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 modernizes and speeds IRS operations, expands taxpayer rights and appeal routes, and tightens preparer standards—improving service and protections for many—while increasing data‑sharing, privacy risks, compliance/administrative costs, and potential litigation and transition complexity.
Most taxpayers will get faster, clearer electronic processing: expanded e‑filing/status updates, clearer refund/payment status and estimated dates, an electronic-mailbox rule protecting timely electronic submissions, and procedural deadlines for quicker IRS refund determinations.
Taxpayers gain stronger, more accessible dispute-resolution options: expanded Tax Court jurisdiction and subpoena power, new administrative appeal rights to an independent Office of Appeals, and faster Taxpayer Advocate Service (TAS) access and staffing to help resolve disputes and statutory reports.
Consumers get better protections against bad preparers: mandatory preparer standards, background checks, continuing education, public posting of frequent preparer errors/discipline, cure opportunities before ID‑number penalties, and criminal penalties for willful misconduct.
Expanding e‑filing, electronic portals, broader redisclosure (e.g., to CBO), public posting, and new data exchanges increases the number of access points for sensitive tax and student‑loan data, raising meaningful privacy and data‑security risks for taxpayers and victims if redaction/encryption is inadequate.
The bill will raise administrative and compliance costs across the board: IRS implementation and reporting expenses funded by taxpayers; new IT and filing requirements for partnerships; preparer licensing/education and background-check costs; and added outlays for whistleblower interest/awards.
Several provisions expand litigation risk, procedural complexity, and transitional uncertainty: broader Tax Court jurisdiction and de novo review can increase lawsuits and costs, delayed implementation windows create uncertainty, and new jurisdictional/filing rules may prompt forum‑shopping and procedural disputes.
Based on analysis of 22 sections of legislative text.
Modernizes IRS processing and transparency, tightens preparer/EFIN penalties, updates Tax Court/appeals rules, creates withholding authority, and provides tax relief for nationals detained abroad.
Modernizes IRS operations, strengthens taxpayer assistance, and updates tax administration rules. The bill requires broad electronic processing and OCR transcription, increases public IRS call-center transparency, revises Tax Court and Appeals office authorities and procedures, adjusts preparer and filing penalties, creates voluntary withholding rules for certain non‑wage payments, improves whistleblower procedures, and establishes tax relief for U.S. nationals unlawfully detained abroad. It also directs studies and reports on burdens facing U.S. persons living abroad, expands taxpayer advocate access and staffing authorities, and adds targeted disclosure authority for the CBO to obtain certain education‑loan tax information. Many provisions change Internal Revenue Code rules and create new IRS programs or procedural requirements with phased effective dates for different taxpayer types and functions.