Sponsors (11)
The bill substantially strengthens IRS enforcement, data use, and modernization to raise revenue and improve services, while imposing new taxes, penalties, reporting burdens, and privacy risks that raise costs for affected taxpayers and increase federal spending.
Most taxpayers: increased enforcement and IRS capacity will raise tax compliance and government revenue, helping fund public services and reducing unfair tax avoidance.
Taxpayers and tax professionals: $20 billion for business system modernization should speed processing, reduce errors, and make interactions with the tax system more reliable.
Taxpayers seeking help: $10 billion for taxpayer services will improve customer service, making filing and getting assistance easier for many individuals and small businesses.
Wealthy taxpayers and some estates: a new recurring tax liability will raise tax bills and reduce after-tax wealth for those subject to the levy.
Taxpayers with hard-to-value assets: steep accuracy-related penalties (e.g., 50%/30%) plus loss of the §275 deduction increase the risk of heavy fines and raise net tax costs for businesses and individuals who use aggressive or uncertain valuations.
Many taxpayers and tax advisors: expanded compliance, valuation, and reporting requirements will increase tax-preparation, appraisal, and administrative costs.
Based on analysis of 4 sections of legislative text.
Establishes a new federal wealth tax with valuation penalties, anti‑evasion rules, payment-flexibility authority, and $100B in IRS funding for enforcement, services, and modernization.
Imposes a new federal "wealth tax" on ultra-high-net-worth individuals by adding a new chapter to the Internal Revenue Code, creates new valuation-related penalties and reporting rules, and gives the Treasury authority to write anti-evasion regulations and extend payment deadlines in hardship cases. It also authorizes $100 billion in Treasury/IRS funding across fiscal years 2027–2037 for enforcement, taxpayer services, and business system modernization, and requires Treasury reports to Congress on administration and enforcement.
Official title: Amend the Internal Revenue Code of 1986 to impose a tax on the net value of assets of a taxpayer, and for other purposes.
Introduced March 26, 2026 by Elizabeth Warren · Last progress March 26, 2026