Mr. President, I am pleased that today the Senate is acting on S. 2436, a bill to clarify the term of the IRS Commissioner. The Internal Revenue Restructuring and Reform Act of 1998 provides that the…
Mr. President, I am pleased that today the Senate is acting on S. 2436, a bill to clarify the term of the IRS Commissioner.
The Internal Revenue Restructuring and Reform Act of 1998 provides that the President appoints the IRS Commissioner to a 5-year term. On the face of it, the Commissioner's term of office might seem quite clear. But lawyers in the administration and the Senate have disagreed over when the 5-year term begins and ends.
Specifically, there is dispute over whether the term of the IRS Commissioner follows the calendar or the person. Let me explain.
If the term follows the calendar, the tenure of the Commissioner begins on the same date every 5 years. For example, if one term ends on November 12, then the next term begins the next day on November 13-- whether or not a new Commissioner has been confirmed.
This arrangement provides certainty for the Commissioner's term. It allows for planning and continuity of leadership. It minimizes the ability of an administration to play games with the timing of the term by waiting to fill a vacancy.
If the term follows the person, then the tenure of each Commissioner begins on the date of that individual's appointment. Under this scenario, a President deliberately could wait to appoint a new Commissioner until right before the end of the President's term, leaving the next President to inherit an appointee whom the new President did not choose.
While the President waited, the IRS could be without a permanent Commissioner indefinitely. That would put tax administration at risk.
There is another reason why it is important to clarify the term of the Commissioner. Ambiguity in the term could lead taxpayers to question whether the Commissioner is legitimately in office. And thus ambiguity could call into question the Commissioner's authority to enforce the tax laws.
For example, if the term arguably ended in November, but the Commissioner signed a tax pronouncement the next month, in December, then a taxpayer might challenge the Commissioner's authority to act. Tax administration could be compromised. Taxes that are legally owed might not be collected.
Staff for the Treasury and the Senate gave this issue much thoughtful discussion. We received credible legal opinions on both sides. We need to resolve the tenure of the term before the Senate confirms another Commissioner.
To resolve the differences of interpretation, I worked with the administration to develop the language in this bill. The ranking Republican member of the Finance Committee, my friend, Senator Chuck Grassley, is the principal cosponsor. I am advised that the President and the Treasury Secretary both agree that this legislation is necessary to resolve any concerns over the term of the Commissioner.
Upon enactment of this legislation, the Finance Committee and the full Senate will be able to take further necessary steps to confirm a new Commissioner. The IRS needs strong leadership for the upcoming filing season and beyond.
I thank my colleagues for their support of this legislation to clarify the term of the IRS Commissioner.
Mr. President, the legislative history of this provision is inextricably tied to the legal opinions of distinguished counsel for the Senate, the Justice Department, and the Congressional Research Service. The opinion of the Senate Legal Counsel reflects the motivations of this Senator in advancing this legislation. And the opinions of the Justice Department and the Congressional Research Service are essential to understanding the need for this legislation. Mr. President, I commend to my colleagues the legal opinions prepared by the Senate Legal Counsel, the Justice Department's Office of Legal Counsel, and the Congressional Research Service's American Law Division.
