Small Business Taxpayer Bill of Rights Act of 2023
The bill introduces numerous provisions that would have a significant impact on state laws regarding taxpayer rights and IRS procedures. Key provisions include the ability for small businesses to seek a review by an independent party in disputes with the IRS, an increase in liability for IRS employees who violate taxpayer rights, and new penalties for unauthorized disclosure of taxpayer information. Additionally, the bill encompasses measures to limit IRS enforcement actions against primary residences and provides for deductions on certain audit expenses, potentially easing the financial burden on businesses undergoing scrutiny.
House Bill 2681, titled the 'Small Business Taxpayer Bill of Rights Act of 2023', aims to enhance taxpayer rights specifically for small businesses in relation to the Internal Revenue Service (IRS). The bill proposes modifications to various tax laws, granting small business taxpayers more protections and avenues for recourse in their dealings with the IRS. It emphasizes reducing financial burdens and increasing fairness in tax administration, which supporters argue is essential for fostering a healthy business environment.
While the intent behind HB2681 is to issue broader protections for small businesses, discussions surrounding the bill may highlight points of contention, including concerns about whether additional regulations could burden IRS operations or complicate tax compliance for both agencies and businesses. Potential opposition from lawmakers and stakeholders who feel that the bill could undermine IRS enforcement capabilities, or lead to unintended consequences regarding tax avoidance, may arise.
Furthermore, the bill addresses the issue of economic hardship, proposing specific guidelines under which events may lead to the release of IRS levies for business taxpayers that are struggling financially. This provision aims to support businesses in financially challenging situations and prevent forced liquidation due to tax liabilities. Overall, HB2681 reflects a growing recognition of the need to balance tax compliance with the economic realities faced by small business owners.