Small Business Taxpayer Bill of Rights Act of 2015

Bill: 114-s-949
Sponsor: Sen. Cornyn, John [R-TX]
Introduced: 2015-04-15 in the Senate
Policy area: Taxation
Subjects: Administrative remedies
Alternative dispute resolution, mediation, arbitration
Bankruptcy
Civil actions and liability
Congressional oversight
Department of the Treasury
Employee leave
Federal appellate courts
Government employee pay, benefits, personnel management
Government ethics and transparency, public corruption
Government liability
Government studies and investigations
Housing finance and home ownership
Internal Revenue Service (IRS)
Jurisdiction and venue
Legal fees and court costs
Political movements and philosophies
Racial and ethnic relations
Religion
Right of privacy
Small business
Social work, volunteer service, charitable organizations
Specialized courts
Tax administration and collection, taxpayers
Tax-exempt organizations
User charges and fees

Summary:
action_date: 2015-04-15
text: 

Small Business Taxpayer Bill of Rights Act of 2015 

 
 Amends the Internal Revenue Code to: (1) allow businesses with average annual gross receipts of not more than $50,000 that prevail in an administrative or court proceeding involving the determination, collection, or refund of tax, interest, or penalty to recover their costs incurred in such proceedings; (2) increase the amount of civil damages against Internal Revenue Service (IRS) officers or employees for reckless, intentional, or negligent disregard of internal revenue laws and extend from two to five years the period for bringing a claim for damages; (3) increase the penalties against federal officers or employees for unlawful acts in connection with internal revenue laws and for unauthorized disclosures or inspections of tax returns; and (4) allow a taxpayer whose interest abatement claim does not exceed $50,000 to elect to bring a small tax case petition in U.S. Tax Court.
 
Prohibits ex parte communications between officers in the IRS Office of Appeals and other IRS employees with respect to matters pending before such officers and employees. 
 
Authorizes new alternative dispute resolution procedures for taxpayer disputes with the IRS.
 
Extends to three years: (1) the period in which taxpayer property that has been wrongfully levied upon may be returned, and (2) the period for bringing suit against the United States for a wrongful tax levy.
 
Authorizes the waiver of the fee for establishing an installment agreement for payment of tax for certain low-income taxpayers who agree to make electronic debit payments. 
 
 Allows a taxpayer seeking review of a claim for innocent spouse relief or of a collection case in U.S. Tax Court a 60-day suspension of the period for filing a petition for such review when the U.S. Bankruptcy Court has issued an automatic stay in a bankruptcy case involving the taxpayer's claim.
 
Allows de novo review in U.S. Tax Court of any determination by the IRS with respect to a claim for equitable innocent spouse relief. 
 
Prohibits the IRS Office of Appeals from considering or deciding any new issue in an internal appeal that is not within the scope of the initial determination made in a taxpayer's case. 
 
Prohibits the imposition of a tax lien against a taxpayer's principal residence unless a written determination is made that all other property of the taxpayer, if sold, is insufficient to pay the tax liability and the lien will not create an economic hardship for the taxpayer.
 
Requires the termination of an IRS employee for disproportionate scrutiny of an organization applying for tax-exempt status based on the ideology expressed in the name or purpose of the organization;
 
Authorizes a court to issue a declaratory judgment with respect to the initial or continuing classification of a tax-exempt social welfare organization;
 
Requires the Inspector General for Tax Administration of the Department of the Treasury to: (1) review any IRS criteria for selection of tax returns for examination or audit, assessment or collection of deficiencies, criminal investigation or referral, refunds for amounts paid, or any heightened scrutiny or review to determine whether such criteria discriminates against taxpayers on the basis of race, religion, or political ideology; and (2) consult with the IRS on recommended amendments to such criteria.


Legislative actions:
action_date: 2015-04-15
text: Read twice and referred to the Committee on Finance.
action_date: 2015-04-15
text: Introduced in Senate