IRS Overhaul Headed To Conference Committee
WASHINGTON (AllPolitics, May 8) -- After a string of taxpayers came forward at Capitol Hill hearings to tell IRS horror stories, it didn't take the Senate long this week to approve legislation to overhaul the tax agency on a unanimous 97-0 vote.
Now the legislation, passed Thursday, is headed to conference committee to resolve differences among the House, Senate and White House.
"The problem is that the agency itself has too much power and
not enough sunshine," said Sen. William V. Roth, chairman of
the Senate Finance Committee and architect of the legislation. "It's an environment where honesty can be met by retaliation, where employees can be frightened to come forward ... where the taxpayer is often perceived as the enemy and not the customer."
Roth presided over hearings last month that focused on the IRS' criminal investigations division and its alleged over-zealousness. One of the witnesses was former Tennessee Sen. Howard Baker, who was the victim of an alleged frame-up by a rogue IRS agent trying win points with his bosses.
Roth said a timetable has not yet been set for the beginning of the compromise discussions, and some lawmakers said an agreement is unlikely before the Memorial Day break.
In a statement after the vote, President Bill Clinton
applauded the Senate's action, and urged Congress to "send me a bill that expands taxpayer rights and moves us forward towards delivering an IRS the American people deserve."
"We've worked hard to give the American people an IRS that is
fairer and more responsive to their needs, and to support the many
dedicated IRS employees who do want to serve them well," Clinton said.
Not voting in the Senate were Democrats Daniel Akaka
of Hawaii and John Glenn of Ohio, and Republican Strom
Thurmond of South Carolina.
The key provisions of the bill include:
- Shifting the burden of proof to the IRS. Currently, it is taxpayers who have to prove their innocence in tax court.
- Protecting innocent spouses. The IRS would no longer hold people responsible for taxes owed by their husbands or wives.
- And, creating a nine-member IRS oversight board that would include private sector executives.
Despite the huge margin of victory, there was concern about the bill's cost -- $18.3 billion in lost revenues over the next 10 years.
Senate Minority Leader Tom Daschle (D-S.D.) said the legislation's price tag more than tripled in its House version.
The bill allows politicians in both parties to take credit for reforming the ever unpopular IRS, but its impact on the average taxpayer may be negligible. In fact, unless you face off with the IRS in tax court, the overhaul bill probably won't affect you much at all.
CNN's Jonathan Karl and The Associated Press contributed to this report.
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