US Federal 2025-2026 Regular Session

US Federal Senate Bill SB175

Introduced
1/21/25  

Caption

Family and Small Business Taxpayer Protection Act This bill rescinds unobligated funds that were provided by the Inflation Reduction Act of 2022 to the Internal Revenue Service (IRS) for enforcement activities related to the determination and collection of taxes, for taxpayer services, for operations support for taxpayer services and enforcement activities, for business system modernization, and for a task force to research options for a free, direct electronic filing (e-filing) tax return system. The bill also rescinds unobligated funds that were provided by the Inflation Reduction Act of 2022 for expenses of theTreasury Inspector General for Tax Administration,Office of Tax Policy,U.S. Tax Court, andoffices within the Department of the Treasury that provide oversight and support for the IRS.Finally, the bill expresses the sense of Congress that the rescinded unobligated funds that were appropriated to the IRS by the Inflation Reduction Act of 2022 should be appropriated for the establishment and administration of an External Revenue Service.

Impact

If enacted, SB175 could significantly alter the structure of tax administration in the United States. By reallocating funds initially designated for improving IRS capabilities, the bill might undermine efforts to enhance the IRS’s effectiveness in tax collection, which could have downstream effects on federal revenue generation. Supporters of the bill might argue that shifting focus to an External Revenue Service would lead to innovative approaches in tax collection, while detractors may contend that it could disrupt current tax collection systems.

Summary

Senate Bill 175 aims to rescind unobligated funds that were originally appropriated for enhancements to the Internal Revenue Service (IRS). The purpose of this bill is to redirect those funds towards the establishment and administration of an External Revenue Service. The bill reflects ongoing discussions within the government regarding the efficiency and effectiveness of internal versus external revenue collection services.

Contention

Notable points of contention surrounding SB175 include debates over whether the redirection of funds is necessary and effective. Critics may raise concerns about the potential consequences of diminishing the IRS's operational capacity, especially following recent efforts to bolster the agency's resources for better compliance and enforcement regarding tax laws. Proponents are likely to highlight the need for fresh strategies in revenue collection, thus justifying the establishment of the External Revenue Service as a potential remedy to perceived inefficiencies.

Congress_id

119-S-175

Policy_area

Taxation

Introduced_date

2025-01-21

Companion Bills

No companion bills found.

Previously Filed As

US HB191

Inflation Reduction Act of 2025This bill repeals the Inflation Reduction Act of 2022 and rescinds any unobligated funds made available by the act.

US HB62

Withholding Investments from Lawless Litigators In States Act or the WILLIS ActThis bill prohibits federal funds from being awarded or otherwise made available to the Fulton County District Attorney’s Office in Georgia. The bill also (1) rescinds any unobligated funds that were allocated for or otherwise made available to the office, and (2) directs the Department of Justice to require the office to reimburse the federal government for all funds that were expended for the office after January 1, 2021.

US HB63

Accountability for Lawless Violence In our Neighborhoods Act or the ALVIN ActThis bill prohibits federal funds from being awarded or otherwise made available to the Manhattan District Attorney’s Office in New York. The bill also (1) rescinds any unobligated funds that were allocated for or otherwise made available to the office, and (2) directs the Department of Justice to require the office to reimburse the federal government for all funds that were expended for the office after January 1, 2022.

US HB1370

USA FIRST Act Unobligated Spending Adjustment to Focus Investment on Relief and Support for Taxpayers Act

US HB1211

No Propaganda ActThis bill prohibits federal funding of the Corporation for Public Broadcasting and rescinds certain funds that were provided to the corporation. (The corporation is a congressionally created nonprofit that supports local public television and radio broadcasting.)

US SB608

IRS MATH Act of 2025 Internal Revenue Service Math and Taxpayer Help Act of 2025

US HB547

No Child Tax Credit for Illegals Act of 2025This bill extends and expands the Social Security number (SSN) identification requirements for claiming the child tax credit. The bill also provides that the omission of a correct SSN related to a child tax credit claim is to be treated as a mathematical error for certain purposes.Under current law, to claim the child tax credit, a taxpayer must provide a work-authorized SSN (issued prior to the due date of the federal income tax return) for each qualifying child. Beginning in 2026, to claim the child tax credit, a taxpayer must provide a valid taxpayer identification number (issued on or before the due date of the federal income tax return) for each qualifying child.Under the bill, to claim the child tax credit, a taxpayer must provide a work-authorized SSN (issued before the due date of the federal tax return) for (1) each qualifying child; and (2) the taxpayer, the taxpayer and the taxpayer’s spouse (if filing jointly), or either the taxpayer or the taxpayer’s spouse (if either is a member of the Armed Forces).Finally, the bill provides that the omission of a correct SSN related to a claim for the child tax credit is a mathematical error for purposes of certain tax assessment and collection procedures. 

US SB1386

Small Business Taxpayer Bill of Rights Act of 2025

US HB422

No Subsidies for Wealthy Universities ActThis bill limits the indirect costs that are allowable under federal research awards to institutions of higher education (IHEs) with endowments above specified thresholds. (Generally, indirect costs represent expenses that are not specific to a research project but are needed to maintain the infrastructure and administrative support for federally funded research.)Specifically, the National Center for Education Statistics (NCES) must annually collect information regarding the endowments of each IHE that has entered into a program participation agreement with the Department of Education.With this collected information, NCES must identify and make lists of (1) each IHE with an endowment of more than $5 billion, and (2) each IHE with an endowment of more than $2 billion (but not more than $5 billion). NCES must submit these lists to the Office of Management and Budget, which must then distribute the lists to federal agencies, Congress, and the public.The bill establishes the following limits on the indirect costs allowable under federal research awards:for an IHE with an endowment of more than $5 billion, the IHE is prohibited from using these awards for indirect costs;for an IHE with an endowment of more than $2 billion (but not more than $5 billion), the IHE is limited to an indirect cost rate of 8%; andfor all other IHEs, an indirect cost rate of 15%.The Government Accountability Office must annually report to Congress on indirect cost reimbursement on federal research awards for IHEs.

US HF680

A bill for an act relating to assessment and refund denial notices furnished to taxpayers by the department of revenue.

Similar Bills

No similar bills found.