Protects taxpayers from endless IRS collection if they didn't intend fraud.
This bill would protect taxpayers who are victims of tax preparer fraud. It would make clear that the IRS cannot collect taxes without a time limit if the taxpayer did not mean to cheat on their taxes. This means the usual time limits for collecting taxes would apply to them, instead of an unlimited period.
Today, if a tax return is fraudulent, the government generally has an unlimited time to collect taxes, even if the taxpayer didn't intend to commit fraud. This bill would change the rules so that the unlimited collection period only applies if the taxpayer personally intended to evade their tax obligations. If the fraud was committed by someone else, like a tax preparer, the standard time limits for tax collection would apply.
S 4964 · 119th Congress · July 14, 2026 · AI Summary by gemini-2.5-flash · 8/10
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