Fair and Accountable Irs Reviews Act

Floor Speech

Mr. Speaker, I rise in support of H.R. 5346, the Fair and Accountable IRS Reviews Act.

Mr. Speaker, I thank Chairman Jason Smith for putting this bill on the floor, and I thank the gentleman for always remembering that it is better to do things in a bipartisan way.

This bill clarifies procedures under section 6751 of the Internal Revenue Code and fixes an ongoing controversy regarding tax penalties and IRS supervisory approvals.

The IRS Restructuring and Reform Act of 1998 added section 6751 to the Internal Revenue Code, which says that certain tax penalties shall not be assessed unless the initial determination of the assessment is personally approved, in writing, by the immediate supervisor of the employee making the determination, or a higher-level official.

This provision, in its current form, does not define when supervisory approval must be obtained or who is considered an immediate supervisor. The lack of definition has led to conflicting decisions in the court regarding the time of approvals and among whom at the IRS can make such approvals.

Due to this widespread confusion, the National Taxpayer Advocate recommended that Congress enact legislation to fix this provision. Therefore, this bill clarifies that an IRS employee must obtain supervisory approval in writing before any written communication is sent to a taxpayer about certain proposed penalties. It also clarifies that an IRS employee's immediate supervisor is a person to whom the employee reports.

In addition to providing clarity, this bill also raises $117 million over the next 10 years. This bill passed the Committee on Ways and Means with overwhelming bipartisan support.

Mr. Speaker, I urge my colleagues on both sides of the aisle to support this very important clarification bill.

Mr. Speaker, H.R. 5346 is a commonsense bill that will help taxpayers and the courts. I urge my colleagues on both sides of the aisle to support this bill because not only is it common sense, but it will allow for more efficiency in our IRS code. I think it is really important that both sides of the aisle, Democrats and Republicans, support such an efficient and commonsense bill.

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