Legislative update: Senate passes bipartisan tax administration reform package
The Taxpayer Assistance and Service Act would make wide-ranging changes to IRS taxpayer service, procedure and administration.
The U.S. Senate last night passed by unanimous consent the “Taxpayer Assistance and Service Act,” a wide-ranging bipartisan tax administration reform package.
As described in a Senate Finance Committee release when the legislation was introduced, the legislation “combines legislative proposals recommended by the National Taxpayer Advocate with standalone tax administration bills introduced by congressional members designed to improve communication between the IRS and taxpayers, streamline processes for tax compliance and ensure taxpayers have access to timely expert assistance, among other much-needed reforms.” Among other things, the legislation would:
- Digitize more tax returns to support faster refunds
- Upgrade the “Where’s My Refund” tools so taxpayers know when to expect their refunds and what to do if they are delayed
- Upgrade IRS online accounts so taxpayers and their representatives can review their returns and correspondence and respond to the IRS online
- Protect taxpayers by strengthening standards for paid tax preparers
- Expand IRS call-back options so taxpayers can request a return call more often and from more IRS phone numbers
- Allow the U.S. Tax Court to hear cases relating to refunds
- Increase the independence of the National Taxpayer Advocate and the IRS Independent Office of Appeals
- Protect victims of fraud from indefinite IRS scrutiny
In addition, the Senate on September 29, 2026, passed by unanimous consent H.R. 997, the “National Taxpayer Advocate Enhancement Act of 2025,” which would allow the national taxpayer advocate to appoint attorneys that report directly to its office—a proposal that was also included in the Taxpayer Assistance and Service Act. The bill passed the House in March 2025 and now awaits the president’s signature.
Next steps
The U.S. House of Representatives can consider the bill after it returns on November 9, 2026. The House Ways and Means Committee and the full House have both approved various individual taxpayer service and administration bills over the last year, but the House has yet to consider the full package of legislative proposals now approved by the Senate.