Sponsors (2)
Introduced February 26, 2026 by Michael Dean Crapo · Last progress February 26, 2026
The bill modernizes and clarifies tax administration—improving electronic service, taxpayer notices, appeals access, preparer standards, and some targeted relief—while increasing data‑sharing risks, implementation and compliance costs, and potential litigation/administrative burdens that may be borne by taxpayers and agencies.
Most taxpayers will get faster, more transparent service because the IRS must expand electronic filing/processing, provide APIs/dashboards and clearer electronic-timeliness rules so returns, refunds, and call-back services are processed and tracked more quickly.
Many taxpayers gain stronger procedural protections and clearer appeal paths because the bill requires clearer notice when credits are denied, expands appeal rights (including to the Independent Office of Appeals), modernizes Tax Court/small-claims rules, and strengthens TAS staffing and access.
Taxpayers should face fewer fraudulent or incompetent preparers because the bill tightens preparer identification, suitability, education requirements and penalties, improving return quality and remediation options.
Many taxpayers face a higher risk of sensitive data exposure because the bill increases online publication of refund/payment information, expands IRS data sharing and redisclosures (including to CBO), and broadens third‑party access surfaces.
Implementing dashboards, expanded electronic services, new filings/rules and database updates will require substantial IRS/agency IT investment and ongoing cybersecurity spending, likely increasing appropriations pressure and taxpayer‑funded costs.
Preparers, platforms, and some partnerships will face materially higher compliance costs (background checks, education, PTIN administration, magnetic‑media requirements, withholding administration) that may be passed on to taxpayers as higher fees.
Based on analysis of 22 sections of legislative text.
Modernizes IRS processing and transparency, strengthens taxpayer-advocate and appeals independence, tightens preparer penalties, boosts whistleblower protections, and allows refunds for wrongfully detained U.S. nationals.
Requires the IRS to accept and electronically process electronic returns, use OCR or similar tech to transcribe paper returns, and publish real-time call-center and processing dashboards. Strengthens taxpayer service and appeals independence by expanding the Office of the Taxpayer Advocate’s access and hiring authority and by authorizing in-house counsel in the Independent Office of Appeals. Updates Tax Court procedures and evidence/subpoena rules, tightens preparer and electronic-filing penalties, creates voluntary withholding agreements for some independent contractors, boosts whistleblower protections and awards procedures, and creates a program to allow refunds or abatements for U.S. nationals wrongfully detained or held hostage. It also directs studies and reports on burdens faced by U.S. persons living abroad and makes several technical and timing changes to filing and disclosure rules.