Taxpayer Transparency and Notice Act
- Bill Number
- S. 5072
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-07-22: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-09-28T20:30:36Z
AI-Generated Summary
Purpose This legislation aims to increase transparency for taxpayers who owe delinquent taxes by requiring more frequent communications from the Internal Revenue Service.
Key provisions
- The bill amends Section 7524 of the Internal Revenue Code of 1986.
- It changes the notice requirement from at least once per year to at least once per quarter for taxpayers with unpaid tax balances.
- Each quarterly notice must include an estimate of penalties and interest that could accrue if the debt remains unpaid within the collection period under section 6502(a), as well as information on available assistance programs and services.
- Exceptions apply during periods when an installment agreement or accepted offer-in-compromise is in effect, or when the Secretary determines the tax is not collectible.
- The amendments take effect 24 months after the date of enactment.
Significant changes to existing law
- Replaces the existing annual notice requirement with a quarterly notice obligation.
- Adds new content requirements for the notices regarding penalty and interest estimates and taxpayer assistance resources.
- Updates the section heading from “annual notice” to “notice” and revises the table of sections accordingly.
Potential impacts
- On government agencies: The Internal Revenue Service would need to adjust its systems and processes to issue more frequent notices and include additional information.
- On citizens: Taxpayers with unpaid balances would receive more regular updates, potentially improving awareness of growing penalties and available help options.
- On international relations: No direct impacts identified.
Main stakeholders affected
- Taxpayers with delinquent tax debts.
- The Internal Revenue Service, which must implement the new notice procedures.
- Congress, as the body enacting the procedural change.
Notable legal, constitutional, or political implications The bill modifies administrative procedures within the Internal Revenue Code without altering taxpayer rights or obligations under existing law. No constitutional issues are raised in the text.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-07-22: Read twice and referred to the Committee on Finance.
- 2026-07-22: Introduced in Senate
Bill Versions
- Taxpayer Transparency and Notice Act — issued 2026-07-22 — PDF (3 pages)