House Passes Multiple Bipartisan Administrative Tax Bills, but Future in Senate Remains Murky

While partisan arguments continue over substantive tax law changes, there is still hope for bipartisan improvements. To wit, on April 27, 2026, the House passed eight tax bills generally focused on enhancing the taxpayer experience with overwhelming bipartisan support. These bills join a smaller package of five bills that the House passed on March 25, 2025, in a similarly bipartisan manner. The bills are now before the Senate, where their future remains uncertain, as the Senate is proposing their own administrative updates via the Taxpayer Assistance and Service Act.

What Would the Bills Do?

The bills range from modernizing the IRS to extending the more favorable provisions for disaster relief. The eight bills are summarized below.

The Survivor Justice Tax Prevention Act (H.R. 2347)

This legislation would amend IRC Sec. 104(a)(2) to provide an exclusion from income for any non-punitive damages received by survivors of sexual assault. The bill would generally apply to damages awarded after the enactment of the bill.

The Supporting Early-Childhood Educator’s Deductions Act of 2025 (H.R. 5334)

Currently, the deduction for educators under IRC Sec. 62 is available to those who teach kindergarten through grade 12. The “SEED Act” would amend IRC Sec. 62(d)(1) to include early childhood educators. The bill would be retroactive to January 1, 2026.

The Doug LaMalfa Federal Disaster Tax Relief Certainty Act (H.R. 5366)

For the past several years, Congress has merely extended the rules for casualty losses that arise from major disasters, with no formal codification. Under these rules, taxpayers may deduct their casualty losses attributable to declared disasters once these losses exceed $500 instead of 10% of their AGI. Named after the late Rep. Doug LaMalfa (CA-1), this act would codify these rules by amending IRC Sec. 165(h). The bill would also create IRC Sec. 139M, excluding any amounts received by or on behalf of an individual as compensation for losses or damages caused by a qualified wildfire disaster from income. The bill would only cover disasters (including wildfires) that are declared after December 31, 2014, and before January 1, 2027.

New Opportunities for Business Ownership and Self-Sufficiency Act (H.R. 6431)

The Self-Employment Assistance (SEA) Program allows states to pay an allowance to unemployed individuals that are working to start their own small business in lieu of unemployment. This bill would modify IRC Sec. 3306(t)(3) to include activities that are performed according to a business plan and market feasibility study that is submitted to and approved by the State or state agency to qualify for the allowance. Additionally, it would increase the number of individuals eligible to participate in each state from 5% to 10% of those receiving regular unemployment compensation.

The Taxpayer Notification and Privacy Act (H.R. 6495)

Currently, the IRS must inform taxpayers when they contact third parties requesting the taxpayer’s information, but is not required to inform the taxpayer of what information is being requested. This bill would amend IRC Sec. 7602(c) to require the IRS to inform the taxpayer of the specific information being sought from third parties and give the taxpayer at least 45 days to respond before contacting the third party. However, the notice is not required if the Secretary of the Treasury determines the information is “necessary,” which is not defined.

The BARCODE Efficiency Act (H.R. 6956)

This bill would add new requirements to paper returns. For returns that are prepared electronically but then printed and mailed, the bill would require the printed form to include a scannable barcode encoding the return data, allowing the IRS to scan and digitize the return. For returns that are handwritten on paper, the bill would require the IRS to use optical character recognition to transcribe them to electronic form.

The IRS Whistleblower Program Improvement Act (H.R. 7959)

The Act would strengthen privacy protections for whistleblowers, provide interest on whistleblower awards if the whistleblower is not provided with a notice of preliminary award within a certain time frame, remove whistleblower awards from budget sequestration, and allow whistleblowers to deduct attorneys’ fees. It also requires a de novo standard of review, meaning the court may review evidence instead of being limited to ruling on procedural abuses.

The Taxpayer Experience Improvement Act (H.R. 7971)

This bill generally requires the IRS to enhance their user interface and systems to provide more information to taxpayers. It would require the creation of an online dashboard showing wait times and the current IRS backlog, expansion of the use of callback technology, and expansion of online accounts to increase the amount of real-time information available for taxpayers. It would also allow tax preparers better access to clients’ accounts and would allow representatives to access multiple accounts through their own accounts.

One notable exception from this list is the Taxpayer Due Process Enhancement Act (H.R. 6506). While multiple outlets, particularly AI-generated searches, claim this bill was one of the bills that passed, this is not true. This legislation has only been voted out of the Ways and Means Committee and has not been brought for a full House vote as of publication. The bill would suspend the period of limitations on filing a claim for refund or credit while a Collection Due Process (CDP) proceeding is pending or ongoing and prohibit the IRS from crediting overpayments of tax against tax liabilities that are being disputed in a CDP proceeding. Finally, it would effectively overturn Commissioner v. Zuch by expanding the Tax Court’s jurisdiction to allow it to both review the CDP determination as well as the underlying tax liability.

Bills Passed in 2025

As previously mentioned, the House passed several other bills in 2025 that are also focused on taxpayer experience and administration. These bills are discussed briefly below.

The National Taxpayer Advocate Enhancement Act of 2025 (H.R. 997) would allow the National Taxpayer Advocate (NTA) to appoint counsel to the Office of the Taxpayer Advocate that reports directly to the NTA.

The Electronic Filing and Payment Fairness Act (H.R. 1152) would extend the “mail-box rule” to electronic filings. Documents and payments sent electronically would be considered timely if the date on which it is sent is on or before the due date of the filing or payment, regardless of the date on which the applicable agency, officer, or office receives or reviews the document or payment. (Note: the bill does not address time zone issues; nor would it apply to Tax Court filings, which must be filed as of midnight, Eastern Time.)

The Recovery of Stolen Checks Act (H.R. 1155) would allow taxpayers who are eligible to receive a replacement check for refunds for a lost or stolen paper check to instead elect to receive the refund via electronic deposit.

The Fair and Accounting IRS Reviews Act (H.R. 5346) would require written approval by an immediate supervisor before an examiner begins any written communication with the taxpayer regarding the imposition of a penalty.

The Tax Court Improvement Act (H.R. 5349) would codify equitable tolling for filing deficiency petitions and create automatic tolling during periods of inaccessibility for that period plus 14 days, apply federal recusal rules to Tax Court judges and special trial judges, allow special trial judges to hear any type of proceeding regardless of dollar amount provided both parties consent, and allow Tax Court and special trial judges to issue subpoenas for use in discovery.

What is the Future of This Legislation?

It’s generally unusual for Congress to move tax legislation on a stand-alone basis. Typically, tax law changes are attached to larger vehicles, such as an end of year appropriations bill. Adding a wrinkle to this analysis is the fact that Sens. Crapo and Wyden have introduced an Act that would accomplish several of the same goals within a single piece of legislation. The Senate may wish to pass their version in lieu of the standalone House bills. Time will tell if these changes become law.

Our team carefully monitors legislation and analyzes the chances of passage. Have a question about one of these provisions or other legislation? Contact us below to consult with a member of our team.