This bill changes the dollar limit for small Tax Court cases. It replaces the current $50,000 limits in section 7463 (subsections (a) and (f)) with $100,000. It also adds a new inflation adjustment that raises the $100,000 amount in future years. The inflation adjustment uses the cost-of-living formula in section 1(f)(3) with a special substitution of “calendar year 2025” for “calendar year 2016.” If an increase is not a multiple of $1,000, the increase is rounded down to the next lowest $1,000. The bill also updates the section heading and the table of contents wording. The changes apply to proceedings that start after the law is enacted.
If you or your tax representative have a dispute over an amount at or below the new $100,000 threshold, that dispute may fall under the Tax Court provision amended by this bill. In later years, that dollar limit will rise with inflation, using the formula named in the bill.
No publicly available information on costs or budgetary effects is included in the bill text.
No publicly available information on proponents' stated reasons or floor statements is included in the bill text or provided metadata.
No publicly available information on opponents' stated reasons or floor statements is included in the bill text or provided metadata.