59–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 114–501 

TO IMPOSE A BAN ON THE PAYMENT OF BONUSES TO EMPLOYEES OF 

THE INTERNAL REVENUE SERVICE UNTIL THE SECRETARY OF THE 

TREASURY DEVELOPS AND IMPLEMENTS A COMPREHENSIVE CUSTOMER SERVICE STRATEGY 

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. 4890] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Ways and Means, to whom was referred the 

bill (H.R. 4890) to impose a ban on the payment of bonuses to employees of the Internal Revenue Service until the Secretary of the 

Treasury develops and implements a comprehensive customer service strategy, 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 ....... 6 

V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF 

THE HOUSE .............................................................................................. 7 

A. Committee Oversight Findings and Recommendations ................. 7 

B. Statement of General Performance Goals and Objectives ............. 7 


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1 2015 Tax Filing Season: Deteriorating Taxpayer Service Underscores Need for a Comprehensive Strategy and Process Efficiencies. GAO–16–151, available at: http://www.gao.gov/assets/680/ 

674248.pdf. 

C. Information Relating to Unfunded Mandates ................................ 7 

D. Applicability of House Rule XXI 5(b) .............................................. 7 

E. Tax Complexity Analysis .................................................................. 7 

F. Congressional Earmarks, Limited Tax Benefits, and Limited 

Tariff Benefits ................................................................................. 8 

G. Duplication of Federal Programs ..................................................... 8 

H. Disclosure of Directed Rule Makings .............................................. 8 

VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED 8 

VII. DISSENTING VIEWS ................................................................................... 9 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. BAN ON IRS BONUSES UNTIL IRS DEVELOPS COMPREHENSIVE CUSTOMER SERVICE STRATEGY. 

(a) IN GENERAL.—The Secretary of the Treasury, and the Secretary’s delegate, 

may not pay a bonus, award, or similar cash payment to any employee of the Internal Revenue Service until the Secretary, or the Secretary’s delegate, develops and 

submits to Congress a comprehensive customer service strategy that has been reviewed and approved by the Treasury Inspector General for Tax Administration. 

Such strategy shall include— 

(1) appropriate telephone and correspondence levels of service, which shall be 

based on service provided by the best in business and customer expectations; 

(2) a thorough assessment of which services the Internal Revenue Service can 

shift to self-service options; and 

(3) proposals to improve customer service in the short term (the current and 

following fiscal year), medium term (approximately three to five fiscal years), 

and long term (approximately ten fiscal years). 

(b) PROGRESS REPORTS.—The Secretary of the Treasury, or the Secretary’s delegate, shall submit reports to the Congress on the status of its customer service 

strategy and actions taken to improve customer service. Such reports shall be submitted on a semiannual basis until the comprehensive customer service strategy 

under subsection (a) is fully implemented. 

SEC. 2. NO ADDITIONAL FUNDS AUTHORIZED. 

No additional funds are authorized to be appropriated or otherwise made available to carry out the requirements of this Act. Such requirements shall be carried 

out using amounts otherwise authorized to be appropriated or made available. 

I. SUMMARY AND BACKGROUND 

A. PURPOSE AND SUMMARY

H.R. 4890, reported by the Committee on Ways and Means, prohibits the Internal Revenue Service (IRS) from paying bonuses to 

any employee until the agency creates and submits to Congress a 

comprehensive strategy to improve customer service. The bill also 

requires the IRS to submit semiannual reports to Congress on its 

progress in implementing the strategy. 

B. BACKGROUND AND NEED FOR LEGISLATION

The IRS has a responsibility to provide assistance to taxpayers 

who endeavor to meet their tax filing obligations. The U.S. Government Accountability Office (GAO), however, has reported that the 

IRS does not have a comprehensive customer-service strategy to 

ensure that the agency is providing effective and efficient service 

to American taxpayers.1 The IRS’ mission statement is to ‘‘provide 

America’s taxpayers top quality service by helping them understand and meet their tax responsibilities.’’ Since Federal tax administration relies on voluntary compliance, it is extremely imporVerDate Sep 11 2014 05:02 Apr 19, 2016 Jkt 059006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\HR501.XXX HR501

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2 Ibid. 

3 Ibid. 

4Sec. 7803(a). 

5See Internal Revenue Service Strategic Plan FY2014–2017, Publication 3744 (Rev. 6–2014), 

available at https://www.irs.gov/pub/irs-pdf/p3744.pdf. 

tant that all Americans have access to competent assistance from 

the IRS. However, the IRS’ level of service for fiscal year 2015 was 

unacceptably low. In a review conducted by the U.S. Government 

Accountability Office (GAO), the IRS’ level of telephone service in 

fiscal year 2015 was the lowest in years, with only 38 percent of 

callers wanting to speak to an IRS representative able to reach 

one.2 Additionally, the GAO found that wait times were more than 

30 minutes, more than ten minutes longer than in fiscal year 

2014.3 H.R. 4890 requires the IRS to develop and submit to Congress the comprehensive customer-service strategy to determine appropriate levels of service as recommended by the GAO. 

C. LEGISLATIVE HISTORY

Background 

H.R. 4890 was introduced on April 11, 2016, and was referred to 

the Committee on Ways and Means. 

Committee action 

The Committee on Ways and Means marked up H.R. 4890, To 

impose a ban on the payment of bonuses to employees of the Internal Revenue Service until the Secretary of the Treasury develops 

and implements a comprehensive customer service strategy, 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 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. BAN ON PAYMENT OF BONUSES TO EMPLOYEES OF THE INTERNAL

REVENUE SERVICE UNTIL THE SECRETARY OF THE TREASURY DE- VELOPS AND IMPLEMENTS A COMPREHENSIVE CUSTOMER SERVICE

STRATEGY

PRESENT LAW

The Code4 provides that the Commissioner of the Internal Revenue Service (‘‘the Commissioner’’) has such duties and powers as 

prescribed by the Secretary. Unless otherwise specified by the Secretary, such duties and powers include the power to administer, 

manage, conduct, direct, and supervise the execution and application of the internal revenue laws or related statutes. In executing 

these duties, the Commissioner depends upon strategic plans that 

prioritize goals and manage its resources. In the current strategic 

plan, the delivery of high quality and timely service to reduce taxpayer burden and encourage compliance is identified as Goal I.5

The Commissioner is also authorized to employ such persons as 

the Commissioner deems proper for the administration and enVerDate Sep 11 2014 05:02 Apr 19, 2016 Jkt 059006 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\HR501.XXX HR501

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6Sec. 7804. 

7Part III of Title 5 of the United States Code prescribes rules for Federal employment, including employment, retention, and management and employee issues. 

forcement of the internal revenue laws and is required to issue all 

necessary directions, instructions, orders, and rules applicable to 

such persons,6 including determination and designation of posts of 

duty. Compensation to employees of the Internal Revenue Service 

is generally paid in accordance with the rules governing Federal 

employment generally.7

REASONS FOR CHANGE

During recent tax filing seasons, the level of IRS customer service has resulted in few taxpayers able to obtain telephone assistance when needed, often waiting over one-half hour to speak with 

a customer service representative. During the same years, the IRS 

devoted substantial amounts of its budget to employee awards and 

bonuses. The Committee believes that the IRS must develop a longterm strategic plan for identifying the types of service the public 

needs and for implementing such plan before additional spending 

on bonuses and employee awards is permitted. 

EXPLANATION OF PROVISION

The provision bars payment of any bonus, award or other similar 

cash payment to any employee of the Internal Revenue Service 

until the Secretary or his delegate develops a comprehensive strategy for customer service and submits such plan to Congress. The 

plan must determine appropriate levels of telephone and correspondence service, based on best practices of businesses and customer expectations. In addition, the provision requires that all 

services be assessed to determine those which may be provided by 

offering self-service operations to taxpayers. The plan must include 

proposals for long-term improvements over the next ten fiscal 

years, with appropriate short-term and mid-term goals. 

The ban on employee bonuses remains in effect until a plan is 

developed, reviewed and approved by the Treasury Inspector General for Tax Administration, and submitted to Congress. Until such 

plan for a comprehensive strategy for customer service has been 

submitted to Congress and fully implemented, the Secretary or his 

delegate is required to submit semiannual reports on the status of 

efforts to develop and implement such a plan. 

No additional funds are authorized to be appropriated or otherwise made available for development and implementation of the 

plan. 

EFFECTIVE DATE

The provision is effective on 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. 4890, a bill to impose a ban on the payment of 

bonuses to employees of the IRS until the Secretary of the TreasVerDate Sep 11 2014 05:02 Apr 19, 2016 Jkt 059006 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\HR501.XXX HR501

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ury develops and implements a comprehensive customer service 

strategy. 

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. 4890, as amended, was ordered favorably reported 

to the House of Representatives by a roll call vote of 24 yeas to 15 

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 .............................. ......... X .............

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. 4890, as reported: 

The bill, as reported, is estimated to have no 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. 


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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. 4890, a bill to impose a 

ban on the payment of bonuses to employees of the Internal Revenue Service until the Secretary of the Treasury develops and implements a comprehensive customer service strategy. 

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. 4890—A bill to impose a ban on the payment of bonuses to employees of the Internal Revenue Service until the Secretary of 

the Treasury develops and implements a comprehensive customer service strategy 

H.R. 4890 would prohibit the Internal Revenue Service (IRS) 

from paying a bonus or cash award to any employee until the agency develops and submits a comprehensive customer service strategy 

to the Congress that has been reviewed and approved by the Treasury Inspector General for Tax Administration (TIGTA). The bill 

also would require the IRS to submit semiannual reports to the 

Congress on its progress to complete the strategy. 

The current strategic plan for the IRS identifies as a priority the 

delivery of quality and timely service to reduce taxpayer burden 

and encourage tax compliance. However, CBO is unaware of a comprehensive customer service strategy for the IRS. Based on the cost 

of similar efforts, CBO estimates that implementing H.R. 4890 

would cost about $2 million in 2017 for additional administrative 

and personnel costs to prepare the required strategy; such spending would be subject to the availability of appropriated funds. 

CBO expects that TIGTA and the IRS would come to an agreement about the comprehensive strategy that would allow the IRS 

to continue to pay bonuses and cash awards. However, given the 

independent relationship between TIGTA and the IRS the timing 

of such an agreement is unclear. If the two agencies did not come 

to an agreement personnel costs, which are subject to appropriation, could be reduced by tens of millions of dollars in 2017—less 

than 1 percent of projected spending for the IRS. (The longer a prohibition on paying cash awards exists, the more likely it becomes 

that decreased spending for such awards would be offset by additional IRS spending for other activities.) 


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Because enacting the bill would not affect direct spending or revenues, pay-as-you-go procedures do not apply. CBO and the staff of 

the Joint Committee on Taxation (JCT) estimate that enacting H.R. 

4890 would not increase net direct spending or on-budget deficits 

in any of the four consecutive 10-year periods beginning in 2027. 

CBO and JCT have determined that the bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act. 

The CBO staff contact for this estimate is Matthew Pickford. The 

estimate was 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. 4890 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 


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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 

With respect to clause 3(e) of rule XIII of the Rules of the House 

of Representatives, the bill, as reported, includes no provisions proposing to repeal or amend an existing statute or part thereof. 

Therefore, no additional materials otherwise required to be included in this report or an accompanying document under that 

clause are required to be included with respect to this bill. 


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VII. DISSENTING VIEWS 

We oppose H.R. 4890, which would impose a ban on the payment 

of bonuses to IRS employees until the Secretary of the Treasury develops and implements a comprehensive customer service strategy. 

It is true that IRS customer service levels have been poor for the 

last several years. For example, only 38% of taxpayers who tried 

to call the agency during FY15 were actually able to reach a live 

IRS employee—and those who were able to get through faced average wait times of over 30 minutes. 

However, this abysmal customer service is a direct consequence 

of the Majority’s efforts to defund the IRS. IRS funding has declined by approximately $1 billion 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. Furthermore, the agency is auditing fewer and fewer 

taxpayers, with less than 1% of taxpayers being audited—the lowest level in a decade. 

This is a dangerous level of underfunding for a critical government agency that ensures our government has enough revenue to 

function. We all benefit from the services and revenue provided by 

a well-funded tax collection agency. 

If the Majority would like improved customer service from the 

IRS, then they should fully fund the agency. It is no surprise that 

providing the IRS with an additional $290 million for FY 2016 for 

customer service has led, thus far, to reduced telephone wait times 

during this year’s tax filing season. The percentage of callers seeking and receiving live assistance during this year’s filing season 

has increased by 33 percentage points to 76 percent—compared to 

43 percent during the same period last year. 

H.R. 4890 is not the solution to the Majority’s self-created IRS 

customer service problem. 

SANDER M. LEVIN. 

Æ 


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