U.S. Senator Mike Braun (R-Ind.) on Thursday introduced the Simplify, Don’t Amplify, the IRS Act, which includes reforms to the Internal Revenue Service (IRS) to promote transparency and efficiency in the agency. Congressman Tom Rice (R-S.C.-07) introduced the companion legislation in the House of Representatives.
Braun
“The IRS has a terrible track record when it comes to being good stewards of taxpayer money and protecting highly sensitive personal information, and has politically targeted conservative organizations,” Sen. Braun said. “The IRS doesn’t need more power, it needs to be reformed to ensure that it serves the best interest of the American people. These reforms we’re introducing this week will do that.”
“Senator Braun should be applauded for introducing the Simplify, Don’t Amplify the IRS Act,” said Grover Norquist, President of Americans for Tax Reform. “This legislation implements common-sense reforms that holds the IRS accountable and protect taxpayers. For instance, the bill prohibits the creation of the IRS bank reporting regime being pushed by President Biden and repeals the Democrat ban on states cutting taxes. It ensures the IRS spends time helping taxpayers instead of wasting time on partisan union activity. It holds IRS employees accountable when they release private taxpayer information.”
Background
The Simplify, Don’t Amplify the IRS Act includes the following reforms:
- S. 730, Let States Cut Taxes Act. Removes provision from American Rescue Plan Act of 2021 that prohibits states from cutting taxes should they take supplemental funding from the federal government.
- S. 1777, Don’t Weaponize the IRS Act. Codifies the Trump administration rule that protects groups regardless of their political ideology or beliefs and prevents the IRS from doxxing donors to these groups
- S. 2132, IRS Customer Service Improvement Act. Prohibit agency employees from engaging in taxpayer-funded union time during tax filing season.
- S. 2222, Protect Taxpayers Privacy Act. Increases the penalty for releasing private taxpayer information and makes it easier for the IRS to terminate employees found responsible.
- S. 2721, Tax Gap Reform and IRS Enforcement Act. Requires tax gap estimates from the Joint Committee on Taxation (JCT), prohibits IRS targeting of audits and establish of new bank reporting requirements and creates an IRS enforcement fellowship pilot program to assist with the agency’s most complex audits and case selection decisions.
- S. 3221, IRS Improper Payments Act. Codifies a 2009 administration rule to increase federal agencies’ accountability for reducing billions in improper payments via tax credits while continuing to ensure that federal programs serve and provide access to intended beneficiaries.