House Passes Fair and Accountable IRS Reviews Act
- JP Marino, EA
- Dec 14, 2025
- 3 min read
When it comes to dealing with the IRS, penalties often feel automatic and unavoidable. Many taxpayers assume that once an IRS agent proposes a penalty, there is little room for oversight or fairness. A recently passed House bill aims to change that perception and strengthen taxpayer protections.
The U.S. House of Representatives has passed the Fair and Accountable IRS Reviews Act, a piece of legislation designed to increase accountability within the IRS and ensure penalties are applied properly and consistently. While the bill still needs Senate approval to become law, it represents a meaningful step toward reinforcing taxpayer rights.
What Is the Fair and Accountable IRS Reviews Act
At its core, the Fair and Accountable IRS Reviews Act focuses on how and when IRS penalties are approved. Under existing law, many penalties require written approval from a supervisor before they are assessed. However, court cases over the years have created confusion about the timing of that approval and how it must be documented.
This bill clarifies the rules by requiring that written supervisory approval be obtained before the IRS issues a written communication proposing a penalty to a taxpayer. In simple terms, an IRS agent cannot threaten or propose penalties without first getting sign off from their immediate supervisor.
The goal is to prevent premature or improperly approved penalties and to ensure taxpayers are treated fairly throughout the examination and collection process.
Why This Matters to Taxpayers
For taxpayers facing audits, collections, or penalty notices, this clarification can make a real difference. Penalties often drive up tax balances quickly and can push individuals or businesses into serious financial distress. When penalties are proposed without proper review, taxpayers may feel pressured to accept them without question.
By reinforcing supervisory approval requirements, the Act helps ensure that penalties are applied thoughtfully and consistently, not as leverage or routine add ons. This creates a more balanced process and gives taxpayers stronger footing if penalties are improperly asserted.
How This Impacts Tax Resolution Cases
From a tax resolution standpoint, the Fair and Accountable IRS Reviews Act could provide additional grounds for challenging penalties. If a penalty is proposed without proper supervisory approval, it may be invalid. That can open the door to penalty abatement or even a reduction in the overall tax liability.
Taxpayers who are already dealing with back taxes, liens, levies, or payment plans often feel overwhelmed. Removing or reducing penalties can significantly improve their ability to resolve their accounts and move forward.
This legislation also reinforces the importance of reviewing IRS notices carefully. Details matter, and procedural errors can have a meaningful impact on the outcome of a case.
What Happens Next
Although the bill has passed the House, it must still be considered by the Senate before becoming law. If enacted, it would provide clearer guidance to IRS employees and stronger protections for taxpayers nationwide.
Even before final passage, the bill reflects growing concern in Congress about IRS accountability and fair treatment. It signals that lawmakers are paying attention to how enforcement actions affect real people and businesses.\
What Taxpayers Should Do Now
If you have received penalty notices or are currently working through an IRS issue, it is more important than ever to understand your rights. You may have options that are not obvious at first glance.
Taxpayers should consider:
Reviewing penalty notices for procedural accuracy
Understanding whether penalties were properly approved
Exploring penalty abatement or other resolution strategies
Working with a tax professional who understands IRS procedures
Why Marino Tax Solutions
The Fair and Accountable IRS Reviews Act is a reminder that taxpayers are entitled to fairness, transparency, and accountability from the IRS. While the system can feel intimidating, the law continues to evolve in ways that recognize the need for balance between enforcement and taxpayer rights.
We understand that life gets busy and tax rules can feel overwhelming. That’s why we specialize in helping individuals and businesses recover missed refunds, file back taxes, and take advantage of every credit available to them.
At Marino Tax Solutions, we are committed to keeping you informed about the latest tax policies and programs, including IRS updates, so you always receive accurate guidance for making informed financial decisions.
Curious about how these tax changes could impact your personal or business finances? Marino Tax Solutions is here to assist you. Contact us today for a Free Consultation and customized tax planning solutions to help you stay ahead and capitalize on these new opportunities.
Disclaimer: The information provided in this blog is for general informational purposes only and should not be considered tax advice. Tax laws are complex and subject to change. Please consult with a tax professional like Marino Tax Solutions to discuss your specific circumstances.
