S. 5014 — Introduced in Senate

II 117th CONGRESS 2d Session S. 5014 IN THE SENATE OF THE UNITED STATES September 29, 2022Mr. Marshall (for himself and Mr. Braun) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To require the Internal Revenue Service to pay for costs incurred by certain persons in the course of an audit. 1. Short title This Act may be cited as the Preventing Frivolous Actions by IRS Agents Act. 2. Fees and expenses of audits (a) In general Subchapter A of chapter 78 of the Internal Revenue Code of 1986 is amended by redesignating section 7613 as section 7614 and by inserting after section 7612 the following new section: 7613. Fees and expenses of audits (a) In general In the case of an eligible taxpayer, the taxpayer shall be entitled to the payment of any fees or other expenses paid or incurred by the taxpayer in the course of an audit under this subtitle. (b) Timing of payment The payment under subsection (a) shall be due after the disposition of the taxpayer's case, including completion of any judicial proceedings. (c) Eligible taxpayer For purposes of this section, the term eligible taxpayer means a taxpayer whose gross income for the taxable year in which the audit is commenced does not exceed $400,000, and who is not convicted of any crime related to the audit described in subsection (a) or the case described in subsection (b). . (b) Clerical amendment The table of sections for subchapter A of chapter 78 of the Internal Revenue Code of 1986 is amended by adding at the end the following: Sec. 7613. Fees and expenses of audits. . 3. Attorney's fees, etc (a) In general Chapter 76 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subchapter: F Fees and expenses Sec. 7495. Fees and expenses. 7495. Fees and expenses In the case of any civil or criminal proceeding brought by or at the request of the Secretary in which the taxpayer prevails in court, the taxpayer shall be entitled to the payment of attorney's fees, court costs, and other expenses related to the taxpayer's defense in such proceeding. . (b) Clerical amendment The table of subchapters for chapter 76 of the Internal Revenue Code of 1986 is amended by adding at the end the following: SUBCHAPTER F—Fees and expenses .