Legislative update: Senate Finance approves Taxpayer Protection Act

U.S. Senate Finance approves Taxpayer Protection Act

The Senate Finance Committee last night approved by voice vote the Taxpayer Protection Act of 2016.

Related content

Among the provisions in the legislation are proposals that would:

  • Extend electronic filing requirements to all tax-exempt organizations required to file statements or returns in the Form 990 series or Form 8872, Political Organization Report of Contributions and Expenditures, and require the IRS to make information provided on such forms available in a machine-readable format
  • Repeal the substantiation exception contained in Code section 170(f)(8)(D) for certain charitable contributions reported by the donee organization
  • Require the IRS to notify exempt organizations before revoking exempt status for failing to file information returns
  • Provide various rules with respect to wrongful levies of property by the IRS and levied funds that are returned by the IRS (including procedural rules and rules relating to retirement accounts)
  • Limit “re-disclosures” and uses of consent-based disclosures of tax return information
  • Clarify the rules of equitable relief from joint liability with respect to couples that are, or were, married


Read documents related to the bill on the Finance Committee’s website.

What's next?

The bill will now be referred to the full Senate for possible consideration.  A date has not been set for the Senate to consider the bill.

Other action by the committee

The Senate Finance Committee yesterday also approved a bill to curb identity theft and tax refund fraud. Read TaxNewsFlash-United States

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