Internal Revenue Service Accountability Act

Internal Revenue Service Accountability Act - Amends the Internal Revenue Code to mandate a fine or imprisonment for any U.S. officer or employee who willfully and maliciously disregards any revenue law or related regulation relating to any proceeding against a taxpayer.

Allows, if litigation costs are awarded, a portion of the costs to be assessed against any current or former Internal Revenue Service officer or employee (prohibiting Government reimbursement) if the proceeding resulted from any arbitrary, capricious, or malicious act of the officer or employee. Allows Government defense of the officer or employee, but makes the officer or employee liable for defense costs if the employee is found liable for litigation costs. Imposes similar liabilities regarding civil damages for a failure to release a lien or for certain unauthorized collection actions.

Amends provisions allowing civil damages for disclosure of returns and return information to allow the damages for access as well as disclosure and apply the provisions to former as well as current officers and employees. Provides for dismissal from office or discharge from employment, a fine or imprisonment, and costs of prosecution for unauthorized access. Prohibits unauthorized access and, on discovery of unauthorized access, requires immediate taxpayer notification.

Requires reasonable justification (not random selection) for examining a return. Prohibits, except on court approval, a second examination of a return or extending an examination back beyond three taxable years.

Extends from 21 to 90 calendar days after notice and demand the deadline to pay a tax required to be shown on certain returns but not shown.

Allows a district court to rule on a decision by the Secretary of the Treasury to not acquiesce regarding conclusions of law in identical, similar, or previously-decided cases.

Requires court consent for a levy to collect a tax.

Prohibits interest on assessable penalties, additional amounts, or additions to tax.

Sets the interest rate for overpayments and underpayments (the same rate for both).

Modifies requirements regarding abatement of interest, penalties, additional amounts, or additions to tax attributable to a mathematical or clerical error.