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Simplify, Don’t Amplify the IRS Act

Introduced: April 7, 2022 See on congress.gov
 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Apr 7, 2022
Referred 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.
Apr 7, 2022
Introduced in House
 Plain-English summary Congressional Research Service

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.

What's happening now April 7, 2022

Referred 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.

 Committees of jurisdiction 3