House panel backs Rep. Smith's bill to rein in IRS

A congressional committee backed legislation Wednesday that would give Congress control over the spending of hundreds of millions of dollars in Internal Revenue Service user fees.

U.S. Rep. Jason Smith, R-Salem, said after the vote he sponsored the legislation to rein in the actions of the IRS.

"The IRS has shown no good-faith effort to serve the taxpayers," Smith said.

"Our Constitution allocates the power of the purse to Congress, not to unelected bureaucrats," he said.

The Republican 8th District congressman said the federal agency last year spent more than $200 million of user-fee revenue to buy a computer system "to enforce the individual and employer Obamacare mandates," he said when he filed the bill.

Smith said that action has occurred even though Congress had voted to eliminate funding to implement the Affordable Care Act. President Barack Obama vetoed the repeal bill.

Smith's bill was one of four measures approved by the House Ways and Means Committee days before Tax Day to hold the federal agency accountable.

He predicted the Republican-led House will pass his legislation next week, marking quick action on a bill he filed last month.

Smith maintained the success of his measure demonstrates what can be done legislatively "when you have a good idea."

In 2011, IRS user fees added up to $300 million.

"This year, it is projected to be almost $500 million," he said.

Smith, who serves on the Ways and Means Committee, said he learned of the IRS-funding of Affordable Care Act operations while questioning the IRS commissioner at a recent committee hearing.

"Instead of using these resources to help taxpayers, reduce wait times and improve services provided to the American public, the IRS is using this user-fee slush fund to implement Obamacare," he said.

"They use it as a slush fund," the congressman said of the user-fee revenue. "Agencies should not have slush funds."

"The IRS has a stained track record, and actions such as the illegal targeting of conservative and religious groups proves that they can't be trusted to use user-fee resources in the best interest of the folks of Missouri," Smith said when he introduced the bill. "The IRS is an agency out of control."

Smith said his legislation would require IRS user-fee revenue to be placed in the general fund. Congress then could appropriate the money for whatever programs and projects it wishes.

The IRS has argued it has relied on user-fee money to make up for a gap in spending caused by Congress reducing funding.

But Smith said user fees are a small part of the federal agency's $11 billion budget, and "they say they don't have enough money?"

In addition, the IRS has reduced the amount of user-fee money it spends on serving the needs of taxpayers, he said.

In 2014, the IRS allocated $183 million, or 44 percent of its user-fee revenue, to help taxpayers, Smith said. In 2015, the agency spent $49 million, or 10 percent of its user-fee revenue, on such services.

In addition to Smith's bill, the House committee approved measures that would:

• Bar the IRS from handing out employee bonuses until the Treasury secretary implements a customer-service strategy to assist taxpayers.
• Prohibit rehiring staff members who were fired for misconduct.
• Block the IRS from hiring anyone as long as it still has employees who are seriously delinquent on their own taxes.

mbliss@semissourian.com

(573) 388-3641