CLEAR Act of 2023 Comprehensive Legislation Ensuring Accountability and Responsiveness Act of 2023
Impact
The enactment of HB3789 would create a new procedural requirement for the issuance of Treasury regulations. By mandating that proposed or temporary regulations be submitted to the National Taxpayer Advocate for review, the bill aims to establish a formal mechanism for taxpayer input in the regulatory process. This could lead to regulations that are more sensitive to taxpayer concerns, potentially alleviating burdens and ensuring that taxpayer rights are front and center in regulatory decisions. The amendments to Section 7805 of the Internal Revenue Code would specifically empower advocates for taxpayer rights, promoting an environment where stakeholders in taxation have a defined voice.
Summary
House Bill 3789, known as the Comprehensive Legislation Ensuring Accountability and Responsiveness Act of 2023 (CLEAR Act), is focused on amending the Internal Revenue Code to enhance the role of the National Taxpayer Advocate. This bill provides the National Taxpayer Advocate with the authority to review and comment on proposed Treasury regulations before they are published. This legislative move is intended to ensure that regulations reflect the considerations of taxpayer rights and burdens, fostering a more responsive and accountable tax administration.
Contention
While supporters of HB3789 argue that giving the National Taxpayer Advocate a formal role in commenting on regulations will strengthen taxpayer advocacy and lead to better-informed rules, there may be opposition regarding the implications for regulatory efficiency. Critics might express concerns about potential delays in the regulatory process due to the added step of requiring feedback from the National Taxpayer Advocate, viewing this as a bureaucratic hindrance that could slow down important Treasury actions. The discussions around this bill are likely to explore the balance between necessary oversight and the timely management of tax regulations.