state law violated his first amendment right. i guess we'll discuss these. watch landmark cases, tonight. join the conversation. our # is landmark cases. follow a set c-span. resources on the website for background. a link to the national constitution center's interaction center. in the podcast. >> the acting head of the irs was on capitol hill to testify about agency operations and recommendation for change including taxpayer online accounts. he talked about implementation of a tax bill. the hearing was held by the senate finance committee.

>> the committee will come to order. we will start with my partner today because he has to get back to the floor. then i will get my statement. >> i want to thank you for your courtesy. uis go to great lengths to give me the opportunity to juggle hectic schedule. the majority leader and i are getting ready to do some big agriculture bill in a few minutes. i appreciate the chance to make the opening statement. we'll keep it brief and will come right back after we are

finished. the annual hearing on tax filing typically inspires a level of enthusiasm most people bring to a prolonged retail procedure. issue their tax policy issues with serious consequences for millions of americans. are small businesses are stuck in a bureaucratic twilight zone. there is confusion about how the new tax law works. untested policies, sloppy drafting and outright mistakes in the law. on top of that there is a trump cat turf battle that has added to the uncertainty and time that small businesses will be in the

dark about how tax rules apply to them. here's the bottom line. estimated tax payments are due that millions of small businesses don't how to estimate what they'll. the owner of a restaurant known as a landmark. the mechanic whose expertise has built a basilar customers. the finish carpenter's whose work is sought-after. they are all aired in this tax code ministry zone while trump officials go 12 rounds over who will get the final say on the regulations. i understand there was news on the issue this morning. deadlines for guidance and administration are slipping. experts are unsure of the road ahead. advising small business clients

to bump up from last year just to be safe. it is important to understand that certainteed was one of the most important selling points. for businesses to focus on growing and hiring. an outdated tax law. the growth was gonna kick in right away and workers would see braces. the reality likes different. all of this confusion has created another golden opportunity for lobbyists and special interests to twist rules or favor. they want more sweetheart deals the kind of favoritism americans want eliminated. the likelihood they can exploit these loopholes is greater

because audits have fallen to 15 year low. the audits of the high income earners will drop the most. i think the acting commissioners for joining today. i apologize for the bad manners and i will return as soon as i can. this morning i think we have a chance and cover up important information of what's ahead for taxpayers fisher and going forward the sponsors that are supposed be implemented. i think you for being gracious. a return as soon as we finish our work. look forward to working with you.

>> good morning. i welcome you to the hearing. this is an exciting time. grateful the acting commissioner could be here to talk about the 2018 tax filing season. tax reform and the challenges before the irs we know it's the one agency upon all other federal activities depend. the reason is simple. the irs collects the revenue required to keep the government function. it's where process really matters. it's critical the irs collect the revenue in a fair, efficient, and effective manner. when we drain the irs resources

not merely a loss in revenue for the federal government and the treasury must borrow more money causing the country to go further into debt. the government doesn't shrink when the irs fails to collect taxes owed. handicapping the irs is hurting future generations. they're going to have to repay the debt one way or another. the irs stands at the crossroads. on one hand it is made improvements in recent years including catching more identity fraud and looking forward to changes that have occurred.

>> irs employees routinely have to manually return information into the computers required taxpayers to send information via's fax machine. the irs a step i many of the government's most dedicated and hardest working civilians. many work in my home state. yet there are some bad apples who have heard the services standing here mismanagement, taxpayer abuse and discrimination are recent memories for those who oversee the agency. it's time we work together as republicans and democrats to help them my irs modernize and meet challenges of the 21st century. we need to promote bipartisanship keep the irs

accountable and moving in the right direction to best serve the american taxpayers. that is why this week i'm watching the house ways and means committee marking up legislation. i appreciate efforts on the front-end book for its working with my good friend and colleague. we will explore options in the senate. i'm confident will have meaningful bipartisan solutions while still remaining under congressional supervision. the acting commissioner has been doing a great job. on his watch taxpayer from prevention services have made noticeable gains and are great success stories.

as such, i'm looking forward to the finance committee process and the nomination of chuck reddick's been nominated to leave the irs. as soon as the committee receives the paperwork we will process the nominations. today we have the pleasure being joined by the acting irs commissioner. he was confirmed last year as the assistant secretary of treasury of tax policy. thank you for being here. we appreciate it. he has tax practitioner

experience has been a tax practitioner for the past 44 years. i empathize with you. you don't like that bad. but that's a long time. purchase government service he worked as a partner starting in 2014. he taught courses in tax law including four as an executive in residence at the school of business. prior to teaching he provided advice to clients ranging from individuals and small businesses to global multinational companies for 12 years. during that time here's a leading tax specialist for compensation and benefits. he has also served in the government's tax legislative

counsel from 1979 to 1982. he worked on the economic recovery tax act. he graduated with an ambassador's degree in later received doctorate from georgetown. please proceed with your statement. >> thank you. members of the committee, thank you for the opportunity to provide you with an update on the 2018 tax filing season and discuss operations both current and future. what the deadline just five days away pleased to report the season is going well. as of last friday we received weather 103 million individual tax returns. we've issued more than 75 million refunds for

$226 billion. about 80% filed claim to refund totaling $2900. these are consistent from the previous year with the number received up about hundred 50000. the number of electronically up about 440,000 and the average refund up $13. they faced two challenges this year. the need to begin implementing the tax cut and john intact. requires extensive work from the irs the share. the irs begin implementation shortly after it was signed last december. the second challenge is the need to implement past revisions of the bipartisan budget act in february. shortly after the filing season

restarted. we had to reprogram systems to handle the extension through december 31 this is the first time the irs had ever been required to implement retroactive tax extensions after the beginning of a filing season. they also delayed issuing tax refunds until february 15 for those earning the additional child tax credit. this change the overall pace of refunds early in the filing season. that accelerated with the release of additional tax child refunds after february 15.

so far this year if handle more than 20 million calls on our toll-free help line. provided a personal assistant to mother 790 and provided wealth of tax information on irs tax.gov. this offers tax-free tax -- so far allows taxpayers earning -- they can prepare and e-file at no cost.

in regard to this season were seen a strong level of service on our toll-free line which we did. our level of service was close to 80% and we anticipate this as a whole will be about 80%. we realize that taxpayers needs are evolving. using digital tools at the time and place of their choosing. their continuing investments in online tools and offerings. as we deliver the 2018 filing system they also make progress in implementing the tax cuts and jobs back. initial steps take into account various things with the statute. then at the end of february on

irs.gov to adjust their amount. also a new form w-4 to fully reflect the law. apart from those efforts we've begun issuing guidance to help corporations begin with section 965. the we realize the need for guidance is acute for fiscal year tax payers or make and not a priority. implementing tax reform will remain a priority in 2018 and 2019. including providing adequate staffing to serve taxpayers and

ensuring it systems to support our work for the nation. my previous testimony we had additional resources to ensure successful limitation of tax reform. we appreciate the money that was approved by congress as part of the omnibus budget bill. we can move forward with critical activities in a timely manner contest are processing. finally treasury and omb reached an agreement with certain tax regulations. it means the objectives of increasing economic analysis while preserving tax guidance for taxpayers. i will be happy to take your questions. >> thank you. we appreciate your report.

last december congress passed a historic tax reform legislation in a generation. the lack of implementation those reforms falls to the irs. and in february the treasury department released its priority guidance plan which listed 18 items under initial implementation of the tax cut and jobs act. acting commissioner, can you provide the committee an update on how this process is going and the timeline for these provisions.

when should we expect new information on these matters and new guidance regarding section 199 a. >> immediately upon enacting the tax cuts and jobs act we started to approach the implementation. we built a roadmap on what needs to be done. we are adjusting that roadmap i wish sought stakeholder input as part of the process. we have mapped out the forms that need to be amended in the

publications that need to be changed. our estimate is that we will need to amend at least 450 tax forms and publications to fully implement the reform act. we expect new forms drafted by the end of april. most new instructions drafted by the end of may. our plan is teresa please those over the summer for taxpayers and tax advisors to review and comment on. also we will begin programming are new systems. about 140 integrated systems that need to be updated.

probably three force of the cost would be the cost of changing technology. about 19% of the cost will relate to guidance and the education outreach and so forth. some will relate to outreach and another 4% as reforms and publications. off to a good start. for executing on the plan. the timeline is aggressive. we don't really have a choice. were focused on it. as you mentioned section 199 estimate would have some guidance out by early summer. >> the house ways and means committee recently approved legislation. this committee is currently reviewing it and i'll be working closely with members as they move forward with legislation. here. you've been at the irs for a short time, but even there long

enough it seems to me to make a proper assessment working on issues for your entire career to make suggestions. >> the bill was approved by the ways and means committee and it's a constructive piece of legislation. i would propose three legislative changes. one thing i would do is require mandatory filing.

had required the irs to establish online tax pair accounts. it's on that role but i would encourage them to establish accounts online. i would codify the mission on taxpayer service. for the most part they have access and tools they need for the most part to be a taxpayer responsive high-performing organization. the highest priority for everyone is to help taxpayers meet their obligations under the tax law. enforcement is part of our responsibility. secondly, i put in place

measurements to determine the parts are facilitated compliance. right now we measure level of service by how quickly telephone calls are answered. that's important but it's too narrow. will include service provided by taxpayer assistance centers, free file and so forth. enforcement is important, needs to be viewed as part of a continuum and this is not mutually exclusive. it mentioned i would adequately fund the irs with oversight. i focus on online accounts and services. make sure there's accountability. finally instruction is to follow

strategy. said greater focus on taxpayer system the irs needs to restructure itself along lines that would facilitate greater taxpayer assistance. >> thank you. thank you chairman. i stop by today to renew the conversation we had in february i asked you questions then and haven't had a response. were talking about the irs's role in combating foreign election spending. what are the dominant vehicles for affluence is that the 5o1c4. my question to you is to prevent

foreign interest from laundering money through 5o1c4's and into our elections. we learn more thanks to senator wyden's inquiries. the national rifle association has accepted for a donation. they claim it doesn't go towards political expenditures. given this nature of money it's a questionable assertion at be best. a review hasn't found anything connected. it's a bit of a lawyered answered. i want to renew some questions has the irs investigated this

claim by the national rifle association that the russian money did not go to its election efforts. second, how does the irs ensure for money is the entering our political system through outside organizations like llcs and tax-exempt organizations. the 5o1c for organizations they to disclose their donors. but what does the irs do with thosthat information? and what does it do a first shell corporation emerges at a donor. what if it says russian influence llc. the delaware corporation.

presumably someone would want to look behind that. now obviously they want you such an obvious name. the problem was shell corporations i'm interested what the irs does to go through shell corporation in dealing with politically active 5o1c force? to court name and i would like an overview of what resources you devote to placing the rules with 5o1c force. we see very often in the irs filings entities that if ever to under oath that they're not spending any money at all in any

effort to influence or intent to influence elections. i believe it is question 15. and then they run over the federal election commission and disclose that they've spent money on advertisements. scenes that predicates at least an inquiry as to if someone is not telling the truth on one of the other federal forms. a step is the irs taken to make sure those are being answered truthfully to the irs? i know that's a lot on your plate. we have not had a response to the february answers. i hope you treat this as a

priority to make sure we get answers to fair questions in light of election manipulations we have seen. >> those are fair questions. we are working on those responses. it's accurate that the 5o1c4 organizations need to submit that information. our focuses on whether they are engaged in political campaign intervention. now focused on the source of the funds contributed to those organizations. were not sharing any information with other organizations. i take your question seriously and will look into it. >> if it does turn out given the

interest in this issue that the irs is not looking behind shell corporations likes work with you and other members to make sure they understand they have that authority. if they're looking at the extent to which the 5o1c4 is looking into political activity there taken a no on face value when that no is applied by disclosures on other forms. we ought to make clear that the irs has the authority to answer those questions and get back to us. i made turn to the chairman to make sure they have the right authority. >> thank you. we've had a vote on the floor but it's been quite a while. i think we will keep the record

open for senators task you questions pay you can answer in writing. >> i have a number of questions to submit to. with the we will recess the until further notice. >> i appreciate you coming here today. with that we will recess until further notice. [inaudible]

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[inaudible] [inaudible] [inaudible] >> tonight on landmark cases, brandenburg versus ohio, clarence plan number was convicted of hate speech under ohio law. the supreme court ruled that state law violated his first amendment right. her guest is nadine stross and a law professor at new york law school and katie, senior fellow. watch tonight and join the conversation.

i # is landmark cases. follow us on c-span. there are resources on our website for background. in the landmark cases podcasts. at c-span.org. >> washington journalist live everyday with new some policy issues that impact too. on tuesday morning we'll talk about u.s. military action against syria. glenn will talk about the farm bill and propose changes to the snap program. chris edwards will discuss tax policy. watch live at 7:00 a.m. eastern. join the discussion.

>> british prime minister mr. theresa may talked about the airstrikes in syria. you'll find her full remarks on c-span.org. here's a portion. >> were cooperating with our partners to alleviate further humanitarian suffering. this was a limited targeted strike which is being used before. a decision which uses the evaluation of intelligence much of which information cannot be shared. the government has the right tech quickly and the government's interests. it is parliament's responsibility to hold me to

account and parliament will do so. it's my responsibility to make these decisions. [applause] >> i believe the action was legally questionable. on saturday they set as much reiterating that all countries must act in line with united nations which state action must be a self-defense are authorized by the united nations security council. the prime minister assured us the attorney general have been given clear advice. i hope the prime minister will now publish this advice in full today. references a disputed doctrine. but even against this government failed its own test. >> mr. speaker wasn't expecting.

for those who follow president trumps tweets of the last week, can't be the only person who found it difficult to find out if he was for against military action. i wonder if she can tell us at what point did the president instruct her? >> to answer the question is that no point at all. i made this decision. i took this decision because i believed it was the right thing to do. a decision that should be supported by anybody who

recognizes we need to look at the international norms. >> connect with c-span two personalize information you get. go to c-span.org/connect incentive for the e-mail. the program guide that has the most updated schedule. word for word gives you the most interesting daily highlight. the book tv newsletter set weekly is a look at upcoming authors and book festivals. the american tv newsletter gives you the program and explain our nation's past.

>> this weekend bae 45 coverage on book tv of the second annual l.a. times festival of books. we start saturday. political reporter with a book, the view from flyover country.

>> sunday, look back at the year of 1968 folksy now women's right. the women's liberation movement challenge assumptions about womanhood transforming society. joining us are deborah spahr, former college president and author of wonder women, sex, power and the quest for perfection.

>> in 1979, c-span was created as a public service by america's cable television companies. today we bring you a filter coverage of congress, the white house, the supreme court, public policy events in washington, d.c. and around the country. spread to buy your cable or satellite provider. >> nearly 100 members of congress questioned mark zuckerberg this past week. began as a look at facebook's role in the election of 2016. what was discussed and potential outcomes is our topic on the communicators and two longtime washington insiders are here to help us break it down. lee goodman, an attorney and former member of the federal election commission