,,ii #aagth ,,congress #ast ,session ,s4 #bgba ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #ac1 #bjba,mr4 ,crapo 7for himself1 ,mr4 ,tillis1 ,mr4 ,barrasso1 ,mr4 ,cassidy1 ,mr4 ,cramer1 ,mr4 ,braun1 ,mr4 ,rubio1 ,mr4 ,rounds1 ,mr4 ,lankford1 ,ms4 ,murkowski1 ,mr4 ,young1 and ,mr4 ,boozman7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to require the ,internal ,revenue ,service to issue a report on the tax gap1 to establish a fellowship program within the ,internal ,revenue ,service to recruit mid-career tax professionals to create and participate in an audit task force1 and for other purposes4 #a4 ,tax gap projection 7a7 ,in general ,not later than #ahj days after the date of the enactment of this section1 and no later than ,july #ca annually thereafter1 the ,commissioner of ,internal ,revenue shall submit to ,congress a projection detailing the tax gap estimate for the most recent taxable year as is practicable using the most recently available data1 and including identification and detailed descriptions of the data used for such projection and clear identification of the amount of the projected tax gap associated with nonfiling1 underreporting1 and underpayment 7including identifying the amount subject to collection actions74 7b7 ,use of artificial intelligence ,to the extent practicable1 for purposes of reducing the burden on taxpayers subject to ,national ,research ,program audits1 the ,commissioner shall use artificial intelligence1 including neural machine learning1 and other available data analysis tools1 including commercial analytic data providers1 to calculate a projection described in subsection 7a74 7c7 ,national research program audits ,in calculating a projection described in subsection 7a71 the ,commissioner of ,internal ,revenue shall not undertake more ,national ,research ,program audits in any one fiscal year than are undertaken in fiscal year #bjba4 7d7 ,tax gap ,for purposes of this section1 the term tax gap means the difference between tax liabilities owed to the ,united ,states under the ,internal ,revenue ,code of #aihf and those liabilities actually collected by the ,internal ,revenue ,service4 #b4 ,,jct ,report 7a7 ,in general ,not later than #ahj days after the submission of the first tax gap projection to ,congress under section #a1 and not later than #ij days after the submission of each successive submission1 the ,chief of ,staff of the ,joint ,committee on ,taxation shall submit to the ,committee on ,ways and ,means of the ,house of ,representatives and the ,committee on ,finance of the ,senate a report analyzing such projection1 including-- 7#a7 identification of methodologies used1 7#b7 any statistical or methodological uncertainties1 7#c7 the effect of outdated data1 if any1 on the accuracy of such projection1 and 7#d7 such additional information as the ,joint ,committee on ,taxation determines is useful for ,congress to use to assess and analyze the tax gap projections provided by the ,commissioner of ,internal ,revenue4 7b7 ,release of information ,for purposes of facilitating the report described in subsection 7a71 the ,secretary of the ,treasury shall1 in a timely manner1 provide to the ,joint ,committee on ,taxation such information as such committee requests4 #c4 ,restriction on increased enforcement funds 7a7 ,in general ,notwithstanding any other provision of law1 no funds appropriated to the ,department of the ,treasury for audit and enforcement purposes in excess of the levels appropriated for such purposes in fiscal year #bjba may be expended for such purposes1 including for salaries1 expenses1 and enforcement activities1 until #ahj days after the ,internal ,revenue ,service publishes an updated tax gap projection pursuant to1 and compliant with1 section #a4 7b7 ,sunset ,the provisions of subsection 7a7 shall not apply after the date which is one year after the date of the enactment of this section4 #d4 ,restriction on increased funding for other specified purposes 7a7 ,in general ,notwithstanding any other provision of law1 no funds appropriated to the ,department of the ,treasury in excess of the levels appropriated for specified purposes in fiscal year #bjba may be expended for specified purposes4 7b7 ,specified purposes ,for purposes of subsection 7a71 the term specified purposes means-- 7#a7 the implementation of new information reporting requirements on flows of deposits and withdrawals in individual and small-business banking accounts and other financial accounts1 7#b7 the targeting of ,united ,states citizens in response to the exercise by such citizens of any legally protected or recognized right guaranteed under the ,first ,amendment to the ,united ,states ,constitution1 7#c7 the targeting of a group for regulatory scrutiny based on the ideological beliefs of such group1 7#d7 the auditing of individual taxpayers with an adjusted gross income of less than #djj1jjj1 and 7#e7 the hiring under an agreement pursuant to the ,intragovernmental ,personnel ,act of #aigj 7sections #ccga et seq4 of title #e1 ,united ,states ,code7 or any other authority of an authorized researcher who is not a full time ,federal employee to access data subject to privacy protections afforded by section #fajc of the ,internal ,revenue ,code of #aihf4 #e4 ,efficient use of existing ,,irs resources ,for purposes of increasing enforcement actions in areas of high noncompliance and reducing the corporate audit no-change rate of the ,internal ,revenue ,service to below #bj percent by #bjbc-- 7#a7 the ,secretary 7or the ,secretary's delegate7 shall1 not later than #ahj days after the date of the enactment of this section-- 7,a7 update the methodology that is used for the selection of corporate returns for audit1 and 7,b7 reassign resources of the ,internal ,revenue ,service such that the majority of high-income nonfilers are subject to enforcement actions1 and 7#b7 the ,comptroller ,general of the ,united ,states shall1 within one year after the date of the enactment of this section1 issue a comprehensive report to ,congress on information returns and data collected by the ,internal ,revenue ,service that could be deployed for compliance activities but that are not currently used for such activities4 #f4 ,,irs ,fellowship ,program 7a7 ,establishment ,not later than ,september #cj1 #bjbb1 the ,commissioner of ,internal ,revenue 7hereinafter known as the ,commissioner7 after consultation with the ,chief ,counsel of the ,internal ,revenue ,service 7hereinafter known as the ,chief ,counsel71 shall establish within the ,internal ,revenue ,service a fellowship program 7hereinafter known as the program7 to recruit private sector tax experts to join the ,internal ,revenue ,service to create and participate in the audit task force established under subsection 7e74 7b7 ,objective ,the ,commissioner1 after consultation with the ,chief ,counsel1 shall design the program in a manner such that the program-- 7#a7 addresses such tax cases handled by the ,internal ,revenue ,service as the ,commissioner determines-- 7,a7 are the most complex1 or 7,b7 include new and emerging issues1 and 7#b7 recruits and retains outstanding and qualified tax experts4 7c7 ,advertisement of program ,the ,commissioner shall advertise the program in such a way as to attract mid-career tax professionals1 including certified public accountants1 tax attorneys1 and such other tax professionals as the ,commissioner determines are appropriately qualified to handle the most complex tax cases4 7d7 ,structure 7#a7 ,in general ,the program shall be staffed by not fewer than #cj fellows at the discretion of the ,commissioner based on needs of the ,internal ,revenue ,service and the availability of qualified candidates4 7#b7 ,term of service 7,a7 ,in general ,each fellow shall be hired for a #b-1 #c-1 or #d-year term of service4 7,b7 ,extensions 7i7 ,in general ,a fellow may apply for1 and the ,commissioner may grant1 a #a-year extension of the fellowship4 7ii7 ,no limit on number of extensions ,there shall be no limit on the number of extensions under clause 7i74 7#c7 ,fellowship vacancies ,the ,commissioner1 after consultation with the ,chief ,counsel1 shall fill vacant fellowships-- 7,a7 in such a manner as to ensure that the program is staffed with no fewer than #ae fellows1 and 7,b7 as soon as practicable after the vacancy arises4 7#d7 ,hiring authority ,the ,commissioner shall have authority to permanently hire a fellow at the end of the term of service for such fellow4 7e7 ,task force ,not later than the date on which the first fellowship is awarded under this section1 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 7d71 the purpose of which is to-- 7#a7 perform audit case selection1 7#b7 educate ,internal ,revenue ,service employees on emerging issues1 7#c7 audit selected taxpayers1 7#d7 address offshore tax evasion and issues implicating the ,foreign ,account ,tax ,compliance ,act1 and 7#e7 identify1 mentor1 and train junior employees from the ,internal ,revenue ,service with respect to audits4 7f7 ,composition ,the task force established under subsection 7e7 may be composed of both-- 7#a7 fellows1 and 7#b7 permanent employees of the ,internal ,revenue ,service4 7g7 ,pay of fellows 7#a7 ,in general ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall determine1 subject to the provisions of this subsection1 the pay of fellows recruited under subsection 7a74 7#b7 ,pay scale ,for purposes of paragraph 7#a71 the pay of a fellow shall not be less than the minimum rate payable for ,,gs-#ae of the ,general ,schedule and shall not exceed the amount of annual compensation 7excluding expenses7 specified in section #ajb of title #c1 ,united ,states ,code4 7h7 ,administration of program ,the ,secretary may appoint a lead program officer to administer and advertise the program4 7i7 ,annual review and report ,not later than #a year after the date on which the first fellowship is awarded under this section1 and annually thereafter1 the ,commissioner shall submit to ,congress a report containing-- 7#a7 an analysis of the effects of the program1 7#b7 an analysis of the return on investment of the program1 including calculations of all costs incurred and all tax revenue and penalties collected due to the work of the task force1 7#c7 a description of the total number of fellows who apply each year1 and 7#d7 recommendations for changes to the program1 if any4 7j7 ,rules and regulations ,the ,commissioner1 with the approval of the ,secretary of the ,treasury 7or the ,secretary's delegate1 other than the ,commissioner71 shall promulgate such rules and regulations as may be necessary for the efficient administration of the program4