Bill · S. 5078· Senate(119-S-5078)
Small Tax Case Threshold Modernization Act
- Introduced
- 7/22/2026
- Last activity
- 7/22/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- John Cornyn
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
This bill, known as the "Small Tax Case Threshold Modernization Act," aims to change the Internal Revenue Code of 1986. It focuses on adjusting the threshold used for conducting Tax Court proceedings regarding small disputes. Specifically, the bill increases the current $50,000 threshold to $100,000. It also introduces a new mechanism to adjust this $100,000 amount for inflation starting after the year 2026. These changes would apply to proceedings that begin after the Act is enacted.
Yes· 3 of 5
Would business owners be better off under this?+5
Small business owners benefit from a higher threshold to resolve tax disputes more easily via the Tax Court.
Does this make it easier to run a small business?+4
By raising the Tax Court threshold to $100,000, the bill allows small business owners to resolve larger tax disputes through more streamlined small dispute proceedings.
Would middle-income households be better off under this?+3
Middle-income households facing tax disputes up to $100,000 gain access to more efficient small dispute proceedings.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Updated Dispute Thresholds: The bill increases the threshold for small disputes from $50,000 to $100,000 (Section 2(a)(1)), which adjusts how Tax Court proceedings are conducted.
-
Inflation Protection: The bill adds a new subsection that requires the $100,000 amount to be increased annually based on cost-of-living adjustments for calendar years beginning after 2026 (Section 2(a)(2)). This ensures the threshold remains adjusted for inflation over time.
Potential Negative Impacts for People
- No negative impacts are explicitly stated in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+5Good For Middle Class Households+3
- Governance And Ideology
- Improves Due Process+3Improves Government Transparency+2
- Economy And Finance
- Improves Small Business Support+4
- 7/22/2026
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
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.
Ben LujánDemocrat · New Mexico