Taxpayer Transparency and Notice Act

Key Points

• This bill requires the IRS to send notices every three months to people who owe unpaid taxes. Right now, the IRS is only required to send these notices once a year.
• The new notices must include an estimate of how much extra money the taxpayer will owe in penalties and interest if they do not pay their debt. This helps people see how much more expensive their bill will get over time.
• Each notice will also list programs and services that can help taxpayers pay what they owe. This is intended to help people find assistance before their debt becomes unmanageable.
• People who are already on an official payment plan or who have been told by the IRS that their debt cannot be collected will not receive these extra notices.
• If this bill becomes law, the IRS would have two years to update its systems before it has to start sending the more frequent notices.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.