S. 4046 — Simplify, Don’t Amplify the IRS Act

Summary

Simplify, Don't Amplify the IRS Act

This bill limits Internal Revenue Service (IRS) enforcement authority and modifies certain IRS reporting requirements. It also eliminates certain restrictions on the use of coronavirus recovery funds.

Among other provisions, the bill

increases the gross receipts reporting threshold for certain religious and charitable organizations from $5,000 to $50,000;
generally increases penalties for unauthorized disclosure of taxpayer information and for such disclosures by tax return preparers;
requires the IRS to establish a fellowship program to recruit private sector tax experts to create a task force to. among other things, educate IRS employees on emerging issues, perform audits, and address offshore tax evasion; and
sets forth provisions for reducing improper payments to taxpayers.

The bill also requires the IRS to report annually on the tax gap estimate for the most recent taxable year. The IRS must use artificial intelligence to calculate an estimate of the tax gap. The bill defines tax gap as the difference between tax liabilities owed to the United States and those liabilities actually collected.

The bill restricts funding for IRS audits and enforcement until the IRS publishes an updated tax gap projection.

Related Legislation

H.R. 2002Let States Cut Taxes Act

2021-03-18Referred to the House Committee on Oversight and Reform.

H.R. 4485IRS Customer Service Improvement Act

2021-07-16Referred to the House Committee on Oversight and Reform.

H.R. 4489National Forest Restoration and Remediation Act

2021-12-09Received in the Senate and Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

H.R. 5026Panama Canal Zone Veterans Act of 2021

2021-09-09Referred to the Subcommittee on Disability Assistance and Memorial Affairs.

H.R. 5364Protect Taxpayers’ Privacy Act

2021-09-24Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

S. 730Let States Cut Taxes Act

2021-03-11Read twice and referred to the Committee on Finance.

S. 743State Fiscal Flexibility Act of 2021

2021-03-15Read twice and referred to the Committee on Finance.

S. 1777Don't Weaponize the IRS Act

2021-05-20Read twice and referred to the Committee on Finance.

S. 2132IRS Customer Service Improvement Act

2021-06-17Read twice and referred to the Committee on Finance.

S. 2222Protect Taxpayers’ Privacy Act

2021-06-24Read twice and referred to the Committee on Finance.

S. 2721A bill to require the Internal Revenue Service to issue a report on the tax gap, to establish a fellowship program within the Internal Revenue Service to recruit mid-career tax professionals to create and participate in an audit task force, and for other purposes.

2021-09-13Read twice and referred to the Committee on Finance.

S. 3009Let States Cut Taxes Act

2021-10-20Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 150.

H.R. 7485Simplify, Don’t Amplify the IRS Act

2022-04-07Referred to the Committee on Ways and Means, and in addition to the Committees on Oversight and Reform, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Simplify, Don’t Amplify the IRS Act

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