Bill Summary
The "Taxpayer Workforce Modernization Act" is proposed legislation aimed at enhancing the capabilities of the Internal Revenue Service (IRS) by establishing a fellowship program to recruit skilled data scientists. The program, set to be launched by September 30, 2026, will partner these data scientists with tax law specialists to address complex and emerging issues in tax administration.
Key features of the legislation include:
1. **Fellowship Program**: The IRS will recruit a minimum of 10 data scientists for terms of 2 to 4 years, with potential extensions.
2. **Task Force Formation**: A task force will be established to develop data-driven methodologies for auditing, train IRS staff on analytics, and improve strategies to combat tax evasion.
3. **Compensation**: Fellows will be paid at a level no lower than GS-15 of the General Schedule, with the potential for higher compensation.
4. **Reporting and Evaluation**: The IRS will submit annual reports to Congress analyzing the program's effectiveness, return on investment, and recommendations for improvements.
Overall, this legislation aims to modernize the IRS's workforce by integrating advanced data analytics into tax administration processes, thereby enhancing efficiency and effectiveness in managing tax cases.
Possible Impacts
The "Taxpayer Workforce Modernization Act," as outlined in the provided legislation, could affect people in several significant ways. Here are three examples:
1. **Improved Tax Administration for Taxpayers**: By establishing a fellowship program to recruit qualified data scientists, the IRS will enhance its ability to identify and address complex tax issues. This can lead to more efficient and accurate tax processing, reducing the likelihood of errors that may impact taxpayers. As a result, individuals and businesses may experience fewer audits and delays in processing their tax returns, leading to a more streamlined and user-friendly tax system.
2. **Increased Revenue Collection**: The task force's focus on advanced data analysis and modeling aims to improve audit effectiveness and efficiency. This can help the IRS identify underreporting and tax evasion more effectively, potentially increasing tax revenue. Consequently, this may result in a more equitable tax system where individuals and corporations are held accountable for their tax obligations, benefiting public services funded by tax revenue.
3. **Job Opportunities and Professional Development**: The fellowship program will create job opportunities for qualified data scientists and tax professionals, contributing to the workforce within the IRS. This initiative may also provide existing IRS employees with training and mentorship opportunities, enhancing their skills in data analytics and tax administration. Ultimately, this could lead to career advancement for individuals within the IRS and foster a more knowledgeable and capable workforce, benefiting both employees and taxpayers through improved services.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7972 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 7972
To require the Internal Revenue Service to establish a fellowship
program within the Internal Revenue Service to recruit qualified data
scientists to partner with tax law specialists and provide insights and
identify emerging and complex issues in tax administration, ranging
from data acquisition and quality through developing advanced
analytics, statistics, and models to improve core tax administration
activities in services and enforcement.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 18, 2026
Mr. Schweikert introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To require the Internal Revenue Service to establish a fellowship
program within the Internal Revenue Service to recruit qualified data
scientists to partner with tax law specialists and provide insights and
identify emerging and complex issues in tax administration, ranging
from data acquisition and quality through developing advanced
analytics, statistics, and models to improve core tax administration
activities in services and enforcement.
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 ``Taxpayer Workforce Modernization
Act''.
SEC. 2. IRS FELLOWSHIP PROGRAM.
(a) Establishment.--Not later than September 30, 2026, the
Commissioner of Internal Revenue (hereinafter known as the
``Commissioner''), after consultation with the Chief Counsel of the
Internal Revenue Service (hereinafter known as the ``Chief Counsel'')
and the Chief Data and Analytics Officer of the Internal Revenue
Service (hereinafter known as the ``Chief Data Officer''), shall
establish within the Internal Revenue Service a fellowship program
(hereinafter known as the ``program'') to recruit qualified data
scientists in the private sector to join the Internal Revenue Service
to create and participate in the task force established under
subsection (e).
(b) Objective.--The Commissioner, after consultation with the Chief
Counsel and Chief Data Officer, shall design the program in a manner
such that the program--
(1) addresses such tax cases handled by the Internal
Revenue Service as the Commissioner determines--
(A) are the most complex, or
(B) include new and emerging issues, and
(2) recruits and retains outstanding and qualified tax
experts.
(c) Advertisement of Program.--The Commissioner shall advertise the
program in such a way as to attract qualified data scientists and such
other tax professionals as the Commissioner determines are
appropriately qualified to handle the most complex tax cases.
(d) Structure.--
(1) In general.--The program shall be staffed by not fewer
than 10 fellows at the discretion of the Commissioner based on
the needs of the Internal Revenue Service and the availability
of qualified candidates.
(2) Term of service.--
(A) In general.--Each fellow shall be hired for a
2-, 3-, or 4-year term of service.
(B) Extensions.--
(i) In general.--A fellow may apply for,
and the Commissioner may grant, a 1-year
extension of the fellowship.
(ii) No limit on number of extensions.--
There shall be no limit on the number of
extensions under clause (i).
(3) Fellowship vacancies.--The Commissioner, after
consultation with the Chief Counsel and Chief Data Officer,
shall fill vacant fellowships--
(A) in such a manner as to ensure that the program
is staffed with no fewer than 5 fellows, and
(B) as soon as practicable after the vacancy
arises.
(4) Hiring authority.--The Commissioner shall have
authority to permanently hire a fellow at the end of the term
of service for such fellow.
(e) Task Force.--Not later than the date on which the first
fellowship is awarded under this section, the Commissioner shall
establish a task force within the Internal Revenue Service and the
office of the Chief Counsel in both national and regional office
placements that includes the fellows hired pursuant to subsection (d),
the purpose of which is to--
(1) develop, test, and refine data-driven methodologies to
support audit case selection,
(2) educate Internal Revenue Service employees on the use,
interpretation, and limitations of data analytics, models, and
emerging analytic techniques relevant to tax administration,
(3) support, in coordination with examiners and tax
experts, the audit of selected taxpayers through advanced data
analysis, transaction-level testing, and quantitative modeling,
(4) support efforts to address offshore tax evasion and
issues implicating the Foreign Account Tax Compliance Act
through data integration, anomaly detection, and network
analysis,
(5) identify, mentor, and train junior employees from the
Internal Revenue Service with respect to using data analytics
and emerging analytic techniques to identify risk and
facilitate task administration improvements,
(6) review existing use cases of artificial intelligence
and data analytics with respect to tax administration, provide
recommendations to improve on such existing cases, and identify
new such cases, and
(7) provide data-driven recommendations for improving audit
effectiveness and efficiency and for improving improper tax
payments.
(f) Composition.--The task force established under subsection (e)
may be composed of both--
(1) fellows, and
(2) permanent employees of the Internal Revenue Service.
(g) Pay of Fellows.--
(1) In general.--The Secretary of the Treasury (or the
Secretary's delegate) shall determine, subject to the
provisions of this subsection, the pay of fellows recruited
under subsection (a).
(2) Pay scale.--For purposes of paragraph (1), the pay of a
fellow shall not be less than the minimum rate payable for GS-
15 of the General Schedule and shall not exceed the amount of
annual compensation (excluding expenses) specified in section
102 of title 3, United States Code.
(h) Administration of Program.--The Secretary of the Treasury (or
the Secretary's delegate) may appoint a lead program officer to
administer and advertise the program.
(i) Annual Review and Report.--Not later than 1 year after the date
on which the first fellowship is awarded under this section, and
annually thereafter, the Commissioner shall submit to Congress a report
containing--
(1) an analysis of the effects of the program,
(2) an analysis of the return on investment of the program,
including calculations of all costs incurred and benefits
incurred, which may include predicted revenue increases based
on task force recommendations; tax revenue and penalties
recommended, assessed, or collected due to the work of the task
force; and operational improvements in taxpayer service,
(3) a description of the total number of fellows who apply
each year, and
(4) recommendations for changes to the program, if any.
(j) Rules and Regulations.--The Commissioner, with the approval of
the Secretary of the Treasury (or the Secretary's delegate, other than
the Commissioner), shall promulgate such rules and regulations as may
be necessary for the efficient administration of the program.
(k) Qualified Data Scientist Defined.--In this subsection, the term
``qualified data scientist'' means a specialized professional who has
demonstrated skills applying advanced analytics, statistical modeling,
or machine learning in complex regulatory, financial, or compliance
environments while working alongside tax law specialists and other tax
subject matter experts.
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