. I look forward to working with our colleagues to
ensure that the agency has the tools and resources it needs.
It is also important that taxpayers, especially those who are of low
income, disabled, and senior citizens, receive fair, quality, and
timely help and support.
Through it all, Mr. Speaker, our subcommittee did good work,
necessary work. From the beginning, we committed to bipartisanship, and
we refused to abandon our course. Mr. Speaker, I am proud of our
product and process. At every crossroad, we remembered the lessons from
the past and chose to put the taxpayers first.
Again, I urge all of our colleagues to support this bill. I hope that
we will continue to work together and improve the taxpayers'
experience.
Mr. Speaker, I reserve the balance of my time.
Ms. JENKINS of Kansas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, today marks a significant step forward for the American
taxpayer as we take up the bipartisan Taxpayer First Act.
The goal of this bill is simple: move the Internal Revenue Service
toward being a truly customer service-focused agency, placing a renewed
focus on treating taxpayers with respect and dignity.
Mr. Speaker, I want to thank the Ways and Means Oversight
Subcommittee Ranking Member, John Lewis, for cosponsoring this
legislation with me.
Together, the subcommittee held 13 formal committee events over the
past 3 years, looking at many aspects of how the IRS functions and
where improvements are clearly needed. It is in all of our interests
for taxpayers to know that the IRS is treating them fairly and with
respect.
As a CPA, Members might have heard me talk before about my concerns
with the interactions between the IRS and taxpayers. Not only have I
heard these concerns while practicing in the private sector, but in my
congressional office as well.
In handling constituent services requests through my office, I have
found many instances of just outright lack of common sense in
administering our Tax Code. As we looked at what changes needed to be
made, we focused on the relationship between taxpayers and the
government. That means a customer service experience akin to what
Americans expect from the private sector, with online services,
callback options, and improved support on the phone. To make sure
taxpayers receive a fair and impartial review of disputes, we
established the Independent Office of Appeals.
This commitment to fair and impartial treatment is the bedrock of the
faith Americans place in the IRS.
The vast majority of tax revenues come into the Treasury voluntarily.
According to the National Taxpayer Advocate, only 2 percent of all tax
revenue collected comes from IRS enforcement actions. A service-
oriented, taxpayer-first IRS is key to supporting voluntary compliance.
Our bill also makes permanent the IRS Free File Program, which is not
only a win for the taxpayer, but saves the IRS time as well. This
commonsense provision is one of the many included in this legislation
that has strong bipartisan support and furthers the IRS mission to
promote electronic filing.
[[Page H3418]]
This bill also includes important taxpayer protections to ensure that
the IRS enforcement powers are fair and transparent. For example, this
bill includes safeguards to ensure that individuals and small
businesses are protected from improper seizures by the IRS.
Lastly, the bill tasks the IRS to develop and submit to Congress a
comprehensive plan to restructure the agency, ensuring that it is best
positioned to meet the needs of taxpayers today and into the future.
In short, this is the reform I promised my constituents in Kansas and
the reforms that all Americans deserve.
Mr. Speaker, I would also like to note that we have received a score
from the Congressional Budget Office, which I include in the Record.
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 16, 2018.
Hon. Kevin Brady,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5444, the
Taxpayer First Act.
If you wish further details on this estimate, we will be
pleased to provide them.
Sincerely,
Keith Hall,
Director.
Enclosure.
H.R. 5444--Taxpayer First Act
As reported by the House Committee on Ways and Means on April 13, 2018
Summary
H.R. 5444 would make a number of changes to the management
and oversight of the Internal Revenue Service (IRS). The bill
would:
Aim to improve customer service and the taxpayer appeals
assistance process;
Restrict certain IRS enforcement activities;
Modify the agency's organization; and
Change the operations of the U.S. Tax Court.
The staff of the Joint Committee on Taxation (JCT)
estimates that enacting the bill would reduce revenues by
$102 million over the 2019-2028 period, and CBO estimates
that enacting H.R. 5444 would decrease direct spending by $51
million over the same period. On net, H.R. 5444 would
increase deficits by $52 million over the period. CBO has not
completed an estimate of the bill's costs that are subject to
annual appropriation.
Because enacting the bill would affect direct spending and
revenues, pay-as-you-go procedures apply.
CBO and JCT estimate that enacting H.R. 5444 would not
increase net direct spending or significantly affect on-
budget deficits in any of the four consecutive 10-year
periods beginning in 2029.
JCT has reviewed H.R. 5444 and determined that it contains
no intergovernmental or private-sector mandates as defined in
the Unfunded Mandates Reform Act (UMRA).
Estimated Cost to the Federal Government
The estimated budgetary effect of H.R. 5444 is shown in the
following table. The costs of the legislation fall within
budget function 800 (general government).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------------------
2019- 2019-
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2023 2028
--------------------------------------------------------------------------------------------------------------------------------------------------------
DECREASES IN REVENUES
Estimated Revenues.............................. 0 -32 -57 -12 -1 * * * * * * -101 -102
DECREASES IN DIRECT SPENDING a
Estimated Budget Authority...................... 0 -16 -29 -6 * * * * * * * -51 -51
Estimated Outlays............................... 0 -16 -29 -6 * * * * * * * -51 -51
NET INCREASE IN THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES
Effect on the Deficit........................... 0 16 29 6 * * * * * * * 51 52
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding; * = between -$500,000 and zero.
a CBO expects that implementing the bill would increase spending for the Internal Revenue Service (IRS) that is subject to appropriation. CBO has not
completed an estimate of those costs. In 2018, the Congress appropriated $11.1 billion for IRS operations.
Basis of Estimate
For purposes of this estimate, CBO assumes that H.R. 5444
will be enacted by the end of fiscal year 2018.
Revenues
Under current law, the IRS is authorized to use private
debt collection companies to locate and contact taxpayers who
owe federal taxes and to arrange for the payment of those
amounts. The bill would prohibit the use of private
collection companies when the affected taxpayer's adjusted
gross income is at or below 250 percent of the poverty level
(as determined by the Secretary of the Treasury). The
provision would take effect six months after the enactment of
the legislation and end in December 2019. JCT estimates that
the change would reduce revenues by $102 million over the
2019-2028 period. The provision also would affect direct
spending, as discussed under the heading, ``Direct
Spending.''
JCT estimates that other provisions in the bill would
reduce revenues by an insignificant amount in each year.
Direct Spending
The bill's prohibition on using private debt collectors in
certain cases would reduce direct spending. Under current
law, the IRS enters into contracts with private companies to
collect delinquent tax liabilities owed to the federal
government. Under those contracts, the IRS may allow those
businesses to retain up to 25 percent of the amounts they
collect. Another 25 percent of the amounts collected is
available to the IRS to spend on enforcement activities. CBO
estimates that repealing the private debt collection
authority and allowing the current contracts to expire would
reduce direct spending by $51 million over the 2019-2028
period, or 50 percent of the estimated reduction in revenues
stemming from this provision.
Other provisions in the bill would have an insignificant
effect on direct spending.
Pay-As-You-Go Considerations
The Statutory Pay-As-You-Go Act of 2010 establishes budget-
reporting and enforcement procedures for legislation
affecting direct spending or revenues. The net changes in
outlays and revenues that are subject to those pay-as-you-go
procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 5444, THE TAXPAYER FIRST ACT, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON WAYS AND MEANS ON APRIL 11,
2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------------------
2018- 2018-
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2023 2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN THE DEFICIT
Statutory Pay-As-You-Go Impact.................. 0 16 29 6 * * * * * * * 51 52
Memorandum:
Decreases in Outlays........................ 0 -16 -29 -6 * * * * * * * -51 -51
Decreases in Revenues....................... 0 -32 -57 -12 -1 * * * * * * -101 -102
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increase in Long-Term Direct Spending and Deficits
CBO and JCT estimate that enacting H.R. 5444 would not
increase net direct spending or significantly affect on-
budget deficits in any of the four consecutive 10-year
periods beginning in 2029.
Mandates
JCT has reviewed H.R. 5444 and determined that it contains
no intergovernmental or private-sector mandates as defined in
UMRA.
Estimate Prepared by
Federal Costs: Janet Holtzblatt and Matthew Pickford.
Estimate Reviewed by
Kim P. Cawley, Chief, Natural and Physical Resources Cost
Estimates Unit.
H. Samuel Papenfuss, Deputy Assistant Director for Budget
Analysis.
Theresa Gullo, Assistant Director for Budget Analysis.
John McClelland, Assistant Director for Tax Analysis.
Ms. JENKINS of Kansas. Mr. Speaker, I reserve the balance of my time.
Mr. LEWIS of Georgia. Mr. Speaker, I yield 3 minutes to the
gentlewoman
[[Page H3419]]
from California (Ms. Eshoo), my good friend.
Ms. ESHOO. Mr. Speaker, I thank our beloved John Lewis for yielding
time to me.
Mr. Speaker, I rise today in strong support of H.R. 5444, the
Taxpayer First Act. This is bipartisan legislation, and it was
unanimously reported out by the Committee on Ways and Means on April
13. It includes a number of important provisions that will modernize,
as the Members have been saying, and improve how the IRS administers
the Federal Tax Code.
The legislation also makes permanent a popular IRS program that has
helped prepare 50 million free returns and e-filings over the last 15
years, saving taxpayers more than $1.5 billion--yes, with a B--in tax
compliance costs. That program is the Free File Program. It is an
effective partnership between the IRS and the tax preparation community
that provides free individual tax preparation and e-filing services to
taxpayers with incomes in the bottom 70 percent.
I have been a strong supporter of stand-alone legislation on this
issue over several Congresses, and I am really pleased to see that it
is included in H.R. 5444.
The Free File Program is also a product of the decentralized system
of private taxpayers that we have in place for the American public to
file their taxes each year. Consumers have a choice when it comes to
whom they choose to prepare their taxes, and choice is a product of
competition and the primary ingredient for innovation.
Some have argued that this should be a centralized system, requiring
all taxpayers to file their tax returns using one system housed under
one roof. But just yesterday, we saw the IRS electronic filing system
and e-services crash, and they remained out of service for most of the
day. I think taxpayers are better served when they have a decentralized
tax ecosystem that can continue to run smoothly in the face of large
and unexpected shocks to the system.
We live every day with the increasing threat of data breaches and
cyber attacks that threaten the financial stability of more and more
Americans, and it is even a greater argument against housing our tax
infrastructure under one roof. Imagine the target this could create for
the world's most dangerous cybercriminals.
So I am proud to support this bipartisan legislation, because I think
it is an excellent example of what both sides of the aisle, Republicans
and Democrats, can do when we work together for the good of the
American people.
Mr. Speaker, I urge all of my colleagues to vote ``aye'' on H.R.
5444.
{time} 1400
Ms. JENKINS of Kansas. Mr. Speaker, I yield 2 minutes to the
gentleman from Illinois (Mr. Roskam).
Mr. ROSKAM. Mr. Speaker, I want to thank Chairman Jenkins and Ranking
Member Lewis for their work on this, and I am pleased that the
underlying bill includes the RESPECT Act, which deals with civil asset
forfeiture abuses by the Internal Revenue Service, and I strongly urge
the other body to take this up.
Mr. Speaker, I want to pick up on one of the themes that the
gentlewoman from California just mentioned--the Free File Program--and
explain why it is important.
She mentioned a decentralized program which makes all of the sense in
the world. She mentioned a level of predictability that makes all the
sense in the world. There are opponents to this, however, and I just
scratch my head. There are some fringe groups that have said: Oh, no,
no, no, that is a bad idea.
Instead, what they are proposing is this: that the Internal Revenue
Service fills out your tax returns; that the Internal Revenue Service
acts as judge, jury, and executioner. That is a terrible idea. It is
called ReadyReturn. It is a disaster. We ought not do that.
Instead, as the gentlewoman from California said, let's do this
program. It saves untold sums of money. It is a great benefit to modest
taxpayers--those who are earning less than $66,000 in their adjusted
gross income--and it also puts the onus on the private sector to
actively participate in this process. So in a nutshell, this is a good
bill. It is well thought out. It is bipartisan. It has been well
crafted and well contemplated, and I urge its passage.
Mr. LEWIS of Georgia. Mr. Speaker, I am pleased to yield 4 minutes to
the gentleman from Oregon (Mr. Blumenauer), who is a member of the
Health, Oversight, and Tax Policy Subcommittees.
Mr. BLUMENAUER. Mr. Speaker, I appreciate the gentleman's courtesy,
and I appreciate his hard work with Chair Jenkins moving this forward.
This is an example of--maybe people don't think it is earthshaking--
but being able to come together and deal with things that make a
difference with the IRS, which is the largest voluntary tax compliance
system in the world. It is very important. And I am pleased, with the
reference to 13 hearings and a lot of the back and forth, being able to
reach consensus.
But let me say, I wish that those two people who led this effort had
been empowered to do a deep dive into some of the dysfunctionality that
has been imposed on the IRS. Since 2010, the IRS is dealing with more
and more returns which are more and more complex, and my Republican
friends have slashed the people who work on it.
We haven't modernized the computer system which those of us who took
our first computer programming in the 1970s, I think, would be equipped
to work on. It is so outdated.
We have cut the people who were involved with enforcement. Now, I
would wish that everybody would voluntarily comply, but everybody
doesn't. And as a result, those people who work on enforcement make
about $6 for the taxpayer for every dollar we invest in their efforts.
And, more importantly, it is a signal that everybody is going to be
treated fairly. The people who cut corners, who forget, or who outright
cheat are taking away money from the government and putting the burden
on others who not only have to pick up the slack, but the people who
cheat get an unfair advantage in how they do business.
They are more profitable because they don't pay their full freight.
That is stupid, unfair, and it is counterproductive. That is one of the
reasons why we have a $450 billion tax gap--the difference between what
is owed as a result of people's tax liability and what is paid.
My friends on the other side of the aisle have been involved with
punishing the IRS for things real and imagined. But who has really
suffered has been the taxpayer, people who can't get their phone calls
answered. The IRS doesn't have staff in customer service who can
readily answer concerns that taxpayers have.
I am outraged when I hear attorneys and accountants in my community
say: Yeah, I had a client who had a legitimate claim and they would
have gotten that $4,000 back, but I had to tell them that, because of
the dysfunctionality and the underinvestment in the IRS, it would cost
them more for me to fix it for them than they would get back.
That is a scandal. We ought to make sure that we have a fully
functioning IRS that meets the needs of the taxpayers, that gives them
the answers that they need, that makes a very clear signal that
everybody needs to fulfill their civic obligations to pay their taxes,
and that businesses that cheat or forget are not going to get an unfair
advantage over people who work hard to follow the rules. Our deficit
would be $450 billion less if we did this properly.
The SPEAKER pro tempore (Mr. Flores). The time of the gentleman has
expired.
Mr. LEWIS of Georgia. Mr. Speaker, I yield an additional 2 minutes to
the gentleman from Oregon.
Mr. BLUMENAUER. Mr. Speaker, I thank the gentleman because I wanted
to make one other point. But I must confess that one of the other
reasons that I am really deeply concerned about that now is that it
wasn't just that we weren't able to do a deep dive on the causes of
dysfunctionality and underinvestment in the IRS.
It is no secret that one of my highest priorities as a Member of
Congress and as a member of the Ways and Means Committee, was to be
there to help us fulfill our responsibility on that committee dealing
with the resources necessary to rebuild and renew America.
It is no secret that America is falling apart while we are falling
behind. We
[[Page H3420]]
have a growing gap in our Highway Trust Fund that has lost 40 percent
of its purchasing power. We are not able to meet our current
commitments, let alone the commitments we have in the future.
The Ways and Means Committee allowed the Superfund tax to expire. So
now we have a Superfund to clean up toxic waste that has blighted
communities across the country, but we no longer have a tax that pays
for it. So that burden has been shifted to innocent parties and local
government.
I have been working with the last three chairs of our Ways and Means
Committee, asking that we have some robust hearings on our
responsibility for transportation.
The Transportation and Infrastructure Committee deals with the
authorization of the Surface Transportation Assistance Act, but the
Ways and Means Committee is responsible for funding it. A couple of
weeks ago, there was a hearing in the Transportation and Infrastructure
Committee on our job. They heard from witnesses from labor, from
business, the U.S. Chamber, trucking associations--a wide range of
people who came in and asked us to raise taxes on them.
The SPEAKER pro tempore. The time of the gentleman has again expired.
Mr. LEWIS of Georgia. Mr. Speaker, I yield an additional 1 minute to
the gentleman from Oregon.
Mr. BLUMENAUER. Mr. Speaker, I thank the gentleman. I really will
wrap up. But we have had no hearing like the Transportation and
Infrastructure Committee had. They brought all of the witnesses in to
talk about our job.
The last three chairs of the Ways and Means Committee from my
Republican friends, in 7 years and 3 months, have had exactly one
witness on our responsibility to raise the revenue for transportation,
not one hearing. We had 380 hearings. We had one 5-minute witness who
talked about the need to meet our responsibilities.
Mr. Speaker, why do we have to go to the Transportation and
Infrastructure Committee to hear our job? Isn't it about time that my
Republican friends allowed us to have a week or two to listen to the
wide array of people who want us to fulfill our responsibility to
rebuild and renew America and to pay for it? It is past time for that
hearing, and I hope we have it. And then we act on what people tell us.
Ms. JENKINS of Kansas. Mr. Speaker, I yield 3 minutes to the
gentleman from Iowa (Mr. Young).
Mr. YOUNG of Iowa. Mr. Speaker, I want to thank my colleagues Ms.
Jenkins and Mr. Lewis, and Chairman Brady and Ranking Member Neal, for
working on such a commonsense bill that is very bipartisan, of course.
We expect to see that kind of support on the floor as well as that of
the committee.
I rise in support of this great bill, H.R. 5444, the Taxpayer First
Act. My bill--and I thank the committee--H.R. 5386, the IRS Fair
Appeals Saving Taxpayers Act, or IRS FAST Act, was included in the
final text of the underlying bill. So this bill, in particular, will
help hardworking taxpayers navigate the IRS maze by requiring the IRS
to turn over all nonprivileged documents to an individual or business
if the taxpayer appeals the IRS' determination decision.
Taxpayers are finally being given an equal playing field. Under
current law, the IRS will only turn over a taxpayer's documents through
a Freedom of Information Act, or FOIA request, a process which most
taxpayers don't know even exists. It takes a long time and is difficult
to navigate. In a court of law, everyone has the right to see the
evidence that will be used against them, and the IRS is not above the
law and should not be able to play games with taxpayers.
Mr. Speaker, it shouldn't take a FOIA, a Freedom of Information Act,
request to see what evidence the IRS is going to use against you. The
IRS FAST Act, which is within H.R. 5444, will require the IRS to
provide taxpayers with their case file prior to any review of their
dispute with the IRS.
It is common sense and the taxpayers have a victory here. Allowing
taxpayers this opportunity is an important step toward bringing
accountability and transparency to the IRS. It will improve the
experience for taxpayers when navigating the IRS appeals process,
saving them time and money.
Mr. Speaker, I am pleased to see my bill included in the final
legislation, H.R. 5444, the Taxpayer First Act, and I thank my
colleagues for their leadership.
Mr. LEWIS of Georgia. Mr. Speaker, I am pleased to yield 3 minutes to
the gentleman from Illinois (Mr. Danny K. Davis), a member of the Ways
and Means Committee.
Mr. DANNY K. DAVIS of Illinois. Mr. Speaker, I want to thank Mr.
Lewis for yielding.
Mr. Speaker, I rise in support of H.R. 5444, the Taxpayer First Act.
In particular, I commend Representatives Lewis and Jenkins for their
leadership to prevent private debt collectors from pursuing tax
collections from individuals and families earning under 250 percent of
the Federal poverty level.
I was deeply disturbed by the report of the Taxpayer Advocate which
found that private debt collection enforcement this year targeted SSDI
and SSI recipients, subjected impoverished Social Security recipients
to levies, and put 45 percent of the studied taxpayers into installment
agreements they could not afford.
The private debt collection program appears to have increased the
profits of debt collectors at the expense of the disabled, retirees,
and impoverished--counter to IRS policy and decency. Creating an
independent appeals process, improving the offer in compromise program,
and modernizing the IRS are overdue improvements.
So I thank Ranking Member Lewis and Chairman Jenkins for their
leadership, and I urge all of my colleagues to support this important
legislation.
Ms. JENKINS of Kansas. Mr. Speaker, I yield 4 minutes to the
gentleman from Tennessee (Mr. Kustoff).
Mr. KUSTOFF of Tennessee. Mr. Speaker, I rise today in support of
H.R. 5444, the Taxpayer First Act.
I want to thank Chairman Jenkins and Ranking Member Lewis for their
thoughtful approach to this legislation. Many of these reforms, I think
we can all agree, are long overdue, and the American taxpayer deserves
better.
{time} 1415
By requiring the IRS to submit to Congress a comprehensive customer
service strategy and overhauling the tools of enforcement in order to
protect American taxpayers, we will be creating a culture at the agency
that will focus on one singular mission, and that is taxpayers first.
Frankly, Mr. Speaker, this should be the motto of every Federal agency.
For the first time, this bill will codify an Independent Office of
Appeals, so that all taxpayers have access to an administrative review
process, and give Congress additional oversight over the agency itself.
Additionally, the Taxpayer First Act simplifies enforcement actions
of the IRS so that individuals and small-business owners understand
their liabilities and what potential actions could be taken by the IRS.
I also want to thank the committee for including a number of
important provisions to this bill to protect taxpayers' identities and
further combat cybersecurity threats.
In recent years, we all know that millions of Americans have had
their personal and financial information stolen and jeopardized through
data breaches of companies like Equifax, Target, and even at the Office
of Personnel Management.
I am glad to see Congress continuing to push for proactive measures
to protect Americans against tax fraud schemes by working with Federal,
State, and private partners. These protections will be especially
important as the IRS seeks to modernize its services and its IT
systems.
With the recent passage of the Tax Cuts and Jobs Act, Congress passed
legislation to reform our Nation's Tax Code for the first time in over
30 years. Today we have the opportunity to begin reforming the Internal
Revenue Service for the first time in 20 years.
Mr. Speaker, this is vitally important legislation, and I urge all
Members to vote ``yes.''
Mr. LEWIS of Georgia. Mr. Speaker, I yield 3 minutes to the
gentlewoman from Alabama (Ms. Sewell). The Congresswoman is a member of
the Ways and Means Committee.
Ms. SEWELL of Alabama. Mr. Speaker, I rise today in support of H.R.
5444,
[[Page H3421]]
the Taxpayer First Act. I want to take a point of personal privilege
and congratulate the gentlewoman from Kansas and the gentleman from
Georgia for working together and showing the Nation that, indeed,
Democrats and Republicans can put party aside and actually get
something done here in the Nation's Capitol. I especially want to thank
the gentleman from Georgia, Congressman Lewis, who, of course, is a
native son of Alabama.
On this tax day, this bill is an opportunity for us to change the
relationship many taxpayers have with the Internal Revenue Service. Tax
season is a stressful time for millions of Americans, and the
compliance burden on the average American and small-business owner is
unnecessarily difficult. We are taking important steps today to make
the tax filing experience more sensible, fairer, and more efficient.
The base text of this bill includes the text of the bill that I
introduced with our Republican colleague, Jason Smith, the Preserving
Taxpayers' Rights Act. Our provisions, as a part of this bill, will
introduce process reforms in four ways to help the Internal Revenue
Service become more efficient and strengthen its ability to provide
service to its customers.
First, our provisions would maintain taxpayers' legal right to have
their case heard by the independent and impartial IRS Office of Appeals
to ensure the timely, efficient, and cost-effective resolution of any
tax disputes between a taxpayer and the IRS.
Secondly, it will ensure that cases the IRS designates for litigation
can only be used where the matter involves a tax abuse that affects a
large amount of taxpayers.
Thirdly, the provision in our bill that is in this underlying text
would ensure that the use of designated summonses that extend the time
period for the IRS to assess a tax liability are properly authorized
and only used when taxpayers are uncooperative and refuse to provide
information requested by the IRS.
Finally, the provision would also prevent the IRS from outsourcing
Federal tax audits of private taxpayers to outside law firms.
In summary, our provisions in the bill will improve the independent
appeals process, ensuring that the existing right of appeal is
maintained and strengthened for taxpayers.
Mr. Speaker, overall, H.R. 5444 is a good bill that will make the tax
filing experience much more sensible, fairer, and efficient. I urge all
of my colleagues to support this bill.
Ms. JENKINS of Kansas. Mr. Speaker, I yield 3 minutes to the
gentleman from Illinois (Mr. LaHood).
Mr. LaHOOD. Mr. Speaker, I want to thank Chairwoman Jenkins for
yielding the time.
Mr. Speaker, I rise today in support of H.R. 5444, the Taxpayer First
Act.
As I travel around my district, one of the common concerns that I
hear and complaints that I hear is that the IRS is not user friendly,
that it is not attentive and isn't efficient, effective, and
accountable. We do a lot with this bill here today to change that. This
is a good piece of legislation.
I would like to thank Chairwoman Jenkins as well as Ranking Member
Lewis for their hard work and leadership throughout the drafting of
this legislation.
Over the past several months, the House Ways and Means Committee and
the Oversight Subcommittee, in particular, on which I serve, have
focused on finding bipartisan legislative solutions which will make
much-needed changes at the IRS. Ensuring an efficient, accountable, and
transparent IRS is key to restoring the trust between taxpayers and the
agency. It is also necessary for effective implementation of our
reformed Tax Code.
We have a responsibility to provide taxpayers with the tools and
resources they need to make filing their taxes simpler, which was also
a major goal of tax reform.
We must ensure that the IRS puts customer service first so that
taxpayers can have confidence that their information is protected and
that we upgrade the IRS technology for the 21st century.
Unfortunately, it has been over 20 years since major reforms were
made to the IRS, but through the passage of this legislation and others
on the floor this week, we have an opportunity to finally bring about
these changes.
I am also pleased that the Taxpayer First Act includes H.R. 5342, the
Improving Assistance for Taxpayers Act, which I authored and introduced
as part of this process.
Currently, the Office of the Taxpayer Advocate, located within the
IRS, represents taxpayer interests and helps address both individual
and systemic issues at the agency.
When it comes to addressing systemic issues, the Taxpayer Advocate
can issue what is called a Taxpayer Advocate Directive. Unfortunately,
these orders are not always responded to in a detailed and timely
manner or even addressed at all.
My bill aims to improve this process. Specifically, the IRS would be
required to respond to Taxpayer Advocate Directives within 90 days. We
also establish an appeals process when the advocate deems necessary. If
detailed and timely responses are not provided, the Taxpayer Advocate
must report such instances to the Congress. These changes will improve
accountability and ensure substantive and timely answers for taxpayers
dealing with an issue at the IRS.
Mr. Speaker, after two decades and with a new Tax Code to be
implemented, the time is now to improve the Internal Revenue Service
through these bipartisan and commonsense reforms. We need to continue
our work in putting taxpayers first, and I urge my colleagues to join
me in supporting H.R. 5444.
Mr. LEWIS of Georgia. Mr. Speaker, I yield myself such time as I may
consume to close.
Mr. Speaker, working to improve taxpayer service is no easy task.
Every person in this body agrees on the importance of better access to
quality taxpayer service, whether it is online, over the phone, or in
person.
The IRS is a complex organization that is responsible for a core
function of our government. We asked for input from Members of
Congress, Federal agencies, and the public. When we reached out, we
were responsive and thoughtful. We will continue to work to improve the
IRS, to support their staff, and to put taxpayers first.
Again, I want to thank my friend, the gentlewoman from Kansas (Ms.
Jenkins), the subcommittee members, and all of the staff for their
hard, great, and good work for this bill.
Most important, Members of Congress must remain focused on doing what
is right, what is just, and what is in the best interests for every
American taxpayer. I encourage all of our colleagues to vote ``yes'' on
H.R. 5444.
Mr. Speaker, I yield back the balance of my time.
Ms. JENKINS of Kansas. Mr. Speaker, I yield myself the balance of my
time.
Mr. Speaker, this thoughtful, bipartisan legislation will help
refocus the IRS on its taxpayer service mission.
Mr. Speaker, I urge all Members to support this legislation, and I
yield back the balance of my time.
Mr. ESTES of Kansas. Mr. Speaker, I rise today in support of H.R.
5444 . . . the Taxpayer First Act . . . which would reform the IRS to
focus on serving the taxpayers instead of the federal government.
This commonsense approach should be just that. However, under the
previous administration, we saw how the IRS was weaponized against
certain citizens and groups. This is unacceptable and the American
people deserve better.
This bill would require the IRS to focus on customer service by
improving the dispute resolution process within the agency; requiring
the IRS to maintain the free file program; ensuring the IRS notifies
taxpayers when they are conducting an audit; and requiring the IRS to
submit plans to improve customer service and efficiency to Congress.
These reforms will make sure taxpayers are respected and treated
fairly by the IRS. As President Reagan famously said, ``The most
terrifying words in the English language are: `I'm from the government
and I'm here to help.' '' That's a scary prospect but should not keep
us from working to make government more accessible and customer
friendly.
This bill would refocus the mission of the IRS to actually help
taxpayers, instead of only target and punish them.
As a former state treasurer of Kansas, I understand the importance of
being a good steward of taxpayer's hard-earned money. This bill works
to accomplish that goal and I urge my colleagues to support it.
The SPEAKER pro tempore. All time for debate has expired.
Pursuant to House Resolution 831, the previous question is ordered on
the bill, as amended.
[[Page H3422]]
The SPEAKER pro tempore. The question is on the engrossment and third
reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Ms. JENKINS of Kansas. Mr. Speaker, on that I demand the yeas and
nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this question will be postponed.
____________________