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Amends the Internal Revenue Code of 1986 by inserting a new subtitle after subtitle B (new subtitle text for wealth tax).
Inserts new paragraph (7) into section 275 disallowing deductions for 'Taxes imposed by chapter 18.'
Adds new paragraph (3) ('Wealth tax') to section 6161 authorizing the Secretary to extend the time for payment of tax imposed under chapter 18 for applicable taxpayers (definitions and conditions included).
Amends section 6662 by inserting a new paragraph (11) in subsection (b) and adding subsection (m) to define 'substantial wealth tax valuation understatement', set a $5,000 calendar-year threshold for penalties, and modify penalty rates for certain valuation misstatements.
Section 501(a) is amended by inserting additional text (specific insertion not shown in this section).
Clerical amendment to the table of subtitles of the Internal Revenue Code by inserting an item for the new subtitle after the item relating to subtitle B.
Referred to the House Committee on Ways and Means.
Introduced April 14, 2025 by Summer Lee · Last progress April 14, 2025
Adds a new federal wealth tax to the Internal Revenue Code and creates related rules for how it is valued, reported, paid, and enforced. The law forbids deducting the new wealth tax under existing deduction rules, creates a new accuracy‑related penalty for undervaluing property subject to the wealth tax, and authorizes the Treasury Secretary to delay payment of the tax for certain taxpayers for up to five years.
Also includes clerical provisions and an effective‑date clause; it changes tax timing and penalty mechanics rather than creating an offsetting spending program.