FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department’s "IRS Improvement Act" was introduced today by Congressmen Rangel, Coyne, Hoyer, Waxman and Matsui as H.R. 2427.Thisproposal builds on our efforts to make the IRS work better for its customers, the Americantaxpayers. The Act would establish stronger governance and increase management flexibilityto modernize the IRS and achieve lasting improvements in the performance well into thenext century.

The proposal would create a five year term for the commissioner, andcodify the IRS Management Board, composed of senior officials from Treasury, the IRS andthe Office of Management and Budget, to provide ongoing professional oversight of the IRS.We would also codify the IRS Advisory Board, composed of 14 individuals from outside ofgovernment, to bring private sector experience to bear on the IRS. The Secretary andDeputy Secretary would be required to appear before Congress every year to report on theirstewardship of the IRS. In addition, our proposal would improve performance at the IRS byincreasing management flexibility with regards to compensation, performance awards andother incentives.

Our goal with this proposal is to strengthen the IRS so that it can betterfulfill its important mission: collecting the nation’s revenue, administering our taxlaws, and providing the best possible service to American taxpayers. As the collector of95 percent of the government’s revenue, the IRS funds everything from fighter jets toMedicare checks to grants for college education. The basis for any reform of the IRS mustbe that we do not interfere with the collection of that revenue, and thus, put at risk thevital functions of government.

We look forward to continuing to work with the Congress to strengthen theIRS.