A bipartisan group of House Ways and Means Committee members have unveiled a bill that would create an independent appeals process at the IRS and strengthen the agency’s ability to fight identity theft and tax refund fraud.

The bill, released March 28, mirrors H.R. 7227, which the House passed last year. Modernizing the Internal Revenue Service has been a priority for Democratic and Republican lawmakers in both chambers. The bill release comes after several years of work and...