[Congressional Record Volume 171, Number 200 (Monday, December 1, 2025)]
[House]
[Pages H4942-H4944]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TAX COURT IMPROVEMENT ACT
Mr. SMITH of Missouri. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 5349) to amend the Internal Revenue Code of 1986 to
improve services provided to taxpayers by the Internal Revenue Service
by providing greater judicial review, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 5349
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Tax Court
Improvement Act''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment is expressed in
terms of an amendment to a section or other provision, the
reference shall be considered to be made to a section or
other provision of the Internal Revenue Code of 1986.
(c) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; etc.
Sec. 2. Authorization of subpoenas before hearings to facilitate
settlements.
Sec. 3. Authorization of special trial judges to hear additional cases
and address contempt.
Sec. 4. Disqualification of judges and special trial judges.
Sec. 5. Clarification of Tax Court jurisdiction to apply equitable
tolling in deficiency cases.
SEC. 2. AUTHORIZATION OF SUBPOENAS BEFORE HEARINGS TO
FACILITATE SETTLEMENTS.
Section 7456(a) is amended to read as follows:
``(a) In General.--
``(1) Administration of oaths.--For the efficient
administration of the functions vested in the Tax Court or
any division thereof, any judge or special trial judge, the
clerk or the clerk's deputies, as such, or any other employee
of the Tax Court designated in writing for the purpose by the
chief judge, may administer oaths or affirmations.
``(2) Subpoena authority.--Any judge or special trial judge
may examine witnesses and require, by subpoena ordered by the
Tax Court or any division thereof and signed by the judge or
special trial judge (or by the clerk of the Tax Court or by
any other employee of the Tax Court when acting as deputy
clerk), any of the following:
``(A) The attendance of parties or witnesses.
``(B) The production of books, papers, documents,
electronically stored information, or tangible things from
any place in the United States by any party or witness having
custody or control thereof for purposes of discovery or for
use of the things produced as evidence in accordance with the
rules and orders of the Tax Court.
Any such subpoena shall be issued and served, and compliance
therewith shall be compelled, as provided in the rules and
orders of the Tax Court.
``(3) Depositions.--Pursuant to rules and orders of the
Court, the deposition of a witness may be taken before any
designated individual competent to administer oaths under
this title. Any deposition testimony shall be reduced to
writing by the individual taking the deposition, or under
such individual's direction, and shall be subscribed by the
deponent.''.
SEC. 3. AUTHORIZATION OF SPECIAL TRIAL JUDGES TO HEAR
ADDITIONAL CASES AND ADDRESS CONTEMPT.
(a) Consent to Assignment.--Section 7443A(b) is amended by
striking ``and'' at the end of paragraph (6), by
redesignating paragraph (7) as paragraph (8), and by
inserting after paragraph (6) the following new paragraph:
``(7) upon the consent of the parties, and pursuant to
rules promulgated by the Tax Court, any proceeding not
described in paragraphs (1) through (6), and'', and
(b) Authorizing Special Trial Judge.--Section 7443A(c) is
amended by striking ``or (6)'' and inserting ``(6), or (7)''.
(c) Contempt Authority.--Section 7443A is amended by adding
at the end the following new subsection:
``(f) Incidental Powers.--A special trial judge appointed
under this section shall have the power to punish for
contempt of the authority of the Tax Court as provided in
section 7456(c), except the sentence imposed by such a
special trial judge for any contempt shall not exceed the
penalties for a Class C misdemeanor as set forth in sections
3571(b)(6) and 3581(b)(8) of title 18, United States Code.
This subsection shall not be construed to limit the authority
of a special trial judge to order sanctions under any other
statute or any rule of the Tax Court prescribed pursuant to
section 7453.''.
(d) Effective Date.--The amendments made by subsections (a)
and (b) shall take effect on the date the United States Tax
Court adopts rules implementing the consent procedures of
section 7443A.
SEC. 4. DISQUALIFICATION OF JUDGES AND SPECIAL TRIAL JUDGES.
(a) In General.--Part II of subchapter C of chapter 76 is
amended by adding at the end the following new section:
``SEC. 7467. DISQUALIFICATION OF JUDGE OR SPECIAL TRIAL
JUDGE.
``Section 455 of title 28, United States Code, shall apply
to judges, special trial judges, and proceedings of the Tax
Court.''.
(b) Clerical Amendment.--The table of sections for such
part is amended by adding at the end the following new item:
``Sec. 7467. Disqualification of judge or special trial judge.''.
SEC. 5. CLARIFICATION OF TAX COURT JURISDICTION TO APPLY
EQUITABLE TOLLING IN DEFICIENCY CASES.
(a) In General.--Section 7451(b) is amended to read as
follows:
``(b) Tolling of Time.--
``(1) In general.--The Tax Court shall have jurisdiction to
toll the period for filing a petition under section 6213(a)
in cases in which the Tax Court determines based on the facts
and circumstances that equity warrants such tolling.
``(2) Rules for inaccessible filing locations.--
``(A) In general.--Notwithstanding any other provision of
this title, in any case (including by reason of a lapse in
appropriations) in which a filing location is inaccessible or
otherwise unavailable to the general public on the date a
petition is due, the relevant time period for filing such
petition shall be tolled for the number of days within the
period of inaccessibility plus an additional 14 days.
``(B) Filing location.--For purposes of this paragraph, the
term `filing location' means--
``(i) the office of the clerk of the Tax Court, or
``(ii) any on-line portal made available by the Tax Court
for electronic filing of petitions.''.
(b) Conforming Amendment.--Section 7459(d) is amended--
(1) by striking ``If a petition'' and inserting the
following:
``(1) In general.--If a petition'', and
(2) by adding at the end the following new paragraph:
``(2) Exception.--Paragraph (1) shall not apply with
respect to any dismissal which is solely based on a
determination of the Tax Court not to toll the period for
filing a petition under section 6213(a).''.
(c) Effective Date.--The amendments made by this section
shall apply to filings made after the date of the enactment
of this Act.
(d) No Inference.--The amendment made by subsections (a)
shall not be construed to create any inference with respect
to the jurisdiction of the Tax Court with respect to any
petition filed on or before the date of the enactment of this
Act.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Missouri (Mr. Smith) and the gentlewoman from Alabama (Ms. Sewell) each
will control 20 minutes.
The Chair recognizes the gentleman from Missouri.
General Leave
Mr. SMITH of Missouri. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days to revise and extend their remarks
and include extraneous material on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Missouri?
There was no objection.
Mr. SMITH of Missouri. Mr. Speaker, I yield myself such time as I may
consume.
{time} 1730
Mr. Speaker, I rise in support of the Tax Court Improvement Act,
bipartisan legislation introduced by Representatives Nathaniel Moran
and Terri Sewell. As a former judge, Congressman Moran knows the
importance of fully protecting Americans' legal rights and due process,
and I appreciate his leadership on this issue.
This bill strengthens taxpayer rights during judicial proceedings
before the U.S. Tax Court.
The court will be able to more expeditiously resolve cases as the
legislation enhances the efficiency of its judicial review to the
benefit of the taxpayer. This will increase the court's productivity,
and Tax Court judges will also be held to the same disqualification
standards as other judges. Finally, the court will now have the ability
to extend taxpayer deadlines where timely filing is impractical.
The U.S. Tax Court is the only venue where taxpayers can dispute a
tax estimate without first paying that tax. Taxpayers must stand on
equal footing when going toe-to-toe with the IRS. Without the guarantee
of rights, taxpayers are put in a situation where the
[[Page H4943]]
IRS is essentially saying: Heads, I win. Tails, you lose.
Mr. Speaker, I ask my colleagues to stand with American taxpayers and
support this legislation, and I reserve the balance of my time.
Ms. SEWELL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I thank Chairman Smith for bringing this bill to the
floor.
I rise in support of H.R. 5349, the Tax Court Improvement Act, which
passed the Committee on Ways and Means with overwhelming bipartisan
support.
Mr. Speaker, I thank my cosponsor and colleague, Mr. Moran of Texas,
for his leadership and for working with me on this important
legislation. I also thank the gentleman from Texas for the smoked
turkey he sent to several members of our committee.
The Tax Court has a very important impact on everyday Americans. It
provides individuals and businesses with an opportunity to be heard in
court to challenge the Internal Revenue Service before paying a
disputed tax. Our committee is always looking for ways to make the Tax
Court more efficient and fairer for the taxpayer, and that is why we
are here today.
The Tax Court Improvement Act will strengthen Tax Court procedures
and practices by making four commonsense reforms. The act will
accelerate the collection of documents, expand the types of cases
assigned to special trial judges, hold Tax Court judges to the same
recusal standards as other Federal judges, and allow the deadline for
petitions to be extended in certain circumstances.
These improvements to the Tax Court will have a tangible impact on
thousands of taxpayers, and it will raise $6 million over the next 10
years.
Given the importance of the Tax Court, I urge my colleagues on both
sides of the aisle to support this important legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. SMITH of Missouri. Mr. Speaker, I yield such time as he may
consume to the gentleman from Texas (Mr. Moran).
Mr. MORAN. Mr. Speaker, I rise today in strong support of the Tax
Court Improvement Act. This taxpayer-friendly bill significantly
improves the critical Tax Court process available to Americans who find
themselves in a dispute with the IRS.
Mr. Speaker, I thank specifically Representative Terri Sewell, who
joined me in coauthoring this bill, for recognizing that taxpayers
deserve a court process that is clear, timely, efficient, and just. Her
work on this bill reflects our joint commitment to the people we serve.
For too long, the Tax Court has operated under preexisting rules that
do not mirror many of the well-established procedures for other courts
and rules that are antiquated in their application.
In short, changes need to be made so that the Tax Court process works
better for the people that it serves. When a system is slow or
confusing, the burden falls on taxpayers, often at moments when they
are already under stress. This bill provides practical updates that
help the court do its job more effectively, and it helps taxpayers find
resolution more easily and quickly.
First, this bill modernizes the court's subpoena rules. Today, if
someone is subpoenaed to produce documents before the Tax Court, they
must show up in person. This wastes time, adds expense, and clogs an
already full docket. Other Article I and Article III courts already
allow documents to be submitted, at times, without requiring physical
appearance. This bill, likewise, gives the Tax Court the same
commonsense flexibility, allowing judges to decide when someone truly
needs to appear in person.
Second, the bill helps the court address its growing case backlog. It
does this by allowing special trial judges, who are experienced legal
professionals who already handle much of the court's work, to take on
additional responsibilities with the consent of the taxpayer. If the
taxpayer agrees, these special trial judges can hear certain additional
matters, issue final decisions in specific cases, and use limited
contempt authority to maintain order. This is similar to how magistrate
judges currently assist Federal district court judges to streamline
their dockets when consent of the parties exists. The result is simple:
faster resolution for taxpayers without sacrificing expertise on the
bench, fairness in the process, or integrity in the result.
Third, the bill strengthens public trust by creating clear ethical
standards for Tax Court judges. Article III judges already have
statutory recusal rules. Currently, Tax Court judges do not. Codifying
disqualification requirements ensures that taxpayers know that their
case will be heard by a judge who is impartial and above reproach. This
change helps to take away any indicia of impropriety in the process,
again giving weight to the soundness of the final judgment.
Finally, this legislation clarifies the court's authority to use
equitable tolling in deficiency cases. Today, if a taxpayer misses a
filing deadline, even due to illness, natural disaster, or being given
incorrect information, the court often has no ability to offer relief
to that taxpayer. Cases can be dismissed before the merits are even
heard, putting taxpayers at risk for losing their claim when they are
not at fault for missing the deadline. That is not a just result. This
bill ensures the court can make determinations based on the substance
of claims, not just procedural technicalities, especially when a
taxpayer is acting in good faith.
Taken together, these reforms make the Tax Court more efficient,
responsive, and just for the American taxpayer. They reflect these
values that guide our work in this Chamber: strong institutions, fair
treatment for taxpayers, and renewed trust in our government processes.
This is a measured, practical bill that passed unanimously in
committee, and it deserves the support of this House on both sides of
the aisle.
I urge my colleagues to vote for the Tax Court Improvement Act to
help strengthen a court process that plays a vital role in protecting
our taxpayers' rights and ensuring accountability of the IRS within our
tax system.
Ms. SEWELL. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, in closing, in support of H.R. 5349, the Tax Court
Improvement Act, is the fact that we want more commonsense, bipartisan
efforts to modernize our Tax Court system.
At its heart, this bill strengthens taxpayer rights and removes
unnecessary procedural roadblocks. Specifically, it authorizes the Tax
Court to issue subpoenas before hearings. That means third parties can
be compelled to produce relevant documents, electronic records, and
other evidence early, facilitating settlement, reducing the need for
protracted litigation, and helping to resolve disputes sooner rather
than later.
This bill also expands the role of special trial court judges,
allowing them to hear additional cases and act when there are issues
such as contempt, thereby helping to clear backlogs and improving the
court's overall input.
It holds Tax Court judges and special trial judges to the same
ethical and disqualification standards as other Federal judges,
ensuring transparency and integrity in every case.
This bill also clarifies that the Tax Court has the jurisdiction to
grant equitable tolling in deficiency cases. In other words, the court
can expand and extend deadlines when timely filings were impossible and
impractical to make.
These reforms are not radical. They are commonsense improvements
designed to deliver timely justice, lower court costs, and greater
access for everyday Americans, small businesses, and those who
currently face intimidating and burdensome procedures.
In a system where there are high stakes for individuals, families,
and entrepreneurs, there is nothing uncommon or unreasonable about
expecting a fair shot, swift resolution, and procedures that reflect
modern realities. That is exactly what H.R. 5349 delivers.
{time} 1740
Passing this legislation is a statement that we believe in a tax
system where accountability, transparency, and due process matter, not
just for the wealthy or well-connected, but for all Americans.
Mr. Speaker, I urge my colleagues on both sides of the aisle to
support H.R. 5349 and deliver on commonsense Tax Court reform.
[[Page H4944]]
Mr. Speaker, I yield back the balance of my time.
Mr. SMITH of Missouri. Mr. Speaker, I yield myself the balance of my
time.
Mr. Speaker, the Ways and Means Committee has been working tirelessly
to strengthen taxpayer rights. This year alone, the committee has
approved several pieces of legislation giving taxpayers fairer
treatment. The Tax Court Improvement Act is another one of these
solutions.
The IRS is the most feared Federal agency for good reason, but we are
working to change that. In addition to pursuing partisan aims, it has a
long-documented history of treating taxpayer rights as mere
suggestions.
This bill will give taxpayers more confidence and greater protections
when litigating their case before the U.S. Tax Court.
Mr. Speaker, I thank Congressman Moran and Congresswoman Sewell for
championing taxpayer rights. This bill received total support in the
Ways and Means Committee, and I urge all my colleagues to do the same
here in the House.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Missouri (Mr. Smith) that the House suspend the rules
and pass the bill, H.R. 5349, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________