Bill > S2358

This bill aims to modify the procedural rules for penalties in the Internal Revenue Code, focusing on how the Internal Revenue Service (IRS) can assess and apply penalties to taxpayers. Specifically, the bill requires that any penalty or disallowance period (a period during which certain tax credits are not allowed) must be personally approved in writing by the immediate supervisor of the IRS employee making the initial determination before a notice is sent to the taxpayer. The bill defines an "initial determination" as the first written notice to a taxpayer specifying a specific penalty amount or disallowance period, and clarifies that routine requests or inquiries do not count as an initial determination unless they include a specific penalty offer. Additionally, the bill mandates that the Treasury Secretary publish an annual public report detailing all penalties assessed by the IRS, breaking down the information by organizational unit and tracking the progression of penalties through various determination, assessment, and review stages. These changes are intended to increase accountability and transparency in the IRS's penalty assessment process, providing more protection for taxpayers by ensuring supervisory oversight and requiring detailed reporting of penalty actions.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2358/all-info