H.R. 5349
TAS Act
Sponsor: Nathaniel Moran
1 cosponsor
Official summary
Written by the Congressional Research Service.
Tax Court Improvement Act
This bill expands the authority of the U.S. Tax Court to issue subpoenas, authorizes the Tax Court to extend certain petition deadlines, and makes other changes related to Tax Court procedures.
The bill authorizes the Tax Court to issue subpoenas compelling the production of documents and other items from a litigant or witness for evidentiary or discovery purposes (whether or not it is in connection with a scheduled hearing). (Under current law, the Tax Court may issue subpoenas only to compel the attendance and testimony of witnesses and the production of evidence at a scheduled hearing or deposition.)
The bill authorizes the Tax Court to extend (or toll) the deadline to file a Tax Court petition contesting an Internal Revenue Service (IRS) deficiency notice if it is equitable to do so (known as equitable tolling). Further, under the bill, the dismissal of a petition contesting an IRS deficiency notice because the petition is not filed before the deadline and equitable tolling is denied is not treated as a decision of the Tax Court. This allows a subsequent claim to be filed in U.S. district court if certain conditions are met.
The bill also
- expands the type of Tax Court proceedings for which special trial judges may be appointed,
- authorizes Tax Court special trial judges to impose fines up to $5,000 and up to 30 days in jail for contempt of court, and
- requires Tax Court judges and special trial judges to recuse themselves in certain circumstances.
Text of the bill
I Tax Administration and Customer Service
II American Citizens Abroad
III Judicial Review
IV Office of the Taxpayer Advocate
V Tax Return Preparers
VI Appeals
VII Whistleblowers
VIII Hostages
IX Small Businesses
X Miscellaneous
Where this section came from
Not in the first version (Introduced in House, Sep 15).
-
Sep 30, 2026 · Engrossed Amendment Senate S.Amdt. 6848: To amend the title. Official page › S.Amdt. 6847: In the nature of a substitute. Official page ›
(a) Criminal penalties
(1) In general. Paragraphs (1), (2), (3), (4), and (5) of section 7213(a) are each amended by striking $5,000, or imprisonment of not more than 5 years each place it appears and inserting $250,000, or imprisonment of not more than 7 years.
(2) Failure of contractors to maintain safeguards
(A) In general. Part I of subchapter A of chapter 75 of subtitle F is amended by inserting after section 7213A the following new section:
7213B. Failure of IRS contractors to maintain safeguards
(a) In general. In the case of a contractor of the Internal Revenue Service that willfully fails to implement or enforce any applicable requirement under section 6103 (or regulations prescribed thereunder) to protect the confidentiality of returns or return information, if such failure results in the unauthorized disclosure of returns or return information, such contractor shall be guilty of a felony and, upon conviction thereof, shall be fined the greater of—
(1) $500,000, or
(2) an amount equal to 25 percent of the specific contract with the Internal Revenue Service under which such contractor was provided access to the returns or return information related to the unauthorized disclosure.
(b) Definitions. For purposes of this section, the term contractor of the Internal Revenue Service means any person described in section 6103(n) (including any officer or employee of such person) in connection with a written contract with the Internal Revenue Service.
(B) Clerical amendment. The table of sections for part I of subchapter A of chapter 75 of subtitle F is amended by inserting after the item relating to section 7213A the following new item:
Sec. 7213B. Failure of IRS contractors to maintain safeguards.
(C) Conforming amendments
(i) Section 6103(e)(11) is amended by inserting 7213B, after 7213A,.
(ii) Section 6105(d) is amended by inserting 7213B, after 7213A,.
(iii) Section 7431(e) is amended by striking the first sentence and inserting the following:
If any person is criminally charged by indictment or information with— the Secretary shall notify such taxpayer as soon as practicable of such inspection or disclosure.
(1) inspection or disclosure of a taxpayer's return or return information in violation of—
(A) paragraph (1) or (2) of section 7213(a),
(B) section 7213A(a), or
(C) subparagraph (B) of section 1030(a)(2) of title 18, United States Code, or
(2) failure to protect the confidentiality of returns or return information which results in the unauthorized disclosure of the taxpayer's return or return information in violation of section 7213B(a),
(iv) Section 7513(c) is amended by striking section 7213 and inserting sections 7213 and 7213B.
(b) Civil damages. Section 7431(c)(1)(A) is amended by striking $1,000 and inserting $5,000.
(c) Effective date. The amendments made by this section shall apply to disclosures or inspections made after the date of the enactment of this Act.