Opening Statement of JCT Chair Archer at IRS Joint Review

[1] We are here today to continue the important work begun by the Congress in the IRS Restructuring and Reform Act of 1998, which we passed last July.

[2] The IRS Reform and Restructuring Act was a major victory for America's taxpayers. It was the first major reform of the IRS since 1952, and it was long overdue. In passing the IRS Reform and Restructuring Act, we made it clear that the IRS is to put taxpayers first. We included in the Act an arsenal of almost 100 new taxpayer rights and protections, including a shift in the burden of proof, and protections for innocent spouses, who are usually women. The IRS Reform and Restructuring Act also provided for improved oversight of the IRS and held IRS employees accountable for their actions. The Act struck an appropriate balance between protecting taxpayers and providing the necessary tools to fund the government. I am proud to be a part of the Congress that put America's taxpayers first and protected America's taxpayers from IRS abuses.

[3] While the IRS Reform and Restructuring Act is landmark legislation, it is only a first step. Ultimately, I believe that the true answer is to provide America with a new tax system -- one that is fairer, simpler, less intrusive, less costly and that creates more economic growth.

[4] Until that day comes, we must do all we can to ensure that America's taxpayers are treated fairly. We must ensure that the spirit, as well as the letter, of the IRS Reform and Restructuring Act is fulfilled.

[5] I am disappointed that the White House has not fulfilled its obligations under the Act. The Act called for the President to nominate members of the new, independent IRS Oversight Board within six months of the date of enactment, which was January 22 of this year. It is now over 10 months after the date of enactment, and no nominations have been made. While American taxpayers work hard each year to pay their taxes on time, the President is four months late in setting up the independent IRS Oversight Board as Congress required -- that's just not fair and sets exactly the wrong example. I urge the President to fulfill his obligations and nominate members of the IRS Oversight Board right away.

[6] We, the Congress, must also fulfill our obligations under the Act, and continue the diligent oversight that ultimately led to its passage. The requirement for the joint review that we are having today stems from the concerns of the National Commission on Restructuring the IRS that the several Congressional committees with jurisdiction over the IRS will pull the IRS in different directions. This joint review provides an opportunity for all the committees of jurisdiction to receive the same information regarding the long-range goals of the IRS, and to provide a coordinated review of the IRS's goals and its progress in achieving those goals.

[7] I support Commissioner Rossotti's efforts to implement the provisions of the IRS Reform Act and to modernize the IRS so that it can deal more effectively and appropriately with taxpayers. I recognize that the task of modernizing the IRS is not an easy one, and may take some time. Until broad tax reform can be achieved, I believe that implementing the IRS Reform Act will further the goals of increasing voluntary compliance with the tax laws and ensuring that America's taxpayers are treated with the dignity and respect they deserve.

[8] Commissioner Rossotti, I look forward to hearing your views on what has been done and what needs to be done to achieve those goals.