Summary

Cancels and nullifies an IRS administrative rule by declaring it to have no force or effect. The single provision rejects the IRS rule titled "Rules for Supervisory Approval of Penalties" (89 Fed. Reg. 104419, Dec. 23, 2024), preventing that rule from taking effect upon enactment.

Key Points

• Directly nullifies the IRS rule titled "Rules for Supervisory Approval of Penalties" (89 Fed. Reg. 104419, Dec. 23, 2024).
• The act contains a single provision declaring that the cited rule has no force or effect.
• Takes effect upon enactment and prevents the IRS from implementing or enforcing that specific rule.
• Does not change the tax code, create new spending, or authorize new programs.
• Affects IRS operations and processes related to supervisory approval of penalties but does not itself establish alternative procedures.
• May prompt the IRS to pursue new rulemaking or guidance to achieve similar internal controls if desired.
• Could increase near-term uncertainty about penalty procedures for taxpayers and practitioners until replacement rules or guidance appear.
• Does not itself modify taxpayer rights under statute; it only removes the named administrative rule from effect.

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