House Passes IRS Whistleblower Program Improvement Act, Federal Disaster Tax Relief, and Clergy Social Security Re-enrollment
The House convened for a legislative session, passing a series of bipartisan bills under suspension of the rules. Key measures included reforms to the IRS Whistleblower Program, extensions of federal disaster tax relief, and a provision allowing clergy members to re-enroll in Social Security. Several bills aimed at modernizing IRS operations and improving taxpayer experience also passed unanimously. The day concluded with two measures, the IRS Whistleblower Program Improvement Act and the Clergy Act, passing via recorded votes after initial voice votes were challenged.
This chamber-day addressed several areas of significant public policy, particularly concerning tax administration, disaster recovery, and social safety nets. The passage of multiple IRS reform bills signals a concerted effort to enhance government efficiency and taxpayer protections. The extension of disaster tax relief provides crucial support to communities recovering from natural catastrophes, while the Clergy Act offers a vital opportunity for retirement security to faith leaders. The unanimous or near-unanimous bipartisan support for these measures underscores a legislative consensus on these issues.
IRS Whistleblower Program Improvement Act
H.R. 7959Question before the chamber
The question was on the motion to suspend the rules and pass the bill (H.R. 7959) to amend the Internal Revenue Code of 1986 to make improvements with respect to the treatment of whistleblowers, and for other purposes, as amended.
The case for
Mr. Smith of Missouri argued that the IRS relies on whistleblowers to report tax fraud and evasion, and the program is crucial to combat fraud, having led to over $7 billion in collected unpaid taxes since 2007. Mr. Thompson of California emphasized that the current system discourages whistleblowers due to uncertainty, long delays, and personal risks, and the bill fixes these problems by protecting privacy, strengthening fairness in review, and addressing delays with interest on awards. Mr. Kelly of Pennsylvania added that the tax system depends on voluntary compliance and trust, which erodes when bad actors cheat. He stated that the bill ensures a fair shake for all taxpayers by improving the program's foundation with targeted updates, including a more favorable standard of review, anonymity, interest on delayed awards, and improved reporting.
The case against
Ten Members voted against the bill, but no specific opposition arguments were aired in the Record during the debate on this measure.
Disposition
passed · recorded vote
The bill, as amended, was passed.
346-10
Who is affected
- IRS whistleblowers: Enhanced privacy protections, fairer review processes, and compensation for delayed awards, encouraging more individuals to report tax fraud.
- Taxpayers: Improved fairness and integrity of the tax system by increasing the detection and collection of unpaid taxes from fraudulent activities.
Doug LaMalfa Federal Disaster Tax Relief Certainty Act
H.R. 5366Question before the chamber
The question was on the motion to suspend the rules and pass the bill (H.R. 5366) to amend the Internal Revenue Code of 1986 to codify and extend the rules for personal casualty losses arising from major disasters and the rules for the exclusion from gross income of compensation for losses or damages resulting from certain wildfires, as amended.
The case for
Mr. Smith of Missouri highlighted that the bill extends an existing provision allowing taxpayers to deduct personal casualty losses from natural disasters and excludes wildfire disaster relief payments from taxable income, providing resources for recovery. Mr. Thompson of California stated that people who lost everything should not have to fight for basic tax relief or face a tax bill on help received to rebuild. He emphasized that disaster relief should be automatic and fair. Mr. Steube of Florida underscored that families rebuilding after disasters should not face more red tape or uncertainty in the tax code, and the bill provides certainty by allowing deductions for qualified losses and exempting wildfire relief payments from taxation. Ms. Tokuda of Hawaii echoed that disaster victims should not have their recovery funding taxed, ensuring every dollar meant to help them rebuild stays with them.
The case against
No opposition was aired in the Record.
Disposition
passed · voice vote
The bill, as amended, was passed.
Who is affected
- Victims of federally declared natural disasters (including wildfires): Receive tax relief through deductions for personal casualty losses and exclusion of wildfire relief payments from taxable income, easing financial burdens during recovery.
- Communities impacted by disasters: Benefit from clearer and more certain tax provisions, supporting rebuilding efforts and reducing administrative hurdles.
Taxpayer Experience Improvement Act
H.R. 7971Question before the chamber
The question was on the motion to suspend the rules and pass the bill (H.R. 7971) to provide for modernization and technological improvements of services provided by the Internal Revenue Service, as amended.
The case for
Mr. Smith of Missouri noted that the IRS uses outdated technology and this bill imposes transparency and requires the agency to be more accessible. Mr. Beyer of Virginia acknowledged IRS strides but highlighted ongoing delays and communication difficulties for millions of taxpayers. He stated the bill alleviates harm by increasing online information, digitizing returns, providing personalized updates, and implementing callback technology and a real-time service dashboard. Mr. Schweikert of Arizona emphasized that the bill provides visibility, allowing taxpayers to see their refund status and other information online, reducing the need for phone calls and improving understanding of their tax situation.
The case against
No opposition was aired in the Record.
Disposition
passed · voice vote
The bill, as amended, was passed.
Who is affected
- Taxpayers: Experience improved service, reduced delays in refunds, and better access to information regarding their tax returns and IRS interactions through modernized online tools and communication options.
- IRS staff: Benefit from reduced call volumes and streamlined processes, allowing for more efficient use of resources.
Survivor Justice Tax Prevention Act
H.R. 2347Question before the chamber
The question was on the motion to suspend the rules and pass the bill (H.R. 2347) to amend the Internal Revenue Code of 1986 to exclude from gross income any damages, other than punitive damages, received on account of any sexual acts or sexual contact, as amended.
The case for
Mr. Smith of Missouri stated that survivors of sexual assault face a long road to recovery and should not have to battle the IRS over compensatory damages, noting that current proof requirements often ignore non-observable physical injuries. Ms. Moore of Wisconsin, a survivor herself, emphasized that the bill is about fairness, dignity, and justice, ensuring that the indelible mental harm from sexual assault is recognized for tax exemption, even without visible scars. Mr. Smucker of Pennsylvania reiterated that current law intends for such settlements to be untaxed, but the IRS's application requiring 'observable physical harm' creates an injustice. The bill clarifies that payments related to sexual assault are automatically tax-exempt, providing dignity and justice.
The case against
No opposition was aired in the Record.
Disposition
passed · voice vote
The bill, as amended, was passed.
Who is affected
- Survivors of sexual assault: Will not be taxed on compensatory damages or settlements received, alleviating an additional financial and emotional burden during their recovery process.
Clergy Act
H.R. 227Question before the chamber
The question was on the motion to suspend the rules and pass the bill (H.R. 227) to allow a period in which members of the clergy may revoke their exemption from Social Security coverage, and for other purposes, as amended.
The case for
Mr. Thompson of California stated that Social Security has protected workers for nearly 90 years, and the bill makes it easier for clergy to access its benefits. He explained that the bill provides a two-year window for clergy to opt back into Social Security, contribute, and secure earned benefits. Mr. Fong of California added that many faith leaders, having opted out in their youth, face significant financial hardship in retirement, and this bill empowers them to take greater control over their financial futures. He emphasized that it is a commonsense solution to a nonpartisan problem.
The case against
Five Members voted against the bill, but no specific opposition arguments were aired in the Record during the debate on this measure.
Disposition
passed · recorded vote
The bill, as amended, was passed.
350-5
Who is affected
- Members of the clergy who previously opted out of Social Security: Gain a two-year opportunity to re-enroll in Social Security, allowing them to accrue or enhance their retirement and disability benefits.
Increase in Retirement Age of United States Capitol Police Officers
H.R. 8364Question before the chamber
The question was on the motion to suspend the rules and pass the bill (H.R. 8364) to amend title 5, United States Code, to authorize the increase of the retirement age in the United States Capitol Police.
The case for
Mrs. Bice stated that threats against lawmakers are at all-time highs and the U.S. Capitol Police face staffing challenges. She explained that current law forces officers to retire at age 57, with waivers extending to 60, and this bill extends that waiver timeline to 65, preventing the loss of nearly 60 experienced officers. Mr. Morelle emphasized the critical and demanding job of Capitol Police officers, especially with increased threats. He noted that a large cohort of officers is reaching retirement age, and the department cannot afford to lose experienced, capable officers solely due to an arbitrary age threshold. He clarified that the bill gives the Capitol Police Board discretion to allow officers to serve until 65, while ensuring they remain fit for duty.
The case against
No opposition was aired in the Record.
Disposition
passed · voice vote
The bill was passed.
Who is affected
- United States Capitol Police officers: Experienced officers can continue to serve until age 65 if granted a waiver, providing greater flexibility in career planning and addressing staffing shortages.
- Members of Congress, staff, and visitors to the Capitol: Benefit from the retention of experienced law enforcement personnel, contributing to enhanced security and safety on the Capitol campus.
IRS Whistleblower Program Strengthened
highThe House passed H.R. 7959, the IRS Whistleblower Program Improvement Act, by a recorded vote of 346-10. This legislation aims to enhance whistleblower privacy, ensure fair review of claims, and provide interest on delayed awards, addressing long-standing issues that discourage individuals from reporting tax fraud.
Federal Disaster Tax Relief Extended
highH.R. 5366, the Doug LaMalfa Federal Disaster Tax Relief Certainty Act, passed by voice vote. This bill codifies and extends rules for personal casualty losses arising from major disasters and excludes compensation for losses from certain wildfires from gross income, providing critical financial relief to disaster victims.
Taxpayer Experience at IRS Improved
mediumThe House unanimously passed H.R. 7971, the Taxpayer Experience Improvement Act, which mandates the IRS to provide real-time dashboards for backlogs and wait times, expand electronic access to return and refund information, and enhance callback technology and online accounts. This aims to modernize the IRS and improve customer service.
Clergy Social Security Re-enrollment Window Created
mediumH.R. 227, the Clergy Act, passed by a recorded vote of 350-5. This bill establishes a one-time, two-year window for clergy members who previously opted out of Social Security coverage to re-enroll, allowing them to secure retirement benefits they may have foregone.
Capitol Police Retirement Age Flexibility Increased
mediumH.R. 8364, a bill to authorize the increase of the retirement age in the United States Capitol Police, passed by voice vote. This measure grants the Capitol Police Board discretion to allow officers to serve until age 65, addressing staffing challenges and retaining experienced personnel.