Sponsors (2)
Introduced February 26, 2026 by Michael Dean Crapo · Last progress February 26, 2026
The bill expands taxpayer access to electronic services, appeals, targeted relief, and preparer oversight — improving transparency and avenues for relief — but at the cost of greater administrative complexity and expense, higher compliance burdens for preparers and small entities, and increased privacy and enforcement risks for taxpayers.
Most taxpayers will get faster, clearer electronic filing, refund-tracking, and IRS contact transparency (e‑filing/status updates, near‑real‑time call‑center metrics, estimated refund dates, and electronic mailbox protections), reducing uncertainty and telephone wait times.
Many taxpayers gain stronger access to administrative and judicial remedies — faster TAS investigations and access, a more independent Office of Appeals with an administrative appeal right, and expanded Tax Court jurisdiction and tools to challenge denials and refund determinations.
Specific groups — U.S. taxpayers living abroad, detained U.S. nationals (and dependents), and low‑income filers — receive targeted relief and procedural accommodations (higher de minimis for currency gains, longer abatement request windows for expats, extended filing/assessment deadlines and refunds/abatements for detained nationals, expanded low‑income clinic/fee waivers).
Many taxpayers face increased privacy and data‑security risks because the bill expands electronic filing portals, publishes processing/call metrics, permits redisclosure to agencies (e.g., CBO), and requires data transfers (e.g., lists to Treasury), increasing the number of access points and the risk of unauthorized disclosure.
Taxpayers (through Treasury) and the IRS will face substantial implementation and administrative costs to build systems, publish reports, run new programs (PTIN verification, OCR/transcription, databases, refund processing), increasing government spending that is ultimately taxpayer‑funded.
Paid preparers, small businesses, and partnerships will incur higher compliance costs — fees, background checks, required continuing education, software/hardware or magnetic‑media filing changes, and new withholding/admin processes — which could reduce low‑cost service availability for vulnerable filers.
Based on analysis of 22 sections of legislative text.
Modernizes IRS processing and transparency (e‑file/OCR, live call metrics), strengthens taxpayer advocacy/appeals, adjusts withholding and penalties, reforms whistleblower and Tax Court rules, and creates detainee tax relief.
Requires the IRS to accept and process electronically filed tax returns, expand use of OCR for paper submissions, publish detailed live call-center metrics, and adopt technology to screen robocalls. It also strengthens independence and access for taxpayer advocacy and appeals, revises Tax Court procedural and subpoena rules, adjusts withholding and failure-to-pay safe harbors for individuals, raises and creates preparer and EFIN penalties, reforms whistleblower review and anonymity, mandates studies and reports about U.S. persons living abroad, and creates a tax refund/abatement program for U.S. nationals unlawfully detained abroad. The package changes operations, reporting, and enforcement across the tax system: it requires new technology and transparency at the IRS, creates new or clarified legal authorities for Tax Court and Appeals staff, changes some taxpayer penalties and withholding options, directs several studies and reports, and creates a targeted tax relief program for hostages and wrongfully detained Americans with specific notice and filing deadlines.