Press Releases

U.S. Representatives Nathaniel Moran (TX-01) and Terri Sewell (AL-07) secured overwhelming committee passage of the Tax Court Improvement Act by a vote of 40–0, bipartisan legislation that will streamline Tax Court procedures, provide additional rights for taxpayers, and increase internal accountability to improve the U.S. Tax Court system.

The bill makes four commonsense reforms to improve the Tax Court process:

• Equitable tolling of deadlines – gives the Tax Court discretion to extend filing deadlines when taxpayer reciprocity requires it, such as during courthouse closures or extraordinary circumstances.
• Expanded role for special trial judges – allows more types of cases to be heard by special trial judges upon consent of the taxpayer, as well as limited contempt authority to ensure compliance with court orders.
• Judicial disqualification standards – holds Tax Court judges to the same recusal standards as other federal judges, increasing public confidence in the system.
• Subpoena authority before hearings – empowers Tax Court judges to require documents earlier in the process, which will help settle cases faster and save taxpayers time and money. 

“As a former county judge, I recognize that process matters. Legal proceedings that are consistent, principled, and just lead to greater confidence in the outcome,” said Congressman Moran. “This bill ensures that taxpayers are not denied their day in court because of red tape, technicalities, or conflicts of interest. More is needed, but this is a good starting point. The Tax Court Improvement Act is bipartisan, balanced, and focused on one thing: protecting the rights of hardworking East Texans and Americans.”

“Taxpayers should feel confident that their disputes with the IRS will be handled fairly, efficiently, and transparently,” said Congresswoman Sewell. “This legislation makes commonsense reforms to our Tax Court system, removing burdensome barriers and streamlining processes for individuals and small businesses alike. It is an important step toward making our tax code fairer for hard working Alabama families.”

“Ways and Means Republicans have looked for every opportunity to strengthen taxpayer rights. I’m glad that we are ensuring Americans will receive fair treatment in Tax Court when challenging the IRS, one of the most feared government agencies,” said Ways and Means Committee Chairman Jason Smith (MO-08). “I want to thank Representative Moran for bringing his experience from back in East Texas to stand up for taxpayers across the country.”

In a show of support, Karen Kerrigan, President & CEO of the Small Business & Entrepreneurship Council, said: “SBE Council strongly supports H.R. 5349, the Tax Court Improvement Act. By streamlining Tax Court procedures, this legislation reduces costs, cuts delays, and upholds due process for small businesses. Prolonged disputes can bury entrepreneurs financially and emotionally, and we appreciate Representative Moran’s leadership in advancing this commonsense reform.”

The following statement of support for H.R. 5349 comes from David Williams, President of the Taxpayers Protection Alliance (TPA): “The Tax Court Improvement Act makes long-overdue updates to ensure that the U.S. Tax Court operates with the independence and fairness that taxpayers deserve. By clarifying procedures, modernizing operations, and strengthening safeguards for taxpayers, this legislation will ensure that Americans who cannot afford expensive legal representation still have a fair chance to present their case and resolve disputes efficiently.”

The following statement of support for H.R. 5349 comes from the National Taxpayers Union (NTU): “This legislation would clarify both points: explicitly authorize the Tax Court to equitably toll the 90-day deadline and to allow taxpayers who do file late to sue for refund in District Court without the Tax Court dismissal blocking their ability to do so.”

The Tax Court Improvement Act represents a bipartisan effort to ensure the nation’s tax collection system is not only in line with the law but also accessible and transparent to taxpayers.

Background

The U.S. Tax Court is a specialized court where taxpayers can dispute IRS determinations without first paying the disputed amount. Each year, thousands of taxpayers — many of them individuals and small businesses — turn to the Tax Court for a fair hearing.

Currently, gaps in the law make the process more burdensome than it should be:

• Subpoena limits prevent judges from requiring key documents early, delaying settlements.
• Special trial judges handle many cases, but their authority is restricted and inconsistent with the needs of taxpayers.
• Judicial recusal standards are not aligned with other federal courts, creating unnecessary questions of integrity.
• Rigid filing deadlines mean taxpayers can lose their right to a hearing through no fault of their own — for example, when a courthouse or online portal is closed.

The Tax Court Improvement Act addresses these issues directly, ensuring that taxpayers have confidence their cases will be handled fairly, efficiently, and transparently.

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