Simplify, Don’t Amplify the IRS Act
Official title: To amend the Internal Revenue Code of 1986 to improve and promote transparency, efficiency and operational integrity of the Internal Revenue Service, and for other purposes.
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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
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.
- Introduced in House Formatted Text PDF Formatted XML
Cite this page
U.S. Congress. (2026). H.R. 2556: Simplify, Don’t Amplify the IRS Act. 118th Congress. Open America. https://openamerica.io/bill/118-HR-2556/
"H.R. 2556: Simplify, Don’t Amplify the IRS Act." 118th Congress, 2026, Open America, https://openamerica.io/bill/118-HR-2556/.
H.R. 2556, 118th Cong. (2026), https://openamerica.io/bill/118-HR-2556/.
[H.R. 2556: Simplify, Don’t Amplify the IRS Act](https://openamerica.io/bill/118-HR-2556/)