summary
Introduced
04/12/2016
04/12/2016
In Committee
04/12/2016
04/12/2016
Crossed Over
Passed
Dead
01/03/2017
01/03/2017
Introduced Session
114th Congress
Bill Summary
Taxpayer Protection Act of 2016 This bill amends the Internal Revenue Code to establish additional requirements and procedures for collecting taxes, regulating tax preparers, responding to identity theft, and assisting low-income taxpayers. The bill repeals the authority of the Internal Revenue Service (IRS) to contract with private companies to collect federal tax debts. It also excludes from the gross income of an individual up to $10,000 of income from the discharge of a debt over the individual's lifetime. The bill requires the statute of limitations for a taxpayer's case to continue to run during a pending application for assistance from the National Taxpayer Advocate. The bill also: establishes limitations on IRS levies of retirement accounts, suspends the time limit for returning wrongfully levied property if a taxpayer is financially disabled, increases the grace period for withdrawing a frivolous return, and repeals the requirement to submit a partial payment with an offer-in-compromise to settle a tax liability. The IRS must notify victims of identity theft regarding an unauthorized use of the taxpayer's identity or the filing of criminal charges regarding the use of the identity. The IRS must also: (1) permit its employees to refer taxpayers to low-income taxpayer clinics, and (2) notify taxpayers who are eligible for the Earned Income Tax Credit. The IRS may regulate paid tax return preparers and disclose returns or return information necessary to publish decisions related to tax return preparer misconduct. The bill provides additional funding to the IRS for Taxpayer Services and increases the funding that the IRS may allocate to low-income taxpayer clinics.
AI Summary
This bill, the Taxpayer Protection Act of 2016, aims to reduce taxpayer burdens and enhance protections by amending the Internal Revenue Code. Key provisions include repealing the Internal Revenue Service's (IRS) authority to contract with private companies for tax debt collection, and allowing individuals to exclude up to $10,000 of forgiven debt from their taxable income over their lifetime. The bill also ensures that the time limit for a taxpayer's case continues to run even when they are seeking assistance from the National Taxpayer Advocate, limits the IRS's ability to seize retirement accounts, and extends the grace period for withdrawing frivolous tax filings. Furthermore, it removes the requirement for a partial payment with an offer-in-compromise, a process used to settle tax liabilities for less than the full amount owed. For victims of identity theft, the IRS will be required to notify them of unauthorized use of their identity or related criminal charges and provide a single point of contact for their case. The bill also mandates that IRS employees can refer taxpayers to low-income taxpayer clinics, which provide free or low-cost tax help, and that the IRS will notify eligible taxpayers about the Earned Income Tax Credit (EITC), a tax credit for low-to-moderate income working individuals and families. Additionally, the IRS will be empowered to regulate paid tax return preparers and disclose information related to their misconduct, and the bill increases funding for both Taxpayer Services and low-income taxpayer clinics.
Committee Categories
Budget and Finance
Sponsors (9)
John Lewis (D)*,
Earl Blumenauer (D),
Joseph Crowley (WFP),
Danny Davis (D),
John Larson (D),
Jim McDermott (D),
Bill Pascrell (D),
Charles Rangel (D),
Chris Van Hollen (D),
Last Action
Referred to the House Committee on Ways and Means. (on 04/12/2016)
Official Document
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