Small Business Taxpayer Bill of Rights Act of 2025
About This Bill
Committee
Latest Action · April 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.
The Small Business Taxpayer Bill of Rights Act of 2025 provides significant protections and remedies for small businesses (those with average annual gross receipts under $50 million) in disputes with the IRS. The bill removes net worth limits preventing small businesses from recovering attorney's fees and costs, increases civil damages from $1 million to $5 million for reckless IRS employee conduct with an extended 5-year statute of limitations, and strengthens penalties for unauthorized IRS disclosures and misconduct. Additional reforms include annual inflation adjustments to penalty thresholds, restrictions on IRS authority to raise new issues during appeals or place liens on primary residences, mandatory leave for employees who improperly review tax-exempt applications, and new deductions for audit defense expenses up to $5,000. The bill also requires Treasury Inspector General oversight of IRS audit selection for potential discrimination and expands economic hardship protections for business owners facing IRS levies.
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