The House of Representatives voted to pass two bills on Monday that increase protections for taxpayers in matters related to penalties imposed by the IRS and tax dispute proceedings in the U.S. Tax Court.
The first bill, HR 5346, the Fair and Accountable IRS Reviews Act, relates to supervisory approval for certain federal penalties imposed by IRS agents on taxpayers.
An IRS employee can impose certain federal penalties on taxpayers after gaining written authorization from their immediate supervisor.
Under present regulations, an immediate supervisor is broadly defined as an individual tasked with reviewing another employee’s proposed penalties, and not necessarily the supervisor to whom the IRS employee reports, according to a fact sheet from the House Committee on Ways and Means….