Sponsors (2)
Official title: Improve services provided to taxpayers by the Internal Revenue Service.
Introduced February 26, 2026 by Michael Dean Crapo · Last progress February 26, 2026
The bill improves taxpayer service, transparency, dispute-resolution options, and fraud protections for many Americans but does so by expanding data access, procedural complexity, and administrative requirements that raise privacy risks, compliance costs, and potential litigation burdens paid for by taxpayers.
Most taxpayers (including low-income filers) will get faster, clearer case handling and outcomes: expanded e-filing/status updates, expedited TAS access, stricter refund-decision timelines, and more timely written explanations and administrative appeal rights.
Consumers gain stronger protections against dishonest preparers and higher return quality because of new preparer standards, background checks, education requirements, public error/discipline posting, cure opportunities before penalties, and criminal penalties for willful misconduct.
U.S. taxpayers living or doing transactions abroad get targeted relief and simplifications — higher de minimis for currency gains, aggregated foreign-earned-income elections, and extra time to request math-error abatements — reducing compliance complexity for many expats.
Broad expansion of electronic filing, publication of operational metrics, redisclosure to other agencies, and new lists/data-sharing increases the risk that sensitive taxpayer or victim data could be exposed through breaches or inadequate redaction.
Implementing new IT systems, reporting, preparer verification programs, expanded litigation processes, and special refund/abatement programs will raise administrative costs that are ultimately funded by taxpayers and may require increased IRS resources.
New preparer penalties, continuing-education and background-check requirements, magnetic-media filing for larger partnerships, and voluntary-withholding/withholding-classification changes will increase compliance costs and operational burdens for tax preparers, small businesses, partnerships, and some payors.
Based on analysis of 22 sections of legislative text.
Modernizes IRS services, mandates broader electronic filing/OCR, increases transparency, strengthens taxpayer advocate/appeals, updates penalties, and creates tax relief for unlawfully detained U.S. nationals.
Requires the IRS to expand and modernize taxpayer-facing services, increase electronic processing and transparency, and strengthen taxpayer protections and appeals. It changes tax administration rules — adding electronic filing and OCR requirements, publishing live call-center metrics, expanding Ombudsman and Appeals authorities, updating Tax Court and whistleblower procedures, adjusting preparer and withholding rules, and creating a refund/abatement program for U.S. nationals wrongfully detained abroad.