House Passes Bill Enhancing Taxpayer Due Process Rights, Affecting IRS Collection Practices
The U.S. House of Representatives has unanimously passed the Taxpayer Due Process Enhancement Act (H.R. 6506), a bill aimed at strengthening taxpayer rights during IRS collection proceedings. Introduced by Representatives Nathaniel Moran and Terri Sewell, the legislation seeks to suspend the period of limitations for filing a claim for credit or refund during a collection due process (CDP) proceeding. This change would provide taxpayers with an extended opportunity to receive their refunds. Additionally, the bill prevents the IRS from applying a taxpayer's overpayments to any tax currently in dispute, ensuring that old refunds are not used against taxpayers during collection actions. The bill was initially introduced and passed by the House Ways and Means Committee last December. The legislation responds to a June 2025 Supreme Court decision that limited the Tax Court's ability to hear CDP appeals if the IRS changes its method of asset seizure. The bill aims to expand the Tax Court's jurisdiction in such c... 
