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The House of Representatives unanimously passed a bipartisan tax reform bill on Monday, that was co-authored by East Texas Congressman Nathaniel Moran (TX-01) and Alabama Congresswoman Terri Sewell (AL-07).

The Tax Court Improvement Act proposed four major reforms aimed at benefiting American taxpayers. Those reforms are modernizing subpoena rules, reducing case backlogs, strengthening judicial ethics and restoring fairness through equitable tolling.

“For too long, the Tax Court has been outdated and inefficient and American taxpayers have paid the price,” Moran said. “This legislation delivers long-overdue updates that modernize the system, ensuring greater fairness and integrity and delivering real results for the American people.”

Modernizing Subpoena Rules:

Among the key reforms is an update to subpoena rules that would allow the U.S. Tax Court to accept documents without requiring taxpayers to appear in person, aligning its practices with other federal courts and easing the burden on filers.

Reducing Backlogs:

Moran said the bill allows special trial judges to take on more duties, issue certain final decisions and use limited contempt powers, similar to federal civil judges. He said the goal is to accelerate and streamline Tax Court cases.

Strengthening judicial ethics:

The legislation from Moran is aimed at boosting judicial ethics by clarifying when Tax Court judges should remove themselves from cases. Moran emphasized that the measure brings Tax Court standards in line with other federal courts, helping ensure fairness and maintain public trust in the judicial system.

Restoring fairness through equitable tolling:

The legislation restores fairness through equitable tolling, Moran explained, allowing taxpayers who miss filing deadlines due to circumstances beyond their control—such as illness, natural disasters, or incorrect information—to have their cases considered on the facts.

“Our constituents deserve a Tax Court that is efficient, fair and transparent,” Sewell said. “I was proud to work with my colleague Congressman Moran to lead the bipartisan Tax Court Improvement Act, which will have a tangible impact on the thousands of taxpayers and small businesses that utilize the court every year.”

Altogether, this bill aims to achieve three goals within the tax system: fairness, clarity and accountability, Moran explained.

“The result is simple: faster resolutions for taxpayers without sacrificing expertise on the bench, fairness in the process and integrity in the result,” Moran said. “These reforms make the tax court more efficient, more responsive and more just for the American taxpayer.”

By Avery Peck
KETK Reporter