Fond Du Lac Times

Congressman Glenn Grothman of Wisconsin has introduced legislation aimed at overturning a rule from the Biden administration that expanded the authority of IRS employees to impose fines on taxpayers. This initiative is backed by several taxpayer advocacy groups, including Americans for Tax Reform, the National Taxpayers Union (NTU), and the Taxpayers Protection Alliance. The bill is cosponsored by Congressmen Tom McClintock of California and Greg Steube of Florida.

Grothman criticized the Biden-era rule, stating, "Joe Biden is gone, but the wake of his policy mistakes linger." He expressed concern that this rule could lead to an increase in unjust penalties against Americans and contradicts former President Trump's goals for government transparency and efficiency. According to Grothman, "The IRS mandate should not be to levy fines as erratically as possible; it should be to treat taxpayers fairly and with respect."

Grover Norquist, President of Americans for Tax Reform, explained that under President Biden's administration, a law requiring IRS agents to obtain written approval from their immediate supervisors before imposing penalties was weakened. Norquist said this change allows agents to seek approval from any sympathetic supervisor within the building rather than their direct superior. He urged support for Grothman's resolution to nullify what he called an "egregious" rule.

Pete Sepp, President of NTU, highlighted the importance of Congressman Grothman's resolution in safeguarding taxpayer rights. Sepp noted that NTU had advocated for supervisory approval requirements since 1998 as a means to protect taxpayers and ensure proper documentation by the IRS. He criticized the IRS's dismissal of public comments suggesting alternative procedures as mere formalities.

David Williams, President of the Taxpayers Protection Alliance, emphasized that it is crucial for leaders like Rep. Grothman to challenge overreaches by federal agencies such as the IRS. Williams stated that this resolution represents an important step toward reestablishing oversight and ensuring good governance.

Previously, an IRS agent's immediate supervisor was required to approve tax penalties at their initial determination stage. However, in December 2024, a final rule redefined "immediate supervisor" broadly as anyone responsible for reviewing penalty proposals rather than someone directly overseeing an agent's work.

Rep. Grothman's legislation seeks to nullify this rule and restore previous guidelines that require personal approval from an agent's immediate supervisor before imposing tax penalties.