Improving Assistance for Taxpayers Act

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1957) to amend the Internal Revenue Code of 1986 to modernize and improve the Internal Revenue Service, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the measure.

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

Mr. Speaker, I rise in support of H.R. 1957, as amended, the Taxpayer First Act of 2019.

I would like to begin by thanking my good friend, the gentlewoman from New York (Mrs. Lowey), who is the chair of the Appropriations Committee for her support and helping move this important bill.

Mr. Speaker, this is not a Republican or a Democratic bill. It is an American one. I am proud of the process and the product. I also want to thank Chairman Neal and Ranking Member Brady; the Oversight Subcommittee Ranking Member Kelly, my good friend; and all members of the Subcommittee on Oversight for joining me on this bill.

I also would like to thank our former subcommittee chairs, the gentleman from Florida (Mr. Buchanan) and our former colleague from Kansas, Ms. Jenkins, for their great work.

In addition, I am pleased that Chairman Grassley, and Ranking Member Wyden introduced a companion bill in the Senate.

Mr. Speaker, I would also like to congratulate all of the House Members and Senators who have bills and ideas that are included in this bill.

Mr. Speaker, as you well know, and as I know, and as other members of the committee know, this is a good bill. It is a necessary bill to do what is right and what is fair.

In particular, I would like to thank our staff, Karen, Rachel, Susan, Isabella, Zach, Lindsay, Jason, Lori, Michael, and Jamila. They worked so hard on this important bill, and I have faith that this time we will cross the finish line. We have been trying for years. Three times this bill passed the House. These individuals worked so hard on this important bill, and I have faith that this time we will do more than just cross the finish line.

For many years, the Oversight Subcommittee worked in a bipartisan manner to improve the IRS. This bill is the result of many hearings, thoughtful oversight, and help from stakeholders. Mr. Speaker, we took our time and we did it right.

We asked Democrat and Republican Members to provide feedback. We reached out to taxpayers and advocates. We asked questions and listened to the response. We listened to the answers. We learned that we all share the common goal of finding ways to help American taxpayers, and there is no time like the present.

Mr. Speaker, this is the season when millions of Americans are working around the clock to file their taxes by April 15. I am proud that this Congress will respond to their concerns with this bill to improve taxpayer services, protect taxpayers during enforcement, and strengthen the appeals process.

Mr. Speaker, the Taxpayer First Act contains many commonsense policies to achieve these goals. For example, the bill provides for matching grants for the Volunteer Income Tax Assistance program which help low-income and moderate-income taxpayers complete and file their taxes.

This bill also protects low-income taxpayers and people who receive Social Security disability insurance, benefits from the private debt collection program.

Above all, the Taxpayer First Act serves as an example of the good and thoughtful policy that Congress can produce when both the process and the product are bipartisan.

Mr. Speaker, with this bill, we show taxpayers and IRS public servants that their frustration does not fall on deaf ears, blind eyes, and hard hearts.

With this bill, Congress heard their concerns and responded to their calls, to their cries for action, and we did act.

Mr. Speaker, this bill should be an inspiration to us all. I urge all of my colleagues to support this bill, and I reserve the balance of my time.

House of Representatives,

Committee on Financial Services,

Washington, DC, April 8, 2019.

Hon. Richard E. Neal,

Chairman, Committee on Ways and Means,

Washington, DC.

Dear Mr. Chairman: I am writing concerning H.R. 1957, the

``Taxpayers First Act of 2019.'' Because you have been

working with the Committee on Financial Services concerning

provisions in the bill that fall within our Rule X

jurisdiction, I agree to forgo formal consideration of the

bill so that it may proceed expeditiously to the House Floor.

I do so based on my understanding that the Committee on Ways

and Means will work to ensure that the text of H.R. 1957 that

will be considered by House of Representatives will include

changes that have been discussed between the two Committees.

The Committee on Financial Services takes this action to

forego formal consideration of H.R. 1957 with our mutual

understanding that, by foregoing formal consideration of H.R.

1957 at this time, we do not waive any jurisdiction over the

subject matter contained in this or similar legislation, and

that our Committee will be appropriately consulted and

involved as this or similar legislation moves forward. Our

Committee also reserves the right to seek appointment of an

appropriate number of conferees to any House-Senate

conference involving this or similar legislation and request

your support for any such request.

Finally, I would appreciate your response to this letter

confirming this understanding, and I would ask that a copy of

our exchange of letters on this matter be included in the

Congressional Record during Floor consideration of H.R. 1957.

Sincerely,

Maxine Waters,

Chairwoman.

Mr. Speaker, I yield 2 minutes to the gentleman from Illinois (Mr. Danny K. Davis).

Mr. Speaker, I yield 3 minutes to the gentlewoman from the great State of Alabama (Ms. Sewell).

Mr. Speaker, I yield 1 minute to the gentlewoman from California (Ms. Judy Chu).

Mr. Speaker, I yield 2 minutes to the gentlewoman from Wisconsin (Ms. Moore).

Mr. Speaker, I yield 2 minutes to the gentlewoman from California (Ms. Hill).

Mr. Speaker, I yield 2 minutes to the gentlewoman from New York (Ms. Ocasio-Cortez).

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

I want to thank Mr. Kelly--my friend, my brother--for all of his help, all of his support. Working together, Democrats and Republicans, we can get some things done. It has been a pleasure to work with the gentleman on this bill.

Mr. Speaker, the Taxpayer First Act is a bipartisan bill in both the House and the Senate. The bill will improve the Internal Revenue Service and help our taxpayers.

Again, I want to thank my friend, the gentleman from Pennsylvania, for working with me on this bill. And he is a good friend. We have traveled together from Washington, D.C., to the heart of the Deep South with his grandson and several Members of Congress. Again, I want to thank him and ask him to tell his grandson I said hi.

Mr. Speaker, this bill is a product of more than 14 hearings and a number of roundtables over the past 3 years in the Subcommittee on Oversight. It is a good and thoughtful policy. I urge all of my colleagues on both sides of the aisle to support the Taxpayer First Act.

I want to thank all of the staff, each and every one of them, on both sides of the aisle, for helping us. Without their help and without their support, we would not be here. Again, I say thank you.

Mr. Speaker, again, I say thank you to my friend and my brother, Mr. Kelly, and I yield back the balance of my time.

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

Mr. Speaker, today exemplifies what this body is supposed to be about, the people's House acting in the best interest of the people. Republicans and Democrats have come together to pass the Taxpayer First Act, landmark legislation to reform the IRS so it better works for every single American.

I am honored to have coauthored this bill with my good friend, the gentleman from Georgia (Mr. Lewis). I thank the gentleman for his commitment to the taxpayers and for working with me on a great achievement for the American people.

We all work for the American people, whether you are sitting in this House, or whether you are a member of some agency. And we look at the 80,000 employees at the IRS, and we know that they work with an $11 billion budget which is supplied by hardworking American taxpayers. It should work in their best interest.

Over the last 2 years, the Ways and Means Committee and various subcommittees held hearings and other events to discover what is working, and what isn't. As we looked at redesigning the IRS, we focused on improving the relationship between our taxpayers and our government.

Both sides agree that the IRS should prioritize taxpayers' rights and that it should be a resource and not an adversary to the American people.

This bill will achieve those goals. Americans will interact with an IRS that carries out customer service like we do in the private sector; improved support with services online, in person and on the phone will finally become a reality.

Gone are those days when you would walk into a business and there would be a complaint department. Instead, it has been replaced by customer service. The IRS is going to be a customer service agency. Let's look at what this legislation will do.

First, to achieve the mission outlined above, the agency's quality service motto will no longer just be a motto that rings hollow. The bill requires the IRS to adopt commonsense, private-sector-like customer service standards; things as simple as a callback option so Americans aren't stuck on hold for hours on end.

Secondly, we are overhauling the IRS' enforcement tools so families and small businesses don't have property unfairly seized. The Constitution guarantees all Americans the right to due process and protection from unreasonable searches and seizures. Our legislation prevents outrageous enforcement abuses to protect taxpayers from unfair seizures.

Third, the Taxpayer First Act recasts the IRS as our tax administrator rather than simply an enforcement agency. It is more than a semantic difference. It would change the culture at the agency for the better.

Another way it will protect taxpayers is by creating an independent appeals office. This will give taxpayers a fair and impartial review of disputes they may have with the IRS.

We also took note of the fact that it shouldn't take a Freedom of Information Act request to see what evidence the IRS is using against taxpayers in those disputes. This legislation will make sure you can see your individual case file when resolving a dispute with the agency.

Lastly, we are revamping the IRS' outdated and ancient technology which will better position the agency to proactively combat cyber threats. IRS employees are forced to use technology that is outrageously outdated; some of it dates back to the 1960s.

This bill provides accountability to the IRS for the billions in funding it is given for IT each year. That accountability extends to protections against cyber threats. We must ensure that taxpayer information is safe and that refunds are not at risk to thieves. This legislation strengthens the IRS' partnership with States and the private sector to combat those threats.

Taken together, these reforms will greatly benefit Americans each year during tax season and end disputes with the IRS.

Mr. Speaker, I support H.R. 1957, and I reserve the balance of my time.

Mr. Speaker, I yield 3 minutes to the gentleman from South Carolina (Mr. Rice).

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

Mr. Speaker, I yield 3 minutes to the gentleman from Ohio (Mr. Wenstrup).

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

Mr. Speaker, I yield 2 minutes to the gentleman from Georgia (Mr. Collins).

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

I thank Mr. Lewis so much. I can't tell the gentleman what an honor it is to be on the floor with him today in the people's House, working on legislation that benefits every single American, something he has done all his life. To be here with Mr. Lewis today and to get this done is incredible.

It has often been said that, if you do the right thing for the right reasons, good things happen. Wouldn't it be great today if all of our colleagues come together to do the right thing for the right reason, for the right people: our hardworking American taxpayers.

This is an incredible day for America to look at the people's House and say this was a day when both Democrats and Republicans came together to do the right thing at the right time, for the right people.

It has been an incredible honor, and I want to thank the staff. As we know, it is the staff that does so much work and puts in hour after hour after hour to make this a success. I can't thank them all enough for what they have all done. It has been incredible work. It was done not just in the best interest of the Congressperson for whom they work because, more importantly, they work for the American people.

It is always great being with Mr. Lewis, especially on a day like this. It has been an incredible day for the American people, to prove to them that, in Washington, D.C., the people's House is doing that, working together for them, bringing us together as a body, a legislative body, something that they have been looking for and looking to and saying: Why can't you all just get together and do the right thing? Today is the day that that is going to happen.

I thank Mr. Lewis so much for working with us and getting this done, and, Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, as we approach tax day, I am proud to support the passage of the Taxpayer First Act, a commonsense, bipartisan piece of legislation to improve the relationship between taxpayers and the IRS.

Tax season is often confusing and overly burdensome for millions of families and small business owners across this country as people spend countless hours struggling to correctly file their taxes. Outdated IRS systems and practices contribute to this confusion and jeopardize the security of taxpayers' personal information. Additionally, too many taxpayers don't have reliable access to customer service supports and timely dispute resolution.

The Taxpayer First Act includes a number of important provisions to address these challenges, expanding taxpayer assistance services and improving data security. Families in my Alabama district and across this country will benefit from this bill codifying the Free File program, shielding certain low-income households from private debt collectors, and making more resources available online.

I am proud that the Taxpayer First Act also includes a provision that I had in my bill that I introduced with a Republican colleague, Jason Smith, the Preserving Taxpayers' Rights Act. This provision establishes an independent office of appeals within the IRS and gives taxpayers a legal right to impartial, timely, and efficient dispute resolution. It also helps protect taxpayers by clarifying the limited scope of cases that can be litigated and prevents the IRS from outsourcing audits of private taxpayers to outside law firms.

Mr. Speaker, I thank Congressman Lewis and Congressman Kelly for their continued support and leadership on this legislation. I know this legislation has been introduced and passed the House three times, but I know that Congressman Lewis knows that when you are right, and you are fighting on behalf of the American people for what is right, you must persist and keep fighting to get to the finish line. It is called good trouble, according to Congressman Lewis, and we are getting into good trouble today by helping to make the tax filing process more efficient, fair, and secure for the American people.

Mr. Speaker, I urge my colleagues to support this commonsense, bipartisan legislation.

Mr. Speaker, I rise today in strong support of H.R. 1957, the Taxpayer First Act. I thank Chairman Lewis and Ranking Member Kelly for their hard work on the Ways and Means Subcommittee on Oversight and for introducing this important piece of legislation to modernize and improve the Internal Revenue Service.

Since last Congress, our committee has focused on finding legislative solutions to make needed changes at the IRS. Dealing with the IRS can be frustrating, and ensuring an efficient and transparent IRS is key to restoring the relationship between taxpayers and the agency, as well as effective implementation of our Tax Code.

I am pleased that a bill I introduced with a Democratic colleague, Congressman Tom Suozzi, H.R. 1825, the Improving Assistance for Taxpayers Act, is included in this bill. Currently, the Office of the Taxpayer Advocate located within the IRS represents taxpayer interests and helps address both individual and systemic issues at the agency. When it comes to addressing systemic issues, the taxpayer advocate can issue what is called a taxpayer advocate directive. Unfortunately, these orders are not always responded to in a detailed or timely manner.

Our bill aims to improve the process. Specifically, the IRS would be required to respond to taxpayer advocate directives within 90 days. We also establish an appeals process, when the advocate deems necessary. If detailed and timely responses are not provided, then the taxpayer advocate must report such instances to Congress.

This bill empowers taxpayers across the country by improving transparency and ensuring substantive and timely answers for taxpayers dealing with an issue at the IRS while improving congressional oversight.

Our constituents sent us to Washington to make government more effective, efficient, and accountable. These reforms included in my bill and the Taxpayer First Act will do exactly that. This package passed the House last Congress, and I hope to receive the same support from my colleagues today.

Mr. Speaker, I appreciate the gentleman yielding.

Mr. Speaker, I rise today in support of H.R. 1957, the Taxpayer First Act. The Taxpayer First Act modernizes the IRS and ensures that the IRS cannot abuse its enforcement powers.

To that end, in 2013, a fellow northeast Georgian, Andrew Clyde, experienced IRS abuse in the form of civil asset forfeiture firsthand. Andrew is a Navy veteran who has served multiple tours of duty, and he owns Clyde Armory in Athens, Georgia. The IRS seized $950,000 from his bank accounts despite no evidence of criminal activity. The IRS seized his accounts under what is called structuring laws.

Under structuring laws, the IRS may seize money if an individual made regular deposits or withdrawals of less than $10,000. The law was originally intended to catch those trying to conceal a crime, but, too often, it has been used to target innocent individuals and small business owners.

Andrew Clyde went to court to challenge the IRS abuse and was eventually forced to forfeit $50,000 to the IRS and spend over $100,000 in legal fees.

Andrew Clyde's story is, sadly, a common one, with the IRS seizing more than $242 million in structuring cases from 2005 to 2012. That is why I introduced the RESPECT Act, to stop this practice and to protect hardworking Americans like Andrew Clyde from IRS overreach.

I am glad to see that the RESPECT Act was introduced and has been included in the Taxpayer First Act. This legislation will rein in IRS overreach by requiring prosecutors to demonstrate probable cause that seized funds were illegally earned or structured to conceal illegal activity. It also enables property owners to challenge a seizure at a postseizure hearing rather than wait months or years to have their case heard.

I would like to thank my friends and my dear friend from Georgia, Congressman Lewis, and also Mike Kelly for their work on this legislation and for supporting the modernization of the IRS and protecting innocent Americans from IRS abuse.