II 

118TH CONGRESS 

1ST SESSION S. 1054 

To reduce improper payments and eliminate waste in Federal programs, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 29, 2023 

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 Inter8 nal Revenue Service makes payments to taxpayers, the In9 ternal Revenue Services must make every effort to confirm 


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1 that the right recipient is receiving the right payment for 

2 the right reason at the right time. 

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

4 (1) reduce improper tax payments by the Inter5 nal Revenue Service— 

6 (A) by intensifying efforts to eliminate 

7 payment error, waste, fraud, and abuse; and 

8 (B) by continuing to ensure that the Inter9 nal Revenue Service provides accessible tax10 payer services; 

11 (2) adopt a comprehensive set of policies, in12 cluding— 

13 (A) transparency of significant improper 

14 tax payments; and 

15 (B) accountability for reducing improper 

16 tax payments; and 

17 (3) protect taxpayer services. 

18 SEC. 3. IMPROPER TAX PAYMENT DEFINED. 

19 For purposes of this Act, the term ‘‘improper tax 

20 payment’’ means any credit or refund of an overpayment 

21 of a tax imposed under the Internal Revenue Code of 1986 

22 that should not have been made or that was made in an 

23 incorrect amount. 


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1 SEC. 4. TRANSPARENCY. 

2 (a) IN GENERAL.—Not later than 90 days after the 

3 date of enactment of this section, the Secretary of the 

4 Treasury shall establish, in coordination with the Commis5 sioner of Internal Revenue, annual targets for reducing 

6 improper tax payments made by the Internal Revenue 

7 Service. 

8 (b) PUBLISHED INFORMATION.— 

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

10 after the date of enactment of this section, and an11 nually thereafter, the Secretary of the Treasury shall 

12 publish on the internet information about improper 

13 tax payments made by the Internal Revenue Service. 

14 (2) CONTENTS.—The information published 

15 under paragraph (1) shall include, subject to Fed16 eral privacy policies and to the extent permitted by 

17 law— 

18 (A) the name of the accountable official 

19 designated under section 5(a); 

20 (B) rates and amounts as of the date of 

21 enactment of this section, and historical rates 

22 and amounts, of improper tax payments made 

23 by the Internal Revenue Service, including, if 

24 known and appropriate, the causes of the im25 proper tax payments; 


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1 (C) rates and amounts as of the date of 

2 enactment of this section, and historical rates 

3 and amounts, of the recovery of improper tax 

4 payments (estimated on the basis of applicable 

5 samples where appropriate); and 

6 (D) the annual targets for reducing im7 proper tax payments. 

8 (c) METHODOLOGY.—The methodology used for iden9 tifying and measuring improper tax payments under this 

10 section shall meet the requirement of section 

11 3352(c)(1)(A) of title 31, United States Code. 

12 (d) LINKS.—The Commissioner of Internal Revenue 

13 shall prominently display on the homepage of the website 

14 of the Internal Revenue Service a link to internet-based 

15 resources for addressing improper tax payments, including 

16 the information published under subsection (b)(1). 

17 SEC. 5. ACCOUNTABILITY AND COORDINATION. 

18 (a) ACCOUNTABLE OFFICIALS.—Not later than 120 

19 days after the date of enactment of this section, the Com20 missioner of Internal Revenue shall designate an official 

21 to be accountable for meeting the reduction targets under 

22 section 4(a) without unduly burdening taxpayer services. 

23 (b) REPORT.— 

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

25 after the date of enactment of this section, and anVerDate Sep 11 2014 22:02 Apr 07, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1054.IS S1054

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1 nually thereafter, the official who is designated 

2 under subsection (a) shall provide the Director of 

3 the Office of Management and Budget and the ap4 propriate congressional committees a report that in5 cludes— 

6 (A) the methodology used for identifying 

7 and measuring improper tax payments under 

8 section 4(c); 

9 (B) the plans for meeting the reduction 

10 targets under section 4(a); and 

11 (C) the plans and supporting analysis for 

12 ensuring that initiatives undertaken in accord13 ance with this title do not unduly burden tax14 payer services. 

15 (2) APPROPRIATE CONGRESSIONAL COMMIT16 TEES.—For purposes of paragraph (1), the term 

17 ‘‘appropriate congressional committees’’ means the 

18 Committee on Finance of the Senate and the Com19 mittee on Ways and Means of the House of Rep20 resentatives. 

21 (c) DUTIES OF INSPECTOR GENERAL.—Not later 

22 than 60 days after the date on which the annual report 

23 required under subsection (b) is submitted, the Treasury 

24 Inspector General for Tax Administration shall— 


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1 (1) assess the level of risk for improper tax 

2 payments by the Internal Revenue Service; 

3 (2) determine the extent of oversight warranted 

4 (in addition to oversight requirements under section 

5 3353 of title 31, United States Code); and 

6 (3) provide the Commissioner of Internal Rev7 enue with recommendations, if any, for modifying 

8 the methodology, improper tax payment reduction 

9 plans, or taxpayer services. 

10 (d) AGENCY FAILURE.— 

11 (1) IN GENERAL.—If the Internal Revenue 

12 Service does not demonstrate an improvement in re13 ducing improper tax payments, fails to develop a 

14 plan to meet reduction targets under subsection 

15 (b)(1)(B), or fails to implement the plans described 

16 in subsection (b)(1)(C) for not less than 2 consecu17 tive years, the official designated under subsection 

18 (a) shall submit to the Commissioner of Internal 

19 Revenue, the Treasury Inspector General for Tax 

20 Administration, and the Chief Financial Officer of 

21 the Internal Revenue Service a report that— 

22 (A) describe the likely causes of the lack or 

23 improvement or failure; and 

24 (B) proposes a remedial plan. 


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1 (2) REVIEW.—Annually, the Commissioner of 

2 Internal Revenue shall, with respect to a remedial 

3 plan proposed under paragraph (1)(B)— 

4 (A) review the remedial plan; and 

5 (B) in consultation with the Treasury In6 spector General for Tax Administration and 

7 Chief Financial Officer of the Internal Revenue 

8 Service, forward the remedial plan and any ad9 ditional comments and analysis to the Director 

10 of the Office of Management and Budget. 

11 SEC. 6. POLICY PROPOSALS. 

12 (a) IN GENERAL.—Not later than 180 days after the 

13 date of enactment of this section, the Secretary of the 

14 Treasury, in consultation with the Commissioner of Inter15 nal Revenue and the Treasury Inspector General for Tax 

16 Administration, shall develop policy recommendations, in17 cluding potential legislative proposals, designed to reduce 

18 improper tax payments, including improper tax payments 

19 caused by error, waste, fraud, and abuse, made by the In20 ternal Revenue Service. 

21 (b) INCLUSION.—The recommendations developed 

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

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


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1 31, United States Code, for fiscal year 2024 and each fis2 cal year thereafter. 

Æ 


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