Government and Politics
November 22, 2022
Kelly Introduces Bill To Hold The Irs Accountable, Strengthen Oversight, And Protect Taxpayer Money
WASHINGTON, D.C. -- Today, U.S. Rep. Mike Kelly (R-PA), the top Republican on the Ways & Means' Select Revenues Subcommittee, introduced H.R. 9341, the IRS Funding Accountability Act. The legislation responds to the Democrats’ use of the so-called “Inflation Reduction Act” (IRA) that will infuse the IRS with $80 billion of new funding without any oversight measures to prevent waste, protect taxpayer rights, or measure improvements of service.
The IRS Funding Accountability Act would give Congress a direct say in how this new funding could be spent, further hold the IRS accountable, and provide more transparency for the American people. Rep. Kelly's bill is supported in the U.S. Senate by companion legislation introduced by Sens. John Thune (R-SD) and Chuck Grassley (R-IA), senior members of the Senate tax-writing committee.
"Democrats and the Biden administration have weaponized the IRS over the last two years to pay for their tax-and-spend agenda. The time for oversight is now," Rep. Kelly said. "The $80 billion authorized in the so-called Inflation Reduction Act will unfairly target low-and-middle income Americans. The goal of my legislation is to provide much-needed oversight and accountability that the Inflation Reduction Act lacks. This will hold government accountable to the American people and ensure the IRS is properly using taxpayer dollars."
“The Democrats’ attempt to supersize the IRS without holding the agency accountable to Congress and American taxpayers is dangerous and irresponsible,” said Sen. Thune. “This legislation would provide much-needed oversight of the unprecedented $80 billion in new funding to the agency, more than half of which Democrats have directed toward enforcement-related measures, including audits. If our bill becomes law, the Biden administration’s IRS would have to answer to the American people, not Washington bureaucrats.”
“Government, especially when it comes to the treatment of taxpayers, needs to be accountable and transparent to the American people,” said Sen. Grassley. “When Democrats’ partisan spending bill gave the IRS an extra 80 billion dollars, their legislation included no oversight mechanisms whatsoever. Our bill will ensure that the IRS is answerable to the American people in how it uses this money, and will force it to forfeit funds every day it’s not in compliance.”
Rep. Kelly's legislation would, among other things:
-Require the IRS to provide Congress with an annual plan for how the agency intends to use the new IRA funds, which would be subject to a new joint resolution of disapproval.
-Require quarterly updates from the IRS and U.S. Department of the Treasury to enable consistent and transparent evaluation of the plans
-Provide accountability for any misuse of funds, and guard against violations of taxpayer rights. Failure to submit timely and thorough plans or reports would result in financial penalties, including IRA funds being rescinded on a daily basis until the IRS complies with the reporting requirements.
WHAT THEY'RE SAYING:
“The $80 billion in IRS funding included in the so-called Inflation Reduction Act came with almost no guardrails for an agency that has fallen chronically short on core elements of their mission in recent years,” said Pete Sepp, president of the National Taxpayers Union. “National Taxpayers Union (NTU) is proud to support the IRS Funding Accountability Act, which would require the IRS to provide Congress with a genuine and realistic plan for spending the most significant influx of funds the agency has ever received. The bill would also require the IRS to regularly update Congress on their spending, ensuring ongoing accountability of the agency over the next 10 years. On behalf of the nation’s taxpayers, NTU gratefully applauds Senators Thune and Grassley for their leadership on IRS oversight.”
"Joe Biden promised taxpayers that no one earning less than $400,000 would see a penny more in taxes. Biden lied his way into office,” said Grover Norquist, president of Americans for Tax Reform. “Democrats raised taxes on American families and unleashed 87,000 new IRS agents to shakedown small business owners and ramp up audits on taxpayers. Congressional oversight of Biden's IRS is essential. This legislation will help rein in Biden's IRS and address the agency's broken culture of unaccountability."
“The Inflation Reduction Act directed 80 billion taxpayer dollars to the IRS, with the majority earmarked to increase the agency’s enforcement activities,” said Brent Gardner, chief government affairs officer for Americans For Prosperity. “With little to no information about how the agency plans to use those taxpayer dollars or hold itself accountable, the IRS Funding Accountability Act would implement commonsense measures to increase oversight and transparency on behalf of the American taxpayer. Americans for Prosperity thanks Senators Thune and Grassley for introducing this legislation.”