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IRS Strengthening: Increased Audits and New Financial Reporting Rules

This act aims to increase funding for the Internal Revenue Service (IRS) to modernize technology and strengthen tax enforcement, especially for high-income individuals and large corporations. It introduces new reporting obligations for financial institutions regarding account flows, which may impact the transparency of citizens' financial transactions. It also increases penalties for tax underpayments for higher-income individuals.
Key points
Increased funding for the IRS to modernize and enhance tax audits, particularly for individuals with incomes over $1 million and large corporations.
Financial institutions will be required to report monthly gross inflows and outflows from accounts, increasing oversight of financial transactions.
Higher penalties for tax underpayments for individuals with taxable incomes over $2 million, potentially leading to increased costs for errors or tax fraud.
A goal to reduce the net tax gap by at least one-third within ten years and improve the quality of taxpayer assistance from the IRS.
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Expired
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Additional Information
Print number: 117_S_1788
Sponsor: Sen. Warren, Elizabeth [D-MA]
Process start date: 2021-05-24
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Restoring the IRS Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_1788.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-05-24.

What are the main provisions?

Key points include:

  • Increased funding for the IRS to modernize and enhance tax audits, particularly for individuals with incomes over $1 million and large corporations.
  • Financial institutions will be required to report monthly gross inflows and outflows from accounts, increasing oversight of financial transactions.
  • Higher penalties for tax underpayments for individuals with taxable incomes over $2 million, potentially leading to increased costs for errors or tax fraud.
  • A goal to reduce the net tax gap by at least one-third within ten years and improve the quality of taxpayer assistance from the IRS.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Warren, Elizabeth [D-MA].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-02.

CATEGORIES

Taxes Economy