A Republican bill with no cosponsors
Last activity — Read twice and referred to the Committee on Finance.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill amends the Internal Revenue Code of 1986 to eliminate specific enforcement units within the Internal Revenue Service that Congress considers duplicative and misguided. It targets specific pass-through entity units within the Large Business and International Division because other divisions already possess examination authority over those entities. The legislation prohibits the establishment or maintenance of any IRS entity whose substantial function materially duplicates existing examination functions. It establishes rules to make certain IRS notices void if issued by these prohibited units in violation of the law. Additionally, the bill allows taxpayers to sue the United States for actual damages, attorneys' fees, and costs if the IRS knowingly or negligently violates these prohibitions.
Yes· 3 of 6
- Scored +5
Would business owners be better off under this?
Business owners organized as pass-through entities benefit from the elimination of targeted, duplicative IRS enforcement units.
- Scored +5
Does this protect the right to fair treatment by the courts?
The bill protects taxpayers from duplicative or unauthorized IRS examinations and provides pathways to void improper notices and seek damages.
- Scored +4
Does this make it easier to run a small business?
The bill eliminates specific IRS enforcement units that target pass-through entities and partnerships, reducing administrative burdens on small and medium-sized business structures.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Protection from Duplicative IRS Units: Section 2 adds new section 7813(a) to the Internal Revenue Code, which abolishes the pass-through field operations unit and the Pass-Through Entities practice and compliance areas within the Large Business and International Division. This is considered positive because Congress found these structures to be materially duplicative since other divisions already possess the authority to examine pass-through entities.
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Voiding of Improper Tax Notices: Section 2 adds new section 7813(e)(2) to the Internal Revenue Code, which states that specific notices—such as notices of deficiency, notices of penalty, and notices of unpaid tax—are deemed void if prepared by a prohibited unit in violation of the law without identifying that violation. This protects taxpayers from having to respond to or comply with unauthorized administrative actions.
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Right to Sue for Damages: Section 2 adds new section 7813(f) to the Internal Revenue Code, granting taxpayers the ability to bring a civil action against the United States in a district court for actual damages, reasonable attorneys' fees, and costs if the Commissioner knowingly or negligently violates the prohibitions. This gives individuals a clear accountability mechanism when harmed by improper IRS operations.
Potential Negative Impacts for People
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Exhaustion of Administrative Remedies Required: Section 2 adds new section 7813(f)(3)(A) to the Internal Revenue Code, which requires taxpayers to exhaust all administrative remedies available within the Internal Revenue Service before a court can award a judgment for damages, fees, or costs. This could place a procedural and financial burden on individuals who must navigate internal agency processes before seeking relief in court.
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Short Time Limit to File Suits: Section 2 adds new section 7813(f)(3)(B) to the Internal Revenue Code, establishing a two-year period of limitation on suits starting from the taxpayer's discovery of the violation. This strict timeline could negatively impact individuals who fail to discover the violation within the two-year window, barring them from recovering damages.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would business owners be better off under this? — Business owners organized as pass-through entities benefit from the elimination of targeted, duplicative IRS enforcement units. Would high-income households be better off under this? — High-income earners operating or invested in large partnerships and pass-through entities receive protection from specialized IRS audit units. Would people with substantial wealth be better off under this? — High-net-worth individuals involved in partnerships benefit from reduced audit exposure under the prohibited IRS units.
- Governance And Ideology
- Does this protect the right to fair treatment by the courts? — The bill protects taxpayers from duplicative or unauthorized IRS examinations and provides pathways to void improper notices and seek damages. Does this make what the government does easier for the public to see? — The legislation establishes accountability mechanisms, voids unauthorized notices, and allows taxpayers to sue for damages in cases of IRS non-compliance.
- Economy And Finance
- Does this make it easier to run a small business? — The bill eliminates specific IRS enforcement units that target pass-through entities and partnerships, reducing administrative burdens on small and medium-sized business structures.
- 11/9/2026
- Read twice and referred to the Committee on Finance.
- Introduced in Senate