U.S. Chamber Backs TAS Act With 60+ IRS Reforms

The U.S. Chamber of Commerce has thrown its weight behind S. 5441, the Taxpayer Assistance and Service Act, a bipartisan bill that would deliver more than 60 long-sought reforms to Internal Revenue Service administration.

In a letter addressed "To Members of the United States Senate," the Chamber's Senior Vice President for Policy, Jonathan W. Burks, said the legislation would notably enhance the independence of and expand access to the IRS Independent Office of Appeals, the agency's settlement arm.

The stakes for businesses are concrete. IRS Appeals provides taxpayers an independent forum to resolve disputes with the IRS administratively—without the delay, expense, and uncertainty of litigation. For companies, meaningful and dependable access to IRS Appeals matters as a mechanism for efficiently resolving federal tax disputes.

The Chamber's letter spells out why the appeals route appeals to corporate taxpayers. Relative to litigation, IRS Appeals is inexpensive, informal, and confidential. It also considers the hazards of litigation when negotiating settlements.

Targeted separation from enforcement

The TAS Act would build on IRS Appeals's existing statutory framework with a set of targeted reforms. Their aim: further separate IRS Appeals from the agency's enforcement functions and ensure that taxpayers have a meaningful opportunity to resolve disputes administratively before resorting to litigation.

That separation addresses a long-running concern among businesses and tax practitioners—that the settlement arm of the tax agency operates too close to its enforcement arm to be fully independent in practice.

The Chamber described the bill as "timely" and "bipartisan," and said it "looks forward to working with you to advance this important, bipartisan legislation to measurably improve the IRS dispute-resolution process for businesses of all sizes."

The letter was signed by Jonathan W. Burks, Senior Vice President, Policy, U.S. Chamber of Commerce.

Why it matters

The endorsement from the nation's largest business lobbying organization signals corporate America's appetite for cheaper, faster alternatives to tax court. If enacted, the TAS Act's more than 60 reforms would give companies of all sizes a stronger administrative path to settle federal tax disputes—reducing the share of disputes that end up in costly litigation.