Press Releases
Grothman Introduces Bill to Strengthen Oversight of IRS Penalties
Washington,
September 15, 2025
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Sydney Maingot
(2022252476)
Congressman Glenn Grothman (R-WI) has introduced the Fair and Accountable IRS Reviews Act to protect taxpayers and restore integrity to the IRS penalty process by requiring that all proposed penalties be reviewed and approved by the issuing employee’s immediate supervisor before they can take effect. Currently, any employee the IRS deems a supervisor can approve proposed fines on taxpayers. “Taxpayers deserve fair treatment and strong safeguards against unjust penalties,” said Congressman Grothman. “Right now, IRS agents can approve penalties brought forth by employees they have had little to no interaction with, which begs the question of whether taxpayers are receiving appropriate reviews of their cases. My bill restores accountability by requiring an agent’s direct supervisor review and approve any penalty before it is assessed. This simple safeguard will help prevent unnecessary or unfair fines and protect hardworking Americans from bureaucratic overreach.” Background Information For decades, taxpayer protections required an IRS agent’s immediate supervisor, the person directly overseeing their work, to approve the initial determination of a penalty. This commonsense safeguard ensured an experienced reviewer confirmed that penalties were justified and consistent with the law. However, due to a 2024 change in agency policy, the definition of “immediate supervisor” was loosened to allow approval from almost anyone in the agency. This eroded accountability and weakened taxpayer protections, allowing penalties to be imposed without meaningful oversight. The Fair and Accountable IRS Reviews Act would restore this longstanding safeguard by requiring that only an employee’s direct, immediate supervisor can sign off on penalties. This ensures that all penalties undergo rigorous review by someone who is directly familiar with the case, promoting fairness, consistency, and trust in tax administration. -30- U.S. Rep. Glenn Grothman (R-Glenbeulah) proudly serves the people of Wisconsin’s 6th Congressional District in the U.S. House of Representatives |