The House Ways and Means Committee on April 11, 2018, approved the Taxpayer First Act (H.R. 5444), to establish an IRS Independent Office of Appeals, enhance customer service at the agency, improve enforcement, and provide for modernization of the IRS organizational structure.

The bill was part of a package of nine bills put forward by Subcommittee on Oversight Chairman Lynn Jenkins (R-KS) and Oversight Ranking Member John Lewis (D-GA), all of which were approved, that also include proposals to improve cybersecurity and taxpayer identity protection, and to modernize IT at the IRS. The Committee also approved three other bills on privacy and protecting children from identity theft.

Ways and Means Chairman Kevin Brady (R-TX) said the bills are intended to redesign and refocus the IRS as a 'Taxpayer First' agency. Under H.R. 5444, the title Commissioner of Internal Revenue would be replaced by Administrator of Internal Revenue, and the Administrator would be required to submit to Congress by September 30, 2020 a comprehensive written plan to redesign the organization of the IRS. Brady has said that timeframe is intended to provide a buffer between implementation of the Tax Cuts and Jobs Act and reform of the IRS.

The measure would establish an "IRS Independent Office of Appeals;" implements an absolute right to go to Appeals in certain limited circumstances; modifies the authority of the IRS to issue a "designated summons;" and places limits on the access of non-IRS employees to tax returns and tax return information.

In his opening statement, Ranking Member Richard Neal (D-MA) said, "There are many important reforms in all nine of the IRS redesign bills we're acting on today but I'm particularly pleased with the many provisions that would help low and moderate-income taxpayers."

The Senate Finance Committee will hold a hearing on the 2018 Tax Filing Season and Future IRS Challenges, with Assistant Treasury Secretary for Tax Policy and Acting IRS Commissioner David Kautter as the sole witness. Chairman Orrin Hatch (R-UT) said he is weighing whether Finance should craft its own IRS reform bill or take up the House measure, Bloomberg Tax reported.

The Jenkins-Lewis package of nine bills all approved by the Committee by voice vote included:

— H.R. 5444, the Taxpayer First Act

— H.R. 5445, the 21st Century IRS Act

— H.R. 2901, the Volunteer Income Tax Assistance Permanence Act of 2017

— H.R. 5440, to require notice from the Secretary of the Treasury in the case of any closure of a Taxpayer Assistance Center

— H.R. 5438, to allow officers and employees of the Department of the Treasury to provide to taxpayers information regarding low-income taxpayer clinics

— H.R. 5446, to restrict the immediate sale of seized property by Secretary of the Treasury to perishable goods

— H.R. 5437, to require the Secretary of the Treasury to establish a program for the issuance of identity protection personal identification numbers

— H.R. 5439, to provide for a single point of contact at the Internal Revenue Service for the taxpayers who are victims of tax-related identity theft

— H.R. 5443, to require electronic filing of the annual returns of exempt organizations and provide for making such returns available for public inspection

The Committee also approved three other bills:

— H.R. 4403, the Moving Americans Privacy Protection Act, by voice vote

— H.R. 1512, the Social Security Child Protection Act of 2017, by voice vote

— H.R. 5192, the Protecting Children from Identity Theft Act, by a vote of 38-0

Text, a revenue table, and a description of H.R. 5444 are attached. Materials related to the other bills are here.

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ATTACHMENTS

HR5444

AINS-to-HR5444

JCX-9-18

JCX-10-18

JCX-11-18