Other names for this bill

There is companion bill, S-928 in the Senate.

This bill was changed from HR-1957

What this bill does

This bill amends the 1986 Internal Revenue Code.

It provides various benefits to taxpayers in their dealings with the Internal Revenue Service (IRS).

It also would provide a long-term benefit to companies that develop tax-preparation software.

Makes it easier to deal with the IRS

This bill would establish the IRS Independent Office of Appeals to resolve tax issues without litigation. It would require that the IRS develop a comprehensive customer service strategy.

It would require the IRS to develop a system by 2023 to allow organizations and individuals to file 1099 forms electronically.

Relief for low-income taxpayers with tax problems

Certain low-income taxpayers would be exempt from having to pay a fee to submit an Offer-in-Compromise.

Also, the IRS would not be allowed to turn the debt of low-income taxpayers over to collection agencies.

Changes to property seizure rules

The bill would restrict the types of property the IRS can seize when dealing with tax enforcement.

Currently, the IRS is allowed to seize any property it wants. The bill would restrict that to property from an illegal source.

It also establishes a procedures to protect anyone with an ownership interest in the property.

Miscellaneous provisions

Other provisions include protecting whistleblowers against retaliation and implementing a system for lenders to verify the income of someone applying for a loan.

It also would improve cyber security - including protection against identity theft. The IRS would be required to hire a Chief Information Officer.

IRS Free File Program

The bill requires the IRS to continue it's Free File Program, allowing taxpayers with the lowest 70 percent of Adjusted Gross Income (AGI) to use commercial tax preparation software for free.

Because the agreement prohibits the IRS from developing its own program to automatically calculate taxes of many taxpayers, the IRS would not be able to offer such a service until this provision is repealed in the future.

This bill passed Congress with no recorded vote

There was no recorded vote in either the House of Representatives or the Senate. It passed on a voice vote. So the only way to know how your representative voted is to contact their office.