Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Internal Revenue Service relating to Rules for Supervisory Approval of Penalties.

This measure would cancel a recent IRS rule about when a supervisor must sign off before certain tax penalties are charged. By overturning that rule, it would stop the IRS from using those timing guidelines for approvals when assessing penalties . The resolution specifically targets the IRS’s “Rules for Supervisory Approval of Penalties,” which were issued on December 23, 2024 . The official description says it provides for Congress to disapprove that IRS rule .

If this becomes law, taxpayers and IRS staff could see changes in how and when penalty approvals are handled. It does not set new penalty rules itself; it simply blocks the IRS rule from taking effect.

• Key points

  • Who is affected: Taxpayers who might face federal tax penalties, and IRS employees who approve those penalties .
  • What changes: The IRS’s timing rule for getting a supervisor’s approval before penalties are assessed would be nullified .
  • When: The IRS rule was issued December 23, 2024; the change would apply if and when this measure becomes law .