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S. 1656 117th Congress Senate

Small Business Taxpayer Bill of Rights Act of 2021

Official title: A bill to provide a taxpayer bill of rights for small businesses.

Introduced: May 17, 2021 Introduced by: John Cornyn Republican · Texas See on congress.gov
Taxation Accounting and auditingAdministrative remediesAlternative dispute resolution, mediation, arbitrationCivil actions and liability
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Department of the TreasuryEconomic performance and conditionsGovernment employee pay, benefits, personnel managementGovernment ethics and transparency, public corruptionGovernment studies and investigationsHousing finance and home ownershipIncome tax deductionsInflation and pricesInternal Revenue Service (IRS)Legal fees and court costsSmall businessTax administration and collection, taxpayersTax-exempt organizationsUser charges and fees
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This bill died when the 117th Congress ended
It never became law before the 117th Congress (2021–2022) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
May 17, 2021
Read twice and referred to the Committee on Finance.
May 17, 2021
Introduced in Senate
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 Latest action May 17, 2021

Read twice and referred to the Committee on Finance.

 Plain-English summary Congressional Research Service

Small Business Taxpayer Bill of Rights Act of 2021

This bill modifies various tax enforcement procedures and requirements that affect small businesses and other taxpayers.

The bill modifies requirements regarding

  • awarding costs and fees to small businesses for administrative and court proceedings,
  • the amounts of damages and penalties that are allowed for violating various tax laws,
  • dispute resolution and appeal procedures,
  • enforcing liens against principal residences,
  • terminating Internal Revenue Service (IRS) employees for misconduct,
  • reviews by the Department of the Treasury Inspector General for Tax Administration, and
  • the release of an IRS levy due to economic hardship for business taxpayers.

The bill also

  • allows a tax deduction for a portion of a taxpayer's expenses for certain audits,
  • prohibits ex parte communications between officers in the IRS Independent Office of Appeals and other IRS employees with respect to matters pending before the officers,
  • establishes a 10-year term for the National Taxpayer Advocate, and
  • repeals the requirement to submit a partial payment with an offer-in-compromise to settle a tax liability.
 Related & companion bills 1
  • HR 7033 Small Business Taxpayer Bill of Rights Act of 2022
 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
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APA
U.S. Congress. (2026). S. 1656: Small Business Taxpayer Bill of Rights Act of 2021. 117th Congress. Open America. https://openamerica.io/bill/117-S-1656/
MLA
"S. 1656: Small Business Taxpayer Bill of Rights Act of 2021." 117th Congress, 2026, Open America, https://openamerica.io/bill/117-S-1656/.
Bluebook (legal)
S. 1656, 117th Cong. (2026), https://openamerica.io/bill/117-S-1656/.
Markdown link
[S. 1656: Small Business Taxpayer Bill of Rights Act of 2021](https://openamerica.io/bill/117-S-1656/)
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