Taxpayer Due Process Enhancement Act

HR6506, titled the Taxpayer Due Process Enhancement Act, was introduced on December 9, 2025, and has progressed to the Union Calendar, Calendar No. 373, as of January 7, 2026. This status means the bill has been reported out of committee and is awaiting a vote on the House floor. The bill proposes to amend the Internal Revenue Code of 1986 by suspending the period of limitations for claiming a federal tax refund during collection due process (CDP) proceedings, prohibiting the IRS from applying tax overpayments to disputed tax liabilities during these proceedings, and expanding the Tax Court's jurisdiction. This legislation does not involve direct funding or appropriations. Instead, it modifies the procedural framework for tax disputes, which could alter the operational landscape for the Internal Revenue Service and taxpayers. The mechanism is regulatory, changing how tax collection and dispute resolution are handled rather than allocating new funds or tax credits. There is no direct money trail to specific companies or industries, as the bill focuses on administrative and judicial processes. Structural winners from this legislation would primarily be taxpayers engaged in collection due process proceedings, as it provides additional protections and expands their avenues for dispute resolution. This could indirectly benefit legal and accounting firms specializing in tax law and IRS representation, as the changes might necessitate new advisory services. However, no specific publicly traded companies are direct beneficiaries or losers from these procedural changes. The bill's impact is more on the legal and administrative aspects of taxation rather than on specific industries or corporate revenues. The bill has seen active legislative movement since its introduction, with committee consideration, mark-up, and reporting all occurring within a month. The next legislative step is a vote on the House floor. Given its placement on the Union Calendar, it is positioned for further action in the House of Representatives. No presidential actions provided are directly relevant to this bill, as the recent memoranda focus on energy and defense sectors, which are unrelated to tax due process. Rep. Moran (R-TX-1) is the primary sponsor, with one cosponsor. The bill was reported out of the Committee on Ways and Means, which is a key committee for tax legislation, indicating a level of support within the committee.