Taxpayer Due Process Enhancement Act
Sponsors
Legislative Progress
IntroducedMr. Moran (for himself and Ms. Sewell) introduced the following …
Summary
What This Bill Does
The Taxpayer Due Process Enhancement Act strengthens protections for taxpayers who are disputing IRS collection actions like liens and levies. It addresses a fundamental fairness problem: currently, while taxpayers fight the IRS in administrative hearings, they can lose their right to claim refunds simply because the clock runs out, and the IRS can seize any refunds owed to offset the disputed debt.
Who Benefits and How
Individual taxpayers and small businesses disputing IRS collection actions benefit significantly. They gain three key protections: (1) the statute of limitations for claiming refunds is paused while they contest IRS actions, so they do not lose refund rights during lengthy disputes; (2) the IRS cannot seize their refunds to pay disputed tax debts until the dispute is resolved; and (3) they can challenge both the collection action and the underlying tax liability in a single Tax Court case, avoiding costly dual proceedings. Tax attorneys and practitioners also benefit from expanded work opportunities in Tax Court litigation.
Who Bears the Burden and How
The IRS faces increased administrative burden and reduced collection efficiency. The agency loses the ability to offset refunds against disputed liabilities during collection proceedings and must defend both collection determinations and underlying tax assessments in Tax Court. The federal government may experience delayed collection of legitimately owed taxes and temporarily reduced revenue. The U.S. Tax Court receives expanded jurisdiction, potentially increasing its caseload.
Key Provisions
- Suspends the statute of limitations for filing refund claims while a taxpayer contests IRS collection actions through Collection Due Process hearings
- Prohibits the IRS from using taxpayer refunds to offset disputed tax liabilities until the dispute is resolved (except with taxpayer consent)
- Expands Tax Court jurisdiction to review underlying tax liability in addition to collection determinations
- Allows Tax Court to consider equitable tolling for missed filing deadlines
- Retains Tax Court jurisdiction even if the IRS abandons the collection action
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Enhances taxpayer due process rights during IRS collection proceedings by suspending statutes of limitations, prohibiting offset of refunds against disputed liabilities, and expanding Tax Court jurisdiction.
Policy Domains
Legislative Strategy
"Strengthen taxpayer rights in disputes with the IRS by tolling limitation periods, protecting refunds from offset, and providing judicial review of underlying tax liabilities"
Likely Beneficiaries
- Individual taxpayers disputing IRS collection actions
- Small businesses facing IRS liens or levies
- Tax practitioners and attorneys representing taxpayers
- Tax Court and tax litigation practice
Likely Burden Bearers
- IRS and Treasury Department (reduced collection efficiency)
- Federal government (delayed tax collection, potential reduced revenue)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
- "the_secretary"
- → Secretary of the Treasury
- "the_secretary"
- → Secretary of the Treasury
Key Definitions
Terms defined in this bill
The statutory deadline (generally 3 years from filing or 2 years from payment) within which a taxpayer must file a claim for refund
Administrative hearings under IRC section 6320 or 6330 where taxpayers can challenge IRS collection actions including liens and levies
The tax liability that is the subject of the IRS collection action and can be disputed at a Collection Due Process hearing
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology