HR-3151 : Became Public Law

Taxpayer First Act

This bill revises requirements for the Internal Revenue Service (IRS) regarding its organizational structure, customer service, enforcement procedures, cybersecurity and identity protection, management of information technology, and use of electronic systems.

The bill includes provisions that

• establish the IRS Independent Office of Appeals to resolve federal tax controversies without litigation;
• require the IRS to develop comprehensive customer service and IRS personnel training strategies;
• exempt certain low-income taxpayers from payments required to submit an offer-in-compromise;
• modify certain tax enforcement procedures and requirements;
• establish requirements for responding to Taxpayer Advocate Directives;
• establish a Community Volunteer Income Tax Assistance Matching Grant Program;
• require the IRS to give public notice of the closure of taxpayer assistance centers;
• modify procedures for whistle-blowers;
• establish requirements for cybersecurity and identity protection;
• provide notification to taxpayers of suspected identity theft;
• require the appointment of a Chief Information Officer who shall develop and implement a multiyear strategic plan for IRS information technology needs;
• modify requirements for managing IRS information technology;
• expand electronic filing of tax returns;
• prohibit the rehiring of certain IRS employees who were removed for misconduct;
• require mandatory e-filing by tax-exempt organizations and notice before revocation of tax-exempt status for failure to file; and
• increase penalties for failure to file tax returns.

The bill also requires the IRS to implement

• an Internet platform for Form 1099 filings,
• a fully automated program for disclosing taxpayer information for third-party income verification using the Internet, and
• uniform standards and procedures for accepting electronic signatures.