,,ii #aagth ,,congress #b;d ,session ,s4 #djdf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #g1 #bjbb,mr4 ,braun introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,social ,security ,act to remove the restriction on the use of ,coronavirus ,state ,fiscal ,recovery funds1 to amend the ,internal ,revenue ,code of #aihf to codify the ,trump administration rule on reporting requirements of exempt organizations1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,simplify1 ,don't ,amplify the ,,irs ,act4 ,i ,coronavirus ,state ,fiscal ,recovery funds #aja4 ,removal of restriction of use of ,coronavirus ,state ,fiscal ,recovery funds 7a7 ,in general ,paragraph 7#b7 of section #fjb7;c7 of the ,social ,security ,act1 as added by section #iija of the ,american ,rescue ,plan ,act of #bjba1 is amended to read as follows3 7#b7 ,further restriction on use of funds ,no ,state or territory may use funds made available under this section for deposit into any pension fund4 4 7b7 ,conforming amendments ,section #fjb of such ,act is further amended-- 7#a7 in subsection 7d77#b77;,a71 by striking 1 including1 in the case of a ,state or a territory1 all modifications to the ,state's or territory's tax revenue sources during the covered period2 7#b7 in subsection 7e71 by striking such subsection1 and all that follows through the period and inserting such subsection42 and 7#c7 in subsection 7g7-- 7,a7 by striking paragraph 7#a72 and 7,b7 by redesignating paragraphs 7#b7 through 7#g7 as paragraphs 7#a7 through 7#f71 respectively4 7c7 ,effective date ,the amendments made by this section shall take effect as if included in the enactment of the ,american ,rescue ,plan ,act of #bjba4 ,,ii ,provisions relating to tax administration and taxpayer protection #bja4 ,preventing weaponization of the ,internal ,revenue ,service 7a7 ,organizations exempt from reporting 7#a7 ,gross receipts threshold ,clause 7ii7 of section #fjcc7;a77#c77;,a7 of the ,internal ,revenue ,code of #aihf is amended by striking #e1jjj and inserting #ej1jjj4 7#b7 ,organizations described ,subparagraph 7,c7 of section #fjcc7;a77#c7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking and at the end of clause 7v71 7,b7 by striking the period at the end of clause 7vi7 and inserting a semicolon1 and 7,c7 by adding at the end the following new clauses3 7vii7 any other organization described in section #eja7;c7 7other than a private foundation or a supporting organization described in section #eji7;a77#c772 and 7viii7 any organization 7other than a private foundation or a supporting organization described in section #eji7;a77#c77 which is not described in section #agj7;c77#b77;,a71 or which is created or organized in a possession of the ,united ,states1 which has no significant activity 7including lobbying and political activity and the operation of a trade or business7 other than investment activity in the ,united ,states4 4 7#c7 ,effective date ,the amendments made by this subsection shall apply to taxable years ending after the date of the enactment of this ,act4 7b7 ,clarification of application to section #ebg organizations 7#a7 ,in general ,paragraph 7#a7 of section #fjcc7;g7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking ,this section and inserting ,except as otherwise provided by this subsection1 this section1 and 7,b7 by striking for the taxable year4 and inserting for the taxable year in the same manner as to an organization exempt from taxation under section #eja7;a744 7#b7 ,effective date ,the amendments made by this subsection shall apply to taxable years ending after the date of the enactment of this ,act4 7c7 ,reporting of names and addresses of contributors 7#a7 ,in general ,paragraph 7#a7 of section #fjcc7;a7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 ,except as provided in subsections 7b77#e7 and 7g77#b77;,b71 such annual return shall not be required to include the names and addresses of contributors to the organization44 7#b7 ,application to section #ebg organizations ,paragraph 7#b7 of section #fjcc7;g7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking and at the end of subparagraph 7,a71 7,b7 by redesignating subparagraph 7,b7 as subparagraph 7,c71 and 7,c7 by inserting after subparagraph 7,a7 the following new subparagraph3 7,b7 containing the names and addresses of all substantial contributors1 and 4 7#c7 ,effective date ,the amendments made by this subsection shall apply to taxable years ending after the date of the enactment of this ,act4 #bjb4 ,limitation on taxpayer funded union official time for ,internal ,revenue ,service employees 7a7 ,in general ,section #gaca of title #e1 ,united ,states ,code1 is amended by adding at the end the following3 7e7 ,the authority provided under subsection 7d7 shall not apply with respect to the ,internal ,revenue ,service1 or an employee of the ,internal ,revenue ,service1 during the period each year beginning on ,february #ab and ending on ,april #ae4 4 7b7 ,conforming amendment ,section #gaca7;d7 of title #e1 ,united ,states ,code1 is amended1 in the matter preceding paragraph 7#a71 by striking preceding and inserting other4 7c7 ,application ,the amendments made by subsections 7a7 and 7b7 shall apply to any collective bargaining agreement entered into after the date of enactment of this section4 #bjc4 ,protecting taxpayer privacy 7a7 ,increase of penalty for unauthorized disclosure of taxpayer information 7#a7 ,in general ,paragraph 7#a7 of section #gbac7;a7 of the ,internal ,revenue ,code of #aihf is amended by striking #e1jjj and inserting #bej1jjj4 7#b7 ,disclosures by tax return preparers ,subsection 7a7 of section #gbaf of the ,internal ,revenue ,code of #aihf is amended by striking #a1jjj 7#ajj1jjj in the case of a disclosure or use to which section #fgac7;b7 applies7 and inserting #bej1jjj4 7#c7 ,effective date ,the amendments made by this subsection shall apply to disclosures made on or after the date of the enactment of this ,act4 7b7 ,removal 7#a7 ,in general ,section #ggja7;c77#a77;,a7 of title #e1 ,united ,states ,code1 is amended by inserting or in the case of an action involving a removal from the service for an alleged violation of section #gbac7;a77#a7 of the ,internal ,revenue ,code of #aihf1 after described in section #dcjc14 7#b7 ,rule of construction ,the amendments made by paragraph 7#a7 may not be construed to permit an officer or employee of the ,united ,states to submit an appeal to the ,merit ,systems ,protection ,board if that individual is dismissed from office or discharged from employment upon conviction for a violation of section #gbac7;a77#a7 of the ,internal ,revenue ,code of #aihf4 ,,iii ,restraints on ,,irs enforcement #cja4 ,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 #cjb4 ,,jct ,report 7a7 ,in general ,not later than #ahj days after the submission of the first tax gap projection to ,congress under section #bja1 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 #cjc4 ,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 #bja4 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 #cjd4 ,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 #cje4 ,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 #cjf4 ,,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 ,,iv ,provisions to reduce improper tax payments #dja4 ,findings and purpose 7a7 ,findings ,congress finds that when the ,internal ,revenue ,service makes payments to taxpayers1 the ,internal ,revenue ,services must make every effort to confirm that the right recipient is receiving the right payment for the right reason at the right time4 7b7 ,purpose ,the purpose of this title is to-- 7#a7 reduce improper tax payments by the ,internal ,revenue ,service-- 7,a7 by intensifying efforts to eliminate payment error1 waste1 fraud1 and abuse2 and 7,b7 continuing to ensure that the ,internal ,revenue ,service provides accessible taxpayer services2 7#b7 adopt a comprehensive set of policies1 including-- 7,a7 transparency of significant improper tax payments2 and 7,b7 accountability for reducing improper tax payments2 and 7#c7 protecting taxpayer services4 #djb4 ,improper tax payment defined ,for purposes of this title1 the term improper tax payment means any credit or refund of an overpayment of a tax imposed under the ,internal ,revenue ,code of #aihf that should not have been made or that was made in an incorrect amount4 #djc4 ,transparency 7a7 ,in general ,not later than #ij days after the date of enactment of this section1 the ,secretary of the ,treasury shall establish1 in coordination with the ,commissioner of ,internal ,revenue1 annual targets for reducing improper tax payments made by the ,internal ,revenue ,service4 7b7 ,published information 7#a7 ,in general ,not later than #ahj days after the date of enactment of this section1 and annually thereafter1 the ,secretary of the ,treasury shall publish on the internet information about improper tax payments made by the ,internal ,revenue ,service4 7#b7 ,contents ,the information published under paragraph 7#a7 shall include1 subject to ,federal privacy policies and to the extent permitted by law-- 7,a7 the name of the accountable official designated under section #djd7;a72 7,b7 rates and amounts as of the date of enactment of this section1 and historical rates and amounts1 of improper tax payments made by the ,internal ,revenue ,service1 including1 if known and appropriate1 the causes of the improper tax payments2 7,c7 rates and amounts as of the date of enactment of this section1 and historical rates and amounts1 of the recovery of improper tax payments 7estimated on the basis of applicable samples where appropriate72 and 7,d7 the annual targets for reducing improper tax payments4 7c7 ,methodology ,the methodology used for identifying and measuring improper tax payments under this section shall meet the requirement of section #cceb7;c77#a77;,a7 of title #ca1 ,united ,states ,code4 7d7 ,links ,the ,commissioner of ,internal ,revenue shall prominently display on the homepage of the website of the ,internal ,revenue ,service a link to internet-based resources for addressing improper tax payments1 including the information published under subsection 7b77#a74 #djd4 ,accountability and coordination 7a7 ,accountable officials ,not later than #abj days after the date of enactment of this section1 the ,commissioner of ,internal ,revenue shall designate an official to be accountable for meeting the reduction targets under section #djc7;a7 without unduly burdening taxpayer services4 7b7 ,report 7#a7 ,in general ,not later than #ahj days after the date of enactment of this section1 and annually thereafter1 the official who is designated under subsection 7a7 shall provide the ,director of the ,office of ,management and ,budget and the appropriate congressional committees a report that includes-- 7,a7 the methodology used for identifying and measuring improper tax payments under section #djc7;c72 7,b7 the plans for meeting the reduction targets under section #djc7;a72 and 7,c7 the plans and supporting analysis for ensuring that initiatives undertaken in accordance with this title do not unduly burden taxpayer services4 7#b7 ,appropriate congressional committees ,for purposes of paragraph 7#a71 the term appropriate congressional committees means the ,committee on ,finance of the ,senate and the ,committee on ,ways and ,means of the ,house of ,representatives4 7c7 ,duties of inspector general ,not later than #fj days after the date on which the annual report required under subsection 7b7 is submitted1 the ,treasury ,inspector ,general for ,tax ,administration shall-- 7#a7 assess the level of risk for improper tax payments by the ,internal ,revenue ,service2 7#b7 determine the extent of oversight warranted 7in addition to oversight requirements under section #ccec of title #ca1 ,united ,states ,code72 and 7#c7 provide the ,commissioner of ,internal ,revenue with recommendations1 if any1 for modifying the methodology1 improper tax payment reduction plans1 or taxpayer services4 7d7 ,agency failure 7#a7 ,in general ,if the ,internal ,revenue ,service does not demonstrate an improvement in reducing improper tax payments1 fails to develop a plan to meet reduction targets under subsection 7b77#a77;,b71 or fails to implement the plans described in subsection 7b77#a77;,c7 for not less than #b consecutive years1 the official designated under subsection 7a7 shall submit to the ,commissioner of ,internal ,revenue1 the ,treasury ,inspector ,general for ,tax ,administration1 and the ,chief ,financial ,officer of the ,internal ,revenue ,service a report that-- 7,a7 describe the likely causes of the lack or improvement or failure2 and 7,b7 proposes a remedial plan4 7#b7 ,review ,annually1 the ,commissioner of ,internal ,revenue shall1 with respect to a remedial plan proposed under paragraph 7#a77;,b7-- 7,a7 review the remedial plan2 and 7,b7 in consultation with the ,treasury ,inspector ,general for ,tax ,administration and ,chief ,financial ,officer of the ,internal ,revenue ,service1 forward the remedial plan and any additional comments and analysis to the ,director of the ,office of ,management and ,budget4 #dje4 ,policy proposals 7a7 ,in general ,not later than #ahj days after the date of enactment of this section1 the ,secretary of the ,treasury1 in consultation with the ,commissioner of ,internal ,revenue and the ,treasury ,inspector ,general for ,tax ,administration1 shall develop policy recommendations1 including potential legislative proposals1 designed to reduce improper tax payments1 including improper tax payments caused by error1 waste1 fraud1 and abuse1 made by the ,internal ,revenue ,service4 7b7 ,inclusion ,the recommendations developed under subsection 7a7 shall be included1 as appropriate1 in the budget of the ,president under section #aaje7;a7 of title #ca1 ,united ,states ,code1 for fiscal year #bjbc and each fiscal year thereafter4