Luján, Cornyn Introduce Bipartisan Legislative Package to Increase Tax Transparency and Simplify the Tax System

Washington, D.C. - Today, U.S. Senators Ben Ray Luján (D-N.M.) and John Cornyn (R-Texas), members of the Senate Committee on Finance, introduced a bipartisan package of three bills to improve transparency, fairness, and simplicity in the federal tax system. The package includes the Small Tax Case Threshold Modernization Act, the Taxpayer Transparency and Notice Act, and the Tax Complexity and Fraud Prevention Review Act. Together, these bills would help taxpayers by simplifying Internal Revenue Service (IRS) disputes, increasing transparency around unpaid tax balances, and identifying opportunities to simplify the tax code.

"Families across New Mexico and the country deserve a tax system that is transparent, fair, and easy to navigate," said Senator Luján. "By expanding access to small tax cases, requiring clear, regular communication from the IRS, and giving Congress better tools to understand and reduce unnecessary complexity, this legislative package will create a fairer tax system for all. I'm proud to partner with Senator Cornyn on this effort to help taxpayers avoid costly surprises, access the help they need, and strengthen trust in our tax system."

"Hardworking Texans and small businesses are too often bogged down by financial stress, bureaucratic hurdles, or the repercussions of honest mistakes when trying to navigate the tax code in good faith," said Senator Cornyn. "I'm proud to introduce these bipartisan bills with Senator Luján to unlock simplified Tax Court procedures, increase IRS transparency, and make it easier for Americans to meet their tax obligations."

Small Tax Case Threshold Modernization Act: Updates the Tax Court's "small tax case procedure" threshold by increasing it from $50,000 to $100,000 and indexing it to inflation, allowing more taxpayers to resolve disputes with the IRS through a faster, simpler, and cost-effective process. Full bill text is available here.

Taxpayer Transparency and Notice Act: Requires the IRS to send quarterly notices to taxpayers with unpaid tax balances, providing clear information on the amount owed, accrued interest and penalties, and available assistance programs. The Taxpayer Transparency and Notice Act helps taxpayers act earlier, avoid surprise debts, and make informed decisions before interest and penalties continue to grow. Full bill text is available here.

Tax Complexity and Fraud Prevention Review Act: Requires the Treasury Department to submit regular reports to Congress on tax law complexity, tax code implementation, and fraud prevention efforts, helping identify opportunities to simplify the tax code, improve oversight, and better protect taxpayers. The Tax Complexity and Fraud Prevention Review Act gives Congress the information it needs to identify unnecessary burdens in the tax code, reduce opportunities for fraud, and create a tax system that is more accessible and fairer for taxpayers. Full bill text is available here.

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