Bills · HR 2782
IN COMMITTEE· 119TH CONGRESS
House BillHR 2782Taxation
Small Business Taxpayer Bill of Rights Act of 2025
INTRO APR 9· LAST ACTION APR 9
READING
21MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it seeks to provide a more level playing field for small businesses when they are dealing with the powerful Internal Revenue Service. Currently, the cost of fighting the IRS can be a major deterrent for many businesses, even if they believe they are in the right. If this bill becomes law, small businesses would have stronger legal and financial protections, making it less risky for them to challenge the IRS if they feel they have been treated unfairly. This could lead to more fairness and accountability in tax administration.
If the bill does not become law, the existing limits on legal cost recovery, civil damages for IRS misconduct, and penalties for employee offenses would remain in place. This means that small businesses and individual taxpayers would continue to face the same financial hurdles and remedies when interacting with the IRS, which some argue gives the IRS too much leverage in disputes.
KEY PROVISIONS
5AI-extractedPROVISION 01
Removes the net worth limit for 'eligible small businesses' to recover legal and administrative costs from the IRS in tax disputes, defining such businesses as those with average gross receipts under $50 million.
This makes it financially easier for a broad range of small businesses to challenge the IRS in court without fear of insurmountable legal fees.
PROVISION 02
Increases the maximum civil damages taxpayers can claim from the U.S. government for IRS employee misconduct (e.g., reckless disregard of tax laws) from $1 million to $5 million, and for negligence from $100,000 to $500,000.
This significantly raises the financial consequences for IRS wrongdoing, aiming to increase accountability.
PROVISION 03
Extends the statute of limitations for taxpayers to file a lawsuit against the government for IRS employee misconduct from 2 years to 5 years.
This provides taxpayers with more time to discover and take action against potential IRS errors or abuses.
PROVISION 04
Increases the minimum civil damages a taxpayer can receive for unauthorized inspection or disclosure of their tax returns and information from $1,000 to $10,000.
This strengthens the privacy protections for taxpayer data by making unauthorized disclosures more costly to the government.
PROVISION 05
Increases the fines for IRS officers and employees who commit certain offenses in connection with revenue laws from $10,000 to $25,000 (and other fines from $5,000 to $10,000).
This provides a stronger deterrent against misconduct by IRS personnel.
SPONSORSHIP
1 + 0
R· Tennessee
YRS IN OFFICE
9
BILLS LED
31
ACTION TIMELINE
2 EVENTSAPR 9
Introduced in House
APR 9
Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
BILL INFO
TypeHouse Bill
NumberHR 2782
Congress119th
StatusIn Committee
IntroducedApr 9, 2025
Last actionApr 9, 2025
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IN COMMITTEE· 119TH CONGRESS · OVERSIGHT AND GOVERNMENT REFORM COMMITTEE · INTRODUCED APR 9, 2025
House BillHR 2782Taxation
Small Business Taxpayer Bill of Rights Act of 2025
INTRODUCED APR 9, 2025· LAST ACTION APR 9, 2025
PASSAGE CHANCES
—%
READING
21 min
COSPONSORS
0
COMPLEXITY
Moderate
