Press Releases

The House Ways and Means Committee unanimously advanced Congressman Glenn Grothman’s (R-WI) Fair and Accountable IRS Reviews Act with bipartisan support, a measure to restore accountability and fairness to the IRS penalty process.

This legislation is supported by the Small Business and Entrepreneurship Council, Taxpayers Protection Alliance, National Taxpayers Union, Americans for Tax Reform, and National Federation of Independent Business.

“I’m thrilled the Fair and Accountable IRS Reviews Act received unanimous and bipartisan support in the Ways and Means Committee,” said Congressman Grothman. “This is an important step toward restoring accountability at the IRS and ensuring taxpayers are treated fairly when penalties are considered. By requiring direct supervisor approval, we add a simple but powerful safeguard that protects hardworking Americans from unjust fines. I want to thank Chairman Jason Smith for his leadership and my colleagues on both sides of the aisle for recognizing the importance of protecting hardworking Americans from bureaucratic overreach.”

“Every effort must be made to ensure the IRS is not able to unfairly target and penalize Americans. This bill would end current practices at the agency that make it so agents can levy penalties on taxpayers without proper and timely supervisory approval,” said Ways and Means Committee Chairman Jason Smith (MO-08). “I want to thank Representative Grothman for championing taxpayers in Wisconsin and across the country.”

"Congressman Grothman has earned the thanks of taxpayers in Wisconsin and across the nation for his unwavering leadership on behalf of a little-known issue with huge importance -- ensuring the IRS follows the law when it proposes penalties," said Pete Sepp, President of National Taxpayers Union. "Although Congress passed a statute 27 years ago that required supervisor approval for penalties, the IRS has been caught in court cutting corners on proper procedures, has proposed self-serving rulemakings to override legislative intent, and has even dismissed taxpayer advocates' recommendations for improving those procedures as 'laborious formalities.' We applaud Congressman Grothman for shepherding H.R. 5346 through the Ways and Means Committee and for standing behind urgently needed taxpayer protections. Onward to victory in the House floor!"

“Essential reforms within H.R. 5346 bring needed sensibility and fairness to the IRS penalty process,” said Small Business & Entrepreneurship Council (SBE Council) President & CEO Karen Kerrigan. “The legislation will ensure that penalty decisions affecting small business owners receive proper supervisory review, which is a vital safeguard against hurried, biased, or inappropriate enforcement actions. Small businesses are disproportionately burdened when it comes to the time, financial resources, and expertise required to navigate IRS compliance and penalty decisions. They are the economic drivers and job creators of local economies throughout our nation, therefore, time and capital diverted away from the business and spent on probing or paying questionable or unjustified IRS penalties divert these resources away from growing their business, innovating and creating jobs. SBE Council appreciates Representative Grothman’s leadership in supporting small businesses on this critical matter, and we encourage all House members to vote in support of the Fair and Accountable IRS Reviews Act.”

“NFIB appreciates the Ways and Means Committee's efforts to support small businesses by improving taxpayers’ rights and increasing accountability at the IRS,” said the National Federation of Independent Business. “Most small businesses do not have a designated accounting department; the Tax Court Improvement Act and FAIR Act help ensure that the tax process is more reasonable and impartial for small businesses.”

“Implementing clearer standards for IRS enforcement actions is a needed step to providing long-overdue accountability,” said the Taxpayers Protection Alliance. “The American people ought to have the assurance that their government will not arbitrarily target them with frivolous litigation. The Taxpayers Protection Alliance is glad to see legislation like this move forward.”

-30-