Taxpayer Due Process Enhancement Act
Summary
What This Bill Does
The bill limits suspension of refund-claim filing deadlines during collection due process proceedings to properly disputed liabilities and ends that tolling when the taxpayer loses the right to pursue the dispute, requires bars the IRS from applying a taxpayer's overpayment against a properly disputed underlying liability during a collection due process proceeding unless the taxpayer consents, and expands Tax Court review in collection due process cases to cover the determination, the properly disputed underlying liability, and equitable tolling issues even if the IRS drops the collection action. It relies on compliance mandates, private right of action, tax rate changes, and reporting requirements. The main policy areas are Tax Policy and Tax.
Who Benefits and How
Taxpayers seeking broader Tax Court review of collection due process determinations and underlying liabilities could face fewer barriers, Taxpayers whose overpayments cannot be applied against disputed liabilities during the pending proceeding could see lower costs, and Taxpayers disputing liabilities in collection due process proceedings could face reduced risk.
Who Bears the Burden and How
IRS collection officials operating under a narrower tolling rule for refund claims would take on compliance duties, IRS officials restricted from offsetting overpayments against certain disputed liabilities would take on compliance duties, and The Tax Court and IRS facing broader review and litigation demands in collection due process cases would take on compliance duties.
Key Provisions
- Limits suspension of refund-claim filing deadlines during collection due process proceedings to properly disputed liabilities and ends that tolling when the taxpayer loses the right to pursue the dispute.
- Requires bars the IRS from applying a taxpayer's overpayment against a properly disputed underlying liability during a collection due process proceeding unless the taxpayer consents.
- Expands Tax Court review in collection due process cases to cover the determination, the properly disputed underlying liability, and equitable tolling issues even if the IRS drops the collection action.
- Requires suspension of period of limitations on filing a claim for credit or refund during collection action proceedings Section 6330(e)(1) of the Internal Revenue Code of 1986 is amended by inserting subsection (a)...
- Requires expansion of jurisdiction of Tax Court Section 6330(d)(1) of the Internal Revenue Code of 1986 is amended to read as follows: (1)Petition for review by Tax Court (A)In generalIn the case of a determination...
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill limits suspension of refund-claim filing deadlines during collection due process proceedings to properly disputed liabilities and ends that tolling when the taxpayer loses the right to pursue the dispute, requires bars the IRS from applying a taxpayer's overpayment against a properly disputed underlying liability during a collection due process proceeding unless the taxpayer consents, and expands Tax Court review in collection due process cases to cover the determination, the properly disputed underlying liability, and equitable tolling issues even if the IRS drops the collection action.
Key Policy Areas
Tax Policy, Tax
Primary Purpose
The bill limits suspension of refund-claim filing deadlines during collection due process proceedings to properly disputed liabilities and ends that tolling when the taxpayer loses the right to pursue the dispute, requires bars the IRS from applying a taxpayer's overpayment against a properly disputed underlying liability during a collection due process proceeding unless the taxpayer consents, and expands Tax Court review in collection due process cases to cover the determination, the properly disputed underlying liability, and equitable tolling issues even if the IRS drops the collection action.
Policy Domains
Whole bill
Identified Gains
- Taxpayers seeking broader Tax Court review of collection due process determinations and underlying liabilities
- Taxpayers whose overpayments cannot be applied against disputed liabilities during the pending proceeding
- Taxpayers disputing liabilities in collection due process proceedings
- Public beneficiaries or protected communities affected by the clause
Identified Costs
- IRS collection officials operating under a narrower tolling rule for refund claims
- IRS officials restricted from offsetting overpayments against certain disputed liabilities
- The Tax Court and IRS facing broader review and litigation demands in collection due process cases
- Federal, state, or local agencies responsible for implementing the clause
- Regulated entities and members of the public affected by the bill
Sponsors
Legislative Progress
ReportedReceived in the Senate and Read twice and referred to …
Received; read twice and referred to the Committee on Finance
Motion to reconsider laid on the table Agreed to without …
Motion to reconsider laid on the table Agreed to without …
Mr. Smith (MO) moved to suspend the rules and pass …
Considered under suspension of the rules. (consideration: CR H3564-3567)
DEBATE - The House proceeded with forty minutes of debate …
Passed/agreed to in House: On motion to suspend the rules …
Reported with an amendment, committed to the Committee of the …
Reported (Amended) by the Committee on Ways and Means. H. …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Tax refund claimants, Taxpayers disputing liabilities in CDP hearings, Taxpayers disputing underlying liabilities
IRS Chief Counsel litigators, IRS collection officials, IRS offset-processing staff
Tax controversy attorneys, Tax professionals representing CDP petitioners
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
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