To amend the Internal Revenue Code of 1986 to improve and promote transparency, efficiency and operational integrity of the Internal Revenue Service, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
This bill limits IRS enforcement powers and funding while expanding privacy protections for taxpayers and nonprofit organizations. It requires the IRS to publish annual tax gap projections and restricts new enforcement spending until those reports are submitted.
Who Benefits and How
- Tax-exempt nonprofit organizations benefit from reduced reporting requirements (threshold raised from $5,000 to $50,000) and no longer need to disclose contributor names to the IRS
- Individual taxpayers with income under $400,000 are protected from increased audit activity
- Private sector tax professionals gain new fellowship opportunities at the IRS with competitive pay
- Political advocacy groups are protected from IRS targeting based on ideological beliefs
Who Bears the Burden and How
- IRS employees and unions face restrictions on union activity during tax filing season (Feb 12 - April 15)
- Tax preparers and IRS employees face significantly higher penalties ($250,000 vs. previous $5,000) for unauthorized disclosure of taxpayer information
- The IRS as an agency faces funding restrictions and additional reporting requirements
Key Provisions
- Raises nonprofit reporting threshold from $5,000 to $50,000 and eliminates donor disclosure requirements
- Restricts IRS enforcement funding until annual tax gap projections are published
- Prohibits auditing taxpayers with income under $400,000
- Creates IRS Fellowship Program to recruit private sector tax experts
- Requires transparency reporting on improper tax payments
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Restricts IRS enforcement funding, expands privacy protections for taxpayers and nonprofit organizations, and establishes transparency requirements for tax gap projections and improper payments.
Key Policy Areas
Taxation, Government Administration, Civil Liberties, Nonprofit Organizations
Primary Purpose
Restricts IRS enforcement funding, expands privacy protections for taxpayers and nonprofit organizations, and establishes transparency requirements for tax gap projections and improper payments.
Policy Domains
Title I - Preventing Weaponization of the Internal Revenue Service
Identified Gains
Contextual inference, no direct clause citation- Tax-exempt nonprofit organizations
- Political advocacy groups
- Taxpayers concerned about privacy
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- IRS employees and unions
- Tax preparers who violate privacy rules
Contextual inference, no direct clause citation
Title II - Tax Gap Projection and Enforcement
Identified Gains
Contextual inference, no direct clause citation- Individual taxpayers with AGI under $400,000
- Small businesses
- Private sector tax professionals
- Political and ideological organizations
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- IRS enforcement division
- High-income tax evaders
- Offshore tax evaders
Contextual inference, no direct clause citation
Title III - Improper Tax Payments
Identified Gains
Contextual inference, no direct clause citation- Taxpayers
- Congress
- Government oversight bodies
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- IRS administration
- Recipients of improper tax refunds
Contextual inference, no direct clause citation
Legislative Progress
IntroducedMrs. Harshbarger introduced the following bill; which was referred to …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Congress, Congress (Ways and Means, Finance), Congress (oversight committees)
Positive-direction: Congress, Congress (Ways and Means, Finance), Congress (oversight committees), Congress and OMB
Negative-direction: IRS employee unions, IRS employees represented by unions, IRS employees who handle taxpayer data, IRS enforcement and oversight, IRS enforcement division, IRS enforcement operations, Internal Revenue Service, Internal Revenue Service leadership, Joint Committee on Taxation, Treasury Department, Treasury Department and IRS, Treasury Inspector General for Tax Administration
Complex tax case subjects and offshore evaders, General public and oversight groups, High-income nonfilers
Positive-direction: General public and oversight groups, High-income tax evaders, Individual taxpayers, Individual taxpayers with AGI under $400,000, Potential targets of IRS audits, Taxpayers receiving IRS payments, Taxpayers seeking IRS services, Taxpayers subject to NRP audits
Negative-direction: Complex tax case subjects and offshore evaders, High-income nonfilers
Political advocacy groups and donors, Political and ideological organizations
Private sector tax professionals (CPAs, attorneys), Tax preparers and return preparers
Positive-direction: Private sector tax professionals (CPAs, attorneys)
Negative-direction: Tax preparers and return preparers
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_commissioner"
- → Commissioner of Internal Revenue
- "the_secretary"
- → Secretary of the Treasury
- "the_commissioner"
- → Commissioner of Internal Revenue
- "the_chief_counsel"
- → Chief Counsel of the Internal Revenue Service
- "the_comptroller_general"
- → Comptroller General of the United States
- "the_secretary"
- → Secretary of the Treasury
- "the_commissioner"
- → Commissioner of Internal Revenue
- "treasury_inspector_general"
- → Treasury Inspector General for Tax Administration
Key Definitions
Terms defined in this bill
Any credit or refund of an overpayment of a tax imposed under the Internal Revenue Code of 1986 that should not have been made or that was made in an incorrect amount
The difference between tax liabilities owed to the United States under the Internal Revenue Code of 1986 and those liabilities actually collected by the Internal Revenue Service
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology