# What This Bill Does

Congress is trying to block a new rule that the IRS created about how penalties get approved. Here's what that means in practical terms: The IRS recently established new procedures requiring supervisors to sign off on certain penalties before they're imposed on taxpayers. This bill would reject that rule entirely, meaning those supervisory approval requirements would go away.

# Who This Affects and Why It Matters

This primarily affects people and businesses that face IRS penalties. Under the new IRS rule that Congress wants to block, a supervisor had to review and approve penalties before the IRS could officially impose them on you. The supporters of this bill argue that this extra layer of approval slows things down and creates unnecessary bureaucracy. If the bill passes, the IRS would no longer need that supervisory sign-off, meaning penalties could potentially be imposed more quickly and with less internal review.

The practical impact depends on your perspective. If you're someone who's received an IRS penalty, you might have appreciated having an extra set of eyes review your case before the penalty became final. Without that requirement, penalties could move forward faster. On the flip side, supporters of this bill believe removing this step makes the IRS more efficient and prevents unnecessary delays in tax administration.

# How Congress Can Block This Rule

This bill uses a special congressional power called the "Congressional Review Act" that allows Congress to disapprove rules created by federal agencies like the IRS. If both the House and Senate pass this resolution, the IRS rule would be canceled and couldn't be brought back without Congress passing a new law allowing it.

Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Internal Revenue Service relating to Rules for Supervisory Approval of Penalties.

Grothman, Glenn

<p>This joint resolution nullifies the rule titled <em>Rules for Supervisory Approval of Penalties</em>, which was issued by the Internal Revenue Service (IRS) on December 23, 2024. The rule addresses the timing of supervisory approvals required for certain federal tax penalties assessed by the IRS.</p>