Fair and Accountable IRS Reviews Act
Summary
The "Fair and Accountable IRS Reviews Act" aims to amend the Internal Revenue Code of 1986 by reforming certain penalty and interest provisions. Specifically, it mandates that any initial determination for assessing penalties must be personally approved in writing by the immediate supervisor of the individual making the determination, or a higher-level official. This requirement applies before any written communication regarding the penalty is sent to the taxpayer.
Expected Effects
The act will change the procedure for assessing penalties by the IRS. It introduces a layer of supervisory review before a penalty can be proposed to a taxpayer in writing. This could potentially reduce errors and ensure greater accountability in the penalty assessment process.
Potential Benefits
- Ensures supervisory oversight in the assessment of penalties, potentially reducing errors.
- Increases accountability within the IRS by requiring documented approval.
- May lead to fairer treatment of taxpayers by preventing unwarranted penalties.
- Provides a check-and-balance system within the IRS penalty assessment process.
- Could reduce the number of disputes and appeals related to penalties.
Potential Disadvantages
- May slow down the penalty assessment process due to the added layer of approval.
- Could create additional administrative burden for IRS supervisors.
- Potential for inconsistent application if supervisors interpret the rules differently.
- Might not address all issues related to fairness and accuracy in penalty assessments.
- Could be perceived as adding unnecessary bureaucracy to the IRS.
Constitutional Alignment
The bill aligns with the general principles of due process and fairness, although it doesn't directly invoke any specific constitutional clause. The Fifth Amendment ensures that no person shall be deprived of property without due process of law, and this bill could be seen as reinforcing that principle within the context of IRS penalty assessments. Article I, Section 8 grants Congress the power to lay and collect taxes, but this power is implicitly limited by the need for fairness and due process.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).