If enacted, SB1249 would impact how penalties are applied under the Internal Revenue Code. By altering the procedural requirement requiring supervisory approval prior to the assessment of penalties, the bill aims to create a more structured and transparent process. Supporters argue that this change will protect taxpayers by ensuring that penalties are not applied haphazardly or without appropriate oversight, thereby promoting fair treatment among taxpayers under IRS guidelines.
Summary
Senate Bill 1249, known as the IRS Accountability and Taxpayer Protection Act, seeks to amend the Internal Revenue Code of 1986 by adjusting procedural requirements related to penalties. This bill primarily focuses on the approval process for penalties assessed by the IRS, specifically mandating that any supervisory approval must occur at a stage where the official has the authority to either grant or deny such approval. The desired outcome of these amendments is to enhance clarity and accountability within IRS penalty assessments.
Contention
One of the significant points of contention surrounding SB1249 is the balance between necessary oversight and the operational efficiency of the IRS. Critics may argue that increasing layers of approval could slow down the penalty process, potentially leading to delayed assessments and confusion for taxpayers. Proponents, however, contend that maintaining rigorous oversight is crucial for protecting taxpayer rights and ensuring that the IRS acts within its authority.