FOR IMMEDIATE RELEASE, Contact: (202) 225-1721
September 9, 1997
No. FC-9
Congressman Bill Archer (R-TX), Chairman of the Committee on Ways and Means, today announced that the Committee will hold a hearing to examine the recommendations of the National Commission on Restructuring the Internal Revenue Service (IRS) with regard to Executive Branch governance and Congressional oversight of the IRS. The hearing will take place in the main Committee hearing room, 1100 Longworth House Office Building, on Tuesday, September 16, 1997, beginning at 1:00 p.m., and will continue on Wednesday, September 17, 1997, beginning at 10:00 a.m.
In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only. Witnesses will include, among others, U.S. Department of the Treasury officials, members of the National Commission on Restructuring the IRS, representatives from stakeholder organizations with an interest in tax administration, academics, and former senior IRS executives. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.
BACKGROUND:
The National Commission on Restructuring the IRS was established by Public Law 104-52. Its purpose was to review the present practices of the IRS and to make recommendations for modernizing and improving its efficiency and taxpayer services. The Commission's June 25, 1997, report, which was endorsed by 12 of its 17 members, contains recommendations relating to Executive Branch governance and management of the IRS, Congressional oversight of the IRS, personnel flexibilities, customer service and compliance, technology modernization, electronic filing, tax law simplification, taxpayer rights, and financial accountability. The Commission's recommendations are embodied in H.R. 2292, the "Internal Revenue Service Restructuring and Reform Act of 1997," which was introduced on July 30 by Reps. Rob Portman (R-OH) and Ben Cardin (D-MD).
With respect to Executive Branch governance, among other things, H.R. 2292 provides for the establishment, within the Treasury Department, of an IRS Oversight Board. The Board would consist of seven members who are not full-time Federal officers or employees, appointed by the President, confirmed by the Senate, and removable at the will of the President, with professional experience and expertise in managing large service organizations. These members would be appointed to five-year staggered terms. The Board would also include the Secretary of the Treasury and a representative from the National Treasury Employees Union. The Oversight Board's role would be to guide long-term strategic planning at the IRS, appoint and remove the Commissioner, approve the development of IRS's budget and allocation of the agency's resources, and hold senior IRS management accountable for achieving the agency's strategic goals. In addition, the bill provides that the Commissioner would be appointed by the Board to a five-year term to administer, manage, and supervise the execution and administration of the internal revenue laws. The bill would also provide the IRS Commissioner with expanded authority to: (1) hire and pay certain top-level management and technical experts more competitive salaries and the Commissioner would be required to consult with the Board on major operational and management decisions; and (2) enter into performance-based employee pay and retention arrangements.
With regard to Congressional oversight of the IRS, among other things, H.R. 2292 provides that Congressional oversight of the IRS should be coordinated by holding at least two annual joint hearings of the House Committees on Ways and Means, Appropriations, and Government Reform and Oversight, and the Senate Committees on Finance, Appropriations, and Government Affairs. The joint hearings would include two members of the majority and one member of the minority from each of the committees, and would focus on areas of primary importance to tax administration, including: IRS strategic and business plans, the IRS budget and how it is aligned with the agency's objectives, progress on technology modernization, and the annual filing season. The joint hearings would serve as the primary forum for interaction between Congress and the IRS Oversight Board. The legislation would also expand the Joint Committee of Taxation's (JCT) oversight responsibilities with regard to the IRS and require the JCT to report annually to the House Committee on Ways and Means and Senate Committee on Finance with recommendations to simplify the tax law and administration. Finally, the bill would require the JCT to prepare a "Tax Complexity Analysis" for any legislative proposal that amends the Internal Revenue Code.
The Administration has formulated its own plan, entitled the "Five-Point Plan for IRS Governance," which was implemented by Executive order 13051, signed by the President on June 24, 1997. H.R. 2428, the "Internal Revenue Service Improvement Act of 1997," which was introduced on September 8, 1997, by Reps. Charles Rangel (D-NY), William Coyne (D-PA), Steny Hoyer (D-MD), Henry Waxman (D-CA), and Robert Matsui (D-CA) would codify the Administration's plan. Among other things, H.R. 2428 would statutorily authorize the establishment of an IRS Management Board chaired by the Deputy Secretary of the Treasury and composed of senior officials from the Treasury Department and the IRS, including the IRS Taxpayer Advocate, a representative from the National Treasury Employees Union, and representatives of such other government agencies as may be determined from time to time by the Secretary of the Treasury. The purpose of the Management Board would be to support the Secretary's oversight of the management and operation of the IRS. The legislation would also provide for the creation of an IRS Advisory Board (composed of 14 private-sector professionals) to provide advice to the Secretary of the Treasury. In addition, H.R. 2428 provides that the Commissioner would be appointed to a five-year term to administer, manage, and supervise the execution and administration of the internal revenue laws. The bill would also provide the IRS Commissioner with expanded authority to: (1) hire and pay certain top-level management and technical experts more competitive salaries and the Commissioner would be required to consult with the Board on major operational and management decisions; and (2) enter into performance-based employee pay and retention arrangements. With regard to Congressional oversight of the IRS, H.R. 2428 would require the Department of the Treasury to submit an annual report to the Congress on the management of the IRS, and require the Secretary of the Treasury and Deputy Secretary to appear annually before the House and Senate to discuss their stewardship of the IRS. The Committee will receive testimony on the Administration's plan for IRS management and governance.
In announcing the hearing, Chairman Archer stated: "The IRS Restructuring Commission has performed a valuable service by identifying the problems facing the IRS and making recom-mendations to improve its operations, establish greater accountability, and lay the groundwork for a more taxpayer considerate IRS for the 21st Century. Clearly, the IRS's chief problem in administering the tax system, and the source of most of the American public's frustration with the IRS, is the tremendous complexity of our existing income tax laws. I remain firmly committed to the goal of replacing the income tax with a new tax system that is fairer, simpler, less intrusive, and more conducive to economic growth. However, I also believe that as long as we have an income tax, the IRS must be accountable for providing fair and efficient services to the nation's taxpayers. Congress and the Administration now have the best opportunity in over 40 years to truly overhaul the IRS and transform it into a modern, efficient, and taxpayer considerate agency. I look forward to working with the Administration over the coming months to achieve this important goal."
FOCUS OF THE HEARING:
The Committee will examine the Commission's recommendations with respect to Executive Branch governance and Congressional oversight of the IRS.
DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:
Any person or organization wishing to submit a written statement for the printed record of the hearing should submit at least six (6) single-space legal-size copies of their statement, along with an IBM compatible 3.5-inch diskette in ASCII DOS Text or WordPerfect 5.1 format only, with their name, address, and hearing date noted on a label, by the close of business, Tuesday, September 30, 1997, to A.L. Singleton, Chief of Staff, Committee on Ways and Means, U.S. House of Representatives, 1102 Longworth House Office Building, Washington, D.C. 20515. If those filing written statements wish to have their statements distributed to the press and interested public at the hearing, they may deliver 200 additional copies for this purpose to the Committee office, room 1102 Longworth House Office Building, at least one hour before the hearing begins.
FORMATTING REQUIREMENTS:
Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.
1. All statements and any accompanying exhibits for printing must be typed in single space on legal-size paper and may not exceed a total of 10 pages including attachments. At the same time written statements are submitted to the Committee, witnesses are now requested to submit their statements on an IBM compatible 3.5-inch diskette in ASCII DOS Text or WordPerfect 5.1 format. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.
2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.
3. A witness appearing at a public hearing, or submitting a statement for the record of a public hearing, or submitting written comments in response to a published request for comments by the Committee, must include on his statement or submission a list of all clients, persons, or organizations on whose behalf the witness appears.
4. A supplemental sheet must accompany each statement listing the name, full address, a telephone number where the witness or the designated representative may be reached and a topical outline or summary of the comments and recommendations in the full statement. This supplemental sheet will not be included in the printed record.
The above restrictions and limitations apply only to material being submitted for printing. Statements and exhibits or supplementary material submitted solely for distribution to the Members, the press and the public during the course of a public hearing may be submitted in other forms.
The
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