Legal Alert: Warren bill fundamentally changes financial account reporting requirements and substantially increases IRS funding
Posted on May 28, 2021 in Legal Alerts, Tax Accounting
On May 24, 2021, Sen. Warren introduced Senate Bill 1788, the “Restoring the IRS Act” (the Proposed Legislation). The Proposed Legislation generally (1) imposes new information reporting obligations on financial institutions relating to various types of transaction information associated with an account of an individual or business at that institution, (2) provides for significantly increased IRS funding, (3) requires certain reports to Congress relating to IRS enforcement priorities, the tax gap, and racial disparities relating to IRS enforcement, (4) increases underpayment penalties under section 6662 based on the taxpayer’s taxable income, and (5) applies certain False Claim Act procedural rules to tax claims.