TAS Act Updates: Changes Affecting Taxpayers and Tax Preparer

Earlier this year, the Senate Finance Committee introduced the Taxpayer Assistance and Service Act (TAS Act). This act is led by Chairman Mike Crapo (R-Idaho) and Ranking Member Ron Wyden (D-Oregon) and represents one of the most sweeping tax administration proposals since the Taxpayer First Act of 2019.  

What Will the Bill Do:

The TAS Act includes more than 60 provisions that are aimed at modernizing the IRS’s current operations and helping strengthen taxpayer rights. Below is an overview of a few of the provisions within the bill:

Improving Communication and Technology: Requiring the IRS to scan paper returns using optical character recognition technology, offering callback service when the hold times are longer than five minutes, and providing a public dashboard to inform taxpayers of backlogs and wait times.

Expanding Tax Court Authority: Broadening the Tax Court’s jurisdiction over refund disputes, relief, and whistleblower cases.  

Providing Stronger Protection Over Taxpayers: Extending the “mailbox” rule to electronic filers and electronic payments, requiring supervisory sign-offs before any penalties are assessed, and providing low-income taxpayers with automatic relief from certain refund offsets.

Support for Americans Abroad: Integrating foreign bank account reporting with the annual tax return so both are treated as timely filed together, and suspending tax deadlines for U.S. nationals who are wrongfully detained in a foreign country.

Where the Bill Is Currently:

On July 30, 2026, the bill took a major step after being passed by the U.S. Senate Finance Committee in a 26 to 1 vote. The passing of the bill out of committee is a significant milestone, but the bill still has a long way to go. The bill must now be scheduled for a full Senate floor vote, and the House has so far taken a different approach. Whether the two chambers can reconcile their approaches remains uncertain. The National Taxpayer Advocates and the AICPA have both voiced their opinions and support the passing of this bill.  

HHM is closely monitoring the TAS Act as it moves forward. We will continue to provide updates on what this Act means for you and your tax matters. If you have any questions in the meantime, please don’t hesitate to reach out to our office.