Small Business Taxpayer Rights: Enhanced Protections and Dispute Resolution with IRS
This bill aims to strengthen the rights of small businesses in their interactions with the Internal Revenue Service (IRS). It introduces changes that make it easier to pursue claims, increase penalties for improper official conduct, and ensure greater independence in tax dispute resolution. This provides small businesses with better tools to defend their interests and avoid undue burdens.
Key points
Small businesses (with up to $50 million in gross receipts) can more easily recover litigation costs from the IRS, regardless of their net worth.
Increased financial penalties for IRS employees for reckless or intentional disregard of tax laws, and for unauthorized disclosure of information.
Prohibits one-sided discussions between IRS officers and the Appeals Office to ensure greater impartiality.
Low-income small businesses can access free mediation in disputes with the IRS and have the right to an independent conference without IRS Chief Counsel personnel.
The IRS cannot raise new issues on appeal if they were not part of the initial determination.
Limits the IRS's ability to seize a taxpayer's primary residence unless other property is insufficient and it won't cause economic hardship.
Allows a deduction of up to $5,000 for audit expenses if the audit does not result in an increased tax liability.
Facilitates the release of IRS levies on businesses due to economic hardship, considering business viability and potential harm to individuals.
Removes the partial payment requirement when submitting offers-in-compromise, easing financial negotiations.
Expired
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