Fair and Accountable Irs Reviews Act

Floor Speech

BREAK IN TRANSCRIPT

Mr. SMITH of Missouri. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5346) to amend the Internal Revenue Code of 1986 to reform certain penalty and interest provisions, as amended.

The Clerk read the title of the bill.

The text of the bill is as follows: H.R. 5346

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 ``Fair and Accountable IRS Reviews Act''. SEC. 2. PROCEDURAL REQUIREMENTS FOR ASSESSMENT OF PENALTIES.

(a) Approval of Assessment.--Section 6751(b)(1) of the Internal Revenue Code of 1986 is amended to read as follows:

``(1) In general.--No penalty under this title shall be assessed or entered unless, before any written communication with respect to such penalty (including proposal of a penalty as an adjustment) is sent to the taxpayer, the initial determination of such assessment is personally approved (in writing) by the immediate supervisor of the individual making such determination or such higher level official as the Secretary may designate.''.

(b) Immediate Supervisor Defined.--Section 6751(b) of such Code is amended by adding at the end the following new paragraph:

``(3) Immediate supervisor.--For purposes of this subsection, the term `immediate supervisor' means, with respect to an individual making a determination under paragraph (1), the person to whom such individual reports.''.

(c) Effective Date.--The amendments made by this section shall apply to notices issued, and penalties assessed, after December 31, 2025.

Mr. Speaker, I rise today in support of the Fair and Accountable IRS Reviews Act introduced by our colleague, Representative Glenn Grothman.

While not a member of the Committee on Ways and Means, I know Representative Grothman to be a tireless advocate for American taxpayers, as represented by this important piece of legislation that will go a very long way toward protecting their rights.

The legislation ensures that rogue IRS employees are not able to unfairly impose penalties and fines on taxpayers without going through proper channels of authorization and doing so in a timely manner.

Right now, an IRS agent can impose a penalty on an American taxpayer before obtaining a supervisor's approval. Moreover, they can shop around for any other employee at the agency that they wish to seek permission from since current law does not require approval from a direct supervisor.

These loopholes undermine the no-signature, no-penalty principle. Representative Grothman's bill received unanimous support at the Committee on Ways and Means. It is an important policy reform that will reinforce fair treatment of taxpayers at the IRS.

Mr. Speaker, American taxpayers should not be at the mercy of rogue IRS agents who are handing out fines without reasonable due process. At the very least, agents ought to have actual prior approval before issuing a penalty and should not be allowed to go around looking for a sympathetic employee to grant them that approval.

I commend our colleague, Representative Grothman, for introducing this straightforward legislation that puts in place some guardrails around the IRS and its agents. This bill will help restore integrity to the agency's processes. Above all, it will protect the rights of American taxpayers, whose interests we must continue to look out for.

Mr. Speaker, I encourage my colleagues to vote ``yes'' on the Fair and Accountable IRS Reviews Act, and I yield back the balance of my time.

BREAK IN TRANSCRIPT

Source