I 

113TH CONGRESS 

1ST SESSION H. R. 3523 

To amend the Internal Revenue Code of 1986 to provide for audits of 

the Internal Revenue Service to ensure that employees and service contractors of the Internal Revenue Service file their Federal tax returns 

on time and pay Federal tax debts owed. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 18, 2013 

Mr. KINGSTON introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

for audits of the Internal Revenue Service to ensure 

that employees and service contractors of the Internal 

Revenue Service file their Federal tax returns on time 

and pay Federal tax debts owed. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘IRS Accountability 

5 Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 


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1 (1) The Internal Revenue Manual requires all 

2 Internal Revenue Service employees, and contract 

3 employees, to file their Federal tax returns on time 

4 and pay any Federal tax debt. 

5 (2) The Treasury Inspector General for Tax 

6 Administration reports that as of June 14, 2012, 

7 691 of the 13,591 Internal Revenue Service con8 tractor employees reviewed by the Treasury Inspec9 tor General for Tax Administration had $5.4 million 

10 in Federal tax debt. 

11 (3) Of the 691 contractor employees, 352 were 

12 not currently on a payment plan to resolve their tax 

13 debt. 

14 (4) The Treasury Inspector General for Tax 

15 Administration also found that while the Internal 

16 Revenue Service reviews employee tax compliance 

17 every year, the Internal Revenue Service only re18 views contract employee tax compliance only once 

19 every five years or if the contract employee has had 

20 longer than a two-year break in service. 

21 SEC. 3. TAX COMPLIANCE BY INTERNAL REVENUE SERVICE 

22 EMPLOYEES AND CONTRACTORS. 

23 (a) IN GENERAL.—Subchapter A of chapter 80 of the 

24 Internal Revenue Code of 1986 is amended by adding at 

25 the end the following new section: 


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1 ‘‘SEC. 7811. TAX COMPLIANCE BY INTERNAL REVENUE 

2 SERVICE EMPLOYEES AND CONTRACTORS. 

3 ‘‘(a) EMPLOYEE AND CONTRACTOR TAX COMPLI4 ANCE AUDITS.—Not later than 1 year after the date of 

5 the enactment of this section, and annually thereafter, the 

6 Treasury Inspector General for Tax Administration shall 

7 conduct annual audits of employees and service contrac8 tors of the Internal Revenue Service to determine tax com9 pliance with the following acts and omissions punishable 

10 under paragraphs (8) and (9) of section 1203(b) of the 

11 Internal Revenue Service Restructuring and Reform Act 

12 of 1998: 

13 ‘‘(1) willful failure to file any return of tax re14 quired under the Internal Revenue Code of 1986 on 

15 or before the date prescribed therefor (including any 

16 extensions), unless such failure is due to reasonable 

17 cause and not to willful neglect, and 

18 ‘‘(2) willful understatement of Federal tax li19 ability, unless such understatement is due to reason20 able cause and not to willful neglect. 

21 ‘‘(b) PENALTY.— 

22 ‘‘(1) INTERNAL REVENUE SERVICE EMPLOY23 EES.—See section 1203 of the Internal Revenue 

24 Service Restructuring and Reform Act of 1998 for 

25 provisions relating to personnel actions against emVerDate Mar 15 2010 18:33 Nov 20, 2013 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3523.IH H3523

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1 ployees of the Internal Revenue Service in case of 

2 misconduct. 

3 ‘‘(2) SERVICE CONTRACTOR.—If there is a final 

4 administrative or judicial determination that a serv5 ice contractor committed an act or omission de6 scribed in subsection (a), then— 

7 ‘‘(A) in the case of contracts entered into 

8 after the date of the enactment of this section, 

9 the employment or contract relationship (as the 

10 case may be) with the service contractor, and 

11 any individual providing services to the service 

12 contractor determined in such determination to 

13 have committed such act or omission, shall be 

14 terminated, and 

15 ‘‘(B) the contractor shall be debarred for 

16 not less than 5 years, as determined by the Sec17 retary. 

18 ‘‘(c) LIMITATION ON CONTRACT AUTHORITY.—The 

19 Internal Revenue Service may not enter into a contract 

20 after the date of the enactment of this section for services 

21 unless the contract contains a clause under which the serv22 ice contractor agrees to be subject to this section. 

23 ‘‘(d) SERVICE CONTRACTOR.—For purposes of this 

24 section, the term ‘service contractor’ means any contractor 

25 providing services to the Internal Revenue Service, includVerDate Mar 15 2010 18:33 Nov 20, 2013 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3523.IH H3523

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1 ing any agent of such contractor and any subcontractor 

2 of such contractor providing such services, and any em3 ployee or intern of any such contractor or subcontractor 

4 providing such services.’’. 

5 (b) CLERICAL AMENDMENT.—The table of sections 

6 for subchapter A of chapter 80 of the Internal Revenue 

7 Code of 1986 is amended by adding at the end the fol8 lowing new item: 

‘‘Sec. 7811. Tax Compliance by Internal Revenue Service employees and contractors.’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply with respect to audits conducted 

11 after the date of the enactment of this Act. 

Æ 


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