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[House Report 114-498]
[From the U.S. Government Publishing Office]

114th Congress    }                                     {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                     {      114-498

======================================================================

 
      IRS OVERSIGHT WHILE ELIMINATING SPENDING (OWES) ACT OF 2016

                                _______
                                

 April 18, 2016.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Brady of Texas, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 4885]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 4885) to require that user fees collected by the 
Internal Revenue Service be deposited into the general fund of 
the Treasury, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.

                                CONTENTS

                                                                   Page
  I. SUMMARY AND BACKGROUND...........................................2
          A. Purpose and Summary.................................     2
          B. Background and Need for Legislation.................     2
          C. Legislative History.................................     3
 II. EXPLANATION OF THE BILL..........................................3
III. VOTES OF THE COMMITTEE...........................................4
 IV. BUDGET EFFECTS OF THE BILL.......................................5
          A. Committee Estimate of Budgetary Effects.............     5
          B. Statement Regarding New Budget Authority and Tax 
              Expenditures Budget Authority......................     5
          C. Cost Estimate Prepared by the Congressional Budget 
              Office.............................................     5
  V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE.......8
          A. Committee Oversight Findings and Recommendations....     8
          B. Statement of General Performance Goals and 
              Objectives.........................................     8
          C. Information Relating to Unfunded Mandates...........     8
          D. Applicability of House Rule XXI 5(b)................     8
          E. Tax Complexity Analysis.............................     8
          F. Congressional Earmarks, Limited Tax Benefits, and 
              Limited Tariff Benefits............................     9
          G. Duplication of Federal Programs.....................     9
          H. Disclosure of Directed Rule Makings.................     9
 VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED............9
          A. Text of Existing Law Amended or Repealed by the 
              Bill, as Reported..................................     9
          B. Changes in Existing Law Proposed by the Bill, as 
              Reported...........................................    10
VII. DISSENTING VIEWS................................................12

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``IRS Oversight While Eliminating 
Spending (OWES) Act of 2016''.

SEC. 2. DEPOSIT OF IRS USER FEES INTO GENERAL FUND OF THE TREASURY.

  (a) In General.--The second sentence of section 3 of title I of 
Public Law 103-329 (26 U.S.C. 7801 note), under the heading 
``administrative provisions-internal revenue service'', is amended by 
striking ``The Secretary of the Treasury may spend'' and all that 
follows through ``and thereafter:'' and inserting the following: ``Any 
fees collected pursuant to this section shall be deposited in the 
general fund of the Treasury and shall not be expended by the Internal 
Revenue Service unless provided by an appropriations Act:''.
  (b) Conforming Amendment.--The last proviso of such section is 
amended by striking ``and how they are being expended by the Service''.
  (c) Effective Date.--The amendments made by this section shall apply 
to fees collected after the date of the enactment of this Act.

                       I. SUMMARY AND BACKGROUND

                         A. Purpose and Summary

    H.R. 4885, reported by the Committee on Ways and Means, 
repeals the provision of current law that allows the Internal 
Revenue Service (IRS) to spend user fees collected by the 
agency without Congressional approval or appropriation. The 
proposal would require that all IRS user fees collected by the 
agency be deposited into the general fund of the Department of 
the Treasury, and therefore be subject to Congressional 
appropriations.

                 B. Background and Need for Legislation

    The IRS collects user fees for a variety of programs and 
services, including private letter rulings, determinations, 
installment agreements and other matters. Under current law, 
the IRS has authority to allocate funds from its user-fee 
account as the agency sees fit, without Congressional approval 
or appropriation. Historically, the user-fee account has 
primarily supported taxpayer services. However, the 
Subcommittee on Oversight found that in fiscal year 2015 the 
IRS deliberately diverted resources away from taxpayer services 
and towards other agency functions including implementation of 
the Affordable Care Act.\1\ In fiscal year 2014, the IRS spent 
$183 million in user fees on taxpayer services, which was 44 
percent of the user-fee account.\2\ In fiscal year 2015, 
however, the agency spent only $49 million on taxpayer 
services, or 10 percent of the user-fee account.\3\ That 
decision amounted to a 73-percent reduction in user fees 
allocated to taxpayer services, and a 6-percent decrease in 
total funding for taxpayer assistance. The IRS' decision to 
divert money in the user-fee account away from taxpayer 
assistance contributed to a level of taxpayer service that even 
the IRS Commissioner called ``abysmal'' for 2015.\4\ H.R. 4885 
improves Congressional oversight of the IRS and limits the 
agency's ability to manipulate its funding.
---------------------------------------------------------------------------
    \1\Doing Less with Less: The IRS's Spending Decisions Harm 
Taxpayers,'' Committee on Ways and Mean majority staff report; 
available at: http://waysandmeans.house.gov/wp-content/uploads/2015/07/
4.21.15-Tax-Filing-Report.pdf.
    \2\Ibid.
    \3\Ibid.
    \4\Ibid.
---------------------------------------------------------------------------

                         C. Legislative History

Background

    H.R. 4885 was introduced on March 23, 2016, and was 
referred to the Committee on Ways and Means.

Committee action

    The Committee on Ways and Means marked up H.R. 4885, the 
IRS Oversight While Eliminating Spending (OWES) Act, on April 
13, 2016, and ordered the bill, as amended, favorably reported 
(with a quorum being present).

Committee hearings

    The need for improved taxpayer service and appropriate use 
of funds by the IRS was discussed at an Oversight Subcommittee 
hearing on the 2015 Tax Filing Season (April 22, 2015).

                      II. EXPLANATION OF THE BILL

A. Requirement That User Fees Collected by the Internal Revenue Service 
           Be Deposited into the General Fund of the Treasury

                              PRESENT LAW

    Federal agencies may establish fees for certain services 
provided by the agencies,\5\ if the charges are fair, based on 
the costs to the government, the value of the service to the 
recipient, the public policy or interest served, and other 
relevant facts. Those policies currently are set by the Office 
of Management and Budget (``OMB'').\6\ The Internal Revenue 
Service collects user fees for a broad variety of services that 
are of value to the requesting taxpayers, ranging from advanced 
pricing agreements to installment agreements.\7\ Since 1994, 
the proceeds of user fees have been available to the Internal 
Revenue Service to supplement appropriations each fiscal 
year.\8\
---------------------------------------------------------------------------
    \5\The Independent Offices Appropriations Act of 1952 (IOAA), 65 
Stat. B70, (June 27, 1951). See also 31 U.S. Sec. 9701.
    \6\OMB Circular A-25, 58 FR 38142 (July 15, 1993).
    \7\A discussion of the IRS practice regarding user fees and a list 
of actions for which fees are charged is included in the Internal 
Revenue Manual. See ``User Fees,'' paragraph 1.32.19 IRM, available at 
https://www.irs.gov/irm/part1/irm_01-032-019.html.
    \8\Title I, section 3, Public Law No. 103-329 (September 30, 1995).
---------------------------------------------------------------------------

                           REASONS FOR CHANGE

    Review of the IRS budget allocations to customer service 
reveals that the IRS moved discretionary funds it collected as 
proceeds of user fees away from customer service to fund other 
aspects of tax administration, including implementation of 
recent legislation. Congress believes user fees collected to 
compensate the IRS for providing certain taxpayer services 
should be used to provide customer service. The Committee 
believes greater accountability of the IRS can be achieved by 
direct appropriations rather than allowing IRS discretionary 
spending.

                        EXPLANATION OF PROVISION

    The proceeds of user fees collected by the Internal Revenue 
Service are no longer available to the agency absent 
appropriation. All such fees must be deposited into the general 
fund of the Treasury.

                             EFFECTIVE DATE

    The provision is effective with respect to fees collected 
after the date of enactment.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the vote of the Committee on Ways and Means in its 
consideration of H.R. 4885, a bill require that user fees 
collected by the Internal Revenue Service be deposited into the 
general fund of the Treasury.
    The Chairman's amendment in the nature of a substitute was 
adopted by a voice vote (with a quorum being present).
    The bill, H.R. 4885, as amended, was ordered favorably 
reported to the House of Representatives by a rollcall vote of 
24 yeas to 14 nays (with a quorum being present).

----------------------------------------------------------------------------------------------------------------
          Representative             Yea      Nay     Present      Representative      Yea      Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady........................       X   .......  .........  Mr. Levin..........  .......       X   .........
Mr. Johnson......................       X   .......  .........  Mr. Rangel.........  .......       X   .........
Mr. Nunes........................       X   .......  .........  Mr. McDermott......  .......       X   .........
Mr. Tiberi.......................       X   .......  .........  Mr. Lewis..........  .......       X   .........
Mr. Reichert.....................       X   .......  .........  Mr. Neal...........  .......       X   .........
Mr. Boustany.....................       X   .......  .........  Mr. Becerra........  .......       X   .........
Mr. Roskam.......................       X   .......  .........  Mr. Doggett........  .......       X   .........
Mr. Price........................       X   .......  .........  Mr. Thompson.......  .......       X   .........
Mr. Buchanan.....................       X   .......  .........  Mr. Larson.........  .......       X   .........
Mr. Smith (NE)...................       X   .......  .........  Mr. Blumenauer.....  .......       X   .........
Ms. Jenkins......................       X   .......  .........  Mr. Kind...........  .......       X   .........
Mr. Paulsen......................       X   .......  .........  Mr. Pascrell.......  .......       X   .........
Mr. Marchant.....................       X   .......  .........  Mr. Crowley........  .......  .......  .........
Mrs. Black.......................       X   .......  .........  Mr. Davis..........  .......       X   .........
Mr. Reed.........................       X   .......  .........  Ms. Sanchez........  .......       X   .........
Mr. Young........................       X   .......  .........
Mr. Kelly........................       X   .......  .........
Mr. Renacci......................       X   .......  .........
Mr. Meehan.......................       X   .......  .........
Mrs. Noem........................       X   .......  .........
Mr. Holding......................       X   .......  .........
Mr. Smith (MO)...................       X   .......  .........
Mr. Dold.........................       X   .......  .........
Mr. Rice.........................       X   .......  .........
----------------------------------------------------------------------------------------------------------------

                     IV. BUDGET EFFECTS OF THE BILL

               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the bill, H.R. 4885, as 
reported.
    The bill, as reported, is estimated to have a negligible 
effect on Federal fiscal year budget receipts for the period 
2016-2026.
    Pursuant to clause 8 of rule XIII of the Rules of the House 
of Representatives, the following statement is made by the 
Joint Committee on Taxation with respect to the provisions of 
the bill amending the Internal Revenue Code of 1986: The gross 
budgetary effect (before incorporating macroeconomic effects) 
in any fiscal year is less than 0.25 percent of the current 
projected gross domestic product of the United States for that 
fiscal year; therefore, the bill is not ``major legislation'' 
for purposes of requiring that the estimate include the 
budgetary effects of changes in economic output, employment, 
capital stock and other macroeconomic variables.

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new or increased budget authority. The 
Committee further states that there are no new or increased tax 
expenditures.

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBO, the following statement by CBO is 
provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 18, 2016.
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. 4885, the IRS 
Oversight While Eliminating Spending (OWES) Act of 2016.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 4885--IRS Oversight While Eliminating Spending (OWES) Act of 2016

    Summary: Under current law, the Internal Revenue Service 
(IRS) is authorized to establish or increase fees for some of 
its services and to spend those fees without further 
appropriation. H.R. 4885 would amend current law to require 
that the spending of those user fees would be subject to annual 
appropriation.
    CBO estimates that enacting H.R. 4885 would reduce direct 
spending by $3.4 billion over the 2017-2026 period; therefore 
pay-as-you-go procedures apply. Enacting the bill would not 
affect revenues. CBO also estimates that implementing the bill 
would increase the need for appropriations for the IRS by $3.4 
billion over the 2017-2026 period.
    CBO estimates that enacting the legislation would not 
increase net direct spending or on-budget deficits in any of 
the four consecutive 10-year periods beginning in 2027.
    The staff of the Joint Committee on Taxation (JCT) has 
determined that H.R. 4885 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. 4885 is shown in the following table. 
The costs of this legislation fall within budget function 800 
(general government).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             By fiscal year, in millions of dollars--
                                         ---------------------------------------------------------------------------------------------------------------
                                            2017     2018     2019     2020     2021     2022     2023     2024     2025     2026   2017-2021  2017-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               DECREASE IN DIRECT SPENDING
 
Estimated Budget Authority..............     -350     -350     -350     -350     -350     -350     -350     -350     -350     -350     -1,750     -3,500
Estimated Outlays.......................     -301     -336     -350     -350     -350     -350     -350     -350     -350     -350     -1,687     -3,437
 
                                                      INCREASE IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level...........      350      350      350      350      350      350      350      350      350      350      1,750      3,500
Estimated Outlays.......................      301      336      350      350      350      350      350      350      350      350      1,687      3,437
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted in late calendar year 2016, the necessary 
amounts will be appropriated each year, and spending will 
follow historical patterns for the IRS.
    H.R. 4885 would terminate the authority of the IRS to spend 
user fees without appropriation action. Based on information 
from the IRS, CBO estimates that enacting the bill would reduce 
direct spending by about $3.4 billion over the 2017-2026 
period.
    Because CBO expects that the operating expenses for the IRS 
would remain the same under the bill, CBO estimates that 
implementing the bill would cost $3.4 billion over the 2017-
2026 period, assuming appropriation of the estimated amounts.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table.

           CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4885, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON WAYS AND MEANS ON APRIL 13, 2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         By fiscal year, in millions of dollars--
                                ------------------------------------------------------------------------------------------------------------------------
                                   2016     2017     2018     2019     2020     2021     2022     2023     2024     2025     2026   2016-2021  2016-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             NET DECREASE (-) IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact.        0     -301     -336     -350     -350     -350     -350     -350     -350     -350     -350     -1,687     -3,437
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term direct spending and deficits: CBO 
estimates that enacting the legislation would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2027.
    Intergovernmental and private-sector impact: JCT has 
determined that H.R. 4885 contains no intergovernmental or 
private-sector mandates as defined UMRA.
    Estimate prepared by: Federal Costs: Matthew Pickford, 
Intergovernmental and Private-Sector Impact: The staff of the 
Joint Committee on Taxation.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE

          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives (relating to oversight findings), 
the Committee advises that it was as a result of the 
Committee's review of the provisions of H.R. 4885 that the 
Committee concluded that it is appropriate to report the bill, 
as amended, favorably to the House of Representatives with the 
recommendation that the bill do pass.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill contains no measure that authorizes funding, so no 
statement of general performance goals and objectives for which 
any measure authorizes funding is required.

              C. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
    The Committee has determined that the bill contains no 
unfunded mandate on the private sector, nor does it impose a 
Federal intergovernmental mandate on State, local, or tribal 
governments.

                D. Applicability of House Rule XXI 5(b)

    Rule XXI 5(b) of the Rules of the House of Representatives 
provides, in part, that ``A bill or joint resolution, 
amendment, or conference report carrying a Federal income tax 
rate increase may not be considered as passed or agreed to 
unless so determined by a vote of not less than three-fifths of 
the Members voting, a quorum being present.'' The Committee has 
carefully reviewed the bill and states that the bill does not 
involve any Federal income tax rate increases within the 
meaning of the rule.

                       E. Tax Complexity Analysis

    Section 4022(b) of the Internal Revenue Service 
Restructuring and Reform Act of 1998 (``IRS Reform Act'') 
requires the staff of the Joint Committee on Taxation (in 
consultation with the Internal Revenue Service and the Treasury 
Department) to provide a tax complexity analysis. The 
complexity analysis is required for all legislation reported by 
the Senate Committee on Finance, the House Committee on Ways 
and Means, or any committee of conference if the legislation 
includes a provision that directly or indirectly amends the 
Internal Revenue Code of 1986 and has widespread applicability 
to individuals or small businesses.
    Pursuant to clause 3(h)(1) of rule XIII of the Rules of the 
House of Representatives, the staff of the Joint Committee on 
Taxation has determined that a complexity analysis is not 
required under section 4022(b) of the IRS Reform Act because 
the bill contains no provisions that amend the Internal Revenue 
Code of 1986 and that have ``widespread applicability'' to 
individuals or small businesses, within the meaning of the 
rule.

  F. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                   G. Duplication of Federal Programs

    In compliance with Sec. 3(g)(2) of H. Res. 5 (114th 
Congress), the Committee states that no provision of the bill 
establishes or reauthorizes: (1) a program of the Federal 
Government known to be duplicative of another Federal program, 
(2) a program included in any report from the Government 
Accountability Office to Congress pursuant to section 21 of 
Public Law 111-139, or (3) a program related to a program 
identified in the most recent Catalog of Federal Domestic 
Assistance, published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169).

                 H. Disclosure of Directed Rule Makings

    In compliance with Sec. 3(i) of H. Res. 5 (114th Congress), 
the following statement is made concerning directed rule 
makings: The Committee estimates that the bill requires no 
directed rule makings within the meaning of such section.

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

  A. Text of Existing Law Amended or Repealed by the Bill, as Reported

    In compliance with clause 3(e)(1)(A) of rule XIII of the 
Rules of the House of Representatives, the text of each section 
proposed to be amended or repealed by the bill, as reported, is 
shown below:

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e)(1)(A) of rule XIII of the 
Rules of the House of Representatives, the text of each section 
proposed to be amended or repealed by the bill, as reported, is 
shown below:

  TREASURY, POSTAL SERVICE AND GENERAL GOVERNMENT APPROPRIATIONS ACT, 
                                  1995

(Public Law 103-329)

           *       *       *       *       *       *       *

TITLE I--DEPARTMENT OF THE TREASURY

           *       *       *       *       *       *       *

Internal Revenue Service

           *       *       *       *       *       *       *

          ADMINISTRATIVE PROVISIONS--INTERNAL REVENUE SERVICE

  Sec. 3. The Secretary of the Treasury may establish new fees 
or raise existing fees for services provided by the Internal 
Revenue Service to increase receipts, where such fees are 
authorized by another law. The Secretary of the Treasury may 
spend the new or increased fee receipts to supplement 
appropriations made available to the Internal Revenue Service 
appropriations accounts in fiscal years 1995 and thereafter: 
Provided, That the Secretary shall base such fees on the costs 
of providing specified services to persons paying such fees: 
Provided further, That the Secretary shall provide quarterly 
reports to the Congress on the collection of such fees and how 
they are being expended by the Service.

           *       *       *       *       *       *       *

      B. Changes in Existing Law Proposed by the Bill, as Reported

    In compliance with clause 3(e)(1)(B) of rule XIII of the 
Rules of the House of Representatives, changes in existing law 
proposed by the bill, as reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e)(1)(B) of rule XIII of the 
Rules of the House of Representatives, changes in existing law 
proposed by the bill, as reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, and existing law in 
which no change is proposed is shown in roman):

  TREASURY, POSTAL SERVICE AND GENERAL GOVERNMENT APPROPRIATIONS ACT, 
                                  1995

(Public Law 103 329)

           *       *       *       *       *       *       *

TITLE I--DEPARTMENT OF THE TREASURY

           *       *       *       *       *       *       *

Internal Revenue Service

           *       *       *       *       *       *       *

          ADMINISTRATIVE PROVISIONS--INTERNAL REVENUE SERVICE

  Sec. 3. The Secretary of the Treasury may establish new fees 
or raise existing fees for services provided by the Internal 
Revenue Service to increase receipts, where such fees are 
authorized by another law. [The Secretary of the Treasury may 
spend the new or increased fee receipts to supplement 
appropriations made available to the Internal Revenue Service 
appropriations accounts in fiscal years 1995 and thereafter:] 
Any fees collected pursuant to this section shall be deposited 
in the general fund of the Treasury and shall not be expended 
by the Internal Revenue Service unless provided by an 
appropriations Act: Provided, That the Secretary shall base 
such fees on the costs of providing specified services to 
persons paying such fees: Provided further, That the Secretary 
shall provide quarterly reports to the Congress on the 
collection of such fees [and how they are being expended by the 
Service].

           *       *       *       *       *       *       *

                         VII. DISSENTING VIEWS

    We oppose H.R. 4885, the IRS Oversight While Eliminating 
Spending (OWES) Act of 2016, which would eliminate the ability 
of the IRS to supplement its annual funding appropriation with 
user fees. The IRS charges user fees for a variety of services 
that it provides to the public, such as providing tax 
transcripts to verify income for consumer loans. IRS user fee 
collections annually range from $400 to $500 million, and 
represent around 4% of IRS's annual budget. H.R. 4885 would 
instead require that IRS place its user fee income in the 
Treasury general fund and would prohibit IRS from spending any 
of that income without express Congressional authorization.
    We oppose H.R. 4885 because it is a disguised budget cut 
for the IRS. The Majority has cut over $1 billion from the IRS 
since 2010. As a result, the agency has been forced to cut 
12,000 full-time jobs, has reduced employee training, and has 
delayed critical upgrades to information technology. The agency 
is auditing fewer taxpayers--the current audit rate of less 
than 1% of taxpayers is the lowest level in a decade.
    We object to this dangerous level of underfunding for a 
critical government agency; and, we oppose H.R. 4885 because it 
represents an additional 4% budget cut annually for an agency 
that is already underfunded.
                                           Sander M. Levin,
                                                    Ranking Member.

                                  [all]
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