H.R. 7972: Taxpayer Workforce Modernization Act

The Taxpayer Workforce Modernization Act aims to create a fellowship program within the Internal Revenue Service (IRS) to enhance its capabilities in handling complex tax cases through the recruitment of qualified data scientists. This program must be established by September 30, 2026, and will involve the following key components:

Fellowship Program Establishment

The program will be designed by the Commissioner of the IRS, with input from the Chief Counsel and Chief Data Officer, to:

• Focus on complex tax cases and new or emerging issues in tax law.
• Recruit and retain talented tax experts and data scientists.

Program Structure

The program will:

• Include at least 10 fellows, with opportunities for more based on IRS needs and candidate availability.
• Offer fellowship terms of 2 to 4 years, with the possibility of annual extensions.
• Ensure that a minimum of 5 fellows are always in place and fill vacancies promptly.
• Allow for the possibility of permanent hiring of fellows at the end of their term.

Task Force Creation

A task force will be established as soon as the first fellow is appointed, contributing to the following objectives:

• Develop data-driven methods to enhance audit case selection.
• Train IRS employees on the use and analysis of data.
• Support tax audits through advanced data analytics.
• Address offshore tax evasion using integrated data analysis.
• Mentor junior IRS staff in data analytics techniques.
• Review and enhance existing uses of artificial intelligence in tax administration.
• Provide recommendations for improving audit processes and reducing improper tax payments.

Fellow Compensation

The pay for the fellows will be determined by the Secretary of the Treasury, with a minimum rate set at GS-15 of the General Schedule, capped by existing federal compensation limits.

Program Oversight and Reporting

The IRS Commissioner must submit annual reports to Congress evaluating the program's effectiveness, return on investment, and recommendations for improvements. This includes assessing the number of annual applications for the fellowship.

Rules and Regulations

The IRS will establish necessary rules and regulations to ensure the effective operation of the fellowship program.

Definition of Qualified Data Scientist

A "qualified data scientist" is defined as an expert with skills in advanced analytics, statistical modeling, or machine learning, particularly in the context of regulatory and tax compliance environments.

Relevant Companies

• None found