Fair and Accountable IRS Reviews Act
Summary
The "Fair and Accountable IRS Reviews Act" (H.R. 5346) aims to amend the Internal Revenue Code of 1986 by reforming 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 designated by the Secretary. 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 new layer of oversight, requiring supervisory approval before a penalty assessment can be communicated to the taxpayer. This is intended to ensure greater fairness and accountability in the penalty assessment process.
Potential Benefits
- Increased accountability within the IRS penalty assessment process.
- Reduced potential for errors or biases in initial penalty determinations.
- Enhanced fairness for taxpayers facing penalties.
- Greater transparency in the penalty assessment process.
- May lead to fewer unwarranted penalties being assessed.
Potential Disadvantages
- Potential for delays in the penalty assessment process due to the added layer of approval.
- Increased administrative burden on IRS supervisors.
- Possible inconsistencies in penalty assessments depending on supervisory interpretation.
- May not address all concerns related to IRS penalty and interest provisions.
- Could lead to increased costs for the IRS due to the additional oversight required.
Constitutional Alignment
The act appears to align with the principles of due process and fairness, which are implicitly supported by the Fifth Amendment's guarantee that no person shall be deprived of property without due process of law. By requiring supervisory approval for penalty assessments, the act seeks to ensure that such assessments are made fairly and accurately.
Furthermore, Article I, Section 8, Clause 1 of the Constitution grants Congress the power to lay and collect taxes, duties, imposts, and excises. This act, by reforming penalty assessment procedures, falls under Congress's authority to regulate the collection of taxes.
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).