Bill Summary
The "Fair and Accountable IRS Reviews Act" is legislation aimed at reforming the penalty and interest provisions of the Internal Revenue Code. The key change involves the procedural requirements for assessing penalties by the Internal Revenue Service (IRS). Specifically, the Act mandates that any penalty assessment must receive written approval from the immediate supervisor of the individual proposing the penalty before any communication is sent to the taxpayer regarding the penalty. This aims to ensure a higher level of oversight and accountability within the IRS. The definition of "immediate supervisor" is clarified to refer to the direct supervisor of the person making the penalty determination. The provisions of the Act will take effect for notices and penalties issued after December 31, 2025.
Possible Impacts
The "Fair and Accountable IRS Reviews Act" could affect people in several ways, including:
1. **Increased Fairness in Penalty Assessments**: By requiring that any penalty assessment be personally approved in writing by an immediate supervisor before any communication is sent to the taxpayer, this legislation could lead to more thorough and deliberate evaluations of penalty cases. Taxpayers may experience fewer arbitrary or unjust penalties, as the oversight could promote fairer treatment.
2. **Transparency in Tax Administration**: The requirement for supervisor approval before penalties are assessed may lead to increased transparency within the IRS. Taxpayers could benefit from clearer communication regarding how penalties are determined and the rationale behind them, potentially reducing confusion and frustration in dealing with tax issues.
3. **Improved Accountability Among IRS Employees**: The amendment mandates that a higher level of oversight is involved in penalty assessments, which could lead to greater accountability among IRS employees. This may result in more careful and responsible action regarding penalties, possibly reducing errors and improving the overall taxpayer experience with the IRS. Taxpayers might feel more confident that their cases are handled properly, knowing that there is a supervisory check in place.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5346 Referred in Senate (RFS)]
<DOC>
119th CONGRESS
1st Session
H. R. 5346
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 2, 2025
Received; read twice and referred to the Committee on Finance
_______________________________________________________________________
AN ACT
To amend the Internal Revenue Code of 1986 to reform certain penalty
and interest provisions.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fair and Accountable IRS Reviews
Act''.
SEC. 2. PROCEDURAL REQUIREMENTS FOR ASSESSMENT OF PENALTIES.
(a) Approval of Assessment.--Section 6751(b)(1) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(1) In general.--No penalty under this title shall be
assessed or entered unless, before any written communication
with respect to such penalty (including proposal of a penalty
as an adjustment) is sent to the taxpayer, the initial
determination of such assessment is personally approved (in
writing) by the immediate supervisor of the individual making
such determination or such higher level official as the
Secretary may designate.''.
(b) Immediate Supervisor Defined.--Section 6751(b) of such Code is
amended by adding at the end the following new paragraph:
``(3) Immediate supervisor.--For purposes of this
subsection, the term `immediate supervisor' means, with respect
to an individual making a determination under paragraph (1),
the person to whom such individual reports.''.
(c) Effective Date.--The amendments made by this section shall
apply to notices issued, and penalties assessed, after December 31,
2025.
Passed the House of Representatives December 1, 2025.
Attest:
KEVIN F. MCCUMBER,
Clerk.