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Small Business Taxpayer Rights: Enhanced Protection and Fairness

This act aims to strengthen the rights of small businesses in their interactions with the tax authority. It introduces changes that facilitate claims, increase penalties for official misconduct, and ensure greater transparency and independence in appeal processes. This provides small businesses with enhanced financial and legal security.
Key points
Small businesses can more easily recover costs in tax disputes, regardless of their net worth.
Increased financial penalties for officials for reckless or intentional violations of tax laws, and for unauthorized disclosure of information.
Banned one-sided discussions between officials and the appeals office, ensuring independence in the appeal process.
Taxpayers gain the right to an independent conference and broader access to mediation and arbitration in disputes with the tax authority.
The tax authority cannot raise new issues during an appeal if they were not part of the initial determination.
Limited the ability to enforce liens against a taxpayer's principal residence unless no other property is sufficient and it won't cause economic hardship.
Introduced a deduction for audit expenses that do not result in increased tax liability, up to $5,000.
Facilitated the release of IRS levies due to economic hardship for businesses, considering their viability.
Repealed the partial payment requirement when submitting offers-in-compromise to the tax authority.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_1386
Sponsor: Sen. Cornyn, John [R-TX]
Process start date: 2025-04-09
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Small Business Taxpayer Bill of Rights Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_1386.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-04-09.

What are the main provisions?

Key points include:

  • Small businesses can more easily recover costs in tax disputes, regardless of their net worth.
  • Increased financial penalties for officials for reckless or intentional violations of tax laws, and for unauthorized disclosure of information.
  • Banned one-sided discussions between officials and the appeals office, ensuring independence in the appeal process.
  • Taxpayers gain the right to an independent conference and broader access to mediation and arbitration in disputes with the tax authority.
  • The tax authority cannot raise new issues during an appeal if they were not part of the initial determination.
  • Limited the ability to enforce liens against a taxpayer's principal residence unless no other property is sufficient and it won't cause economic hardship.
  • Introduced a deduction for audit expenses that do not result in increased tax liability, up to $5,000.
  • Facilitated the release of IRS levies due to economic hardship for businesses, considering their viability.
  • Repealed the partial payment requirement when submitting offers-in-compromise to the tax authority.
What is the specific legal status?

The current status is Introduced.

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 2025-12-23.

CATEGORIES

Taxes Courts and Law Economy