A bill 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 (13 Sep 2021): Read twice and referred to the Committee on Finance.
What this bill does
This bill, S. 2721, would require the Internal Revenue Service (IRS) to provide Congress with a report on the "tax gap," which is the difference between taxes owed and taxes collected. The IRS could use artificial intelligence and data analysis for this projection. The bill also mandates that the Joint Committee on Taxation review and report on the IRS's tax gap projections. Additionally, it would establish a fellowship program to recruit mid-career tax professionals from outside government to work within the IRS on an audit task force.
The bill affects the IRS and its funding, as well as taxpayers. Specifically, it restricts IRS funding for audits and enforcement to fiscal year 2021 levels until an updated tax gap projection is released. This restriction would last for one year after the bill's enactment. The bill also limits funding for certain activities, including targeting individuals based on First Amendment rights or ideological beliefs, and auditing individuals earning less than $400,000 in adjusted gross income. The fellowship program aims to bring private sector expertise to the IRS to assist with audit case selection, employee education, and taxpayer audits.
S. 2721 was introduced in the Senate on September 13, 2021, and has been referred to the Committee on Finance. Its current status is "introduced," meaning it has not yet passed either chamber of Congress or been signed into law.
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
13 Sep 2021
Read twice and referred to the Committee on Finance.
Common questions
- What does S. 2721 do?
- This bill, S. 2721, would require the Internal Revenue Service (IRS) to provide Congress with a report on the "tax gap," which is the difference between taxes owed and taxes collected. The IRS could use artificial intelligence and data analysis for this projection. The bill also mandates that the Joint Committee on Taxation review and report on the IRS's tax gap projections. Additionally, it would establish a fellowship program to recruit mid-career tax professionals from outside government to work within the IRS on an audit task force. The bill affects the IRS and its funding, as well as taxpayers. Specifically, it restricts IRS funding for audits and enforcement to fiscal year 2021 levels until an updated tax gap projection is released. This restriction would last for one year after the bill's enactment. The bill also limits funding for certain activities, including targeting individuals based on First Amendment rights or ideological beliefs, and auditing individuals earning less than $400,000 in adjusted gross income. The fellowship program aims to bring private sector expertise to the IRS to assist with audit case selection, employee education, and taxpayer audits. S. 2721 was introduced in the Senate on September 13, 2021, and has been referred to the Committee on Finance. Its current status is "introduced," meaning it has not yet passed either chamber of Congress or been signed into law.
- Has S. 2721 become law?
- The source does not supply a confirmed lifecycle stage for S. 2721. Check the latest action and official source below.
- Who sponsored S. 2721?
- S. 2721 was sponsored by Sen. Crapo, Mike [R-ID] (R-ID), with 23 cosponsors.
- What's the latest action on S. 2721?
- Read twice and referred to the Committee on Finance. (13 Sep 2021).
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