S. 4761

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4761 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 4761

To amend the Internal Revenue Code of 1986 to clarify the authority of 
the Tax Court to order relief from a judgment or order.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

June 11, 2026

Mr. Scott of South Carolina (for himself and Ms. Hassan) introduced the 
following bill; which was read twice and referred to the Committee on 
Finance

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to clarify the authority of 
the Tax Court to order relief from a judgment or order.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Tax Court Parity Act''.

SEC. 2. CLARIFICATION OF TAX COURT AUTHORITY TO ORDER RELIEF FROM A 
JUDGMENT OR ORDER.

Section 7481 of the Internal Revenue Code of 1986 is amended--
(1) by striking ``and (d),'' in subsection (a) and 
inserting ``(d), and (e),''; and
(2) by adding at the end the following new subsection:
``(e) Relief From a Judgment or Order.--
``(1) Corrections based on clerical mistakes; oversights 
and omissions.--
``(A) In general.--The Tax Court may correct a 
clerical mistake, or a mistake arising from oversight 
or omission, whenever one is found in a judgment, 
order, or other part of the record. The Tax Court may 
do so on motion or on its own, with or without notice.
``(B) Appellate court leave required on appeal.--
After an appeal has been docketed in the appellate 
court, and while such appeal is pending, any such 
mistake may be corrected only with the appellate 
court's leave.
``(2) Grounds for relief from a final judgment or order.--
On motion and just terms, the Tax Court may relieve a party or 
its legal representative from a final judgment or order for any 
of the following reasons:
``(A) Mistake, inadvertence, surprise, or excusable 
neglect.
``(B) Newly discovered evidence that, with 
reasonable diligence, could not have been discovered in 
time to move for a new trial under rules prescribed by 
the Court and that would have a reasonable likelihood 
of changing the outcome.
``(C) Fraud (whether previously called intrinsic or 
extrinsic), misrepresentation, or misconduct by an 
opposing party.
``(D) The judgment is void.
``(E) Any other circumstance where justice so 
requires.
``(3) Timing and effect of the motion.--
``(A) Timing.--A motion under paragraph (2)--
``(i) must be made within a reasonable 
time, and
``(ii) in the case of a reason described in 
subparagraphs (A), (B), or (C), not later than 
1 year after the entry of the judgment or 
order.
``(B) Effect on finality.--While pending, any such 
motion does not affect the judgment's finality or 
suspend its operation.
``(4) Other powers to grant relief.--This subsection shall 
not limit the Tax Court's power to set aside a judgment for 
fraud on the Tax Court.
``(5) Court of appeals jurisdiction.--If the Tax Court 
provides relief from a judgment or order that is otherwise 
final under this section, either or both parties may obtain 
review of such relief by filing a notice of appeal under this 
subchapter within 90 days of the Court's judgment or order 
directing such relief.''.
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