[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6506 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 6506
To amend the Internal Revenue Code of 1986 to suspend the period of
limitations on filing a claim for credit or refund during collection
action proceedings, to prohibit the crediting of overpayments against
disputed tax liability during such proceedings, and to expand the
jurisdiction of the Tax Court.
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IN THE HOUSE OF REPRESENTATIVES
December 9, 2025
Mr. Moran (for himself and Ms. Sewell) introduced the following bill;
which was referred to the Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to suspend the period of
limitations on filing a claim for credit or refund during collection
action proceedings, to prohibit the crediting of overpayments against
disputed tax liability during such proceedings, and to expand the
jurisdiction of the Tax Court.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Taxpayer Due Process Enhancement
Act''.
SEC. 2. SUSPENSION OF PERIOD OF LIMITATIONS ON FILING A CLAIM FOR
CREDIT OR REFUND DURING COLLECTION ACTION PROCEEDINGS.
(a) In General.--Section 6330(e)(1) of the Internal Revenue Code of
1986 is amended by inserting ``subsection (a), (b), or (c) of section
6511 (relating to limitations on credit or refund),'' after ``section
6502 (relating to collection after assessment),''.
(b) Period of Limitations on Filing a Claim for Credit or Refund.--
Section 6330(e) of such Code is amended by adding at the end the
following new paragraph:
``(3) Period of limitations on filing a claim for credit or
refund.--In the case of the running of any period of
limitations under subsection (a), (b), or (c) of section 6511
with respect to the filing of any claim for credit or refund,
paragraph (1)--
``(A) shall apply only to the extent that such
credit or refund relates to an underlying tax liability
properly disputed at the hearing requested under this
section, and
``(B) shall not result in a suspension of the
running of such period of limitations after any date on
which a lapse of a deadline, a court filing, or a court
order establishes that the taxpayer has forfeited or
otherwise lost the right to pursue such dispute.''.
(c) Cross Reference.--Section 6511(i) of such Code is amended by
adding at the end the following new paragraph:
``(8) For limitations in case of collection action
proceedings, see section 6330(e).''.
(d) Effective Date.--The amendments made by this section shall
apply to the running of any period of limitations if such period
(determined without regard to the amendments made by this section) ends
on or after the date of the enactment of this Act.
SEC. 3. PROHIBITION ON CREDITING OF OVERPAYMENTS AGAINST DISPUTED TAX
LIABILITY DURING COLLECTION ACTION PROCEEDINGS.
(a) In General.--Section 6402 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(o) Prohibition on Crediting of Overpayments Against Disputed Tax
Liability During Collection Action Proceedings.--If a hearing is
properly requested under section 6320(a)(3)(B) or 6330(a)(3)(B), and an
underlying tax liability referred to in section 6330(c)(2)(B) is
properly disputed at such hearing, such tax liability shall not, except
with the consent of the taxpayer, be taken into account under
subsection (a) for the period during which the period of limitations
for filing a claim for credit or refund relating to such tax liability
is suspended by reason of section 6330(e).''.
(b) Clarification of Application of Certain Levy Hearing Rules to
Lien Hearings.--Section 6330(c)(2)(A) of such Code is amended by
striking ``unpaid tax or the proposed levy'' and inserting ``unpaid
tax, collection action, or proposed collection action''.
(c) Effective Dates.--
(1) In general.--The amendment made by subsection (a) shall
apply with respect to any period described in section 6402(o)
of the Internal Revenue Code of 1986 (as added by this section)
if any portion of such period is after the date of the
enactment of this Act.
(2) Clarification of application of certain levy hearing
rules to lien hearings.--The amendment made by subsection (b)
shall take effect on the date of the enactment of this Act.
SEC. 4. EXPANSION OF JURISDICTION OF TAX COURT.
(a) In General.--Section 6330(d)(1) of the Internal Revenue Code of
1986 is amended to read as follows:
``(1) Petition for review by tax court.--
``(A) In general.--In the case of a determination
under this section, the person may, within 30 days of
such determination, petition the Tax Court for review
of--
``(i) such determination, and
``(ii) any underlying tax liability
referred to in subsection (c)(2)(B) which is
properly disputed at the hearing in which such
determination is made.
``(B) Jurisdiction of tax court.--Upon the filing
of a petition, the Tax Court shall have jurisdiction
with respect to--
``(i) the determination referred to in
subparagraph (A)(i),
``(ii) any underlying tax liability
referred to in subparagraph (A)(ii), and
``(iii) any equitable tolling of the 30-day
deadline referred to in subparagraph (A).
``(C) Retention of jurisdiction.--Upon a
determination being made under this section,
subparagraphs (A) and (B) shall apply whether or not
the Secretary abandons the collection action or
proposed collection action at issue in such
determination.''.
(b) Effective Date.--The amendment made by this subsection shall
apply with respect to petitions filed after the date of the enactment
of this Act.
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