Mr. Chairman, I have an amendment at the desk. I thank the chair and the ranking member for their hard work and dedication during the appropriations process, and I look forward to working with them on a number of important issues…
Mr. Chairman, I have an amendment at the desk.
I thank the chair and the ranking member for their hard work and dedication during the appropriations process, and I look forward to working with them on a number of important issues surrounding the treatment of taxpayers by the IRS.
Mr. Chairman, I will be withdrawing this amendment at the conclusion of my allotted time. However, I wish to make a point.
I agree with the steps the committee has taken within this legislation, but feel more must be done to ensure equal treatment for all taxpayers. My amendment would prohibit the IRS from pursuing claims against taxpayers for underpayment where the issue is lost records, except in the case of fraud.
According to its own publications, the IRS recommends that taxpayers keep records up to 7 years--and more in some cases--to respond to potential audits. This is often necessary for individuals and corporations to retain records for years and potentially longer for businesses depending upon the circumstances and types of records.
The loss of records can have significant repercussions for the taxpayer and can result in penalty fees and payments of back taxes with interest. Should these taxpayers be audited, the burden is on them-- yes, the burden is on them--to produce proper records, not the IRS. While these regulations make sense, as we do not want taxpayers improperly withholding taxes they properly owe under the current tax system, it is unfortunate that the one agency promulgating the regulations does not follow these strict standards.
We now know the IRS, through its employee Ms. Lois Lerner, Director of Exempt Organizations, unfairly targeted and scrutinized conservative groups in their applications for tax-exempt status. Under the IRS' rules, Ms. Lerner was required to retain her records discussing policy decisions and discussions in paper form, including those related to the decision to probe conservative organizations. However, Ms. Lerner refused to follow protocol, and to make matters worse, her email copies were lost due to a so-called computer crash.
Given Ms. Lerner's blatant disregard to keep records properly in accordance with IRS rules, it is patently unfair to require taxpayers to follow such burdensome standards. In addition, the IRS Commissioner testified on the topic of Ms. Lerner's emails multiple times before the Oversight and Government Reform Committee, suggesting that there would be no issue in producing the emails. However, the Commissioner knew there was an issue with Ms. Lerner's computer in February and that the emails were certainly lost in March. Despite this knowledge, he failed to notify Congress until June.
This is outrageous. While the IRS is trying to evade explaining the loss of records, we should prohibit the IRS from mercilessly pursuing taxpayers for the exact same fault.
With that, I yield 30 seconds to the gentleman from Florida (Mr. Crenshaw), my colleague and the chairman of the subcommittee.
I do. I am going to do that in my closing, sir.
I thank the chairman for his support of the principle of my amendment. While I recognize this would be legislative language in an appropriations bill, I welcome the opportunity to work with the chair and my other colleagues to properly investigate this situation and ensure that similar situations of government abuse do not arise in the future.
Mr. Chairman, I ask unanimous consent to withdraw my amendment.