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Enhanced Taxpayer Rights and Protections for Small Businesses Against the IRS.

This Act significantly strengthens the rights of taxpayers, particularly small businesses, in disputes with the IRS. It introduces stricter penalties for IRS employee misconduct and unauthorized data disclosure, increases civil damages available to citizens, and makes it easier for small businesses to recover legal costs. Crucially, it removes the requirement for partial upfront payment when submitting an Offer-in-Compromise to settle tax debt.
Key points
Maximum civil damages for intentional IRS misconduct increase from $1 million to $5 million; the time limit to file a lawsuit is extended from 2 to 5 years.
Small businesses (under $50M revenue) can recover litigation costs against the IRS without meeting net worth limitations.
The IRS Office of Appeals is prohibited from raising new issues or justifications that were not included in the initial audit determination.
Limits the IRS's ability to place a lien on a taxpayer's principal residence if it would cause economic hardship.
Repeals the requirement for taxpayers to make a partial payment when submitting an Offer-in-Compromise to settle tax debt.
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Expired
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Additional Information
Print number: 118_S_1177
Sponsor: Sen. Cornyn, John [R-TX]
Process start date: 2023-04-18
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Small Business Taxpayer Bill of Rights Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_1177.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-04-18.

What are the main provisions?

Key points include:

  • Maximum civil damages for intentional IRS misconduct increase from $1 million to $5 million; the time limit to file a lawsuit is extended from 2 to 5 years.
  • Small businesses (under $50M revenue) can recover litigation costs against the IRS without meeting net worth limitations.
  • The IRS Office of Appeals is prohibited from raising new issues or justifications that were not included in the initial audit determination.
  • Limits the IRS's ability to place a lien on a taxpayer's principal residence if it would cause economic hardship.
  • Repeals the requirement for taxpayers to make a partial payment when submitting an Offer-in-Compromise to settle tax debt.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Cornyn, John [R-TX].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes Courts and Law