Bill · S. 5141· Senate(119-S-5141)
A bill to amend the Internal Revenue Code of 1986 to improve the notice and review procedure with respect to multi-year bans on claiming credits.
- Introduced
- 7/28/2026
- Last activity
- 7/28/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Michael Bennet
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill amends the Internal Revenue Code of 1986 to improve notice and review procedures for multi-year bans on claiming specific tax credits. It requires the IRS to provide clearer explanations and grounds to taxpayers when denying credits like the child tax credit, American opportunity tax credit, or earned income tax credit. The legislation grants the Tax Court explicit jurisdiction to review and redetermine multi-year disallowance periods imposed on taxpayers. It also establishes rules regarding the burden of production for the application of any disallowance period to an individual. Furthermore, the bill provides transition rules and allows for refunds or credits of overpayments if the Tax Court determines a disallowance period was improperly imposed.
Yes· 3 of 7
Does this protect the right to fair treatment by the courts?+5
The bill enhances due process by granting Tax Court jurisdiction to review IRS disallowance periods and setting specific standards of proof.
Would households on low incomes be better off under this?+4
By strengthening the review of the Earned Income Tax Credit, the bill protects vulnerable low-income earners.
Does this make what the government does easier for the public to see?+4
The bill mandates specific notice requirements for the IRS regarding tax credit denials, increasing procedural transparency.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Better Notice of Credit Denials: Under Section 1(a), notices sent to taxpayers regarding deficiencies must explicitly identify the denied credits, provide grounds for the denial, and inform the taxpayer of the consequences for subsequent years. This ensures everyday people are not left in the dark about why their benefits were cut off.
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Access to Tax Court Review: Section 1(b) gives the Tax Court jurisdiction to review and redetermine multi-year bans related to the child tax credit, American opportunity tax credit, and earned income tax credit. This provides working families with a fair and independent venue to challenge unfair government actions.
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Refunds for Improper Bans: Section 1(b)(3)(D) states that if the Tax Court finds a disallowance period was improperly imposed, the affected taxpayer can receive a refund or credit for any resulting overpayment. This helps people recover money they rightfully earned and deserve.
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 Low Income Households+4Good For Children+2Good For Middle Class Households+2Good For Students+2
- Governance And Ideology
- Improves Due Process+5Improves Government Transparency+4
- Social Issues And Justice
- Improves Poverty Reduction+3
- 7/28/2026
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.