Bill · H.R. 2782· House(119-HR-2782)
Small Business Taxpayer Bill of Rights Act of 2025
- Introduced
- 4/9/2025
- Last activity
- 4/9/2025 — Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Sponsored by
- David Kustoff
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The Small Business Taxpayer Bill of Rights Act of 2025 aims to establish a new set of rights specifically for small business taxpayers. It seeks to modify several standards within the Internal Revenue Code to provide more protection against IRS actions. The bill includes provisions to increase civil damages for reckless or intentional disregard of laws and increases penalties for certain offenses by IRS employees. It also introduces new rules regarding independent conferences, dispute resolutions, and limitations on how the IRS can raise new issues during appeals. Additionally, the act establishes protections for principal residences and provides specific considerations for economic hardship regarding business levies.
Yes· 3 of 5
Would business owners be better off under this?+9
The bill is overwhelmingly beneficial for small business owners by increasing legal recourse and providing financial hardship protections.
Does this make it easier to run a small business?+8
The act significantly strengthens protections, dispute resolution options, and financial relief for small businesses facing IRS actions.
Does this protect the right to fair treatment by the courts?+7
The act provides significantly more due process protections for small business taxpayers during IRS audits and appeals.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Increased Financial Redress for Wrongful Treatment: The bill increases the amount of civil damages available for reckless or intentional disregard of internal revenue laws from $1,000,000 to $5,000,000 (Section 3) and increases damages for unauthorized inspection or disclosure of returns from $1,000 to $10,000 (Section 5).
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Extended Time to Seek Justice: The time allowed for taxpayers to bring actions regarding certain civil damages is extended from 2 years to 5 years (Section 3 and Section 5).
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Enhanced Fairness in Appeals: The bill prohibits the IRS from raising new issues or theories during an internal appeal that were not part of the initial determination (Section 10). It also grants taxpayers the right to an independent conference that does not include certain IRS personnel unless consented to (Section 7).
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Improved Dispute Resolution Options: Taxpayers may now request mediation or arbitration through the Independent Office of Appeals, including the option to use independent, neutral mediators (Section 8).
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Protection of Personal Property: The bill limits the enforcement of liens against a taxpayer's principal residence, provided specific economic hardship and property requirements are met (Section 11).
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Relief from Economic Hardship: The bill directs the Secretary to consider the economic viability of a business and the potential harm of liquidation when determining whether to release an IRS levy (Section 16).
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Tax Deductions for Audit Expenses: Individuals may be allowed a deduction of up to $5,000 for certain qualified expenses related to audits that result in no increase in tax liability (Section 14).
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Removal of Financial Barriers for Settlements: The act repeals the partial payment requirement for submitting offers-in-compromise (Section 17).
Potential Negative Impacts for People
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Increased Penalties for IRS Employees: The bill increases penalties for certain offenses by IRS officers and employees (Section 4) and increases penalties for unauthorized disclosures (Section 9).
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Mandatory Employment Termination: IRS employees may face mandatory termination of employment if there is a final determination that they engaged in prohibited ex parte communications (Section 6).
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Required Administrative Leave: Employees may be required to serve a period of not less than 90 days of unpaid administrative leave if the Commissioner takes a personnel action for certain misconduct (Section s 12).
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Cost Sharing for Mediation: Taxpayers who elect to have mediation conducted by an independent, neutral individual are required to share the costs of the mediator equally with the IRS Independent Office of Appeals (Section 8).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Small Business Support+8Reduces Small Business Taxes+3
- Governance And Ideology
- Improves Due Process+7Improves Government Transparency+4
- Demographic And Interest Groups
- Good For Business Owners+9
- 4/9/2025
- Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.