Senate Finance Committee Advances IRS Reform Package

The Senate Finance Committee recently advanced the Taxpayer Assistance and Service (TAS) Act (S. 3931) by a 26–1 vote, positioning the bipartisan package for consideration by the full Senate. Sen. Elizabeth Warren (D-MA) cast the sole opposing vote.

The legislation includes more than 60 bipartisan proposals aimed at improving taxpayer services and modernizing the IRS. Several provisions have already advanced in the House.

 Of particular interest to the association and nonprofit community is a bipartisan provision from Sens. James Lankford (R-OK) and Raphael Warnock (D-GA). The amendment clarifies that organizations facing the denial or revocation of their tax-exempt status have the right to an administrative appeal. It would also require the Treasury Department to provide written notice explaining the available appeals process. Lankford said the measure would help ensure that the IRS treats all nonprofit organizations fairly and neutrally.

The TAS Act also includes a provision from Sens. Steve Daines (R-MT) and Catherine Cortez Masto (D-NV) that would significantly increase penalties for the unauthorized disclosure of taxpayer information. Because certain confidential charitable donor information is reported annually to the IRS, the provision would strengthen donor privacy protections.

"This product reflects years of bipartisan efforts to translate stories of casework frustrations into tangible fixes designed to make the IRS work more efficiently for the American people," said Senate Finance Committee Chair Mike Crapo (R-ID).

Ranking Member Ron Wyden (D-OR) called the committee vote "an important step toward common-sense reforms that will protect taxpayers and modernize the IRS."

You can learn more about the TAS Act and the committee’s consideration of the legislation via this link.

 This article was provided to OSAP by ASAE's Power of Associations and Inroads.