IRS Accountability and Transparency Act

The IRS Accountability and Transparency Act (S 2981) requires the Internal Revenue Service (IRS) to submit certain tax-related regulations for review by the Office of Information and Regulatory Affairs (OIRA) before implementation. It directly affects the IRS and other federal agencies by mandating this review for "tax regulatory actions" that could disrupt other agencies' work, create novel legal issues, or impact the economy by $100 million or more annually. Key provisions define these qualifying actions and require OIRA compliance under existing Executive Order 12866, which focuses on regulatory analysis and cost-benefit evaluation. The bill does not change tax law itself but alters the process for reviewing IRS rulemaking. This adds a federal oversight step for significant IRS regulatory proposals.