(Washington, D.C.) – Today, Congressman Glenn Grothman (R-WI) introduced legislation that will overturn a Biden-era rule that would give broad authority to nearly every IRS employee to levy fines against taxpayers. This bill is supported by Americans for Tax Reform, the National Taxpayers Union, and the Taxpayers Protection Alliance, and is cosponsored by Congressmen Tom McClintock (R-CA) and Greg Steube (R-FL)
“Joe Biden is gone, but the wake of his policy mistakes linger,” said Grothman. “This disastrous rule would embolden the IRS to increase the number of unjust penalties against Americans. This lame-duck rule flies in the face of President Trump’s mission to make our government more transparent and efficient. The IRS mandate should not be to levy fines as erratically as possible, it should be to treat taxpayers fairly and with respect.” “Under President Biden, the IRS weakened a law (USC Section 6751) that requires IRS agents to get written approval from their immediate supervisors before imposing penalties on taxpayers. In the late 90s, Congressional investigators discovered years of abuse by IRS agents running up the penalty score as an intimidation tactic against taxpayers. Agents would use the threat of penalties as a bargaining chip. After these abhorrent practices were exposed, congressional Republicans enacted Section 6751. Instead of getting their immediate supervisor’s approval, the Biden rule allows agents to shop around for sympathetic supervisors anywhere in the building. Agents will abuse (and likely have abused) this and taxpayers will be the victim. All members should support Rep. Glenn Grothman’s CRA to nullify this egregious Biden-era IRS rule,” said Grover Norquist, President, Americans for Tax Reform
“Congressman Grothman’s vital resolution could not have come at a more critical time for taxpayers. NTU advocated for the original law requiring supervisor approval of penalties back in 1998, not only as a taxpayer safeguard but also as a way to help the IRS document its decision making process. After being caught red-handed by a court ignoring this provision, the IRS attempted to validate its behavior with an absurd rule that defines almost anyone as a “supervisor” who can approve a penalty without documentation at almost any point in the enforcement process. When public comments from NTU and others suggested different procedures, the IRS dismissed them as ‘laborious formalities.’ Congress must step in now to reassert the letter and spirit of the law to protect taxpayers from unaccountable penalties. On behalf of taxpayers across America, NTU expresses profound gratitude to Congressman Grothman for recognizing this assault on taxpayer rights and standing up to stop it,” said Pete Sepp, President, National Taxpayers Union
“The Biden IRS produced one overreach after another, and it is crucial for leaders like Rep. Glenn Grothman to push back from Congress. This resolution is an important step to reestablish proper oversight and ensure that the agency is serving the interests of American taxpayers. It is Congress’s job to oversee and rein in bureaucrats, and the Taxpayers Protection Alliance thanks Rep. Grothman for his work to ensure good governance,” said Taxpayers Protection Alliance President, David Williams
Background Information
Previously an IRS agent’s “immediate supervisor” would provide a signature of approval at the initial determination of a tax penalty. However, in December of 2024, the IRS released a final rule to significantly weaken this important taxpayer protection. In their final rule, IRS defines an “immediate supervisor” not as a person to whom an IRS agent reports, but instead as “any individual with responsibility to review another individual’s proposal of penalties.” Rep. Grothman’s legislation nullifies this rule and returns the IRS to the previous, commonsense guidelines, providing crucial oversight in the approval of tax penalties and safeguarding the rights of hardworking American citizens. By reinstating the checks and balances originally intended, this resolution protects taxpayers and ensures that an IRS agent’s immediate supervisor personally approves the initial determination of a tax penalty.
