S.3931

S. 3931

February 26, 2026

Mr. Crapo (for himself and Mr. Wyden) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To improve services provided to taxpayers by the Internal Revenue Service.

1. Short title; etc; TITLE I—TAX ADMINISTRATION AND CUSTOMER SERVICE; 101. Digitization of tax returns and correspondence; 102. Establishment of dashboard to inform taxpayers of backlogs and wait times; 103. Expansion of electronic access to information about returns and refunds; 104. Expansion of callback technology; 105. Expansion of online accounts; 106. Automation of refund offset bypass; 107. Installment agreement fees eliminated for certain individuals; 108. Individuals facing economic hardships informed of collection alternatives; 109. Quarterly notices to certain taxpayers with delinquencies; 110. Low-income taxpayer clinic funding unlocked; 111. Chief Counsel reviews of offers-in-compromise streamlined; 112. Modification of procedural requirements for penalties and disallowance periods; 113. Return of amounts collected by IRS in excess of accepted offer-in-compromise amount; 114. Extension of period for return of amounts subject to wrongful levy; 115. Reports to Congress; TITLE II—AMERICAN CITIZENS ABROAD; 201. Report on combined tax and foreign bank and financial account reporting; 202. Study and reports on simplification; 203. Simplification of currency exchanges rules; 204. Increase in threshold for simplified foreign tax credit rules and reporting; 205. Extension of time for persons outside of the United States to request abatement of math error; TITLE III—JUDICIAL REVIEW; 301. Authorization of subpoenas before hearings to facilitate settlements; 302. Clarification of Tax Court authority to order relief from a judgment or order; 303. Authorization of special trial judges to hear additional cases and address contempt; 304. Disqualification of judges and special trial judges; 305. Notice and review with respect to multi-year bans on claiming credits; 306. Authorization of de novo review of innocent spouse relief by the Tax Court and other courts; 307. Clarification of certain court filing deadlines; 308. Clarification of Tax Court jurisdiction to determine tax liability in collection due process appeals; 309. Authorization of the Tax Court to issue refunds in collection due process cases; 310. Authorization of the Tax Court to hear suits for refunds or credits; 311. Authorization to use deficiency procedures for certain penalties; 312. Authorization to allow claims for refund in certain cases where full tax not paid; 313. Adjustment of threshold for small disputes; TITLE IV—OFFICE OF THE TAXPAYER ADVOCATE; 401. NTA authorization to direct hire attorneys; 402. NTA authorization to make personnel decisions; 403. Access to Internal Revenue Service information, legal advice, and meetings; 404. Repeal of limitation period suspension for taxpayers seeking assistance from TAS; 405. Operations to assist taxpayers experiencing hardships during lapse in appropriations; TITLE V—TAX RETURN PREPARERS; 501. Penalties for tax return preparers who improperly alter returns; 502. Penalties for failure to provide valid preparer identification numbers; 503. Penalties for improper tax preparation or misappropriation of refunds; 504. Authority to deny, revoke, or suspend preparer tax identification numbers; TITLE VI—APPEALS; 601. Authorization for Office of Appeals to hire attorneys; 602. Authorization for Office of Appeals to direct hire certain individuals; 603. Responses to claims for refund required; appeal of claims for refund authorized; 604. Appeals of returned offers; 605. Purposes and duties of Independent Office of Appeals; right of appeal clarified; TITLE VII—WHISTLEBLOWERS; 701. Standard and scope of review of whistleblower award determinations; 702. Exemption from sequestration; 703. Whistleblower privacy protections; 704. Modification of IRS whistleblower report; 705. Interest on whistleblower awards; 706. Correction regarding deductions for attorney’s fees; TITLE VIII—HOSTAGES; 801. Postponement of tax deadlines for hostages and individuals wrongfully detained abroad; 802. Refund and abatement of penalties and fines paid by eligible individuals; TITLE IX—SMALL BUSINESSES; 901. Implementation of voluntary withholding agreements for payments to independent contractors; 902. Establishment of failure-to-pay penalty safe harbor for individuals; 903. Extension of mailbox rule to electronic submissions and payments; 904. Specificity of third-party contact notices; TITLE X—MISCELLANEOUS; 1001. Authority for redisclosure of certain tax information related to education loans to the Congressional Budget Office; 1002. Authorization to require large partnerships to file on magnetic media; 1003. Limitation period not extended for victims of preparer fraud; 1004. Technical amendment related to the Disaster Related Extension of Deadlines Act

Assessment of certain penalties under deficiency procedures

Willful failure to provide a valid preparer identification number