Senators Scott, Crapo, Colleagues Reintroduce Legislation to Improve IRS Accountability

U.S. Senator Tim Scott (R-S.C.), Senate Finance Committee Chairman Mike Crapo (R-Idaho), and their Republican colleagues, reintroduced the IRS Accountability and Taxpayer Protection Act to modify rules for imposing tax penalties on Americans. This bill would require a supervisor or higher-level official to approve or deny penalties during the pre-assessment process. Establishing a supervisor sign-off requirement will improve transparency and accountability at the IRS to make sure that taxpayers are not given improper or automated penalties.

“IRS agents should seek proper approval before issuing penalties to American taxpayers,” said Sen. Scott. “I’m reintroducing the IRS Accountability and Taxpayer Protection Act to implement reforms that put the taxpayer first and supports good governance. This bill ensures no penalty can be imposed without written approval from a supervisor, bringing greater transparency and accountability to the process. American taxpayers deserve a fair system that protects their rights—not one that punishes them without oversight.”

“Senator Scott deserves the gratitude of millions of Americans for reintroducing legislation to strengthen this vital taxpayer safeguard against unauthorized penalties. Congress affirmed the IRS’s penalty authority must be balanced with the rights of taxpayers in the bipartisan IRS Restructuring and Reform Act of 1998. That provision has come under attack in recent years, endangering the hard-won protections that Americans depend upon in legitimate disputes with the IRS. The IRS Accountability and Taxpayer Protection Act gives hope to taxpayers who follow the rules that the IRS will do the same. We are proud to support Senator Scott’s bill. Lawmakers in both parties should do so too,” said Pete Sepp, president of the National Taxpayers Union.

“Democrats super-sized the IRS to ramp up audits on small businesses and households. They attempted to strip away section 6751(b) of the tax code, a provision that prevents IRS agents from supervisor shopping for a rubber stamp to shake down taxpayers. Scott’s bill ensures the IRS can’t intimidate taxpayers into settling by threatening unjust penalties. Taxpayers need more protection from the IRS, not less. Every lawmaker should support Sen. Scott’s bill and I applaud his leadership,” said Grover Norquist, president of Americans for Tax Reform.

In addition to U.S. Senators Scott and Crapo, the IRS Accountability and Taxpayer Protection Act is cosponsored by Senators Cynthia Lummis (R-Wyo.), Thom Tillis (R-N.C.), Chuck Grassley (R-Iowa), and Jim Risch (R-Idaho).

Full text of the IRS Accountability and Taxpayer Protection Act can be found here.

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