H.R. 5349

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5349 Referred in Senate (RFS)]

<DOC>
119th CONGRESS
1st Session
H. R. 5349

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

December 2, 2025

Received; read twice and referred to the Committee on Finance

_______________________________________________________________________

AN ACT

To amend the Internal Revenue Code of 1986 to improve services provided 
to taxpayers by the Internal Revenue Service by providing greater 
judicial review.

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.

Passed the House of Representatives December 1, 2025.

Attest:

KEVIN F. MCCUMBER,

Clerk.