H.R. 2556 — 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.

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.

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Related Legislation

S. 1051Protect Taxpayers’ Privacy Act
2023-03-29Read twice and referred to the Committee on Finance.
Related
S. 1053IRS Customer Service Improvement Act
2023-03-29Read twice and referred to the Committee on Finance.
Related
S. 1054IRS Improper Payments Act
2023-03-29Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
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S. 1105Don't Weaponize the IRS Act
2023-03-30Read twice and referred to the Committee on Finance.
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S. 1101Simplify, Don’t Amplify the IRS Act
2023-03-30Read twice and referred to the Committee on Finance.
Related

Legislative Actions

2023-04-10
Introduced in House
2023-04-10
Introduced in House
2023-04-10
Referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services, and Oversight and Accountability, 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.
2023-04-10
Referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services, and Oversight and Accountability, 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.
2023-04-10
Referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services, and Oversight and Accountability, 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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Summary

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Related Legislation

Legislative Actions

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