Sponsors (55)
The bill temporarily expands charitable deductions for non‑itemizers to boost giving and ease some administrative burdens, but it reduces federal revenue, introduces time-limited uncertainty, and weakens a specific IRS penalty that could affect compliance.
Low- and middle-income taxpayers who do not itemize can claim a cash charitable deduction up to their standard deduction for 2026–2027, lowering their taxable income.
Nonprofits could receive increased donations because the temporary deduction encourages charitable giving by taxpayers who otherwise wouldn’t itemize.
Removing or simplifying a specific penalty provision reduces administrative burden and dispute risk for taxpayers and IRS staff, potentially simplifying compliance and enforcement processes.
Taxpayers claiming the new deduction reduce individual income tax revenue, which could increase the federal deficit or require spending cuts or higher revenues elsewhere.
Removing the specific penalty paragraph in §6662 may weaken IRS enforcement for certain underpayment cases, reducing deterrence against improper tax reporting.
Limiting the special deduction to 2026 and 2027 creates temporary complexity and uncertainty for taxpayers planning charitable giving beyond those years.
Based on analysis of 2 sections of legislative text.
Creates a short title for the bill and makes two tax-code changes that take effect for tax years beginning after December 31, 2025. It temporarily lets taxpayers who do not itemize claim a special charitable contribution deduction for taxable years 2026 and 2027, and it removes and renumbers certain accuracy‑related penalty provisions in the Internal Revenue Code.
Introduced January 28, 2025 by Blake D. Moore · Last progress January 28, 2025