Tax Credits: New Protections Against Multi-Year Bans
A senate committee must act next: committee consideration.
While the bill helps regular taxpayers, it was just introduced and faces a long road through the committee process before it can reach a full vote.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
Families and students who claim the American Opportunity Tax Credit and get flagged for a multi-year disallowance would get the same expanded notice rights and Tax Court review as other affected credit claimants. This could reduce the chance of losing access to education tax benefits without a clear explanation or fair appeal process.
“The Tax Court shall have jurisdiction-- ``(A) to redetermine the imposition of any disallowance period with respect to any credit under section 24, 25A, or 32 for the taxable year in which such disallowance period was imposed if the deficiency relates to such taxable year,”
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
The bill includes provisions to grant the Tax Court jurisdiction to review and redetermine the IRS's imposition of multi-year bans (2-year or 10-year bans) on claiming the EITC, CTC, or AOTC, requiring the IRS to explain the ban in a notice of deficiency.
The TAS Act includes over 60 bipartisan proposals to improve the taxpayer experience. Key provisions include expanding U.S. Tax Court jurisdiction to hear cases relating to refunds and multi-year credit bans, and requiring supervisory approval for certain penalties.
A bipartisan bill focused on improving customer service at the IRS, the Taxpayer Assistance and Service Act, advanced in a 26-1 vote. The package includes reforms to improve the taxpayer experience and strengthen rights during the filing and appeals process.
No votes or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
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.
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