Small Business Taxpayer Rights: Enhanced Protections and Fairness
This act introduces several changes to enhance protections for small businesses and individual taxpayers in their interactions with the IRS. It increases penalties for improper actions by IRS employees, simplifies the process for claiming damages, and establishes new dispute resolution procedures, giving citizens greater control and financial security.
Key points
Small businesses (up to $50 million in annual receipts) can more easily recover litigation costs from the IRS, regardless of their net worth.
Penalties for IRS employees who recklessly or intentionally disregard tax laws or unlawfully disclose tax information have been increased.
Taxpayers gain the right to an independent conference with the IRS and access to mediation or arbitration, simplifying dispute resolution.
The IRS is prohibited from raising new issues during appeals, protecting taxpayers from unexpected claims.
Limitations are placed on the IRS's ability to enforce liens against a taxpayer's primary residence, safeguarding against home loss during financial hardship.
IRS employees who improperly scrutinize tax-exempt organizations based on ideology may face termination or unpaid leave.
The Treasury Inspector General for Tax Administration will review IRS audit criteria to ensure no discrimination based on race, religion, or political ideology.
Taxpayers can deduct up to $5,000 in audit expenses if the audit results in no increase in tax liability.
The IRS must consider a business's financial viability when deciding on levies, aiming to prevent business liquidation.
The requirement for partial payment when submitting offers-in-compromise has been repealed, making tax settlements more accessible.
Expired
Citizen Poll