Simplify, Don’t Amplify the IRS Act
Among the key provisions of the bill is the establishment of a new fellowship program within the IRS aimed at recruiting private sector tax experts to assist in complex tax cases. This program is designed to help improve audit case selection and train junior IRS employees. The bill requires the Commissioner of the IRS to submit an annual report detailing progress and challenges in meeting the set targets for reducing improper tax payments and improving taxpayer services. Furthermore, it imposes strict limitations on increased funding for audit and enforcement purposes until compliance reports are submitted, which reflects a significant shift in how taxpayer funds are utilized in IRS operations.
House Bill 2556, titled the 'Simplify, Don’t Amplify the IRS Act,' aims to reform the Internal Revenue Service (IRS) by enhancing transparency, efficiency, and overall operational integrity. The bill focuses on preventing the improper handling of taxpayer funds, reducing the incidence of improper tax payments, and ensuring that taxpayer services remain accessible and reliable. It sets forth directives for establishing annual targets aimed at significantly reducing improper payments made by the IRS, with a framework for accountability and transparency regarding these payments.
Controversies surrounding HB2556 stem from concerns about the potential overreach in restricting IRS enforcement capabilities. Critics argue that limiting funds for enforcement can undermine the IRS’s ability to ensure compliance, particularly among high-income nonfilers. Additionally, the focus on reducing costs and enforcing budget constraints may lead to inadequate resources allocated towards necessary IRS functions, thereby potentially impacting service quality and enforcement rigor. Supporters, however, argue that increased transparency and accountability will benefit taxpayers and ensure the IRS operates within its means while upholding its mission.