Providing for Consideration of H.R. Taxpayer First Act, and Providing for Consideration of H.R. 21st Century Irs Act

Floor Speech

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Mr. NEWHOUSE. Mr. Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman from Colorado (Mr. Polis), pending which I yield myself such time as I may consume. During consideration of this resolution, all time yielded is for the purpose of debate only. General Leave

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Mr. NEWHOUSE. Mr. Speaker, on Monday, the Rules Committee met and reported a rule, House Resolution 831, providing for consideration of two important pieces of legislation: H.R. 5444, the Taxpayer First Act; and H.R. 5445, the 21st Century IRS Act.

The rule provides for consideration of these measures under a closed rule. Both of these pieces of legislation were introduced with bipartisan cosponsors, and both were passed out of the Ways and Means Committee with unanimous support on both sides of the aisle.

Mr. Speaker, yesterday was not only tax day, but it was also the last time the American people had to file their taxes under an outdated and antiquated system. Thanks to the Tax Cuts and Jobs Act signed into law by President Trump, Americans have much to look forward to: a simplified tax system, lower rates, a doubled child tax credit to help everyday families, a doubling of the standard deduction, and the freedom to buy the healthcare plan that is right for their families rather than be forced to buy government-mandated health insurance.

As these reforms continue to be implemented, and Americans across the country have begun to see their paychecks grow and small businesses begin to move forward with less regulatory burden, a bipartisan effort in the U.S. House of Representatives to modernize and reform the Internal Revenue Service has arisen. The goal is to redesign the IRS into a modern, 21st century agency focused on the ``taxpayers first'' service--reining in IRS abuses, protecting American taxpayers from fraud, and fairly and efficiently resolving disputes within the agency.

H.R. 5444, the Taxpayer First Act, demonstrates a bipartisan, comprehensive effort to modernize and improve the Internal Revenue Service. This legislation makes numerous changes to reorganize the agency in an attempt to focus its efforts on customer service. It creates an independent appeals process to improve dispute resolutions and requires the IRS to submit to Congress a comprehensive plan to improve its customer service strategy. It requires the agency to maintain the IRS Free File Program, equipping low- and middle-income Americans with free individual tax preparation and electronic filing services.

This legislation also requires the IRS to improve efficiency, enhance cybersecurity, and better meet the needs of taxpayers. By ensuring the agency sends notice to the actual taxpayer before contacting friends, neighbors, or clients when conducting an audit, we can ensure Americans receive fair notice and treatment.

Mr. Speaker, the mission statement of the IRS is to provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all. Unfortunately, in far too many cases, the IRS fails to provide the quality customer service they claim to strive for.

The nonpartisan Government Accountability Office reported in 2015 that the IRS had no strategy in place to define what quality and customer service should look like, nor did the agency have any plans to develop one. This is unacceptable, so I am pleased that the Taxpayer First Act requires the IRS to work to fulfill their mission statement.

The 21st Century IRS Act similarly seeks to modernize the IRS by specifically focusing on improving cybersecurity and taxpayer identity protection as well as reforming the information technology systems within the agency. The IRS relies heavily on an aging, antiquated IT infrastructure to administer the tax system. This infrastructure, some of which dates back to the 1960s, is unreliable and is not keeping up.

As we just saw yesterday, Mr. Speaker, the web page for paying tax bills using personal bank accounts crashed, leading to Treasury Secretary Mnuchin having to provide Americans with an extra day to file their returns. We must bring the IRS's infrastructure into the 21st century in order to prevent negative impacts on taxpayers seeking to comply with their tax responsibilities as we witnessed yesterday.

Unfortunately, these potential threats can include much more serious threats as well, including potential cyber attacks and fraud schemes that seek to exploit stolen taxpayer information.

The 21st Century IRS Act requires the Secretary of the Treasury to work collaboratively with the public and private sectors to protect taxpayers from identity theft tax refund fraud. This legislation also requires the Secretary to submit a written report to Congress describing how the IRS can utilize new payment platforms to increase the number of tax refunds paid by electronic funds transfers, thereby streamlining the final leg of the filing process for taxpayers.

It provides for further recommendations regarding methods to prevent identity theft and refund fraud and requires that State, local, or Federal agencies conduct on-site reviews every 3 years of all contractors or other agents receiving Federal returns and return information.

These reforms are common sense and will prevent frustrating, prolonged interactions with the IRS that could be much more easily and seamlessly resolved online.

Mr. Speaker, this is a straightforward and bipartisan rule, allowing for consideration of two bills that will require the Internal Revenue Service to put customer service needs of the American taxpayer first, and to reform, modernize, and improve the agency's infrastructure.

The IRS must prioritize cybersecurity and taxpayer identity theft protections. The underlying bills in this rule will do just that, and I encourage my colleagues to support the rule and the underlying legislation to continue our historic efforts to reform our Nation's tax system.

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Mr. NEWHOUSE. Mr. Speaker, I, too, sit on the Rules Committee, and what we witnessed Monday was an amazing thing, coming together in a bipartisan fashion on some very important bills to bring reform to the Internal Revenue Service.

And I might respond to the gentleman's comments.

It was a very open process through the Ways and Means Committee. It was, as far as I recall, at least a 3-year process, working bipartisanly, very cooperatively, in a comprehensive fashion in order to get the work done that was brought together and culminated with the work that we see here today.

So, as far as an open process, I don't know what could have been more open. It was one that we can be proud of, one that we should see more of in this institution, frankly, and I am very proud that we are able to be here today, following a long history of using the closed rule process when we are considering these kinds of bills as it pertains to revenue.

With that,

The Ways and Means Committee put out a discussion draft on March 26 entitled, ``The Taxpayer First Act.'' The committee provided 2 weeks to collect input from Members, stakeholder groups, and the public. I would say to my good friends across the aisle that there were a number of substantive comments received, and my understanding is the committee considered them prior to introducing this bill that we have today.

So I would say let's honor that work. Let's move forward with this important piece of legislation, and I urge support of the rule.

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Mr. NEWHOUSE. Reclaiming my time, the bipartisan effort in this bill is reflected in a very, very good way, and I urge respecting that process, respecting the comprehensive, collaborative work that was done on this bill, and I urge support of the rule.

Mr. Speaker, I include in the Record the many groups that are supporting H.R. 5444, the Taxpayer First Act, as well as the group supporting H.R. 5445, the 21st Century IRS Act.

For the Taxpayer First Act, the Americans for Tax Reform, the Coalition for Effective and Efficient Tax Administration, the National Foreign Trade Council, and the App Association support the Taxpayer First Act.

As far as the 21st Century Act, H.R. 5445, Citizens Against Government Waste, the Electronic Transactions Association, the MarketPlace Lending Association, the National Taxpayers Union, the Taxpayers Protection Alliance, FreedomWorks, the Institute for Policy Innovation, 60 Plus Association, the Institute for Liberty, the Council for Citizens Against Government Waste, Less Government, and the Small Business & Entrepreneurship Council all join us in supporting not only the underlying rule, but the underlying legislation, as I would urge my colleagues to do.

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Mr. NEWHOUSE. Yes.

Mr. Speaker, I am delighted my colleagues on both sides of the aisle have come together to work on the important issues covered in both of these underlying bills. This rule provides for consideration of H.R. 5444, the Taxpayer First Act, as well as H.R. 5445, the 21st Century IRS Act.

The IRS currently lacks a comprehensive customer service strategy, nor does it have any system in place to measure metrics and benchmarks for success within customer service. Additionally, the IRS has not undergone organizational restructuring in the last 20 years.

H.R. 5444 requires the agency to develop a comprehensive strategy for customer service and to submit such plan to Congress no later than 1 year after the enactment of this legislation. It provides for the equitable treatment of every American taxpayer, including ensuring proper notice when the IRS seeks further information from an individual.

Mr. Speaker, the IRS spends $2.4 billion, annually, on information technology, technology that, in some cases, dates back, I understand, to the 1960s. The agency struggles with undertaking and completing large IT modernization efforts to update its legacy systems, which, therefore, can put American taxpayers in a frustrating or even dangerous position.

With the rise of tax refund fraud, a modern IT system must be enacted to ensure taxpayers can successfully comply with their tax requirements. H.R. 5445 modernizes and improves the ease and efficiency of the taxpayer experience when filing taxes, retrieving information, resolving issues, and making payments.

This legislation includes a number of provisions to strengthen the IRS' ability to proactively combat identity theft, tax refund fraud, and ensures IRS accountability for secure online taxpayer processes.

In light of the historic tax reform legislation initiated by this representative body, the people's House, and signed into law by the President, President Trump, just last year, it is vital the Internal Revenue Service undertake its own important reforms.

No one enjoys receiving an envelope stamped ``Internal Revenue Service.'' Far too often, taxpayers find the IRS to be inaccessible, intimidating, and unaccountable. American taxpayers deserve a robust and efficient agency with important oversight protections and modernized systems to keep their private information protected.

Mr. Speaker, I am proud to speak in favor of this bipartisan rule, and I urge my colleagues to support House Resolution 831, and both of the underlying bipartisan bills.

The material previously referred to by Mr. Polis is as follows: An Amendment to H. Res. 831 Offered by Mr. Polis

At the end of the resolution, add the following new sections:

Sec. 4. Immediately upon adoption of this resolution the Speaker shall, pursuant to clause 2(b) of rule XVIII, declare the House resolved into the Committee of the Whole House on the state of the Union for consideration of the bill (H.R. 305) to amend the Ethics in Government Act of 1978 to require the disclosure of certain tax returns by Presidents and certain candidates for the office of the President, and for other purposes. The first reading of the bill shall be dispensed with. All points of order against consideration of the bill are waived. General debate shall be confined to the bill and shall not exceed one hour equally divided among and controlled by the respective chairs and ranking minority members of the Committees on Ways and Means and Oversight and Government Reform. After general debate the bill shall be considered for amendment under the five-minute rule. All points of order against provisions in the bill are waived. At the conclusion of consideration of the bill for amendment the Committee shall rise and report the bill to the House with such amendments as may have been adopted. The previous question shall be considered as ordered on the bill and amendments thereto to final passage without intervening motion except one motion to recommit with or without instructions. If the Committee of the Whole rises and reports that it has come to no resolution on the bill, then on the next legislative day the House shall, immediately after the third daily order of business under clause 1 of rule XIV, resolve into the Committee of the Whole for further consideration of the bill.

Sec. 5. Clause 1(c) of rule XIX shall not apply to the consideration of H.R. 305. ____ The Vote on the Previous Question: What It Really Means

This vote, the vote on whether to order the previous question on a special rule, is not merely a procedural vote. A vote against ordering the previous question is a vote against the Republican majority agenda and a vote to allow the Democratic minority to offer an alternative plan. It is a vote about what the House should be debating.

Mr. Clarence Cannon's Precedents of the House of Representatives (VI, 308-311), describes the vote on the previous question on the rule as ``a motion to direct or control the consideration of the subject before the House being made by the Member in charge.'' To defeat the previous question is to give the opposition a chance to decide the subject before the House. Cannon cites the Speaker's ruling of January 13, 1920, to the effect that ``the refusal of the House to sustain the demand for the previous question passes the control of the resolution to the opposition'' in order to offer an amendment. On March 15, 1909, a member of the majority party offered a rule resolution. The House defeated the previous question and a member of the opposition rose to a parliamentary inquiry, asking who was entitled to recognition. Speaker Joseph G. Cannon (R-Illinois) said: ``The previous question having been refused, the gentleman from New York, Mr. Fitzgerald, who had asked the gentleman to yield to him for an amendment, is entitled to the first recognition.''

The Republican majority may say ``the vote on the previous question is simply a vote on whether to proceed to an immediate vote on adopting the resolution . . . [and] has no substantive legislative or policy implications whatsoever.'' But that is not what they have always said. Listen to the Republican Leadership Manual on the Legislative Process in the United States House of Representatives, (6th edition, page 135). Here's how the Republicans describe the previous question vote in their own manual: ``Although it is generally not possible to amend the rule because the majority Member controlling the time will not yield for the purpose of offering an amendment, the same result may be achieved by voting down the previous question on the rule. . . . When the motion for the previous question is defeated, control of the time passes to the Member who led the opposition to ordering the previous question. That Member, because he then controls the time, may offer an amendment to the rule, or yield for the purpose of amendment.''

In Deschler's Procedure in the U.S. It is one of the only available tools for those who oppose the Republican majority's agenda and allows those with alternative views the opportunity to offer an alternative plan.

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