The Ways and Means Oversight Subcommittee on January 30, 2018, held a Member Day hearing on "Legislation to Improve Tax Administration." Full Committee Chairman Kevin Brady (R-TX) has promised action on restructuring the IRS this year, and Subcommittee Chairman Lynn Jenkins (R-KS) said she wants to include member ideas in forthcoming IRS reform legislation.

In an opening statement, Chairman Jenkins highlighted the dispute resolution process at the IRS by which the agency seeks to resolve controversies without litigation. "If a taxpayer disagrees with an IRS decision or assessment, Congress determined that a review by an Independent IRS employee should be available. Unfortunately, over time, the process set up by the IRS has become less independent and taxpayers are frustrated," said Jenkins, who recently became the top Republican on the panel in a reshuffling of subcommittee chairmen and members. "Some expressed frustration at the prospect of not being able to plead their case face-to-face. Others have been completely denied access to independent review. Taxpayers are losing faith that they will receive an independent and fair review of their case."

There was no questioning of witnesses or debate during the hearing, which was interrupted by House votes. Members testifying about sponsored legislation included:

— Representative Jason Smith (R-MO) on the Preserving Taxpayer Rights Act (H.R. 3220) to establish new procedures and requirements for administrative appeals of IRS deficiency determinations;

— Representative Peter Roskam (R-IL) on the Free File Permanence Act of 2017 (H.R. 3641) to require continued operation, enhancement, and expansion of the Free File program;

— Representative Jim Renacci (R-OH) on the Stolen Identify Prevention Refund Act (H.R. 439) to require IRS to provide notifications, instructions, and forms to suspected victims of identity theft;

— Representative Tom Rice (R-SC) on the Electronic Signature Standards Act of 2017 (H.R. 3153) to require uniform standards and procedures for the acceptance of practitioner signatures in digital or other electronic form, as well as forthcoming legislation to require an automatic 30-day reset of the filing deadline in the wake of a major disaster declaration;

— Representative Steve Chabot (R-OH) on the Small Business Owners' Tax Simplification Act of 2017 (H.R. 3717) to simplify income tax compliance for small businesses;

— Representative Bill Posey (R-FL) on the Seniors' Tax Simplification Act (H.R. 2721) to make a simplified filing form available to taxpayers age 65 or older; and

— Representative Louie Gohmert (R-TX) on the idea of eliminating the IRS.

Chairman Jenkins' statement is attached.

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ATTACHMENT

Jenkins Statement