WASHINGTON, D.C. – American taxpayers will see fairer treatment before the U.S. Tax Court and enhanced protections against unjustified IRS penalties thanks to legislation recently approved by the Ways and Means Committee. H.R. 5349, the Tax Court Improvement Act – introduced by Representatives Nathaniel Moran (TX-01) and Terri Sewell (AL-07) – ensures that individuals appearing before the U.S. Tax Court are provided a timely period of discovery before trial and a judge that is subject to the same level of accountability as other federal judges. Under H.R. 5346, the Fair and Accountable IRS Reviews (FAIR) Act – introduced by Representative Glenn Grothman (WI-06) – rogue IRS personnel will be barred from imposing penalties against taxpayers prior to receiving authorization from a direct supervisor, in accordance with the law.
Organizations that champion the rights of taxpayers and small businesses are speaking out in support of these commonsense protections – both of which were approved with bipartisan support by the Ways and Means Committee.
Tax Court Improvement Act (H.R. 5349)
Strengthens taxpayer rights during judicial proceedings before the U.S. Tax Court by increasing pre-trial transparency of relevant documents, holds Tax Court judges to the same disqualification standards as other federal judges, and improves the efficiency and timeliness of judicial review by the Court.
Small Business and Entrepreneurship Council (SBEC)
“This important legislation promotes fairness and aims to reduce complexity and costs for small businesses faced with an IRS tax dispute. By modernizing U.S. Tax Court procedures through streamlining and faster resolution, the legislation reduces barriers and upholds due process.” – Karen Kerrigan, President and CEO, SBEC
Taxpayers Protection Alliance (TPA)
“The Tax Court Improvement Act makes long-overdue updates to ensure that the U.S. Tax Court operates with the independence and fairness that taxpayers deserve. By clarifying procedures, modernizing operations, and strengthening safeguards for taxpayers, this legislation will ensure that Americans who cannot afford expensive legal representation still have a fair chance to present their case and resolve disputes efficiently.” – David Williams, President, TPA
National Taxpayers Union (NTU)
“The legislation facilitates a quicker resolution of disputes or settlements by permitting the court to issue third-party subpoenas prior to hearings and pre-trial conferences, with the goal of encouraging settlements.” – NTU
National Federation of Independent Business (NFIB)
“NFIB appreciates the Ways and Means Committee’s efforts to support small businesses by improving taxpayers’ rights and increasing accountability at the IRS. Most small businesses do not have a designated accounting department; the Tax Court Improvement Act and FAIR Act help ensure that the tax process is more reasonable and impartial for small businesses.” – NFIB
Fair and Accountable IRS Reviews (FAIR) Act (H.R. 5346)
Protects taxpayers against unfair IRS treatment by requiring any agent proposing a penalty against an individual or business first obtain approval – in writing and from an immediate supervisor – prior to imposing that penalty.
Small Business and Entrepreneurship Council (SBEC)
“Essential reforms within H.R. 5346 bring needed sensibility and fairness to the IRS penalty process. The legislation will ensure that penalty decisions affecting small business owners receive proper supervisory review, which is a vital safeguard against hurried, biased, or inappropriate enforcement actions.” – Karen Kerrigan, President and CEO, SBEC
Taxpayers Protection Alliance (TPA)
“The FAIR Act responds directly to concerns about arbitrary or inconsistent IRS enforcement. It does so by establishing clearer standards for reviews and appeals. By requiring greater transparency in the audit process and guaranteeing impartial review mechanisms, the legislation puts more power in the hands of taxpayers. These reforms will prevent overreach, reduce unnecessary litigation, and provide taxpayers with confidence that they will be treated fairly, regardless of their resources or background.” – David Williams, President, TPA
National Taxpayers Union (NTU)
“This legislation would protect taxpayers facing IRS penalties by clarifying in statute that IRS agents must receive approval from their immediate supervisor prior to imposing penalties.” – NTU
National Federation of Independent Business (NFIB)
“NFIB appreciates the Ways and Means Committee’s efforts to support small businesses by improving taxpayers’ rights and increasing accountability at the IRS. Most small businesses do not have a designated accounting department; the Tax Court Improvement Act and FAIR Act help ensure that the tax process is more reasonable and impartial for small businesses.” – NFIB