Fair and Accountable IRS Reviews Act
Summary
The "Fair and Accountable IRS Reviews Act" amends the Internal Revenue Code of 1986, focusing on reforming penalty and interest provisions. Specifically, it mandates that initial penalty assessments require written approval from the immediate supervisor of the individual making the determination. This requirement applies to notices issued and penalties assessed after December 31, 2025.
Expected Effects
The act aims to ensure greater accountability and oversight in the IRS penalty assessment process. This change will likely lead to fewer erroneous penalties being assessed. It may also increase the administrative burden on IRS supervisors.
Potential Benefits
- Increased accountability in IRS penalty assessments.
- Reduced likelihood of erroneous penalties.
- Greater protection for taxpayers against unfair penalties.
- Improved transparency in the penalty assessment process.
- Potential for fairer treatment of taxpayers by the IRS.
Potential Disadvantages
- Potential for increased administrative burden on IRS supervisors.
- Possible delays in the penalty assessment process.
- Potential for inconsistent application of penalty assessments depending on supervisory discretion.
- May not address all issues related to IRS fairness and accountability.
- Could lead to increased litigation if taxpayers dispute supervisory approval.
Constitutional Alignment
The act aligns with the Constitution by promoting due process and fairness in government actions, particularly in the assessment of penalties by the IRS. While the Constitution does not explicitly address IRS procedures, the Fifth Amendment's guarantee of due process implies that government actions should be fair and reasonable. The act's requirement for supervisory approval helps ensure that penalties are not assessed arbitrarily, supporting the principles of justice and fairness.
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).