1. What Just Happened in the Senate
The U.S. Senate passed the Taxpayer Assistance and Service (TAS) Act by unanimous consent. The legislation includes more than 60 provisions aimed at strengthening taxpayer rights, improving IRS service, and modernizing tax administration. It now moves to the House of Representatives for consideration. Important: **the bill is not law yet.** Nothing in this article changes your filing obligations today. The legislation moved through Congress under more than one bill number — it was introduced as S. 3931 in February 2026, and the Senate Finance Committee advanced a reported version, S. 5441, in September. You can follow the current status on GovTrack or Congress.gov.
2. What the Bill Would Change
Based on the committee-reported text of the bill, the proposals include: **Faster answers on refund claims.** The IRS would generally have to review and make a determination on a refund claim within 12 months of receiving it. If the claim is denied, you could appeal to the IRS Independent Office of Appeals within 30 days, and expanded Tax Court jurisdiction would cover certain refund actions. One honest caveat: if the IRS missed the 12-month deadline, the remedy in the reported text is modest — a small interest increase or the option to treat the claim as denied so you can sue — not an automatic refund. **Better IRS service.** Digitization of paper returns using OCR technology, public dashboards showing IRS backlogs and wait times, expanded online accounts, and callback technology for long phone holds (phased in through 2028). **Tougher rules for bad preparers.** Higher penalties for preparer violations, a new penalty for misappropriating taxpayer payments, and authority for the IRS to deny, suspend, or revoke a preparer's PTIN for serious misconduct. The bill also adds suitability and continuing-education requirements for paid preparers — while expressly prohibiting a competency exam requirement. We cover what this means for choosing a preparer in How to Check That Your Tax Preparer Is Legitimate.
3. What Else Is in the Bill
The Senate version contains **more than 60 provisions**. Beyond the highlights above, the committee-reported text includes: digitization of paper returns with OCR and public backlog dashboards (Sec. 101-102), expanded callback technology for IRS phone lines phased in through 2028 (Sec. 104), expanded online accounts (Sec. 105), expanded Tax Court jurisdiction for certain refund actions up to $2,000,000 (Sec. 310), and the preparer penalty and PTIN provisions in Title V (Sec. 503-504) covered above. The full 182-page text is on Congress.gov — and the final House version may differ.
4. Who This Could Help
Taxpayers who filed an amended return or a refund claim and are waiting on the IRS. Anyone who has spent hours on hold trying to reach the IRS. Taxpayers who have been harmed by a dishonest preparer.
5. What This Means for Tax Preparers
If passed, the bill's preparer provisions would change the professional side of the aisle: higher penalties for return-preparer violations (the smallest would rise from $50 to $250, and the largest from $25,000 to $50,000), a new penalty for preparers who misappropriate taxpayer payments (the greater of $1,000 or the full amount), and IRS authority to deny, suspend, or revoke a PTIN for serious misconduct. The bill also adds suitability and continuing-education requirements — capped at 18 hours a year — while expressly prohibiting a competency exam as a condition of holding a PTIN. A GAO study on broader minimum standards is included, so the exam question could return in a future Congress. For our own view of these rules — what they would mean for how we prepare your return — see The TAS Act and Our Standards. And if you are choosing a preparer rather than being one, the practical takeaway is the same as today's rule: work with someone who signs the return, uses a secure portal, and can tell you exactly what they are — and are not — authorized to do for you.
6. What Has Not Changed
Filing and payment deadlines are the same. Your records and documentation requirements are the same. The House has not voted, and the final bill may differ from the Senate version.
7. What to Do Now
Keep filing and paying on time under current rules. Keep copies of everything you submit to the IRS, including amended returns and refund claims. If you are waiting on a refund or amended return, see Amended Return Status Tracking. Come back to this page — we will update it if the House acts. Questions about your own situation? Book a consultation. This article is general information, not tax or legal advice. It describes proposed legislation that may change before it becomes law.
8. The TAS Act Series
This article is part of our coverage of the Taxpayer Assistance and Service Act: What the TAS Act Means for Taxpayers (start here), What to Do While the House Decides, How to Check That Your Tax Preparer Is Legitimate, and Why Tax Documentation Matters More Than Ever.