To require the Internal Revenue Service to issue a report on the tax gap, to establish a fellowship program within the Internal Revenue Service to recruit mid-career tax professionals to create and participate in an audit task force, and for other purposes.
The source supplies the latest action, but no lifecycle stage.
Latest action (10 Sep 2021): Referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
What this bill does
This bill, H.R. 5206, would require the IRS to report annually on the tax gap, which is the difference between taxes owed and taxes collected. The IRS would be allowed to use artificial intelligence and data analysis tools for these projections. The Joint Committee on Taxation would also provide reports analyzing these projections. Additionally, the bill would establish a fellowship program to recruit mid-career tax professionals from the private sector to join an IRS audit task force.
The bill impacts the IRS by requiring specific reporting and potentially limiting certain funding. It restricts IRS funding for audits and enforcement to fiscal year 2021 levels until an updated tax gap projection is published. It also restricts funding for targeting individuals based on First Amendment rights or ideological beliefs, and for auditing individuals earning less than $400,000. The fellowship program aims to enhance the IRS's audit capabilities and employee training.
H.R. 5206 was introduced in the House of Representatives in September 2021 and referred to the Committee on Ways and Means, and the Committee on Financial Services. Its current status is "Introduced." For the bill to become law, it would need to pass both the House and the Senate and be signed by the President.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
This bill requires the Internal Revenue Service (IRS) to report to Congress on projections of the estimated tax gap (i.e., the difference between tax liabilities owed to the IRS and those liabilities that the IRS actually collects). The IRS may use artificial intelligence and related data analysis tools to calculate a tax gap projection. The bill also requires the Joint Committee on Taxation to issue periodic reports to the congressional tax committees on the tax gap projection.
The bill restricts IRS funding to FY2021 levels for audits and enforcement until it publishes an updated tax gap projection. Funding is also restricted for certain purposes, including (1) targeting U.S. citizens who exercise their First Amendment rights, (2) targeting a group for regulatory scrutiny based on its ideological beliefs, and (3) auditing individual taxpayers with an adjusted gross income of less than $400,000.
The bill directs the IRS to establish a fellowship program to recruit private sector tax experts to join the IRS to create and participate in the audit task force. The purposes of the tax force include performing audit case selection, educating IRS employees on emerging issues, auditing selected taxpayers, addressing offshore tax evasion, and identifying, mentoring, and training IRS junior employees with respect to audits.
Timeline
10 Sep 2021
Referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Common questions
- What does H.R. 5206 do?
- This bill, H.R. 5206, would require the IRS to report annually on the tax gap, which is the difference between taxes owed and taxes collected. The IRS would be allowed to use artificial intelligence and data analysis tools for these projections. The Joint Committee on Taxation would also provide reports analyzing these projections. Additionally, the bill would establish a fellowship program to recruit mid-career tax professionals from the private sector to join an IRS audit task force. The bill impacts the IRS by requiring specific reporting and potentially limiting certain funding. It restricts IRS funding for audits and enforcement to fiscal year 2021 levels until an updated tax gap projection is published. It also restricts funding for targeting individuals based on First Amendment rights or ideological beliefs, and for auditing individuals earning less than $400,000. The fellowship program aims to enhance the IRS's audit capabilities and employee training. H.R. 5206 was introduced in the House of Representatives in September 2021 and referred to the Committee on Ways and Means, and the Committee on Financial Services. Its current status is "Introduced." For the bill to become law, it would need to pass both the House and the Senate and be signed by the President.
- Has H.R. 5206 become law?
- The source does not supply a confirmed lifecycle stage for H.R. 5206. Check the latest action and official source below.
- Who sponsored H.R. 5206?
- H.R. 5206 was sponsored by Rep. Brady, Kevin [R-TX-8] (R-TX), with 23 cosponsors.
- What's the latest action on H.R. 5206?
- Referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (10 Sep 2021).
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