"Approval today of the recommendations of the National Commission on Restructuring the IRS represents an important step in improving management of the IRS and, more importantly, providing better service to taxpayers," Grassley said. "Furthermore, tapping an IRS Commissioner with the proven skills and experience needed to integrate an agency that serves 115 million taxpayers should signal a turning point."
Since January, Grassley twice has written the President and on several occasions urged Treasury officials to select a successful business leader to direct the IRS instead of following tradition and naming a tax lawyer as IRS Commissioner. This week, reports indicated that the formal nominee for the top job at the IRS is expected to be Charles O. Rossotti, chairman and co-founder of a technology-systems development and consulting company. "I urge the nominee to enthusiastically endorse and express his commitment to implementing the recommendations of the National Commission."
Grassley for many years has sought to hold the IRS accountable from his post on the Senate Finance Subcommittee charged with oversight of the agency. Today, he said the reforms advocated by the Commission, on which he serves, represent the fundamental changes necessary to better serve the American taxpayer and the U.S. government in the 21st Century. Established by Congress to conduct a one-year review of current practices of the IRS, the Commission is comprised of 17 individuals from the public and private sectors. Senator Bob Kerrey of Nebraska and Representative Rob Portman of Ohio are co-chairmen of the group which began its work last July.
"I congratulate Senator Kerrey and Representative Portman for the leadership they've provided on behalf of hardworking taxpayers. In particular, I appreciate Senator Kerrey's commitment to granting overall responsibility for the IRS to a new board of directors that would bring needed expertise and continuity. And I applaud Representative Portman for his focus on simplification of the U.S. tax code as a necessary change to better taxpayer service," Grassley said.
Grassley today said he looks forward to working closely with Kerrey as a member of the Finance Committee to make a reality the reforms approved today by a 12 to 5 bi-partisan vote of the Commission. Already, Grassley has spoken with congressional leaders, including Senate Majority Leader Trent Lott, Finance Committee Chairman William Roth, Ways and Means Committee Chairman Bill Archer, and Senate Governmental Affairs Committee Chairman Fred Thompson, regarding consideration of such legislative initiatives.
In particular, Grassley today emphasized that the Commission is recommending not only new rights for taxpayers, but also protections for the taxpayer. "Importantly, the Commission has focused on preventing problems in the first place by identifying the need to focus on the quality of work at the IRS, as well as improving customer service," Grassley said.
The Iowa senator also praised the Commission for "sending an important message that more money for the federal bureaucracy is not the answer to IRS problems. We need to improve management at the IRS, not simply pour in more money," Grassley said. Finally, Grassley said the Commission will seek to make the IRS more open and accountable. The formal report which will be released on June 25 will call for improved IRS compliance with the Freedom of Information Act (FOIA) and better preservation by the IRS of documents needed for a historical record of IRS actions.
In 1988, Grassley worked with Sen. David Pryor of Arkansas to win passage of the first-ever Taxpayer Bill of Rights. Last year, Grassley and Pryor secured additional protections with passage of the bill's sequel, "T2" or the Taxpayer Bill of Rights II.