To amend the Social Security Act to remove the restriction on the use of Coronavirus State Fiscal Recovery funds, to amend the Internal Revenue Code of 1986 to codify the Trump administration rule on reporting requirements of exempt organizations, 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 restricts IRS enforcement funding and hiring, increases penalties for unauthorized disclosure of taxpayer information, reduces reporting requirements for tax-exempt organizations, and creates new transparency requirements for IRS improper payments. It also limits IRS union official time during tax season and creates a fellowship program to recruit private sector tax experts.
Who Benefits and How
Tax-exempt organizations (501(c) groups) benefit from reduced reporting requirements - the donor disclosure threshold increases from $5,000 to $50,000 and many organizations are exempted entirely. IRS employees accused of privacy violations gain appeal rights to the Merit Systems Protection Board. High-income taxpayers and corporations may benefit from restrictions on new IRS enforcement funding.
Who Bears the Burden and How
IRS faces restricted enforcement funding, mandatory auditing methodology updates, limits on union official time during tax season, and new reporting requirements to Congress. Tax preparers and IRS employees face increased penalties (up to $250,000) for unauthorized disclosure of taxpayer information.
Key Provisions
- Restricts IRS enforcement funding until tax gap projections are updated
- Increases penalties for unauthorized taxpayer disclosure to $250,000
- Raises exempt organization donor reporting threshold from $5,000 to $50,000
- Prohibits IRS from auditing taxpayers with income under $400,000 with new funds
- Creates IRS Fellowship Program to recruit private sector tax experts
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 and activities, increases taxpayer privacy protections, reduces nonprofit reporting requirements, and establishes transparency measures for improper tax payments.
Key Policy Areas
Taxation, Government Oversight, Privacy, Nonprofit Regulation
Primary Purpose
Restricts IRS enforcement funding and activities, increases taxpayer privacy protections, reduces nonprofit reporting requirements, and establishes transparency measures for improper tax payments.
Policy Domains
Title I - IRS Accountability
Identified Gains
Contextual inference, no direct clause citation- Tax-exempt organizations (501(c) groups)
- Political advocacy organizations
- IRS employees facing privacy violation accusations
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- IRS employees (union time restrictions)
- Tax preparers (higher penalties)
- IRS enforcement division
Contextual inference, no direct clause citation
Title II - Tax Gap Transparency
Identified Gains
Contextual inference, no direct clause citation- Taxpayers with income under $400,000
- Small business banking customers
- Private sector tax experts (fellowship)
- Congress (transparency)
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- IRS (funding restrictions)
- High-income nonfilers
- Corporations with high audit no-change rates
- Treasury Department
Contextual inference, no direct clause citation
Title III - IRS Improper Payments
Identified Gains
Contextual inference, no direct clause citation- Taxpayers (reduced improper payments)
- Congress (oversight)
- General public (transparency)
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- IRS (reporting requirements)
- Treasury Department
- Treasury Inspector General for Tax Administration
Contextual inference, no direct clause citation
Sponsors
Mike Braun
R-IN | Primary Sponsor
Legislative Progress
IntroducedMr. Braun (for himself and Mr. Scott of Florida) introduced …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Congress, Congressional tax committees, GAO
Positive-direction: Congress, Congressional tax committees, IRS complex case handling, IRS tax-exempt organization oversight
Negative-direction: GAO, IRS, IRS Commissioner, IRS enforcement capabilities, IRS enforcement division, Joint Committee on Taxation, Office of Management and Budget, Treasury Department, Treasury Inspector General for Tax Administration
General public, High-income nonfilers, Tax evaders and noncompliant taxpayers
Positive-direction: General public, Tax evaders and noncompliant taxpayers, Taxpayers subject to NRP audits, Taxpayers whose information may be disclosed, Taxpayers with income under $400,000
Negative-direction: High-income nonfilers, Taxpayers with complex tax situations
IRS employee unions, IRS employees accused of privacy violations, IRS employees who are union representatives
Positive-direction: IRS employees accused of privacy violations
Negative-direction: IRS employee unions, IRS employees who are union representatives, IRS employees who disclose taxpayer information
Organizations exercising First Amendment rights, Tax-exempt organizations under 501(c)
Private sector tax professionals (CPAs, tax attorneys), Tax return preparers
Positive-direction: Private sector tax professionals (CPAs, tax attorneys)
Negative-direction: Tax return preparers
Political advocacy organizations (501(c)(4))
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
- "the_commissioner"
- → Commissioner of Internal Revenue
- "the_secretary"
- → Secretary of the Treasury
- "the_commissioner"
- → Commissioner of Internal Revenue
- "the_secretary"
- → Secretary of the Treasury
- "the_commissioner"
- → Commissioner of Internal Revenue
Key Definitions
Terms defined in this bill
Any credit or refund of an overpayment of a tax that should not have been made or was made in an incorrect amount
The difference between tax liabilities owed to the United States under the Internal Revenue Code and those liabilities actually collected by the IRS
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