IRS reform legislation introduced on March 28, 2019, by House Ways and Means Committee members and backed by Senate Finance Committee leaders would codify the requirement of an independent administrative appeals function at the IRS and limit access of non-Internal Revenue Service employees to returns and return information, in addition to enhancing IRS information technology and cybersecurity and identity protection.

The Taxpayer First Act of 2019 is similar to the language approved by the House late last year both on its own and as part of a broader tax package authored by then-Chairman Kevin Brady (R-TX). That version had dropped from earlier versions controversial provisions like eliminating the IRS Oversight Board, changing the title IRS Commissioner to Administrator, and adding whistleblower protection provisions supported by Senate Finance Committee leaders. A House-Senate tax deal never materialized at the end of last year amid the government shutdown.

The bill is sponsored by Ways and Means Oversight Subcommittee Chairman John Lewis (D-GA) and Ranking Member Mike Kelly (R-PA), with full Ways and Means Committee Chairman Richard Neal (D-MA) and Ranking Member Brady serving as co-sponsors. Senate Finance Committee Chairman Chuck Grassley (R-IA) announced that a companion Senate measure will be introduced. He said the bill "is truly a bipartisan package that adopts provisions authored by Committee members on both sides of the aisle of the House and the Senate." Chairman Grassley also said establishing an independent office of appeals within the IRS "will help ensure the playing field is not tilted against taxpayers when those taxpayers are in dispute with the Internal Revenue Service."

The bill is expected to be marked up by the Ways and Means Committee on April 2.

Text of the bill and a summary are attached.

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ATTACHMENT

Taxpayer First Act of 2019

Summary - Taxpayer First Act of 2019