S. 5078

119 S5078 IS: Small Tax Case Threshold Modernization Act
 U.S. Senate
 2026-07-22
 text/xml
 EN
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 II  119th CONGRESS  2d Session  S. 5078  IN THE SENATE OF THE UNITED STATES   July 22, 2026   Mr. Cornyn  (for himself and  Mr. Luján ) introduced the following bill; which was read twice and referred to the  Committee on Finance    A BILL
To amend the Internal Revenue Code of 1986 to adjust the threshold for conducting Tax Court proceedings relating to small disputes.
1.
Short title
This Act may be cited as the   Small Tax Case Threshold Modernization Act  .
2.
Adjustment of threshold for small disputes
(a)
In general
 Section 7463  of the Internal Revenue Code of 1986 is amended—
(1)
by striking  $50,000  each place it appears in subsections (a) and (f) and inserting  $100,000 , and
(2)
by adding at the end the following new subsection:
(g)
Inflation adjustment
(1)
In general
 In the case of any petition or appeal filed in a calendar year beginning after 2026, each of the $100,000 amounts in subsections (a) and (f) shall be increased by an amount equal to—
(A)
such dollar amount, multiplied by
(B)
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting  calendar year 2025  for  calendar year 2016  in subparagraph (A)(ii) thereof.
(2)
Rounding
If any increase determined under paragraph (1) is not a multiple of $1,000, such increase shall be rounded to the next lowest multiple of $1,000.
 .
(b)
Conforming amendments
(1)
The heading for section 7463 of such Code is amended by striking
Disputes involving $50,000 or less   and inserting
Small disputes  .
(2)
The item relating to section 7463 in the table of section for part II of subchapter C of chapter 76 of such Code is amended by striking  Disputes involving $50,000 or less  and inserting  Small disputes .
(c)
Effective date
The amendments made by this section shall apply to proceedings commencing after the date of the enactment of this Act.