Small Business Taxpayer Bill of Rights Act of 2025

The Small Business Taxpayer Bill of Rights Act of 2025 strengthens protections for small businesses in their interactions with the IRS. Key provisions include expanding eligibility for cost awards to small businesses regardless of net worth (with a $50 million gross receipts threshold), increasing civil damages for IRS misconduct from $1 million to $5 million, and banning ex parte communications between IRS staff. The bill establishes new rights for taxpayers including the right to independent conferences with IRS Appeals, limits lien enforcement against primary residences, and requires consideration of economic hardship when releasing levies. It also creates alternative dispute resolution procedures and repeals the partial payment requirement for offers-in-compromise.