[Congressional Record (Bound Edition), Volume 161 (2015), Part 1]
[Senate]
[Pages 1441-1442]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        INTERNAL REVENUE SERVICE

  Mr. ROBERTS. Mr. President, in this new Congress we have an 
opportunity and a responsibility to address an issue of utmost 
importance to every American: the current dysfunction at the Internal 
Revenue Service.
  I do not use the word ``dysfunction'' lightly, but I reach that 
conclusion when I see the agency systematically suppress the political 
activity and free speech rights of American citizens. I also reach that 
judgment when I see the agency unable to effectively police its 
personnel, as seen in the tax delinquency levels of the agency's staff, 
when bonuses have been awarded to these same employees. These are 
critical issues we must address, particularly as we in Congress face 
our obligation to reform our tax system.
  The IRS targeting of conservative and other groups that came to light 
way back in May 2013 is neither a trivial issue, nor one we can 
ignore--no more back burner. This is a front-burner issue.
  We have hit many roadblocks in this investigation, and it is 
certainly premature for us to reach any conclusions or to make concrete 
recommendations on how to address the IRS targeting. That being said, 
we have a pretty clear sense of what happened. In my view, this 
egregious conduct and the condescending response by the top IRS 
officials should come to a screeching halt. For over 2 years the IRS 
targeted conservative and many other groups applying for tax-exempt 
status with inappropriately intrusive information requests. The IRS 
also delayed processing these applications, and according to recent 
reports has continued to delay processing applications. It hasn't 
stopped--amazing, simply amazing.
  When the targeting came to light, senior members of the agency tried 
to cover up the IRS' actions by providing incomplete and misleading 
information to Congress about what was being done. Very recently we 
learned the agency has found tens of thousands of pages of information 
relating to the targeting. The review of these documents has not yet 
begun.
  The good news is that the inspector general for the IRS has these 
records now. The bad news is that there are technical difficulties 
processing those records. The Senate Finance Committee has yet to 
receive this information as the investigation continues. There is no 
doubt the review will lead to further interviews with officials in the 
IRS and other government agencies.
  The actions of the IRS and its leadership have profound implications 
for reform of our overly complex and antiquated Federal tax system. Let 
me quote from the Internal Revenue Service mission statement: The IRS 
tries to provide America's taxpayers ``top quality service'' by helping 
them understand and meet their tax responsibilities. They are meant to 
do all this--this is the underlying, this is the one statement the IRS 
should remember every day--``with integrity and fairness to all.'' With 
integrity and fairness to all.
  Now in the targeting scandal, I believe the IRS is no longer the 
neutral tax collector its mission states it to be and that the IRS is 
inappropriately open to a partisan political agenda of the White House 
and its allies, if not to working as a direct tool or means of 
suppression to the right of free speech.
  The other issue with the IRS also showing its dysfunction relates to 
the tax compliance of IRS employees and in fact the compliance level of 
Federal employees all across our government. As of September 2013, 
Federal employees were delinquent on $3.4 billion in taxes. Yes, that 
is right--1,500 Treasury employees were delinquent, owing close to $10 
million. While in the grand scheme of Federal finances it is a very 
small amount, it is tremendously galling and sends a terrible message 
to taxpayers to know that many of these employees were awarded 
bonuses--they were awarded bonuses--even though they owed back taxes.
  Let me be perfectly clear. Any employee who deliberately ignores the 
process and procedures for fulfilling their tax obligations like every 
other American must be held accountable. This is a basic principle upon 
which I think we can all agree. When these public employees serve at 
the IRS, their lack of willingness to pay their tax obligations calls 
into question the integrity of the agency. It is unconscionable that 
there are tax delinquents working as tax collectors.
  In these two matters, it is very clear that the IRS is again not 
conducting itself with integrity and fairness--far from it. The crux of 
the issue is that neither the Congress nor the tax-paying public can 
have any confidence that the agency acts in an evenhanded manner or 
with the best interest of the taxpayer at heart.
  This is a very troubling at a time when the IRS's role in the economy 
and in people's lives has been greatly expanded by ObamaCare. From the 
very first, the idea of using the IRS to implement and enforce 
ObamaCare is an anathema to common sense.
  It is bad enough now when taxpayers are audited. Nobody likes to hear 
that knock on the door or receive a telephone call or email after being 
targeted for their political beliefs and blocked from exercising their 
free speech rights. But to expand the role of this agency into 
everyone's health care decisions is just plain wrong. That is a box 
canyon we should not ride into.
  Tax reform presents us with the opportunity to look at these issues 
much more closely. When we have completed these investigations and have 
issued reports, I will review the results very carefully to see what 
legislative fixes to the IRS and the Tax Code may be necessary. Make no 
mistake about it, I am not going to let this slip from the radar, and 
we should not let this slip from the radar with regard to the Senate 
Finance Committee. There are too many blips on the screen--large blips.
  I hear from Kansans every day who are fed up with the IRS. I think 
most Members in this body feel the same way. There is a lot of 
discontent with the tax system and its enforcement, and there are 
regular calls for even scrapping the whole collection apparatus. I 
agree we need to take a hard look at tax reform in the agency.
  Of course we have an immediate obligation to take up tax reform, and 
the Finance Committee will do so, but the question remains: If we are 
successful in reforming the Tax Code--truly climbing that mountain--how 
can we turn a reformed code over to an IRS that is so rife with 
scandal?
  The other action we must take immediately is to block the IRS from 
taking any further steps to restrict constitutional free speech rights. 
This is why just yesterday I joined with my colleague from Arizona 
Senator Flake to again introduce legislation to prevent the IRS from 
moving forward with a regulation project on the political activities of 
social welfare groups, the 501(c)(4) regulations.
  It is completely inappropriate for the agency to move forward with 
this project until we understand what went on and what structural and 
procedural changes are needed at the Internal Revenue Service to 
prevent the targeting of political opponents from ever happening again. 
Senator Flake and I have proposed a very straightforward and 
commonsense approach to this challenge. We simply halt further action 
on the proposed regulations until the congressional investigations into 
the IRS actions are completed.
  The bill we have introduced freezes further IRS actions for 2 years 
and would make it clear the IRS can only enforce the regulations that 
were in place before all the targeting began.
  I also wish to make it clear that we can no longer tolerate rewarding 
government workers who cannot be bothered to comply with our tax laws.
  So today I am offering legislation to block Federal employees who are 
delinquent on their Federal taxes--here is the key--and making no 
effort to pay

[[Page 1442]]

their tax liability; we will block them from receiving a bonus or award 
from the Federal Government. If someone is a Federal employee, they 
should not be receiving a bonus if they are not making an effort to pay 
back taxes.
  I think the purpose of my bill is very simple. If someone is a 
Federal worker, they should be making a good-faith effort to pay their 
taxes like everybody else or at least work with the IRS to pay down 
their debt. Holding Federal employees accountable for their tax debt 
may even foster public confidence again in our tax system.
  Amazingly there are Federal employees at almost every agency, 
including the Internal Revenue Service, who are significantly 
delinquent in their taxes and not working to pay their debts. That is 
wrong. That is not fair. It is not good government practice. That is an 
understatement. My bill will put a stop to this practice.
  It is no wonder, given the IRS's behavior and the behavior of these 
Federal tax delinquents, that Kansans and virtually every American 
doubt that the government can administer the tax laws in good faith. 
The lack of faith in the Internal Revenue Service is an important 
reason why Congress must rewrite the Tax Code, simplify how we pay 
taxes, and reduce the government's intrusion into economic and other 
affairs of the public.
  We don't need the IRS regulating constitutionally guaranteed free 
speech and muzzling lawful political activity. We also do not need to 
reward Federal employees who do not even make the most minimal effort 
to pay their tax debt and then give them bonuses. The hypocrisy of IRS 
agents getting bonuses when they don't pay their taxes has to stop.
  Finally, there are other issues at the Internal Revenue Service. 
There was a recent statement by the IRS Commissioner warning--
threatening--the tax-paying public, during tax-filing season no less, 
that the agency is drastically cutting taxpayer service functions. I am 
talking about answering calls, tax return help, and other programs that 
assist the average American to fulfill their tax obligation.
  The Commissioner blames the budget sequester. I understand that. 
Every Federal agency is now upset about the sequester. I am upset about 
the sequester with regard to our national security and the spending 
caps setting these cuts. The IRS Commissioner is upset about that as 
well. That is beyond amazing when we have learned that the agency has 
made so many poor decisions, such as entering into a contract with the 
IT company that was just fired by Massachusetts, Vermont, and the 
Department of Health and Human Services for its failure in implementing 
the healthcare.gov Web site. The historic rollout was a total disaster. 
I expect we will get into this in detail next week when the 
Commissioner comes before the Finance Committee. I am going to be 
asking him questions about the same topics I brought up in these 
remarks.
  In the meantime, just a suggestion to the IRS--from the Commissioner 
on down--take a hard look at the mission statement, concentrate on 
serving the taxpayer, stop threatening the American public with the 
loss of service, and try to do the best you can in a most difficult 
budget environment.
  We have an obligation to have the IRS serve with integrity and 
fairness to the American public, and that is not happening now. Let's 
work together to make sure it does happen.
  I yield the floor, and after careful inspection, it appears to me we 
do not have a quorum present. I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. UDALL. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Coats). Without objection, it is so 
ordered.
  Mr. UDALL. Mr. President, I ask unanimous consent to speak in morning 
business. I know the managers will be here shortly, and when they 
arrive I will obviously yield the floor to them.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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