In a letter to House and Senate committee chairmen dated Monday, acting Assistant Attorney General Anthony Sutin warned that both the House and Senate versions of IRS reform legislation contain three provisions that could be unconstitutional.
Sutin argued the bills would too narrowly dictate the president's appointment and enforcement powers with regard to an employee's representative on an oversight board that the bill would create, as well as with the operations of the National Taxpayer Advocate.
Sutin also contended the bills go too far in limiting the president's national security authority to call for or terminate audits.
The letter also details concerns raised by the Treasury Department over the proposed shift in the burden of proof from the taxpayer to the IRS in tax disputes, the establishment of an accountant-client privilege, and other taxpayer rights. Administration officials have warned that these provisions could undermine the ability of the IRS to collect taxes.
Sen. Bob Kerrey, D-Neb., a leader of the IRS reform effort in the Senate, said the letter is "not God talking," but "just an advisory opinion." But he added that the letter "could contribute in a constructive way to the bill."
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