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New IRS penalty assessment rules for fairer reviews

This act changes how the IRS assesses penalties, requiring written approval from a supervisor before any penalty communication is sent to a taxpayer. This aims to increase transparency and accountability in the penalty assessment process, giving citizens more assurance that decisions are thoroughly reviewed. These changes will apply from January 1, 2026.
Key points
Before an IRS penalty is assessed, the decision must be personally approved in writing by the immediate supervisor of the individual making the determination.
This approval is required before any written communication about the penalty, including a proposed adjustment, is sent to the taxpayer.
The changes are intended to ensure penalties are assessed more fairly and accountably.
These new rules will apply to notices issued and penalties assessed after December 31, 2025.
article Official text account_balance Process page
Passed House
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_5346
Sponsor: Rep. Grothman, Glenn [R-WI-6]
Process start date: 2025-09-15
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Fair and Accountable IRS Reviews Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_5346.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-09-15.

What are the main provisions?

Key points include:

  • Before an IRS penalty is assessed, the decision must be personally approved in writing by the immediate supervisor of the individual making the determination.
  • This approval is required before any written communication about the penalty, including a proposed adjustment, is sent to the taxpayer.
  • The changes are intended to ensure penalties are assessed more fairly and accountably.
  • These new rules will apply to notices issued and penalties assessed after December 31, 2025.
What is the specific legal status?

The current status is Passed House.

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 Rep. Grothman, Glenn [R-WI-6].

What is the latest detailed status?

The latest detailed status is: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4940-4941)

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Taxes Courts and Law