Providing for consideration of the bill (H.R. 5444) to amend the Internal Revenue Code of 1986 to modernize and improve the Internal Revenue Service, and for other purposes, and providing for consideration of the bill (H.R. 5445) to amend the Internal Revenue Code of 1986 to improve cybersecurity and taxpayer identity protection, and modernize the information technology of the Internal Revenue Service, and for other purposes.

Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 831 and ask for its immediate consideration.

Mr. Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman from Colorado (Mr. Polis), pending which I yield myself such time as I may consume. During consideration of this resolution, all time yielded is for the purpose of debate only.

General Leave

Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks.

Mr. Speaker, on Monday, the Rules Committee met and reported a rule, House Resolution 831, providing for consideration of two important pieces of legislation: H.R. 5444, the Taxpayer First Act; and H.R. 5445, the 21st Century IRS Act.

The rule provides for consideration of these measures under a closed rule. Both of these pieces of legislation were introduced with bipartisan cosponsors, and both were passed out of the Ways and Means Committee with unanimous support on both sides of the aisle.

Mr. Speaker, yesterday was not only tax day, but it was also the last time the American people had to file their taxes under an outdated and antiquated system. Thanks to the Tax Cuts and Jobs Act signed into law by President Trump, Americans have much to look forward to: a simplified tax system, lower rates, a doubled child tax credit to help everyday families, a doubling of the standard deduction, and the freedom to buy the healthcare plan that is right for their families rather than be forced to buy government-mandated health insurance.

As these reforms continue to be implemented, and Americans across the country have begun to see their paychecks grow and small businesses begin to move forward with less regulatory burden, a bipartisan effort in the U.S. House of Representatives to modernize and reform the Internal Revenue Service has arisen. The goal is to redesign the IRS into a modern, 21st century agency focused on the ``taxpayers first'' service--reining in IRS abuses, protecting American taxpayers from fraud, and fairly and efficiently resolving disputes within the agency.

H.R. 5444, the Taxpayer First Act, demonstrates a bipartisan, comprehensive effort to modernize and improve the Internal Revenue Service. This legislation makes numerous changes to reorganize the agency in an attempt to focus its efforts on customer service. It creates an independent appeals process to improve dispute resolutions and requires the IRS to submit to Congress a comprehensive plan to improve its customer service strategy. It requires the

agency to maintain the IRS Free File Program, equipping low- and middle-income Americans with free individual tax preparation and electronic filing services.

This legislation also requires the IRS to improve efficiency, enhance cybersecurity, and better meet the needs of taxpayers. By ensuring the agency sends notice to the actual taxpayer before contacting friends, neighbors, or clients when conducting an audit, we can ensure Americans receive fair notice and treatment.

Mr. Speaker, the mission statement of the IRS is to provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all. Unfortunately, in far too many cases, the IRS fails to provide the quality customer service they claim to strive for.

The nonpartisan Government Accountability Office reported in 2015 that the IRS had no strategy in place to define what quality and customer service should look like, nor did the agency have any plans to develop one. This is unacceptable, so I am pleased that the Taxpayer First Act requires the IRS to work to fulfill their mission statement.

The 21st Century IRS Act similarly seeks to modernize the IRS by specifically focusing on improving cybersecurity and taxpayer identity protection as well as reforming the information technology systems within the agency. The IRS relies heavily on an aging, antiquated IT infrastructure to administer the tax system. This infrastructure, some of which dates back to the 1960s, is unreliable and is not keeping up.

As we just saw yesterday, Mr. Speaker, the web page for paying tax bills using personal bank accounts crashed, leading to Treasury Secretary Mnuchin having to provide Americans with an extra day to file their returns. We must bring the IRS's infrastructure into the 21st century in order to prevent negative impacts on taxpayers seeking to comply with their tax responsibilities as we witnessed yesterday.

Unfortunately, these potential threats can include much more serious threats as well, including potential cyber attacks and fraud schemes that seek to exploit stolen taxpayer information.

The 21st Century IRS Act requires the Secretary of the Treasury to work collaboratively with the public and private sectors to protect taxpayers from identity theft tax refund fraud. This legislation also requires the Secretary to submit a written report to Congress describing how the IRS can utilize new payment platforms to increase the number of tax refunds paid by electronic funds transfers, thereby streamlining the final leg of the filing process for taxpayers.

It provides for further recommendations regarding methods to prevent identity theft and refund fraud and requires that State, local, or Federal agencies conduct on-site reviews every 3 years of all contractors or other agents receiving Federal returns and return information.

These reforms are common sense and will prevent frustrating, prolonged interactions with the IRS that could be much more easily and seamlessly resolved online.

Mr. Speaker, this is a straightforward and bipartisan rule, allowing for consideration of two bills that will require the Internal Revenue Service to put customer service needs of the American taxpayer first, and to reform, modernize, and improve the agency's infrastructure.

The IRS must prioritize cybersecurity and taxpayer identity theft protections. The underlying bills in this rule will do just that, and I encourage my colleagues to support the rule and the underlying legislation to continue our historic efforts to reform our Nation's tax system.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I, too, sit on the Rules Committee, and what we witnessed Monday was an amazing thing, coming together in a bipartisan fashion on some very important bills to bring reform to the Internal Revenue Service.

And I might respond to the gentleman's comments.

It was a very open process through the Ways and Means Committee. It was, as far as I recall, at least a 3-year process, working bipartisanly, very cooperatively, in a comprehensive fashion in order to get the work done that was brought together and culminated with the work that we see here today.

So, as far as an open process, I don't know what could have been more open. It was one that we can be proud of, one that we should see more of in this institution, frankly, and I am very proud that we are able to be here today, following a long history of using the closed rule process when we are considering these kinds of bills as it pertains to revenue.

With that, Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

The Ways and Means Committee put out a discussion draft on March 26 entitled, ``The Taxpayer First Act.'' The committee provided 2 weeks to collect input from Members, stakeholder groups, and the public. I would say to my good friends across the aisle that there were a number of substantive comments received, and my understanding is the committee considered them prior to introducing this bill that we have today.

So I would say let's honor that work. Let's move forward with this important piece of legislation, and I urge support of the rule.

I yield to the gentleman from California.

Reclaiming my time, the bipartisan effort in this bill is reflected in a very, very good way, and I urge respecting that process, respecting the comprehensive, collaborative work that was done on this bill, and I urge support of the rule.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I include in the Record the many groups that are supporting H.R. 5444, the Taxpayer First Act, as well as the group supporting H.R. 5445, the 21st Century IRS Act.

For the Taxpayer First Act, the Americans for Tax Reform, the Coalition for Effective and Efficient Tax Administration, the National Foreign Trade Council, and the App Association support the Taxpayer First Act.

As far as the 21st Century Act, H.R. 5445, Citizens Against Government Waste, the Electronic Transactions Association, the MarketPlace Lending Association, the National Taxpayers Union, the Taxpayers Protection Alliance, FreedomWorks, the Institute for Policy Innovation, 60 Plus Association, the Institute for Liberty, the Council for Citizens Against Government Waste, Less Government, and the Small Business & Entrepreneurship Council all join us in supporting not only the underlying rule, but the underlying legislation, as I would urge my colleagues to do.

Mr. Speaker, I reserve the balance of my time.

Yes.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I am delighted my colleagues on both sides of the aisle have come together to work on the important issues covered in both of these underlying bills. This rule provides for consideration of H.R. 5444, the Taxpayer First Act, as well as H.R. 5445, the 21st Century IRS Act.

The IRS currently lacks a comprehensive customer service strategy, nor does it have any system in place to measure metrics and benchmarks for success within customer service. Additionally, the IRS has not undergone organizational restructuring in the last 20 years.

H.R. 5444 requires the agency to develop a comprehensive strategy for customer service and to submit such plan to Congress no later than 1 year after the enactment of this legislation. It provides for the equitable treatment of every American taxpayer, including ensuring proper notice when the IRS seeks further information from an individual.

Mr. Speaker, the IRS spends $2.4 billion, annually, on information technology, technology that, in some cases, dates back, I understand, to the 1960s. The agency struggles with undertaking and completing large IT modernization efforts to update its legacy systems, which, therefore, can put American taxpayers in a frustrating or even dangerous position.

With the rise of tax refund fraud, a modern IT system must be enacted to ensure taxpayers can successfully comply with their tax requirements. H.R. 5445 modernizes and improves the ease and efficiency of the taxpayer experience when filing taxes, retrieving information, resolving issues, and making payments.

This legislation includes a number of provisions to strengthen the IRS' ability to proactively combat identity theft, tax refund fraud, and ensures IRS accountability for secure online taxpayer processes.

In light of the historic tax reform legislation initiated by this representative body, the people's House, and signed into law by the President, President Trump, just last year, it is vital the Internal Revenue Service undertake its own important reforms.

No one enjoys receiving an envelope stamped ``Internal Revenue Service.'' Far too often, taxpayers find the IRS to be inaccessible, intimidating, and unaccountable. American taxpayers deserve a robust and efficient agency with important oversight protections and modernized systems to keep their private information protected.

Mr. Speaker, I am proud to speak in favor of this bipartisan rule, and I urge my colleagues to support House Resolution 831, and both of the underlying bipartisan bills.

Mr. Speaker, I yield back the balance of my time, and I move the previous question on the resolution.

Mr. Speaker, pursuant to House Resolution 831, I call up the bill (H.R. 5445) to amend the Internal Revenue Code of 1986 to improve cybersecurity and taxpayer identity protection, and modernize the information technology of the Internal Revenue Service, and for other purposes, and ask for its immediate consideration in the House.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and submit extraneous material on H.R. 5445, currently under consideration.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, we have a significant opportunity to improve tax administration as we take up H.R. 5445, the bipartisan 21st Century IRS Act. This bill seeks to move the Internal Revenue Service into the 21st century by placing a renewed focus on modernization of the IRS and improving taxpayer experience.

Before we talk more about this bill, I would like to take a moment to thank the bill's original cosponsors, Representatives Mike Bishop of Michigan and Suzan DelBene of Washington, for their strong leadership on this bill. I would also like to thank Representative John Lewis of Georgia and his staff for being such great partners in this effort.

I think this bill and the others we have put forward as part of the larger IRS package are all the better for having worked through this process in a bipartisan fashion. Together, we have held 13 formal committee events over the past 3 years, hearing testimony and receiving comments from a diverse group of taxpayers, practitioners, and advocacy groups; and together, we have developed what we believe are bipartisan solutions that help improve the agency and, more importantly, the experience of all taxpayers.

Now turning to this bill. Over the past 2 years, the Ways and Means Oversight Subcommittee has spent significant time, on a bipartisan basis, focusing on IRS management of information technology and cybersecurity. Through this process, we sought to have deeper,

ongoing conversations with the agency to better understand its current and future needs and challenges.

We have also met with taxpayers and other stakeholders to understand their experiences and concerns, and we have sought to provide strong public accountability for the IRS' IT and cybersecurity failures where we felt it was most needed. These collective interactions helped to shape many of the provisions in the bill before us today.

While the IRS spends approximately $2.4 billion annually on IT, it continues to struggle with undertaking and completing large IT modernization efforts to update its legacy systems, some of which date back to the 1960s. In the era of 5G and broadband Internet, it is still hard to imagine why the IRS continues to use technology our children wouldn't even be able to recognize.

In addition, the IRS continues to face ongoing cybersecurity threats and fraud schemes, which seem to exploit IRS systems and steal taxpayer information and refunds. These issues result in the waste of billions of taxpayer dollars spent maintaining old systems.

We have also seen these outdated systems severely impact the IRS' ability to assist taxpayers. Whether it be long processing times for tax refunds or frustrations over the inability to reach the IRS by phone, the IRS' underlying IT affects all aspects of the taxpayers' experience.

For example, just yesterday we saw the magnitude of what can happen when the IRS IT systems fail. Yesterday, starting at 2 a.m., dozens of IRS systems integral to a successful filing season went down, leaving the agency unable to accept tax returns on the day when they were needed the most. While the full impact of these outages remains to be seen, this is simply unacceptable.

The bill before us today seeks to address many of these issues. It starts by requiring ongoing strategic IT planning, codifying and clearly laying out the roles and responsibilities of the chief information officer, and requiring additional oversight of two of the largest and most problematic IRS IT systems. Doing so strengthens IRS accountability for its IT modernization efforts, ensuring that the IRS spends taxpayer funds in ways that produce measurable results.

This bill also encourages the IRS to more proactively work with its State partners and the private sector to proactively combat criminals who use taxpayer information to steal tax returns. The bill provides the IRS with additional authority to allow the agency to work more closely with its partners.

Finally, the bill also sets forth a new goal for the IRS to have secure online accounts available for taxpayers and their designated preparers by 2023. The IRS has taken far too long to provide even the most basic of online services, and this bill ensures that the IRS will focus on providing more robust online services for those who want them.

As we think boldly about the IRS of the future, one that is oriented towards helping taxpayers, we should also think boldly about what a modern IRS looks like:

One where taxpayers can easily access their information, day or night; readily have their questions answered; and quickly resolve issues;

One where the IRS can be trusted to adequately protect taxpayer information; proactively combat identity theft, tax return fraud; and readily assist taxpayers when they are victims of this fraud;

And one where the IRS meets the taxpayer where they are, whether it be online, in person, or on the phone.

It also means having an IRS that is held accountable when modernization efforts fall short. As we work towards the first major overhaul of the IRS in 20 years, our goal is to ensure that these reforms are built upon IT systems that are state-of-the-art, ones that work for the taxpayer, not against them. These reforms are necessary and long overdue.

I urge my colleagues to support this bipartisan bill.

Mr. Speaker, I include in the Record a score that we have received from the Congressional Budget Office.

U.S. Congress,

Congressional Budget Office,

Washington, DC, April 16, 2018.

Hon. Kevin Brady,

Chairman, Committee on Ways and Means,

House of Representatives, Washington, DC.

Dear Mr. Chairman: The Congressional Budget Office has

prepared the enclosed cost estimate for H.R. 5445, the 21st

Century IRS Act.

If you wish further details on this estimate, we will be

pleased to provide them.

Sincerely,

Keith Hall,

Director.

Enclosure.

H.R. 5445--21st Century IRS Act

As reported by the House Committee on Ways and Means on April 13, 2018

H.R. 5445 aims to:

Combat identity theft and tax refund fraud at the Internal

Revenue Services (IRS);

Create an automated system to verify taxpayer information

for authorized users;

Modernize information technology (IT) systems within the

IRS; and

Expand the use of electronic information systems within the

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield 3 minutes to the gentleman from Kansas (Mr. Estes).

Mr. Speaker, I yield 3 minutes to the gentleman from North Carolina (Mr. McHenry).

Mr. Speaker, I yield 4 minutes to the gentlewoman from Indiana (Mrs. Walorski).

Mr. Speaker, I yield 6 minutes to the gentleman from Michigan (Mr. Bishop).

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I, too, want to thank, once again, the ranking member, the gentleman from Georgia (Mr. Lewis),

for his hard work on this issue, and I appreciate the staff's dedication to getting this to the floor today. This is a thoughtful, bipartisan piece of legislation that will help move the IRS forward and refocus the agency on the taxpayer experience, and I urge all Members to support this legislation.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.

Mr. Speaker, pursuant to House Resolution 831, I call up the bill (H.R. 5444) to amend the Internal Revenue Code of 1986 to modernize and improve the Internal Revenue Service, and for other purposes, and ask for its immediate consideration in the House.

Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days within which to revise and extend their remarks and include any extraneous material on H.R. 5444, currently under consideration.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, today we are taking the biggest and boldest steps in 20 years, to redesign the IRS with a singular focus, taxpayer service.

This bill will redesign the IRS for the first time in two decades. It refocuses the agency to live up to its mission of putting taxpayers first. Finally, it will rein in its enforcement powers to prevent future abuse.

There are two important pieces of legislation being considered before the House today, H.R. 5444, the Taxpayer First Act; and H.R. 5445, the 21st Century IRS Act. These bipartisan bills, the product of 2 years of work by the Committee on Ways and Means, will make the IRS a truly taxpayer-first agency in a number of different ways.

First off, this bill puts an emphasis on customer service. We are requiring the IRS to submit to Congress plans to restructure the agency to improve efficiency, enhance cybersecurity, and better serve taxpayers. This will guarantee that the IRS is living up to its ``quality service'' motto, while holding the agency accountable if it fails to meet these standards.

In addition, our legislation encourages the IRS to adopt commonsense customer service features commonly seen in the private sector, such as a call-back option.

Secondly, we are overhauling the IRS' enforcement tools so families and small businesses can't have property seized without fair notice and due process. Over and over again, we have heard stories from across the country of absolutely tragic abuses of power by the IRS.

For example, we heard from Andrew Clyde, who served three combat tours in Iraq. Then he came home and opened a successful small business in Georgia, only to have the IRS unfairly seize $950,000 from him. Our legislation prevents outrageous enforcement abuses like this to protect American taxpayers from unfair seizures.

Thirdly, the Taxpayer First Act reminds the IRS they are not just an enforcement agency, they are also our tax administrator. That is why this bill changes the title of the IRS chief from Commissioner to, more accurately, Administrator.

Additionally, and this is important, Mr. Speaker, we are shifting the burden of proof back onto the IRS when examining taxpayers. This legislation establishes an Independent Office of Appeals within the agency to ensure that taxpayers receive a fair and impartial review of disputes they may have with the IRS.

It shouldn't take a Freedom of Information Act request to see what evidence the IRS is bringing against you. This legislation will require that the IRS provide you with your own case file prior to any review of your dispute with the agency. It puts taxpayers on a level playing field, which is where they deserve to be.

In the 21st Century IRS Act, we are revamping the IRS' nearly ancient technology and better positioning the agency to proactively combat cyber threats.

Right now, IRS technology is so outdated that some systems date to the 1960s, and fax machines are still used for some official communications. This bill modernizes the IRS and ensures the agency is accountable for the billions of dollars in IT that it spends each year.

Lastly, the 21st Century IRS Act enhances the agency's ability to combat identity theft tax refund fraud by strengthening the IRS' partnership with States and with cybersecurity experts.

This bill requires the IRS to practically partner with States in the private sector that effectively combat identify thieves trying to steal our refund.

I want to thank Oversight Subcommittee Chairman Lynn Jenkins and Oversight Subcommittee Ranking Member John Lewis for their tireless work on this important bill.

With the new Tax Code, it is time for a redesign of our tax agency. This bipartisan legislation truly refocuses the IRS to make it a taxpayer-first agency.

Finally, Mr. Speaker, before I turn over the floor, I would like to recognize a good friend and trusted policy adviser, and by every measure, one of the very best to ever serve the Ways and Means Committee in the House, Mr. David Stewart.

David began his congressional journey in 2000, when he came to intern for Ways and Means Committee member, Congressman Phil English. Over his career as a staffer, David became a trusted voice on policy for Speaker John Boehner, for Speaker Paul Ryan, and, 2\1/2\ years ago, for me, when he joined the Ways and Means Committee as staff director.

This past year, with David's steady leadership and immutable resolve, we were able to pass the first tax reform in a generation, which has boosted our economy and helped so many American families. David's focus has always been on making lives better for all Americans, and I stand here to today to tell him: Job well done.

David is a selfless public servant. He sacrificed so much time away from his family--his wife, Betsy, and his daughters, Grace and Poppy-- and yet he has served his nation so well.

To say David works hard is an understatement. Once, when he was asked how many hours he worked per week, David replied, simply, with, ``A lot.'' This also shows David's wit and his wry sense of humor that has always made busy days brighter.

His dedication to mastering intricate policy is unmatched, and I know, Mr. Speaker, I speak for all members and staff of the Ways and Means Committee when I say: Thank you, David, for your service to the House and the Committee on Ways and Means. You will be greatly missed around here, my friend.

House of Representatives,

Committee on Financial Services,

Washington, DC, April 12, 2018.

Hon. Kevin Brady,

Chairman, Committee on Ways and Means, Washington, DC.

Dear Chairman Brady: I am writing to you regarding H.R.

5444, the ``Taxpayer First Act''. There are certain

provisions in the legislation which fall within the Rule X

jurisdiction of the Committee on Financial Services.

In the interest of permitting your committee to proceed

expeditiously to floor consideration of this important bill,

I am willing to waive this committee's right to sequential

referral. I do so with the understanding that by waiving

consideration of the bill the Committee on Financial Services

does not waive any future jurisdictional claim over the

subject matters contained in the bill which fall within its

Rule X jurisdiction. I request that you urge the Speaker to

name members of this committee to any conference committee

which is named to consider such provisions.

Please place this letter into the committee report on H.R.

5444 and into the Congressional Record during consideration

of the measure on the House floor. Thank you for the

cooperative spirit in which you have worked regarding this

matter and others between our respective committees.

Sincerly,

Jeb Hensarling,

Chairman.

Mr. Speaker, I yield the balance of my time to the gentlewoman from Kansas (Ms. Jenkins), and I ask unanimous consent that she may control that time.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, today marks a significant step forward for the American taxpayer as we take up the bipartisan Taxpayer First Act.

The goal of this bill is simple: move the Internal Revenue Service toward being a truly customer service-focused agency, placing a renewed focus on treating taxpayers with respect and dignity.

Mr. Speaker, I want to thank the Ways and Means Oversight Subcommittee Ranking Member, John Lewis, for cosponsoring this legislation with me.

Together, the subcommittee held 13 formal committee events over the past 3 years, looking at many aspects of how the IRS functions and where improvements are clearly needed. It is in all of our interests for taxpayers to know that the IRS is treating them fairly and with respect.

As a CPA, Members might have heard me talk before about my concerns with the interactions between the IRS and taxpayers. Not only have I heard these concerns while practicing in the private sector, but in my congressional office as well.

In handling constituent services requests through my office, I have found many instances of just outright lack of common sense in administering our Tax Code. As we looked at what changes needed to be made, we focused on the relationship between taxpayers and the government. That means a customer service experience akin to what Americans expect from the private sector, with online services, callback options, and improved support on the phone. To make sure taxpayers receive a fair and impartial review of disputes, we established the Independent Office of Appeals.

This commitment to fair and impartial treatment is the bedrock of the faith Americans place in the IRS.

The vast majority of tax revenues come into the Treasury voluntarily. According to the National Taxpayer Advocate, only 2 percent of all tax revenue collected comes from IRS enforcement actions. A service- oriented, taxpayer-first IRS is key to supporting voluntary compliance.

Our bill also makes permanent the IRS Free File Program, which is not only a win for the taxpayer, but saves the IRS time as well. This commonsense provision is one of the many included in this legislation that has strong bipartisan support and furthers the IRS mission to promote electronic filing.

This bill also includes important taxpayer protections to ensure that the IRS enforcement powers are fair and transparent. For example, this bill includes safeguards to ensure that individuals and small businesses are protected from improper seizures by the IRS.

Lastly, the bill tasks the IRS to develop and submit to Congress a comprehensive plan to restructure the agency, ensuring that it is best positioned to meet the needs of taxpayers today and into the future.

In short, this is the reform I promised my constituents in Kansas and the reforms that all Americans deserve.

Mr. Speaker, I would also like to note that we have received a score from the Congressional Budget Office, which I include in the Record.

U.S. Congress,

Congressional Budget Office,

Washington, DC, April 16, 2018.

Hon. Kevin Brady,

Chairman, Committee on Ways and Means,

House of Representatives, Washington, DC.

Dear Mr. Chairman: The Congressional Budget Office has

prepared the enclosed cost estimate for H.R. 5444, the

Taxpayer First Act.

If you wish further details on this estimate, we will be

pleased to provide them.

Sincerely,

Keith Hall,

Director.

Enclosure.

H.R. 5444--Taxpayer First Act

As reported by the House Committee on Ways and Means on April 13, 2018

Summary

H.R. 5444 would make a number of changes to the management

and oversight of the Internal Revenue Service (IRS). The bill

would:

Aim to improve customer service and the taxpayer appeals

assistance process;

Restrict certain IRS enforcement activities;

Modify the agency's organization; and

Change the operations of the U.S. Tax Court.

The staff of the Joint Committee on Taxation (JCT)

estimates that enacting the bill would reduce revenues by

$102 million over the 2019-2028 period, and CBO estimates

that enacting H.R. 5444 would decrease direct spending by $51

million over the same period. On net, H.R. 5444 would

increase deficits by $52 million over the period. CBO has not

completed an estimate of the bill's costs that are subject to

annual appropriation.

Because enacting the bill would affect direct spending and

revenues, pay-as-you-go procedures apply.

CBO and JCT estimate that enacting H.R. 5444 would not

increase net direct spending or significantly affect on-

budget deficits in any of the four consecutive 10-year

periods beginning in 2029.

JCT has reviewed H.R. 5444 and determined that it contains

no intergovernmental or private-sector mandates as defined in

the Unfunded Mandates Reform Act (UMRA).

Estimated Cost to the Federal Government

The estimated budgetary effect of H.R. 5444 is shown in the

following table. The costs of the legislation fall within

budget function 800 (general government).

--------------------------------------------------------------------------------------------------------------------------------------------------------

By fiscal year, in millions of dollars--

Mr. Speaker, I yield 2 minutes to the gentleman from Illinois (Mr. Roskam).

Mr. Speaker, I yield 3 minutes to the gentleman from Iowa (Mr. Young).

Mr. Speaker, I yield 4 minutes to the gentleman from Tennessee (Mr. Kustoff).

Mr. Speaker, I yield 3 minutes to the gentleman from Illinois (Mr. LaHood).

Mr. Speaker, I yield myself the balance of my time.

Mr. Speaker, this thoughtful, bipartisan legislation will help refocus the IRS on its taxpayer service mission.

Mr. Speaker, I urge all Members to support this legislation, and I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.

Mr. Speaker, I appreciate the gentleman's courtesy, and I appreciate his hard work with Chair Jenkins moving this forward.

This is an example of--maybe people don't think it is earthshaking-- but being able to come together and deal with things that make a difference with the IRS, which is the largest voluntary tax compliance system in the world. It is very important. And I am pleased, with the reference to 13 hearings and a lot of the back and forth, being able to reach consensus.

But let me say, I wish that those two people who led this effort had been empowered to do a deep dive into some of the dysfunctionality that has been imposed on the IRS. Since 2010, the IRS is dealing with more and more returns which are more and more complex, and my Republican friends have slashed the people who work on it.

We haven't modernized the computer system which those of us who took our first computer programming in the 1970s, I think, would be equipped to work on. It is so outdated.

We have cut the people who were involved with enforcement. Now, I would wish that everybody would voluntarily comply, but everybody doesn't. And as a result, those people who work on enforcement make about $6 for the taxpayer for every dollar we invest in their efforts. And, more importantly, it is a signal that everybody is going to be treated fairly. The people who cut corners, who forget, or who outright cheat are taking away money from the government and putting the burden on others who not only have to pick up the slack, but the people who cheat get an unfair advantage in how they do business.

They are more profitable because they don't pay their full freight. That is stupid, unfair, and it is counterproductive. That is one of the reasons why we have a $450 billion tax gap--the difference between what is owed as a result of people's tax liability and what is paid.

My friends on the other side of the aisle have been involved with punishing the IRS for things real and imagined. But who has really suffered has been the taxpayer, people who can't get their phone calls answered. The IRS doesn't have staff in customer service who can readily answer concerns that taxpayers have.

I am outraged when I hear attorneys and accountants in my community say: Yeah, I had a client who had a legitimate claim and they would have gotten that $4,000 back, but I had to tell them that, because of the dysfunctionality and the underinvestment in the IRS, it would cost them more for me to fix it for them than they would get back.

That is a scandal. We ought to make sure that we have a fully functioning IRS that meets the needs of the taxpayers, that gives them the answers that they need, that makes a very clear signal that everybody needs to fulfill their civic obligations to pay their taxes, and that businesses that cheat or forget are not going to get an unfair advantage over people who work hard to follow the rules. Our deficit would be $450 billion less if we did this properly.

Mr. Speaker, I thank the gentleman because I wanted to make one other point. But I must confess that one of the other reasons that I am really deeply concerned about that now is that it wasn't just that we weren't able to do a deep dive on the causes of dysfunctionality and underinvestment in the IRS.

It is no secret that one of my highest priorities as a Member of Congress and as a member of the Ways and Means Committee, was to be there to help us fulfill our responsibility on that committee dealing with the resources necessary to rebuild and renew America.

It is no secret that America is falling apart while we are falling behind. We

have a growing gap in our Highway Trust Fund that has lost 40 percent of its purchasing power. We are not able to meet our current commitments, let alone the commitments we have in the future.

The Ways and Means Committee allowed the Superfund tax to expire. So now we have a Superfund to clean up toxic waste that has blighted communities across the country, but we no longer have a tax that pays for it. So that burden has been shifted to innocent parties and local government.

I have been working with the last three chairs of our Ways and Means Committee, asking that we have some robust hearings on our responsibility for transportation.

The Transportation and Infrastructure Committee deals with the authorization of the Surface Transportation Assistance Act, but the Ways and Means Committee is responsible for funding it. A couple of weeks ago, there was a hearing in the Transportation and Infrastructure Committee on our job. They heard from witnesses from labor, from business, the U.S. Chamber, trucking associations--a wide range of people who came in and asked us to raise taxes on them.

Mr. Speaker, I thank the gentleman. I really will wrap up. But we have had no hearing like the Transportation and Infrastructure Committee had. They brought all of the witnesses in to talk about our job.

The last three chairs of the Ways and Means Committee from my Republican friends, in 7 years and 3 months, have had exactly one witness on our responsibility to raise the revenue for transportation, not one hearing. We had 380 hearings. We had one 5-minute witness who talked about the need to meet our responsibilities.

Mr. Speaker, why do we have to go to the Transportation and Infrastructure Committee to hear our job? Isn't it about time that my Republican friends allowed us to have a week or two to listen to the wide array of people who want us to fulfill our responsibility to rebuild and renew America and to pay for it? It is past time for that hearing, and I hope we have it. And then we act on what people tell us.