S.1386

Small Business Taxpayer Bill of Rights Act of 2025 amends tax laws to enhance rights for small businesses.

The Small Business Taxpayer Bill of Rights Act of 2025 amends the Internal Revenue Code to enhance rights for small businesses. It increases civil damages for reckless or intentional disregard of tax laws, modifies standards for awarding costs and fees, and bans the IRS from raising new issues in internal appeals. The bill also increases penalties for unauthorized disclosures, bans ex parte discussions, and limits enforcement of liens against principal residences. It introduces a 10-year term limit for the National Taxpayer Advocate and allows a deduction for certain audit expenses.