Legislation That Promises To Cut Through IRS Red Tape

In advance of tax day, U.S. Senator John Cornyn introduced legislation to help small business owners and taxpayers cut through IRS red tape. It would strengthen taxpayer protections, compensate them for IRS abuses and improve taxpayer access to the tax court.


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Cornyn introduced his Small Business Taxpayer Bill of Rights Act of  2012, at Forge USA, a family owned metal forging manufacturer in Northwest Houston.

Cornyn said with the economy struggling to recover and increased tax burdens from the 2010 health care law, small businesses should be spending more time creating jobs and less time dealing with the IRS.

“When America becomes so heavily taxed and bureaucratic, we know that something is fundamentally very wrong, and that’s why this Taxpayer Bill of Rights legislation is so important.”

The bill would create a new path for small businesses to contest IRS audits, limit IRS authority during appeals, and give companies access to judicial review. Cornyn was joined by several business leaders, including  former IRS Commissioner Mark Everson.

He says Senator Cornyn’s legislation addresses a number of burdens facing small businesses.

John Cornyn sign“One is the ability for owners to seek an alternative dispute resolution, and to request an independent mediation. Secondly, I’d also stress the strengthening of the independence of the appeals function.”

Everson says Congress needs to stabilize the tax code and simplify it for the benefit of taxpayers.

“The tax code does prevent businesses from flourishing. The other thing is we need more stability and certainly in the code as well.”

Cornyn’s measure comes a week before House Republicans are expected to move legislation that would give small companies a 20-percent tax cut.

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