IRS Accountability and Transparency Act
The bill's implementation is expected to lead to more rigorous scrutiny of IRS regulatory actions. Proponents argue that such a review would foster better consistency and transparency in tax-related regulations, thereby protecting taxpayers from arbitrary changes in regulations that could drastically affect compliance and operational costs. Additionally, it is suggested that this oversight would prevent inconsistencies between IRS actions and those of other regulatory agencies, leading to a more coherent regulatory environment.
SB2981, titled the 'IRS Accountability and Transparency Act', aims to enhance the review process of tax regulatory actions undertaken by the Internal Revenue Service (IRS). Specifically, the bill mandates that any substantive tax regulatory action proposed by the IRS be reviewed by the Office of Information and Regulatory Affairs (OIRA). This includes actions that could affect the economy significantly, especially those with potential economic impacts exceeding $100 million annually. The overarching goal is to ensure greater oversight and accountability within the IRS processes regarding tax regulations.
However, the bill has sparked discussions regarding the potential bureaucratic delays that may result from mandatory reviews by the OIRA. Critics argue that while accountability is important, such oversight could hinder the IRS's ability to respond swiftly to emerging compliance issues or changing economic conditions. There are concerns that this could affect the timely promulgation of necessary tax regulations, ultimately placing an additional burden on both the IRS and taxpayers who may seek clarity in their obligations.
Another contested point revolves around the definition of 'tax regulatory action', which includes a broad spectrum of regulatory decisions made by the IRS. This expansive definition has led to debate about the appropriateness of subjecting all such actions to OIRA review, including those that are deemed routine or less significant. Overall, while the intent of SB2981 is to enhance transparency and responsibility within the IRS, its implementation may require careful consideration to balance oversight with operational efficiency.