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IRS Changes: Tax Gap Report and Audit Restrictions

This bill requires the IRS to report on uncollected taxes and limits how the agency can spend extra enforcement money. It prohibits using these funds for audits of individuals earning less than $400,000 and blocks new bank account reporting requirements.
Key points
Requires the IRS to publicly report how much tax is owed but not collected.
Extra IRS money for audits is paused until the report is published.
Prohibits using extra funds for audits of individuals earning under $400,000.
Prohibits using extra funds for new bank account reporting rules or tracking groups based on beliefs.
Directs the IRS to focus audits on high-income individuals who don't file.
Creates a program to hire tax experts to help the IRS with complex cases and offshore tax evasion.
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Additional Information
To require the Internal Revenue Service to issue a report on the tax gap, to establish a fellowship program within the Internal Revenue Service to recruit mid-career tax professionals to create and participate in an audit task force, and for other purposes.
Print number: HR 5206
Sponsor: Rep. Brady, Kevin [R-TX-8]
Process start date: 2021-09-10