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Read twice and referred to the Committee on Finance.
Introduced February 26, 2026 by Michael Dean Crapo · Last progress February 26, 2026
Adds a new clause (vii) to the redisclosure provisions permitting redisclosure of return information to officers and employees of the Congressional Budget Office upon written request by its Director; updates cross-reference enumerations to include the new clause; requires annual reporting by the Secretary of Education to the Secretary of the Treasury concerning such redisclosures and any unauthorized disclosures.
Revises paragraph (6) to require partnerships with more than 50 partners or $1,000,000 or more in assets to file returns on magnetic media, and redesignates an existing paragraph (6) (from a prior provision) as paragraph (7).
Inserts additional text into subsection (c)(1) (limited details provided in section) regarding the limitation period for assessments in cases involving preparer fraud victims.
Redesignates subsection (f) as subsection (g) (subsection (f) had been added by the Disaster Related Extension of Deadlines Act).
Adds new Section 7511 (Time for performing certain acts postponed for hostages and individuals wrongfully detained abroad) to Chapter 77 of Title 26, providing that periods of unlawful detention or hostage status are disregarded for certain tax timing, penalties, credits, and refunds; defines 'applicable individual'; requires information sharing by Secretary of State and Attorney General; requires Treasury database updates; and provides refund/abatement procedures and a program for eligible individuals.
Multiple amendments to subsection (b) of section 7623: replace language 'appealed to' with 'reviewed by', add that Tax Court review is de novo based on administrative record and newly discovered evidence; add whistleblower anonymity provision for Tax Court proceedings; add interest provision for awards; technical corrections re: cross-references; and clarifying amendments re: applicability/effective dates.
Adds an exemption to subsection (k) for awards authorized under 26 U.S.C. 7623 from reduction under sequestration orders; redesignates existing subsection (k) as (l).
Corrects a cross-reference by striking '7623(b)' and inserting '7623' in section 62(a)(21)(A)(i).
Amends subsection (e) provisions governing the Independent Office of Appeals: (1) grants the Chief of Appeals authority to appoint counsel who report directly to the Chief of Appeals and limits their reporting/representation and binding effect of their legal interpretations; (2) adds direct-hire authority to appoint non-IRS employees to the Independent Office of Appeals; (3) modifies purposes/duties to require evaluation of litigation hazards and revises right-of-appeal rules and exceptions.
Amends subsection (l) to require timely review and written explanations for refund disallowances, add interest increase and cap for failure to timely determine refunds (with inflation adjustment after 2026), provide appeal rights to the Independent Office of Appeals with suspension of the suit-for-refund filing period while appeal pending, define frivolous claims consequences, and define ‘applicable date’.
And 27 more affected sections...
Makes wide-ranging changes to how taxes are administered and disputes are handled. It requires the IRS to modernize electronic services and public reporting, tightens rules and penalties for paid preparers, strengthens independent taxpayer appeals and the Taxpayer Advocate, updates Tax Court procedures, adjusts some foreign‑reporting and currency rules for U.S. persons abroad, and revises whistleblower award procedures. It also creates a refund/abatement process for U.S. nationals wrongfully detained or held hostage abroad and adds several targeted procedural and reporting fixes. Overall, the bill focuses on improving taxpayer service and transparency, enhancing taxpayer protections and independent review, increasing enforcement and preparer accountability, and easing certain international reporting burdens, with multiple effective dates and implementation tasks for Treasury, the IRS, and other agencies.
The bill modernizes IRS service, expands procedural rights and taxpayer protections, and tightens preparer oversight—improving access and accountability for many Americans—while increasing data‑sharing, administrative costs, potential revenue impacts, and compliance burdens that raise privacy, cost,
Most taxpayers (individuals and businesses) will get faster, more convenient electronic filing, digitized paper processing, online return/refund status and dashboards, and API access that lets third-party tools surface IRS wait times and status information.
Taxpayers gain stronger procedural and judicial avenues to challenge IRS actions — expanded Tax Court review for certain credit denials and whistleblower claims, higher small-case thresholds, clearer discovery tools, and more refund/credit forums — improving access to justice and refund remedies.
Consumers and taxpayers will be better protected from dishonest preparers because PTIN issuance will require background/tax-compliance checks and education, disciplinary actions and public (redacted) disclosures will increase accountability, and electronic filers get correction opportunities to avoid penalties.
Low- and moderate-income taxpayers and those facing economic hardship get targeted relief and procedural protections — installment agreement fee waivers for qualifying taxpayers, proactive hardship identification and outreach, higher interest on late refunds, and administrative protections during shutdowns.
Expanded digitization, online access, public dashboards, APIs and broader internal access increase the risk that taxpayer data could be exposed, de‑anonymized, or misused, raising privacy and security concerns for very large numbers of taxpayers.
Many provisions require significant IRS/Treasury administrative work, new systems, and staffing (studies, reports, new enforcement regimes, identification processes and IT), potentially diverting resources from existing services and creating transition costs unless matched by funding.
Some taxpayer reliefs and indexed thresholds (fee waivers, foreign reporting simplifications, sequestration exemptions for whistleblower awards, detained-person refunds) reduce or shift federal receipts, creating modest budgetary costs that could require offsets or affect other programs.
New preparer requirements (education, background checks, enforcement exposure, higher civil and criminal penalties) will raise compliance costs for preparers, may push small or low-volume preparers out of the market, and could increase fees or reduce access to affordable preparers.
Establishes the Act's short title as the "Taxpayer Assistance and Service Act" and the abbreviation "TAS Act".
Specifies that, unless otherwise noted, amendments described in this Act refer to sections or provisions of the Internal Revenue Code of 1986.
Defines the term "Secretary" to mean the Secretary of the Treasury or the Secretary's delegate for purposes of the Act.
Includes a table of contents for the Act.
Allow taxpayers to file any required Federal tax return or amendment electronically and require the IRS to process electronically-filed returns electronically.
Who is affected and how:
Taxpayers: Broader online tools, faster processing, clearer notice rules, and new protections (safe harbor, hardship handling, extended mailbox rule). Individuals filing from abroad may face eased currency‑reporting thresholds and procedures. Victims wrongfully detained abroad gain penalty/interest waivers and a route for refunds.
Small businesses and gig/freelance workers: New voluntary withholding options for non‑wage payments change how independent contractors and payers handle tax withholding; filings and notices procedures may change timing and response obligations.
Paid tax return preparers: Stricter registration (PTIN), education and suitability checks, civil and criminal penalties for misuse, and possible suspensions or revocations increase compliance obligations and enforcement risk.
IRS, Treasury, GAO, DOJ, and State: Increased operational work to digitize records, build public dashboards, run studies and reports, update systems, and implement a refund program for wrongfully detained nationals. Appeals and OTA offices gain more independence and hiring authority, changing internal staffing and governance.
Tax Court and appeals process: Expanded jurisdictional and procedural rules alter litigation strategy, improve access to independent review, and create new avenues for refund and innocent spouse review.
Net effects: The bill aims to improve taxpayer service, transparency, and fairness while strengthening enforcement and preparer accountability. Implementation will require substantial IT upgrades, staffing changes, interagency coordination, and administrative rulemaking. Some taxpayers (especially low‑income, detained nationals, and those using paid preparers) are likely to see immediate benefits; preparers and the IRS will face new compliance and operational burdens.
Read twice and referred to the Committee on Finance.
Introduced in Senate
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