II 

117TH CONGRESS 

1ST SESSION S. 3221 

To reduce improper payments and eliminate waste in Federal programs, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 17, 2021 

Mr. BRAUN introduced the following bill; which was read twice and referred 

to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To reduce improper payments and eliminate waste in Federal 

programs, and for other purposes. 

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 Improper Pay5 ments Act’’. 

6 SEC. 2. FINDINGS AND PURPOSE. 

7 (a) FINDINGS.—Congress finds that when the Fed8 eral Government makes payments to individuals and busi9 nesses as beneficiaries, grantees, or contractors, or on be10 half of beneficiaries, of Federal programs, the Federal 


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1 Government must make every effort to confirm that the 

2 right recipient is receiving the right payment for the right 

3 reason at the right time. 

4 (b) PURPOSE.—The purpose of this Act is to— 

5 (1) reduce improper payments in the major pro6 grams administered by the Federal Government— 

7 (A) by intensifying efforts to eliminate 

8 payment error, waste, fraud, and abuse in those 

9 programs; and 

10 (B) continuing to ensure that Federal pro11 grams serve and provide access to the intended 

12 beneficiaries of those programs; 

13 (2) adopt a comprehensive set of policies, in14 cluding— 

15 (A) transparency and public scrutiny of 

16 significant improper payments throughout the 

17 Federal Government; 

18 (B) a focus on identifying and eliminating 

19 the highest improper payments; 

20 (C) accountability for reducing improper 

21 payments among agencies and officials of agen22 cies; and 

23 (D) coordinated action by the Federal Gov24 ernment and State and local governments in 


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1 identifying and eliminating improper payments; 

2 and 

3 (3) protect access to Federal programs by their 

4 intended beneficiaries. 

5 SEC. 3. TITLE 31 AMENDMENTS. 

6 (a) IN GENERAL.—Subchapter IV of chapter 33 of 

7 title 31, United States Code, is amended— 

8 (1) in section 3351— 

9 (A) by redesignating paragraphs (4), (5), 

10 (6), (7), and (8) as paragraphs (5), (6), (7), 

11 (8), and (10), respectively; 

12 (B) by inserting after paragraph (3) the 

13 following: 

14 ‘‘(5) HIGH-PRIORITY PROGRAM.—The term 

15 ‘high-priority program’ means a Federal program 

16 identified by the Director of the Office of Manage17 ment and Budget under section 3359(a)(1).’’; and 

18 (C) by inserting after paragraph (8), as so 

19 redesignated, the following: 

20 ‘‘(9) HIGH-PRIORITY PROGRAM REDUCTION

21 TARGET.—The term ‘high-priority program reduc22 tion target’ means a target for reducing improper 

23 payments associated with a high-priority program 

24 under section 3359(a)(2).’’; and 

25 (2) by adding at the end the following: 


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1 ‘‘§ 3359. Transparency and public participation 

2 ‘‘(a) HIGH PRIORITY PROGRAMS.—Not later than 90 

3 days after the date of enactment of this section, the Direc4 tor of the Office of Management and Budget shall— 

5 ‘‘(1) identify Federal programs in which the 

6 highest dollar value or majority of Government-wide 

7 improper payments occur; 

8 ‘‘(2) establish, in coordination with the head of 

9 each executive agency responsible for administering 

10 a high-priority program— 

11 ‘‘(A) annual targets for reducing improper 

12 payments associated with the high-priority pro13 gram; or 

14 ‘‘(B) if a target described in subparagraph 

15 (A) exists as of the date of enactment of this 

16 Act, supplemental targets for reducing improper 

17 payments associated with the high-priority pro18 gram; and 

19 ‘‘(3) issue Government-wide guidance on the 

20 implementation of this Act, including procedures 

21 for— 

22 ‘‘(A) identifying and publicizing the list of 

23 entities described in subsection (c)(2)(E); and 

24 ‘‘(B) prior to publication, administratively 

25 appealing the decision to publish the identity of 

26 those entities. 


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1 ‘‘(b) WORKING GROUP.— 

2 ‘‘(1) IN GENERAL.—Not later than 90 days 

3 after the date of enactment of this section, the Di4 rector of the Office of Management and Budget 

5 shall establish a working group to be known as the 

6 ‘High Priority Program Working Group’ (referred to 

7 in this section as the ‘Working Group’). 

8 ‘‘(2) MEMBERS.—The Working Group shall 

9 consist of officials of the Federal Government and 

10 State and local governments. 

11 ‘‘(3) RECOMMENDATIONS.—Not later than 180 

12 days after the date of enactment of this section, the 

13 Working Group, in coordination with Council of the 

14 Inspectors General on Integrity and Efficiency, shall 

15 submit to the Director of the Office of Management 

16 and Budget recommendations designed to improve 

17 the measurement by the Federal Government of ac18 cess to Federal programs by the intended bene19 ficiaries of those programs. 

20 ‘‘(c) PUBLISHED HIGH-PRIORITY PROGRAM INFOR21 MATION.— 

22 ‘‘(1) IN GENERAL.—Not later than 180 days 

23 after the date of enactment of this section, and an24 nually thereafter, the Secretary of the Treasury, in 

25 coordination with the Attorney General and the DiVerDate Sep 11 2014 22:40 Nov 18, 2021 Jkt 029200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3221.IS S3221

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1 rector of the Office of Management and Budget, 

2 shall publish on the internet information about im3 proper payments under high-priority programs. 

4 ‘‘(2) CONTENTS.—The information published 

5 under paragraph (1) shall include, subject to Fed6 eral privacy policies and to the extent permitted by 

7 law— 

8 ‘‘(A) the names of the accountable officials 

9 designated under section 3360(a); 

10 ‘‘(B) rates and amounts as of the date of 

11 enactment of this section, and historical rates 

12 and amounts, of improper payments in Federal 

13 programs of the Internal Revenue Service, in14 cluding, if known and appropriate, the causes of 

15 the improper payments; 

16 ‘‘(C)(i) rates and amounts as of the date 

17 of enactment of this section, and historical 

18 rates and amounts, of the recovery of improper 

19 payments, where appropriate; or 

20 ‘‘(ii) for high-priority programs in which 

21 improper payments are identified solely on the 

22 basis of a sample, rates and amounts of the re23 covery of improper payments estimated on the 

24 basis of the applicable sample; 


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1 ‘‘(D) high-priority program reduction tar2 gets, where appropriate; and 

3 ‘‘(E) the entities that— 

4 ‘‘(i) have received the greatest amount 

5 of unreturned improper payments; and 

6 ‘‘(ii) in Federal programs in which 

7 improper payments are identified solely on 

8 the basis of a sample, have received the 

9 greatest amount of outstanding improper 

10 payments in the applicable sample. 

11 ‘‘(3) MEASUREMENTS.—The Secretary of the 

12 Treasury may include in the information published 

13 under paragraph (1) any measurements included in 

14 the recommendations of the Working Group sub15 mitted under subsection (b)(3). 

16 ‘‘(4) PROHIBITION.—The information described 

17 in paragraph (2)(E) may not include information re18 lating to any referrals the executive agency has 

19 made or anticipates making to the Attorney General 

20 or any information provided in connection with those 

21 referrals. 

22 ‘‘(d) COLLECTING INFORMATION FROM THE PUB23 LIC.—Not later than 180 days after the date of enactment 

24 of this section, the Secretary of the Treasury, in coordina25 tion with the Attorney General and the Director of the 


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1 Office of Management and Budget and in consultation 

2 with the Council of the Inspectors General on Integrity 

3 and Efficiency, shall establish a central internet-based 

4 method to collect from the public information relating to 

5 suspected incidents of waste, fraud, and abuse by an entity 

6 receiving Federal funds that have led or may lead to im7 proper payments by the Federal Government. 

8 ‘‘(e) LINKS.—The head of each executive agency shall 

9 prominently display on the homepage of the website of the 

10 executive agency a link to internet-based resources for ad11 dressing improper payments, including the information 

12 published under subsection (c)(1) and the internet-based 

13 method established under subsection (d). 

14 ‘‘§ 3360. Agency accountability and coordination 

15 ‘‘(a) ACCOUNTABLE OFFICIALS.—Not later than 120 

16 days after the date of enactment of this section, the head 

17 of each executive agency that administers a high-priority 

18 program shall designate a Senate-confirmed official of the 

19 executive agency to be accountable for meeting the high20 priority program reduction targets of the executive agency 

21 without unduly burdening access to the high-priority pro22 gram and participation by eligible beneficiaries. 

23 ‘‘(b) SECOND OFFICIAL.—If an executive agency that 

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1 nent of the executive agency, the head of the executive 

2 agency shall designate an official of that component, who 

3 shall— 

4 ‘‘(1) be responsible for program integrity activi5 ties; and 

6 ‘‘(2) as appropriate, consolidate and coordinate 

7 each program integrity activity of the component. 

8 ‘‘(c) REPORT.—Not later than 180 days after the 

9 date of enactment of this section, and annually thereafter, 

10 each executive agency official who is designated by the Di11 rector of the Office of Management and Budget under 

12 subsection (a) or otherwise shall provide the inspector gen13 eral of the executive agency served by the official a report 

14 that includes— 

15 ‘‘(1) the methodology of the executive agency 

16 for identifying and measuring improper payments by 

17 each high-priority program of the executive agency; 

18 ‘‘(2) the plans of the executive agency and sup19 porting analysis for meeting high-priority program 

20 reduction targets; and 

21 ‘‘(3) the plans of the executive agency and sup22 porting analysis for ensuring that initiatives under23 taken in accordance with this subchapter do not un24 duly burden program access and participation by eli25 gible beneficiaries. 


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1 ‘‘(d) DUTIES OF INSPECTOR GENERAL.—Annually, 

2 the inspector general shall, with respect to each high-pri3 ority program of the executive agency— 

4 ‘‘(1) assess the level of risk associated with the 

5 program; 

6 ‘‘(2) determine the extent of oversight war7 ranted; and 

8 ‘‘(3) provide the head of the executive agency 

9 with recommendations, if any, for modifying the 

10 methodology, improper payment reduction plans, or 

11 program access and participation plans of the execu12 tive agency. 

13 ‘‘(e) AGENCY FAILURE.— 

14 ‘‘(1) IN GENERAL.—If an executive agency fails 

15 to meet the high-priority program reduction targets 

16 of the executive agency or implement the plans de17 scribed in subsection (c)(3) for not less than 2 con18 secutive years, the official of the executive agency 

19 designated under subsection (a) shall submit to the 

20 head of the executive agency, the inspector general 

21 of the executive agency, and chief financial officer of 

22 the executive agency a report that— 

23 ‘‘(A) describe the likely causes of the fail24 ure; and 

25 ‘‘(B) proposes a remedial plan. 


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1 ‘‘(2) REVIEW.—Annually, the head of an execu2 tive agency described in paragraph (1) shall, with re3 spect to a remedial plan proposed under paragraph 

4 (1)(B)— 

5 ‘‘(A) review the remedial plan; and 

6 ‘‘(B) in consultation with the inspector 

7 general and chief financial officer of the execu8 tive agency, forward the remedial plan and any 

9 additional comments and analysis to the Direc10 tor of the Office of Management and Budget. 

11 ‘‘(f) CFOC RECOMMENDATIONS.— 

12 ‘‘(1) IN GENERAL.—Not later than 180 days 

13 after the date of enactment of this section, the Chief 

14 Financial Officers Council, in consultation with the 

15 Council of the Inspectors General on Integrity and 

16 Efficiency, the Attorney General, and Federal pro17 gram experts, shall submit to the Director of the Of18 fice of Management and Budget and the Secretary 

19 of the Treasury recommendations on actions, includ20 ing actions relating to forensic accounting and au21 dits, agencies should take to more effectively tailor 

22 methodologies for identifying and measuring im23 proper payments to Federal programs, or compo24 nents of Federal programs, in which improper pay25 ments are most likely to occur. 


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1 ‘‘(2) CONTENTS.—The recommendations sub2 mitted under paragraph (1) shall address the man3 ner in which the recommended actions would affect 

4 program access and participation by eligible bene5 ficiaries. 

6 ‘‘(g) RECOMMENDATIONS TO REDUCE IMPROPER

7 PAYMENTS.— 

8 ‘‘(1) IN GENERAL.—Not later than 180 days 

9 after the date of enactment of this section, the Sec10 retary of the Treasury and the Director of the Office 

11 of Management and Budget, in consultation with the 

12 Council of the Inspectors General on Integrity and 

13 Efficiency, the Attorney General, and Federal pro14 gram experts, shall submit to the President rec15 ommendations for actions designed to reduce im16 proper payments by improving information sharing 

17 among agencies and Federal programs, and when 

18 applicable, State and local governments and other 

19 stakeholders. 

20 ‘‘(2) CONTENTS.—The recommendations sub21 mitted under paragraph (1) shall— 

22 ‘‘(A) address the ways in which informa23 tion sharing may improve eligibility verification 

24 and pre-payment scrutiny; 


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1 ‘‘(B) identify legal or regulatory impedi2 ments to effective information sharing; and 

3 ‘‘(C) address the manner in which the rec4 ommended actions would affect Federal pro5 gram access and participation by eligible bene6 ficiaries. 

7 ‘‘(h) REPORT.— 

8 ‘‘(1) IN GENERAL.—Subject to Federal privacy 

9 policies and to the extent permitted by law, not later 

10 than 180 days after the date of enactment of this 

11 section, and not less frequently than quarterly there12 after, the head of each executive agency shall submit 

13 to the inspector general of the executive agency and 

14 the Council of the Inspectors General on Integrity 

15 and Efficiency, and make available to the public, a 

16 report on any high-dollar improper payments identi17 fied by the executive agency. 

18 ‘‘(2) CONTENTS.—The report required under 

19 paragraph (1)— 

20 ‘‘(A) shall describe any actions that the ex21 ecutive agency— 

22 ‘‘(i) has taken or plans to take to re23 cover improper payments; and 


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1 ‘‘(ii) intends to take to prevent im2 proper payments from occurring in the fu3 ture; and 

4 ‘‘(B) may not include any referrals the ex5 ecutive agency made or anticipates making to 

6 the Attorney General or any information pro7 vided in connection with those referrals. 

8 ‘‘(3) REVIEW.—Not later than 60 days after 

9 the date on which the head of an executive agency 

10 submits a report under paragraph (1), the inspector 

11 general of each executive agency and the Council of 

12 the Inspectors General on Integrity and Efficiency 

13 shall— 

14 ‘‘(A) assess the level of risk associated 

15 with the Federal program under which a high16 dollar improper payment described in para17 graph (1) was made; 

18 ‘‘(B) determine the extent of oversight of 

19 the Federal program described in subparagraph 

20 (A) that is warranted; and 

21 ‘‘(C) provide the head of the executive 

22 agency with recommendations, if any, for modi23 fying the plans of the executive agency. 


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1 ‘‘§ 3361. Enhanced focus on contractors and working 

2 with State and local stakeholders 

3 ‘‘(a) ENHANCED FOCUS ON CONTRACTORS.—Not 

4 later than 180 days after the date of enactment of this 

5 section, the Federal Acquisition Regulatory Council, in co6 ordination with the Director of the Office of Management 

7 and Budget and in consultation with the National Pro8 curement Fraud Task Force (or its successor group), the 

9 Council of the Inspectors General on Integrity and Effi10 ciency, and appropriate executive agency officials, shall 

11 recommend to the President actions designed to enhance 

12 contractor accountability for improper payments, which 

13 may include subjecting contractors to debarment, suspen14 sion, financial penalties, and identification through a pub15 lic internet website, subject to Federal privacy policies and 

16 to the extent permitted by law and where the identification 

17 would not interfere with or compromise an ongoing crimi18 nal or civil investigation, for knowingly failing timely to 

19 disclose credible evidence of significant overpayments re20 ceived under Federal contracts. 

21 ‘‘(b) WORKING GROUP FOR AUDITS.— 

22 ‘‘(1) IN GENERAL.—Not later than 30 days 

23 after the date of enactment of this section, the Di24 rector of the Office of Management and Budget 

25 shall establish a working group to be known as the 

26 ‘Auditing Working Group’. 


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1 ‘‘(2) MEMBERS.—The working group estab2 lished under paragraph (1) shall consist of officials 

3 of the Federal Government and elected officials of 

4 State and local governments. 

5 ‘‘(3) CHAIR.—The Director of the Office of 

6 Management and Budget may designate an appro7 priate official to serve as the Chair of the working 

8 group established under paragraph (1) to convene 

9 the meetings and direct the work of the working 

10 group. 

11 ‘‘(4) DUTIES.—Not later than 180 days after 

12 the date of enactment of this section, the working 

13 group established under paragraph (1), in coordina14 tion with the Council of the Inspectors General on 

15 Integrity and Efficiency, shall submit to the Director 

16 of the Office of Management and Budget rec17 ommendations designed to improve the effectiveness 

18 of single audits of State and local governments and 

19 nonprofit organizations that expend Federal funds. 

20 ‘‘(5) CONTENTS.—The recommendations re21 quired under paragraph (4) shall address— 

22 ‘‘(A) the effectiveness of the audits de23 scribed in that paragraph in identifying im24 proper payments; and 


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1 ‘‘(B) opportunities to streamline or elimi2 nate single audit requirements in situations in 

3 which the value of those requirements is mini4 mal. 

5 ‘‘(c) WORKING GROUP FOR ACCOUNTABILITY.— 

6 ‘‘(1) IN GENERAL.—Not later than 30 days 

7 after the date of enactment of this section, the Di8 rector of the Office of Management and Budget 

9 shall establish a working group, which may be a 

10 component of the working group established under 

11 subsection (b), to be known as the ‘Accountability 

12 Working Group’. 

13 ‘‘(2) MEMBERS.—The working group estab14 lished under paragraph (1) shall consist of officials 

15 of the Federal Government and elected officials of 

16 State and local governments. 

17 ‘‘(3) CHAIR.—The Director of the Office of 

18 Management and Budget may designate an appro19 priate official to serve as the Chair of the working 

20 group established under paragraph (1) to convene 

21 the meetings and direct the work of the working 

22 group. 

23 ‘‘(4) DUTIES.—Not later than 180 days after 

24 the date of enactment of this section, the working 

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1 tion with the Council of the Inspectors General on 

2 Integrity and Efficiency, shall submit to the Director 

3 of the Office of Management and Budget rec4 ommendations for administrative actions designed to 

5 improve the incentives and accountability of State 

6 and local governments and other entities receiving 

7 Federal funds for reducing improper payments. 

8 ‘‘§ 3362. Policy proposals 

9 ‘‘(a) IN GENERAL.—Not later than 180 days after 

10 the date of enactment of this section, the Director of the 

11 Office of Management and Budget, in consultation with 

12 the heads of appropriate agencies and the Council of the 

13 Inspectors General on Integrity and Efficiency, shall de14 velop policy recommendations, including potential legisla15 tive proposals, designed to reduce improper payments, in16 cluding improper payments caused by error, waste, fraud, 

17 and abuse, across Federal programs without compro18 mising program access. 

19 ‘‘(b) INCLUSION.—The recommendations developed 

20 under subsection (a) shall be included, as appropriate, in 

21 the budget of the President under section 1105(a) of title 

22 31, United States Code for fiscal year 2023 and each fis23 cal year thereafter.’’. 


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

2 for subchapter IV of chapter 33 of title 31, United States 

3 Code, is amended by adding at the end the following: 

‘‘3359. Transparency and public participation. 

‘‘3360. Agency accountability and coordination. 

‘‘3361. Enhanced focus on contractors and working with State and local stakeholders. 

‘‘3362. Policy proposals.’’. 

Æ 


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