Lynn Jenkins

Ms. JENKINS of Kansas

Ms. JENKINS of Kansas. Mr. Speaker, I yield 4 minutes to the gentlewoman from Indiana (Mrs. Walorski).

Ms. JENKINS of Kansas. Mr. Speaker, I yield 3 minutes to the gentleman from North Carolina (Mr. McHenry).

Ms. JENKINS of Kansas. Mr. Speaker, I yield 3 minutes to the gentleman from Kansas (Mr. Estes).

Ms. JENKINS of Kansas. Mr. Speaker, I reserve the balance of my time.

Ms. JENKINS of Kansas. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, we have a significant opportunity to improve tax administration as we take up H.R. 5445, the bipartisan 21st Century IRS Act. This bill seeks to move the Internal Revenue Service into the 21st century by placing a renewed focus on modernization of the IRS and improving taxpayer experience. Before we talk more about this bill, I would like to take a moment to thank the bill's original cosponsors, Representatives Mike Bishop of Michigan and Suzan DelBene of Washington, for their strong leadership on this bill. I would also like to thank Representative John Lewis of Georgia and his staff for being such great partners in this effort. I think this bill and the others we have put forward as part of the larger IRS package are all the better for having worked through this process in a bipartisan fashion. Together, we have held 13 formal committee events over the past 3 years, hearing testimony and receiving comments from a diverse group of taxpayers, practitioners, and advocacy groups; and together, we have developed what we believe are bipartisan solutions that help improve the agency and, more importantly, the experience of all taxpayers. Now turning to this bill. Over the past 2 years, the Ways and Means Oversight Subcommittee has spent significant time, on a bipartisan basis, focusing on IRS management of information technology and cybersecurity. Through this process, we sought to have deeper, ongoing conversations with the agency to better understand its current and future needs and challenges. We have also met with taxpayers and other stakeholders to understand their experiences and concerns, and we have sought to provide strong public accountability for the IRS' IT and cybersecurity failures where we felt it was most needed. These collective interactions helped to shape many of the provisions in the bill before us today. While the IRS spends approximately $2.4 billion annually on IT, it continues to struggle with undertaking and completing large IT modernization efforts to update its legacy systems, some of which date back to the 1960s. In the era of 5G and broadband Internet, it is still hard to imagine why the IRS continues to use technology our children wouldn't even be able to recognize. In addition, the IRS continues to face ongoing cybersecurity threats and fraud schemes, which seem to exploit IRS systems and steal taxpayer information and refunds. These issues result in the waste of billions of taxpayer dollars spent maintaining old systems. We have also seen these outdated systems severely impact the IRS' ability to assist taxpayers. Whether it be long processing times for tax refunds or frustrations over the inability to reach the IRS by phone, the IRS' underlying IT affects all aspects of the taxpayers' experience. For example, just yesterday we saw the magnitude of what can happen when the IRS IT systems fail. Yesterday, starting at 2 a.m., dozens of IRS systems integral to a successful filing season went down, leaving the agency unable to accept tax returns on the day when they were needed the most. While the full impact of these outages remains to be seen, this is simply unacceptable. The bill before us today seeks to address many of these issues. It starts by requiring ongoing strategic IT planning, codifying and clearly laying out the roles and responsibilities of the chief information officer, and requiring additional oversight of two of the largest and most problematic IRS IT systems. Doing so strengthens IRS accountability for its IT modernization efforts, ensuring that the IRS spends taxpayer funds in ways that produce measurable results. This bill also encourages the IRS to more proactively work with its State partners and the private sector to proactively combat criminals who use taxpayer information to steal tax returns. The bill provides the IRS with additional authority to allow the agency to work more closely with its partners. Finally, the bill also sets forth a new goal for the IRS to have secure online accounts available for taxpayers and their designated preparers by 2023. The IRS has taken far too long to provide even the most basic of online services, and this bill ensures that the IRS will focus on providing more robust online services for those who want them. As we think boldly about the IRS of the future, one that is oriented towards helping taxpayers, we should also think boldly about what a modern IRS looks like: One where taxpayers can easily access their information, day or night; readily have their questions answered; and quickly resolve issues; One where the IRS can be trusted to adequately protect taxpayer information; proactively combat identity theft, tax return fraud; and readily assist taxpayers when they are victims of this fraud; And one where the IRS meets the taxpayer where they are, whether it be online, in person, or on the phone. It also means having an IRS that is held accountable when modernization efforts fall short. As we work towards the first major overhaul of the IRS in 20 years, our goal is to ensure that these reforms are built upon IT systems that are state-of-the-art, ones that work for the taxpayer, not against them. These reforms are necessary and long overdue. I urge my colleagues to support this bipartisan bill. Mr. Speaker, I include in the Record a score that we have received from the Congressional Budget Office. U.S. Congress, Congressional Budget Office, Washington, DC, April 16, 2018. Hon. Kevin Brady, Chairman, Committee on Ways and Means, House of Representatives, Washington, DC. Dear Mr. Chairman: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 5445, the 21st Century IRS Act. If you wish further details on this estimate, we will be pleased to provide them. Sincerely, Keith Hall, Director. Enclosure. H.R. 5445--21st Century IRS Act As reported by the House Committee on Ways and Means on April 13, 2018 H.R. 5445 aims to: Combat identity theft and tax refund fraud at the Internal Revenue Services (IRS); Create an automated system to verify taxpayer information for authorized users; Modernize information technology (IT) systems within the IRS; and Expand the use of electronic information systems within the

Ms. JENKINS of Kansas. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and submit extraneous material on H.R. 5445, currently under consideration.

Ms. JENKINS of Kansas. Mr. Speaker, pursuant to House Resolution 831, I call up the bill (H.R. 5445) to amend the Internal Revenue Code of 1986 to improve cybersecurity and taxpayer identity protection, and modernize the information technology of the Internal Revenue Service, and for other purposes, and ask for its immediate consideration in the House.

Ms. JENKINS of Kansas

Ms. JENKINS of Kansas. Mr. Speaker, I yield myself the balance of my time. Mr. Speaker, this thoughtful, bipartisan legislation will help refocus the IRS on its taxpayer service mission. Mr. Speaker, I urge all Members to support this legislation, and I yield back the balance of my time.

Ms. JENKINS of Kansas. Mr. Speaker, I yield 3 minutes to the gentleman from Illinois (Mr. LaHood).

Ms. JENKINS of Kansas. Mr. Speaker, I yield 3 minutes to the gentleman from Iowa (Mr. Young).

Ms. JENKINS of Kansas. Mr. Speaker, I yield 2 minutes to the gentleman from Illinois (Mr. Roskam).

Ms. JENKINS of Kansas. Mr. Speaker, I reserve the balance of my time.

Ms. JENKINS of Kansas. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, today marks a significant step forward for the American taxpayer as we take up the bipartisan Taxpayer First Act. The goal of this bill is simple: move the Internal Revenue Service toward being a truly customer service-focused agency, placing a renewed focus on treating taxpayers with respect and dignity. Mr. Speaker, I want to thank the Ways and Means Oversight Subcommittee Ranking Member, John Lewis, for cosponsoring this legislation with me. Together, the subcommittee held 13 formal committee events over the past 3 years, looking at many aspects of how the IRS functions and where improvements are clearly needed. It is in all of our interests for taxpayers to know that the IRS is treating them fairly and with respect. As a CPA, Members might have heard me talk before about my concerns with the interactions between the IRS and taxpayers. Not only have I heard these concerns while practicing in the private sector, but in my congressional office as well. In handling constituent services requests through my office, I have found many instances of just outright lack of common sense in administering our Tax Code. As we looked at what changes needed to be made, we focused on the relationship between taxpayers and the government. That means a customer service experience akin to what Americans expect from the private sector, with online services, callback options, and improved support on the phone. To make sure taxpayers receive a fair and impartial review of disputes, we established the Independent Office of Appeals. This commitment to fair and impartial treatment is the bedrock of the faith Americans place in the IRS. The vast majority of tax revenues come into the Treasury voluntarily. According to the National Taxpayer Advocate, only 2 percent of all tax revenue collected comes from IRS enforcement actions. A service- oriented, taxpayer-first IRS is key to supporting voluntary compliance. Our bill also makes permanent the IRS Free File Program, which is not only a win for the taxpayer, but saves the IRS time as well. This commonsense provision is one of the many included in this legislation that has strong bipartisan support and furthers the IRS mission to promote electronic filing. This bill also includes important taxpayer protections to ensure that the IRS enforcement powers are fair and transparent. For example, this bill includes safeguards to ensure that individuals and small businesses are protected from improper seizures by the IRS. Lastly, the bill tasks the IRS to develop and submit to Congress a comprehensive plan to restructure the agency, ensuring that it is best positioned to meet the needs of taxpayers today and into the future. In short, this is the reform I promised my constituents in Kansas and the reforms that all Americans deserve. Mr. Speaker, I would also like to note that we have received a score from the Congressional Budget Office, which I include in the Record. U.S. Congress, Congressional Budget Office, Washington, DC, April 16, 2018. Hon. Kevin Brady, Chairman, Committee on Ways and Means, House of Representatives, Washington, DC. Dear Mr. Chairman: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 5444, the Taxpayer First Act. If you wish further details on this estimate, we will be pleased to provide them. Sincerely, Keith Hall, Director. Enclosure. H.R. 5444--Taxpayer First Act As reported by the House Committee on Ways and Means on April 13, 2018 Summary H.R. 5444 would make a number of changes to the management and oversight of the Internal Revenue Service (IRS). The bill would: Aim to improve customer service and the taxpayer appeals assistance process; Restrict certain IRS enforcement activities; Modify the agency's organization; and Change the operations of the U.S. Tax Court. The staff of the Joint Committee on Taxation (JCT) estimates that enacting the bill would reduce revenues by $102 million over the 2019-2028 period, and CBO estimates that enacting H.R. 5444 would decrease direct spending by $51 million over the same period. On net, H.R. 5444 would increase deficits by $52 million over the period. CBO has not completed an estimate of the bill's costs that are subject to annual appropriation. Because enacting the bill would affect direct spending and revenues, pay-as-you-go procedures apply. CBO and JCT estimate that enacting H.R. 5444 would not increase net direct spending or significantly affect on- budget deficits in any of the four consecutive 10-year periods beginning in 2029. JCT has reviewed H.R. 5444 and determined that it contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). Estimated Cost to the Federal Government The estimated budgetary effect of H.R. 5444 is shown in the following table. The costs of the legislation fall within budget function 800 (general government). -------------------------------------------------------------------------------------------------------------------------------------------------------- By fiscal year, in millions of dollars--

Ms. JENKINS of Kansas. Mr. Speaker, I reserve the balance of my time.

Ms. JENKINS of Kansas. Mr. Speaker, on that I demand the yeas and nays.

Ms. JENKINS of Kansas. Mr. Speaker, I yield 4 minutes to the gentleman from Tennessee (Mr. Kustoff).

Ms. JENKINS of Kansas

Ms. JENKINS of Kansas. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I want to again thank Congressman Drew Ferguson and Congressman Joe Crowley for their leadership on this issue. H.R. 5446 further strengthens the safeguards in place to ensure that goods being sold immediately are limited to those that are likely to go bad. Mr. Speaker, I yield back the balance of my time.

Ms. JENKINS of Kansas. Mr. Speaker, I yield 5 minutes to the gentleman from Georgia (Mr. Ferguson), one of the leaders on this issue.

Ms. JENKINS of Kansas. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, as most of us are aware, the IRS has the ability to seize and sell a taxpayer's property to satisfy unpaid taxes. However, given the profound impact of such a move on the taxpayer's livelihood, well-defined safeguards govern these seizures. Nonetheless, the Ways and Means Oversight Subcommittee discovered last year that there are ways for the IRS to legally circumvent these protections. While IRS auctions typically require a 10-day advance notice and the establishment of minimum bid requirements to ensure profits sufficient to cover the unpaid taxes, the IRS can forego these requirements by deeming seized goods as perishable. Under current law, perishable goods are defined as those that are likely to go bad, become greatly reduced in price or value by keeping, or cannot be kept without great expense to the IRS. If the IRS deems the goods seized to be perishable, it can sell them on the same day without any minimum bid requirements. This streamlined process can lead to seized goods being sold for significantly less than a normal auction would allow. H.R. 5446, the bill before us, puts in place much-needed safeguards on the same-day seizure and sale of a taxpayer's property. While we are discussing this bill today, I would like to talk a little bit about the Oversight Subcommittee's findings that led us to this point. Last year, the subcommittee first became aware of this issue after local news reports from Dallas, Texas, brought to light the 2015 seizure of a bridal shop, including dresses and sewing machines. These goods were then sold immediately at auction within hours of their seizure. This left the owners with no means of earning an income going forward, while not fully satisfying their tax debts. Now, common sense would tell us that this sale was not in the best interest of the couple, whose livelihood was ruined, or the IRS, who did not fully collect the amount owed. Further investigation by the subcommittee also found that there were at least eight other instances of small businesses being liquidated using the perishable goods designation in the past few years. In only two of the cases did there appear to be any foods offered as part of the sale. The subcommittee concluded that while the IRS' use of this authority is limited, when it is used, the goods sold under this designation are typically the contents of a small business and are almost never in danger of immediately going bad. To give you an idea of what I am talking about, the IRS designated things such as sporting goods, artwork, scrapbooking materials, automotive supplies, and workout equipment as perishable. Now, I don't know about you, but when I think of things that are likely to go bad, I think of things that we produce in my home State of Kansas, like meat or dairy products. As a result, this commonsense bipartisan bill limits the IRS' ability to seize and immediately sell a taxpayer's property to only cases where the seized goods are actually likely to go bad. I would like to thank the bill's sponsors, Congressman Ferguson and Congressman Crowley, for all of their hard work on this issue. Mr. Speaker, I urge my colleagues to join me in supporting this bipartisan bill, and I reserve the balance of my time.

Ms. JENKINS of Kansas. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on H.R. 5446, currently under consideration.

Ms. JENKINS of Kansas. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5446) to amend the Internal Revenue Code of 1986 to restrict the immediate sale of seized property by the Secretary of the Treasury to perishable goods, as amended.

Ms. JENKINS of Kansas

Ms. JENKINS of Kansas. Mr. Speaker, I yield myself such time as I may consume. I want to again thank Congresswoman Karen Handel and Congressman Tom O'Halleran for their leadership on this issue. H.R. 5440 provides important transparency regarding closure of TACs to ensure that the public is notified and provided with information on how they can get the help they need from the IRS. Mr. Speaker, I yield back the balance of my time.

Ms. JENKINS of Kansas. Mr. Speaker, having no further speakers, I reserve the balance of my time.

Ms. JENKINS of Kansas. Mr. Speaker, I yield 5 minutes to the gentlewoman from Georgia (Mrs. Handel), who has provided great leadership on this bill.

Ms. JENKINS of Kansas. Mr. Speaker, I yield myself as much time as I may consume. Mr. Speaker, Taxpayer Assistance Centers, or TACs, are taxpayer service facilities operated by the IRS across the country. In 2017, more than 350 TAC locations provided face-to-face services to more than 3.2 million taxpayers. TACs can assist taxpayers in making payments, answering questions about their account, and other services. These offices provide valuable services for taxpayers to assist them in fulfilling their tax responsibilities. TAC employees are often the only face taxpayers see in their routine interactions with the IRS. As the IRS has moved more services online, the agency has made numerous changes to the operations of TACs. Last year, all TACs nationwide moved to an appointment system that drastically cut down on wait times. H.R. 5440 provides important improvements and transparency for the millions of taxpayers who visit TACs every year. This important bill ensures that impacted communities are provided at least 90 days notice prior to the closure of a TAC. Late last year, the TAC in Huntsville, Alabama, closed suddenly. This closure created problems for taxpayers right at the start of filing season. Local taxpayers did not know that the office had closed, with some driving 50 miles to the TAC, only to find a sign on the door directing them to another office 70 miles away. As you can imagine, this can be incredibly disruptive for all taxpayers, but particularly those in rural areas. Fortunately, last month, the office recently reopened, albeit at significantly reduced hours. The requisite 90 days' advance public notice under this bill is required to be both through online means, but also nonelectronic means as well. This can be accomplished through the use of local news or radio, posting notice at the local library, or other methods. This notice must provide information on alternative ways for taxpayers to obtain assistance. Today, ensuring the IRS can address the needs of taxpayers wherever they are is critically important, while the IRS needs flexibility to allocate scarce resources. This bill marks an important step to providing transparency for those impacted. I would like to thank my colleagues, Congresswoman Karen Handel and Congressman Tom O'Halleran, for their time and attention on this important issue. Mr. Speaker, I reserve the balance of my time.