Simplify, Don’t Amplify the IRS Act

The "Simplify, Don't Amplify the IRS Act" makes several key changes to tax administration. It raises the gross receipts threshold for organizations required to file annual returns from $5,000 to $50,000, increases penalties for unauthorized disclosure of taxpayer information from $5,000 to $250,000, and requires the IRS to submit annual tax gap projections to Congress detailing nonfiling, underreporting, and underpayment. The bill also restricts increased enforcement funding until updated tax gap reports are published and establishes a fellowship program to recruit private sector tax experts for an IRS audit task force. These provisions aim to streamline IRS operations, protect taxpayer privacy, and focus enforcement efforts on high-compliance areas, directly affecting tax-exempt organizations, IRS employees, and taxpayers interacting with the IRS.