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119-s-5441119th CongressWALLET

TAS Act

Sponsored By: Senator Crapo, Mike [R-ID]

In Committee

Summary

This bill would modernize IRS taxpayer service and transparency. It would push the IRS to digitize returns and correspondence, show real‑time call center and processing data, and give taxpayers and authorized representatives online status and document upload tools.

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Bill Overview

Analyzed Economic Effects

15 provisions identified: 7 benefits, 1 costs, 7 mixed.

Tax relief for wrongfully detained U.S. nationals

If enacted, the time a U.S. national was unlawfully detained or held hostage abroad would be disregarded for tax deadlines, penalties, interest, and related timing rules. The IRS must set up a program by January 1, 2027 so eligible individuals (or their spouse or dependent) can apply for refund or abatement of interest, penalties, and additions to tax for the applicable period. The applicable period begins January 1, 2021 and ends on the date of enactment. The Secretary of State and Attorney General must provide identifying lists and the IRS must meet notice deadlines (90 days after enactment for those already released; 90 days after release for later cases).

Higher penalties for tax data leaks

If enacted, criminal fines for willfully disclosing or inspecting tax return information would increase up to $250,000 and prison time could rise to 7 years. IRS contractors who willfully fail to protect return data and cause an unauthorized disclosure could face a felony fine equal to the greater of $500,000 or 25% of the contract. Civil damages for wrongful disclosure would rise to $5,000. These changes would apply to disclosures made after enactment.

Online IRS accounts and documents

If enacted, the IRS would create two online services for taxpayers. By about one year plus the next January 1 after enactment, you would be able to check individualized return and refund status on a website or app, including processing stage, refund issue date or estimate, and EFT or mailing details. By about 18 months plus the next January 1, you would be able to view and upload returns, notices, and correspondence for the prior six years and let authorized preparers or representatives access records. The IRS would run focus groups and publish actions taken against unauthorized access.

New rules and penalties for preparers

If enacted, paid tax preparers would face stricter ID, education, and background rules. The Secretary would run a PTIN program with suitability checks and up to 18 hours of annual education and could suspend or revoke PTINs and impose monetary penalties up to $5,000. The IRS must build a real-time EFIN validation program within 24 months and tax software would have to use it. Preparers who file with invalid IDs could face $250 per bad filing (capped at $75,000 per year). Willful failures to give a proper preparer ID could be a felony, with fines and up to 3 years in prison. The preparer-definition of 'return' would also be expanded so more documents can trigger penalties.

Clearer rules for child, student, and EITC denials

If enacted, deficiency notices that deny the Child Tax Credit, American Opportunity Tax Credit, or Earned Income Tax Credit would have to say which credit is denied, the grounds for denial, and how long any disallowance period would last. Notices would also warn that, unless overturned on appeal, the taxpayer could be barred from claiming the denied credit in later years unless they give required eligibility information. The new notice rules would apply to notices mailed 36 months after enactment and taxpayers could ask the Tax Court to redetermine disallowance periods for the year they were imposed.

Bigger penalties for tax preparers

If enacted, many civil penalties for paid tax return preparers would increase. Some fines would rise (for example, small penalties moving from about $50 to $250), caps in several subsections would be raised (including to $50,000 or $75,000), and a new misappropriation rule would require a preparer who steals a taxpayer payment to pay the greater of $1,000 or the full amount, unless the bank already paid the taxpayer. These changes would raise legal and financial risk for preparers while giving taxpayers stronger protection from preparer misconduct.

Faster IRS digital service and access

If enacted, the IRS would move most filing and customer service online and speed processing. Individual income returns would be required to be filed and processed electronically starting the first calendar year that begins more than 180 days after enactment. The IRS would use OCR or similar tech to read paper returns unless that tech is slower or less reliable. The bill would require a public, near-real-time phone dashboard and related monthly stats beginning 12 months after enactment. A mailbox rule for permitted electronic submissions would treat filings or payments as timely if authorized by the deadline and received within 3 business days (rule starts one year after enactment).

More Tax Court power and whistleblower fixes

If enacted, the Tax Court would get broader tools and reach. The Court could hear recovery suits for erroneously or illegally collected taxes up to $2,000,000 and allow small-dispute procedures for smaller refund petitions (rules apply to actions filed after 12 months). The Court could issue pre-hearing subpoenas and allow depositions under its rules. Whistleblowers could proceed anonymously in Tax Court unless the court finds a strong public interest in disclosure, and delayed whistleblower awards would earn statutory overpayment interest after a defined 'applicable date' (effective 180 days after enactment). The fraud-based assessment extension rule would be limited to cases where the taxpayer had intent to evade tax, with joint-return rules treating either spouse's intent as taxpayer intent.

Stronger appeal rights and notice rules

If enacted, taxpayers would get clearer review steps and more time to appeal before collection. The IRS must review refund claims within about 12 months and send a detailed written disallowance with instructions to appeal to the Independent Office of Appeals. If the IRS misses the review deadline, interest on overpayments would rise by 1 percentage point for the taxpayer, capped at $500 (inflation-adjusted after 2026). The bill would require preliminary notices and at least 60 days (120 days outside the U.S.) before assessing certain covered penalties, and it would require supervisory written approval before sending appealable penalty notices (applies to notices sent after 12 months). Collection Due Process rules would let the Tax Court determine and protect overpayments in disputes and stop the IRS from applying overpayments to disputed liabilities without consent. The law would also lengthen response time for math-error notices sent to persons outside the U.S. and require at least 45 days' notice before third-party contact when the taxpayer can reasonably provide the information.

Mixed changes to tax collection and hardship relief

If enacted, the bill would add new help for taxpayers in hardship but also limit some refunds. The IRS must set up a program within 12 months to identify taxpayers likely in economic hardship and tell them about partial-payment plans, offers-in-compromise, and 'currently not collectible' status. The fee to start an installment agreement would be waived for taxpayers with AGI at or below 250% of the poverty level (applies to agreements after 12 months). The IRS must send quarterly delinquency notices (starting 24 months after enactment). For accepted offers-in-compromise, the IRS would return any amounts collected above the agreed payments. But if you were classified as 'currently not collectible' before asking for a refund and you claimed the EITC that year, your refund could be limited to no more than the EITC amount (effective for offsets after 12 months). The law would also change the wrongful-levy return date to the date the IRS received the money and narrow when Taxpayer Advocate tolling applies.

Earlier filing rules for payers and contractors

If enacted, many payers would have earlier reporting deadlines and some partnerships would face new filing formats. Certain electronically filed information returns and IRA distribution reports would be due by January 31 for the prior year (applies to years after December 31, 2027). The IRS could require partnerships with more than 50 partners or $1,000,000 in assets to file returns on magnetic media starting the first calendar year after enactment. The estimated-tax reference date for farmers and fishermen would change from March 1 to April 15 for tax years after enactment. The law would also let payers and payees agree to voluntary withholding on non-wage payments (rules to be issued within 18 months). Some due-date rules for foreign gift and trust forms would be repealed for years after 2026.

IRS business child care liaison

If enacted, the IRS would appoint a Business Child Care Liaison to help employers and employees use employer-provided child care tax benefits. The Liaison would issue a preparer fact sheet and set up a SAM.gov link within 120 days. The Liaison would coordinate outreach, recommend changes, and send Congress an annual report each December 31 starting the year after enactment. Pay for the Liaison would be set at Executive Schedule level V.

Match rules for low-income clinics

If enacted, Low-Income Taxpayer Clinics that receive IRS grants would need to provide matching funds. The default match would be 100% of the grant, but the IRS Secretary could set a lower match not below 25%. Matching may include salaries and equipment, but not sponsoring-institution overhead. These rules would apply to calendar years beginning after enactment.

Limited tax data sharing with CBO

If enacted, the Director of the Congressional Budget Office could request that the Education Secretary get limited tax return data to help with certain education-loan work. The Education Secretary could share return information with CBO officers only as needed for those purposes. Education would have to report yearly to Treasury on how many redisclosures occurred and any unauthorized uses. The change would apply to redisclosures made after enactment.

New Tax Court dispute rules

If enacted, the bill would change how Tax Court and collection appeals work. Taxpayers disputing the amount or existence of tax in a Collection Due Process (CDP) appeal would have to raise that dispute in Tax Court or another Federal court, not inside the CDP appeal. The Tax Court could assign more cases to special trial judges with the parties' consent, but those judges would have limited contempt penalties. The Tax Court would also get clearer power to correct clerical mistakes and, in some cases, relieve parties from final judgments, with a one-year limit for certain motions and appellate rules for corrections.

Sponsors & CoSponsors

Sponsor

Crapo, Mike [R-ID]

ID • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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