Tax Impacts

Senate Finance Committee Chairman Mike Crapo (R‑ID) and Ranking Member Ron Wyden (D‑OR) released a bipartisan draft of the Taxpayer Assistance and Service Act (“Act” or “TAS Act”) on February 26, 2026, aimed at improving IRS procedure and administration. The bill, comprised of legislative proposals recommended by the National Taxpayer Advocate (NTA) and standalone tax bills measures previously introduced by congressional members, proposes some of the most substantial enhancements to taxpayer judicial protections in years, while additionally seeking to streamline processes and communications for tax compliance.

A Tax Court Memorandum Opinion expressing no confidence that a “slipshod-cut-and-paste” notice of deficiency was the version of the notice actually sent to the taxpayer is the latest in a string of rebukes from the Court and Congress questioning the IRS’s ability to retain credible and complete records.

On September 8, 2023, the IRS announced that it will start a “sweeping, historic effort to restore fairness in tax compliance” by focusing its attention on high-income taxpayers, partnerships, large corporations, and promoters.

The IRS outlined seven initiatives it seeks to accomplish in furtherance of its goal outlined within Objective Three.

In response to TIGTA’s final report, issued on February 7, 2022, the IRS has agreed to issue notices to potentially noncompliant opportunity zone (OZ) funds and investors.