H.R. 2530: Taxpayer Transparency and Efficient Audit Act, as amended

H.R. 2530

Taxpayer Transparency and Efficient Audit Act, as amended

Date
February 25, 2014 (113th Congress, 2nd Session)

Staff Contact
Communications

Floor Situation

On Tuesday, February 25, 2014, the House will begin consideration of H.R. 2530, the Taxpayer Transparency and Efficient Audit Act, as amended, under a suspension of the rules.  The bill was introduced on June 27, 2013 by Rep. Peter Roskam (R-IL) and referred to the Committee on Ways and Means.

Bill Summary

H.R. 2530 requires the Internal Revenue Service (IRS), not later than 30 days after receiving any written correspondence from a taxpayer, to provide a substantive written response.  An acknowledgment letter would not be treated as a substantive response.  Moreover, the IRS is required, not later than 30 days after disclosing any taxpayer information to any agency or instrumentality of federal, state, or local government, to provide a written notice to the taxpayer describing: 1) the information disclosed; 2) to whom it was disclosed; and 3) the date of disclosure.  This subsection lays out exceptions to this requirement, including if the Secretary determines that such notification would be detrimental to an ongoing criminal investigation or pose a risk to national security.  Finally, this legislation requires any audit of an individual’s tax return conducted by the IRS to be concluded not later than 1 year after the date of the initiation of such an audit.  The bill encourages audits to be completed expeditiously, but if the audit takes more than 1 year, the IRS must send the taxpayer a letter explaining why the audit is taking longer than the required 1 year period.

Background

H.R. 2530 was introduced, along with several other bills, as a response to the large number of scandals related to the IRS, including the targeting of conservative 501(c)(4) organizations applying for tax exempt status.[1]  This larger package of bills enumerates a basic Taxpayer Bill of Rights, and prescribes how the IRS should interact with taxpayers moving forward.  H.R. 2530 would help by improving IRS accountability and transparency when conducting an audit.



[1] Note: The Taxpayer Bill Of Rights package includes: H.Res. 280, the Taxpayer Bill of Rights; H.R. 2530, the Taxpayer Transparency and Efficient Audit Act; H.R. 2531, the Protecting Taxpayers from Intrusive IRS Requests Act; H.R. 2532, the Integrity Restoration Strategy (IRS) Act; and H.R. 2533, the Stop Playing on Citizen’s Cash (SPOCC) Act.  See: http://roskam.house.gov/media-center/press-releases/roskam-introduces-taxpayer-bill-of-rights-package

Cost

A CBO estimate is currently unavailable.

Additional Information

For questions or further information contact the GOP Conference at 5-5107.