Friend,

As we settle into a new administration, it is critical we address the troubling pattern of last-minute rule changes by the IRS.

In the final weeks of the Biden administration, the IRS quietly released its final supervisory signature rule that undermined taxpayers' rights.

This final rule violates the "no signature, no penalty" intent of current law. By doing so, it rejects taxpayers' protection against excessive and unnecessary penalties. 

However, as a new administration takes over, the National Taxpayers Union (NTU) has a chance to push back against IRS overreach.

I am Pete Sepp, President of the National Taxpayers Union. NTU is the "Taxpayers' Lobbyist." We fight to ensure that all Americans are able to pursue their dreams without the heavy hand of the government holding them back.

NTU is fighting for taxpayers against IRS abuse, but we can't do this alone. Will you chip in $10, $35, or even $100 today to support our efforts? 
 

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This isn't the first time the IRS has tried to push through this rule change. The IRS proposed the rule on April 11, 2023, and held a public hearing on September 11, 2023.

National Taxpayers Union shared our concern over these new rule changes:

• Lack of Supervisor Approval – This rule allows for a supervisor to delay their signature, allowing penalties to be used as bargaining chips. 
• Overly Broad Definition of Supervisor – The definition of supervisor has been expanded, making oversight significantly weaker.
• No Formal Attestation – Agents are not required to sign off on penalties, despite statutory language that says they must "personally approve (in writing)" all proposed penalties.
• Reduction in Subjected Penalties – The IRS's rules significantly reduce the amount of penalties subject to the supervisory signature rule, even though it should cover all penalties. 

The timing of these changes is extremely concerning. By pushing through major rule changes during a presidential transition period, the IRS is once again lacking transparency and accountability to taxpayers.

There is a better path forward.

Congress could clarify that supervisory approval is required before a proposed penalty is communicated in written form to a taxpayer. This remedy would ensure that penalties are applied fairly, restore trust in the IRS's penalty process, and protect taxpayers from unwarranted assessments stemming from procedural loopholes.

You can help us work with Congress to clarify the statute and safeguard taxpayer rights! Click here to donate today >>> 
 

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NTU has a long history of reining in the IRS and holding them accountable to American taxpayers. These previous victories include:

• Stopping the IRS from expanding its bank reporting requirements
• Exposing the IRS's overreach on issues like micro-captive insurance
• Enacting no fewer than five significant IRS reform bills in Congress since 1988
• Protecting taxpayers from massive tax hikes to fund reckless spending

With your support, NTU will continue to stand up to the IRS when it's acting out of bounds, push back on burdensome regulations, and make sure your hard-earned dollars stay in your pocket - not the government's.

You can help support the rights of taxpayers by donating today.
 

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Thank you,

 
Pete Sepp  
President
National Taxpayers Union

The National Taxpayers Union is a nonprofit organization formed under 501(c)(4) of the Internal Revenue Code. Contributions or gifts to the National Taxpayers Union are not deductible as charitable contributions for Federal income tax purposes. No goods or services are given in exchange for any contribution.

You may consider making a tax-deductible gift to our sister organization, the National Taxpayers Union Foundation, a 501(c)(3). If you would like to mail a check or give via a foundation, DAF, or retirement account, you can find the National Taxpayers Union Foundation EIN and mailing address below:

EIN: 52-1122683

Address: 
The National Taxpayers Union Foundation
122 C Street, NW 
Suite 700
Washington, DC 20001