[Congressional Record Volume 169, Number 27 (Thursday, February 9, 2023)]
[Senate]
[Pages S315-S317]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. THUNE (for himself, Mr. Grassley, Mr. Barrasso, Mrs. 
        Blackburn, Mr. Cassidy, Mr. Cornyn, Mr. Crapo, Mr. Daines, Mr. 
        Johnson, Mr. Lankford, Mr. Scott of South Carolina, Mr. Tillis, 
        and Mr. Young):
  S. 338. A bill to provide accountability for funding provided to the 
Internal Revenue Service and the Department of Treasury under Public 
Law 117-69; to the Committee on Finance.
  Mr. THUNE. Madam President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 338

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``IRS Funding Accountability 
     Act''.

     SEC. 2. ANNUAL COMPREHENSIVE SPENDING PLAN FOR INCREASED 
                   INTERNAL REVENUE SERVICE RESOURCES.

       (a) Limitation on Funding.--
       (1) Initial plan.--
       (A) In general.--None of the funds described in paragraph 
     (3) may be obligated during the period--
       (i) beginning on the date of the enactment of this Act; and
       (ii) ending on the date that is 60 days after the spending 
     plan described in subsection (b)(1)(A) has been submitted.
       (B) Additional moratorium.--If Congress enacts a joint 
     resolution of disapproval described in subsection (c) with 
     respect to the Internal Revenue Service spending plan before 
     the date described in subparagraph (A)(ii), then--
       (i) the Commissioner of Internal Revenue shall submit a new 
     spending plan under subsection (b)(1)(A); and
       (ii) the period described in subparagraph (A) shall not end 
     before the date that is 60 days after such new spending plan 
     is submitted.
       (2) Subsequent submissions.--
       (A) In general.--None of the funds described in paragraph 
     (3) may be obligated during any period--
       (i) beginning on the date Congress has enacted a joint 
     resolution of disapproval under subsection (c) with respect 
     to any spending plan described in subsection (b)(1)(B); and
       (ii) ending on the date that is 60 days after the date on 
     which the Commissioner of Internal Revenue has submitted a 
     new spending plan under such subsection.
       (B) Additional moratorium.--If Congress enacts a joint 
     resolution of disapproval described in subsection (c) with 
     respect to any new spending plan submitted under subparagraph 
     (A)(ii) before the date that is 60 days after the date on 
     which such new spending plan has been submitted, then--
       (i) the Commissioner of Internal Revenue shall submit an 
     additional new spending plan under subsection (b)(1)(B); and
       (ii) the period described in subparagraph (A) shall not end 
     before the date that is 60 days after such additional new 
     spending plan is submitted.
       (3) Funds described.--The funds described in this paragraph 
     are the following:
       (A) Any funds made available under clauses (ii), (iii), or 
     (iv) of section 10301(1)(A) of Public Law 117-169.
       (B) Any funds made available under section 10301(1)(A)(i) 
     of Public Law 117-169 other than funds used for the following 
     purposes:
       (i) Eliminating any correspondence or return processing 
     backlog.
       (ii) Reducing call wait times for taxpayers and tax 
     professionals.
       (b) Annual Comprehensive Spending Plan.--
       (1) In general.--
       (A) Initial plan.--Not later than 60 days after the date of 
     the enactment of this Act, the Commissioner of Internal 
     Revenue shall submit to the appropriate Congressional 
     committees a spending plan described in paragraph (2).
       (B) Subsequent submissions.--
       (i) In general.--For each fiscal year beginning after the 
     plan described in subparagraph (A) is submitted and ending 
     with fiscal year 2031, the Commissioner of Internal Revenue 
     shall submit to the appropriate Congressional committees a 
     spending plan described in paragraph (2) on the date that the 
     President submits the budget required under section 1105(a) 
     of title 31, United States Code.
       (ii) Reduction in appropriation.--

       (I) In general.--In the case of any failure to submit a 
     plan required under clause (i) by the date that is 7 days 
     after the date the plan is required to be submitted and, the 
     amounts made available under section 10301(1)(A)(ii) of 
     Public Law 117-169 shall be reduced by $10,000,000 for each 
     day after such required date that report has not been 
     submitted.
       (II) Required date.--For purposes of this clause, the term 
     ``required date'' means, with respect to any plan required 
     under this subparagraph, the date that is 7 days after such 
     plan is required to be submitted.

       (2) Spending plan.--
       (A) In general.--A spending plan described in this 
     subparagraph is a plan that--
       (i) details how the funds appropriated under section 
     10301(1) of Public Law 117-169 will be spent over--

       (I) the period consisting of the current fiscal year and 
     the next 4 fiscal years ending before fiscal year 2032; and

[[Page S316]]

       (II) the period of consisting of the current fiscal year 
     through the fiscal year ending with fiscal year 2031 (if such 
     period includes any period not described in subclause (I));

       (ii) contains the information described in subparagraph 
     (B);
       (iii) has been reviewed by--

       (I) the Internal Revenue Service Advisory Council;
       (II) the Comptroller of the United States;
       (III) the National Taxpayer Advocate; and
       (IV) the Director of the Office of Management and Budget; 
     and

       (iv) has been approved by the Director of the Office of 
     Management and Budget.
       (B) Plan contents.--The information described in this 
     paragraph is the following:
       (i) A detailed explanation of the plan, including--

       (I) costs and results to date, actual expenditures of the 
     prior fiscal year, actual and expected expenditures of the 
     current fiscal year, upcoming deliverables and expected 
     costs, and total expenditures;
       (II) clearly defined objectives, timelines, and metrics for 
     quantitatively measuring the plan's annual progress, 
     including with respect to measuring improvements in taxpayer 
     services, revenue collection, information technology, 
     cybersecurity, and taxpayer data protections; and
       (III) a description of any differences between metrics 
     described in subclause (II) and corresponding metrics used by 
     the National Taxpayer Advocate, the Comptroller General of 
     the United States, and Treasury Inspector General for Tax 
     Administration.

       (ii) A detailed analysis of the performance of the Internal 
     Revenue Service with respect to the delivery of taxpayer 
     services, including--

       (I) the Level of Service (LOS) of phone lines (as a percent 
     of phone calls answered by an Internal Revenue Service 
     employee, not to include courtesy disconnects or automated 
     call backs);
       (II) the median and average wait time to speak to a 
     representative of the Internal Revenue Service;
       (III) the amount of unprocessed taxpayer correspondence, 
     including tax returns, responses to Internal Revenue Service 
     notices, tax payments, and other similar types of 
     correspondence; and
       (IV) the median and average length of time for processing 
     the items described in subclause (III) and processing refund 
     claims.

       (iii) An analysis identifying any increase or decrease in 
     total annual audits and annual audit rates by income group 
     for the period beginning in 2018 and ending with the year the 
     report is submitted. Such analysis shall include a detailed 
     description of what constitutes an ``audit'' by the Internal 
     Revenue Service, and if the definition of an ``audit'' used 
     by the Internal Revenue Service differs from the definition 
     used by the National Taxpayer Advocate, the Comptroller 
     General of the United States, or the Treasury Inspector 
     General for Tax Administration, there shall also be included 
     an analysis using such divergent definition.
       (iv) A categorizing of the number of audits for each year 
     in the analysis described in clause (iv) which were--

       (I) correspondence audits;
       (II) office audits;
       (III) field audits;
       (IV) audits under the Internal Revenue Service National 
     Research Program; and
       (V) other audits.

       (v) A description of all taxpayer compliance actions or 
     initiatives undertaken using funding appropriated under 
     section 10301(1)(A) of Public Law 117-169 that do not rise to 
     the level of an audit, with each action broken out by the 
     total number of such actions undertaken for each income group 
     and as a percentage of taxpayers in each income group.
       (vi) An explanation of any unresolved or outstanding 
     recommendations made by the Government Accountability Office 
     and Treasury Inspector General for Tax Administration 
     pertaining to taxpayer-data privacy protections, Internal 
     Revenue Service taxpayer services, and Internal Revenue 
     Service technology modernization efforts that are addressed 
     by the plan and a description of how they are addressed.
       (vii) For any recommendations identified by Government 
     Accountability Office and Treasury Inspector General for Tax 
     Administration as ``high risk'' or ``priority'' that are not 
     addressed in the plan, an explanation of why such 
     recommendations are not addressed in the plan.
       (3) Testimony of relevant officials.--Not later than 30 
     days after any spending plan described in paragraph (2) has 
     been submitted, the Secretary of the Treasury and the 
     Commissioner of Internal Revenue shall testify in person 
     before any of the appropriate Congressional committees that 
     request their testimony with respect to such spending plan.
       (4) Requirement to notify of excess spending.--The 
     Commissioner of Internal Revenue shall immediately notify the 
     appropriate Congressional committees if actual obligations 
     and expenditures for any account for any period for which 
     projections are made in a plan submitted under paragraph (2) 
     exceed the amount of obligations and expenditures projected 
     for such account in such plan by 5 percent or more.
       (c) Joint Resolution of Disapproval of the IRS 
     Comprehensive Spending Plan.--
       (1) In general.--For purposes of this section, the term 
     ``joint resolution of disapproval of the IRS comprehensive 
     spending plan'' means only a joint resolution introduced in 
     the period beginning on the date on which a spending plan 
     submitted pursuant to subsection (b)(1)(A) is received by the 
     appropriate Congressional committees and ending 60 days 
     thereafter (excluding days either House of Congress is 
     adjourned for more than 3 days during a session of Congress), 
     the matter after the resolving clause of which is as follows: 
     "That Congress disapproves the plan submitted on ____ by the 
     Internal Revenue Service relating to the comprehensive 
     spending plan under section 2(b)(1) of the IRS Funding 
     Accountability Act with respect to fiscal year ___.". (The 
     blank spaces being appropriately filled in).
       (2) Application of congressional review act disapproval 
     procedures.--
       (A) In general.--The rules of section 802 of title 5, 
     United States Code, shall apply to a joint resolution of 
     disapproval of the IRS comprehensive spending plan in the 
     same manner as such rules apply to a joint resolution 
     described in subsection (a) of such section.
       (B) Exercise of rulemaking authority.--This section is 
     enacted by Congress--
       (i) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and as such it is 
     deemed a part of the rules of each House, respectively, but 
     applicable only with respect to the procedure to be followed 
     in that House in the case of a joint resolution of 
     disapproval of the IRS comprehensive spending plan described 
     in paragraph (1), and it supersedes other rules only to the 
     extent that it is inconsistent with such rules; and
       (ii) with full recognition of the constitutional right of 
     either House to change the rules (so far as relating to the 
     procedure of that House) at any time, in the same manner, and 
     to the same extent as in the case of any other rule of that 
     House.

     SEC. 3. QUARTERLY REPORTS.

       (a) Internal Revenue Service.--
       (1) In general.--Not later than 14 days after the last day 
     of each calendar quarter beginning during the applicable 
     period, the Commissioner of Internal Revenue shall submit to 
     the appropriate Congressional committees a report on any 
     expenditures and obligations of funds appropriated under 
     section 10301(1) of Public Law 117-169.
       (2) Matters included.--The report provided under paragraph 
     (1) shall include the following:
       (A) A plain language description of the specific actions 
     taken by the Commissioner of Internal Revenue utilizing any 
     funds appropriated under section 10301(1) of Public Law 117-
     169.
       (B) The obligations and expenditures during the quarter of 
     funds appropriated under section 10301(1) of Public Law 117-
     169 and the expected expenditure of such funds in the 
     subsequent quarter, including a comparison of obligations and 
     expenditures between amounts spent for taxpayers services and 
     amounts spent for examinations and collections by each 
     division or office of the Internal Revenue Service, including 
     the Large Business and International Division, the Small 
     Business/Self Employed Division, the Tax-Exempt and 
     Government Entities Division, the Wage and Investment 
     Division, the Criminal Investigation Office, the 
     Whistleblower Office, and the Office of the Taxpayer 
     Advocate.
       (C) A description of any new full-time or full-time 
     equivalent (FTE) employees, contractors, or other staff hired 
     by the Internal Revenue Service, including the number of new 
     hires, the primary function or activity type of each new 
     hire, and the specific Division or Office to which each new 
     hire is tasked.
       (D) The number of new employees that have passed a security 
     clearance compared to the number of new employees hired to a 
     position requiring a security clearance, along with an 
     indication of whether any new employee that has not passed a 
     security clearance or suitability determination has access to 
     taxpayer return information (as defined by section 6103(b)(2) 
     of the Internal Revenue Code of 1986).
       (E) A detailed description of any violation of the fair tax 
     collection practices described in section 6304 of the 
     Internal Revenue Code of 1986 by any employees, contractors, 
     or other staff described in subparagraph (C) (including 
     violations tracked in Automated Labor and Employee Relations 
     Tracking System (ALERTS) of the Human Capital Office of the 
     Internal Revenue Service).
       (F) The status of recommendations provided by the 
     Government Accountability Office and Treasury Inspector 
     General for Tax Administration which have been identified as 
     being addressed by a spending plan under section 2(b)(1), 
     including whether the implementation of such recommendations 
     has been completed, is in progress, or is open (including the 
     expected date of completion for any recommendations 
     identified as in progress or open).
       (3) Reduction in appropriation.--In the case of any failure 
     to submit a report required under paragraph (1) by the 
     required date, the amounts made available under section 
     10301(1)(A)(ii) of Public Law 117-169 shall be reduced by 
     $1,000,000 for each day after such required date that report 
     has not been submitted.
       (b) Department of Treasury.--
       (1) In general.--Not later than 14 days after the last day 
     of each calendar quarter beginning during the applicable 
     period, the Secretary of the Treasury shall submit to the 
     appropriate Congressional committees a report containing the 
     following information:

[[Page S317]]

       (A) A plain-language description of the actions taken by 
     the Secretary of the Treasury utilizing any funds 
     appropriated under paragraph (1), (3), or (5)of section 10301 
     of Public Law 117-169. Any action which is described in a 
     report made under subsection (a) may be described by 
     reference to the action in such report.
       (B) A detailed description of the specific purposes to 
     which the funds appropriated under section 10301(3) of Public 
     Law 117-169 has been (or is expected to be) obligated.
       (C) A description of any new full-time or full-time 
     equivalent (FTE) employees, contractors, or other staff hired 
     by the Secretary utilizing funds appropriated under section 
     10301 of Public Law 117-169, including the number of new 
     hires and whether the duties of each new hire includes any 
     functions related to the Internal Revenue Service (including 
     implementation of tax policies, enforcement, regulations, 
     research, press or communications, or other purposes).
       (D) A detailed description and explanation of any changes 
     to the most recent Priority Guidance Plan of the Department 
     of the Treasury and the Internal Revenue Service involving 
     guidance projects that utilize any funds appropriated under 
     section 10301 of Public Law 117-169 or which are related to 
     the implementation of any provision of or amendment made by 
     such Public Law.
       (E) A description of any new initiatives planned to be 
     undertaken by the Department of the Treasury within the 
     existing or subsequent fiscal year which will (or may) 
     utilize funds appropriated under section 10301 of Public Law 
     117-169.
       (2) Reduction in appropriation.--In the case of any failure 
     to submit a report required under paragraph (1) by the 
     required date--
       (A) the amounts made available under paragraphs (3) of 
     section 10301 of Public Law 117-169 shall be reduced by 
     $666,667 for each day after such required date that report 
     has not been submitted, and
       (B) the amounts made available under paragraphs (5) of 
     section 10301 of Public Law 117-169 shall be reduced by 
     $333,333 for each day after such required date that report 
     has not been submitted, and
       (c) Definitions.--For purposes of this section--
       (1) Applicable period.--The term ``applicable period'' 
     means the period beginning after the date the plan under 
     section 2(b)(1)(A) is required to be submitted and ending on 
     September 30, 2031.
       (2) Required date.--The term ``required date'' means, with 
     respect to any report required to be submitted under 
     subsection (a) or (b), the date that is 7 days after the date 
     the report is required to be submitted.

     SEC. 4. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

       For purposes of this Act, the term ``appropriate 
     Congressional committees'' means--
       (1) the Committee on Finance of the Senate;
       (2) the Committee on Appropriations of the Senate;
       (3) the Committee on Ways and Means of the House of 
     Representatives; and
       (4) the Committee on Appropriations of the House of 
     Representatives.
                                 ______