Small Business Taxpayer Bill of Rights Act of 2025

The Small Business Taxpayer Bill of Rights Act of 2025 primarily affects small businesses with average annual gross receipts under $50 million (adjusted for inflation), providing enhanced protections in their interactions with the IRS. Key provisions include increasing civil damages for IRS violations from $1 million to $5 million, banning ex parte communications between IRS employees, establishing a right to an independent conference with the IRS Independent Office of Appeals, and limiting enforcement of liens against principal residences. The bill also creates new dispute resolution options, increases penalties for unauthorized disclosures of tax information, and requires the Treasury Inspector General to review IRS criteria for selecting returns for audit to prevent discrimination. Additional provisions include allowing a deduction for expenses related to certain audits, establishing a 10-year term limit for the National Taxpayer Advocate, and repealing the partial payment requirement for offers-in-compromise.