Washington D.C. — Today, U.S. Rep. Terri Sewell (AL-07) celebrated the unanimous passage of the Tax Court Improvement Act in the House. The bill, co-led by Reps. Sewell and Nathaniel Moran (TX-01), would streamline Tax Court procedures, provide additional rights for taxpayers, and increase internal accountability to improve the U.S. Tax Court system.

“Our constituents deserve a Tax Court that is efficient, fair, and transparent," said Rep. Sewell. "I was proud to work with my colleague Congressman Moran to lead the bipartisan Tax Court Improvement Act which will have a tangible impact on the thousands of taxpayers and small businesses that utilize the court every year.”

“I appreciate Rep. Sewell’s leadership and collaboration on this important bill," said Rep. Moran. "Together, we are focused on practical reforms that make the Tax Court more transparent, more accessible, and more just for taxpayers across the country.”

The bill makes four commonsense reforms to improve the Tax Court process:

• Equitable tolling of deadlines: Gives the Tax Court discretion to extend filing deadlines when taxpayer reciprocity requires it, such as during courthouse closures or extraordinary circumstances.
• Expanded role for special trial judges: Allows more types of cases to be heard by special trial judges upon consent of the taxpayer, as well as limited contempt authority to ensure compliance with court orders.
• Judicial disqualification standards: Holds Tax Court judges to the same recusal standards as other federal judges, increasing public confidence in the system.
• Subpoena authority before hearings: Empowers Tax Court judges to require documents earlier in the process, which will help settle cases faster and save taxpayers time and money. 

Background

The U.S. Tax Court is a specialized court where taxpayers can dispute IRS determinations without first paying the disputed amount. Each year, thousands of taxpayers—many of them individuals and small businesses—turn to the Tax Court for a fair hearing.

Currently, gaps in the law make the process more burdensome than it should be:

• Subpoena limits prevent judges from requiring key documents early, delaying settlements.
• Special trial judges handle many cases, but their authority is restricted and inconsistent with the needs of taxpayers.
• Judicial recusal standards are not aligned with other federal courts, creating unnecessary questions of integrity.
• Rigid filing deadlines mean taxpayers can lose their right to a hearing through no fault of their own — for example, when a courthouse or online portal is closed.

The Tax Court Improvement Act addresses these issues directly, ensuring that taxpayers have confidence their cases will be handled fairly, efficiently, and transparently.