"The latest internal audit proves that some in the IRS have continued to use collection quotas as an internal performance measurement even though it violates taxpayer protections established in the first-ever taxpayer bill of rights I co-authored in 1988," Grassley said. Furthermore, the Iowa senator said the internal audit underscored the need for pro-taxpayer action by Congress and strong pro-taxpayer leadership of the IRS.
Specifically, Grassley said the January 12 IRS report titled Use of Enforcement Statistics in the Collection Field Function found internal documents that encouraged the use collection quotas in violation of the first taxpayer bill of rights. The audit specifically said the law states that the IRS shall not use records of tax enforcement results "(1) to evaluate employees directly involved in collection activities and their immediate supervisors, or (2) to impose or suggest production quotas or goals with respect to individuals described in clause (1)."
Grassley said the audit made public this week "tells me that Congress needs to make taxpayer rights a top priority in an IRS reform bill this year, and that we in Congress must aggressively oversee the work of the IRS to ensure that the protections already established by law are ensured in practice by the IRS. As Justice Brandeis said, sunshine is the best disinfectant."
On Monday, Grassley joined in hosting IRS Commissioner Charles O. Rossotti at an agency-sponsored taxpayer problem solving day in Des Moines. Today, Grassley said he appreciated the statements of Rossotti that action will be taken on the illegal practices revealed in the IRS audit. "The Commissioner can send a clear message to employees and managers at the IRS that skirting the rights of taxpayers will not be tolerated," Grassley said.
Grassley has long championed expanded rights for taxpayers. In 1988, he co-authored the first-ever taxpayer bill of rights with former Sen. David Pryor of Arkansas. The two senators joined forces again to win passage in 1994 of a sequel known as the Taxpayer Bill of Rights II, or T2. In 1996 and 1997, Grassley was an active participant in the 17-member National Commission on Restructuring the IRS. Grassley and Sen. Bob Kerrey of Nebraska incorporated recommendations of the Commission into the bi-partisan reform bill they introduced last summer. It was the first comprehensive IRS reform bill offered since 1952.
While the House of Representatives last fall approved a version of the Kerrey/Grassley proposal, the Senate did not act on the measure. Looking ahead, the Finance Committee is expected to resume hearings this spring to consider necessary IRS reforms. As a senior member of the tax-writing committee and the IRS oversight subcommittee, Grassley has taken the lead in this debate to seek effective reform that will make a meaningful difference for taxpayers. "I am committed to continuing my work to improve taxpayer rights and protections," Grassley said.
