Tax Court Improvement Act

The bill amends the Internal Revenue Code to improve taxpayer services by expanding the authority of the Tax Court and its special trial judges. Section 2 allows judges to administer oaths, issue subpoenas for attendance and documents, and conduct depositions before hearings, thereby facilitating settlement and discovery. Section 3 authorizes special trial judges to hear additional cases, including contempt proceedings, and grants them incidental powers limited to penalties no greater than a Class C misdemeanor. The amendments also require the Tax Court to adopt rules for consent procedures, ensuring parties can agree to the assignment of cases to special trial judges. These changes aim to streamline proceedings and increase judicial oversight for taxpayers. Section 4 incorporates federal disqualification standards for judges and special trial judges, applying Section 455 of the U.S. Code to all Tax Court proceedings. Section 5 clarifies that the Tax Court may toll the filing period for deficiency petitions when equity warrants it, and it specifies tolling rules for inaccessible filing locations, adding a 14‑day grace period. The act also sets effective dates tied to the adoption of implementing rules and limits the application of the new tolling provisions to filings made after enactment. By expanding subpoena authority, clarifying contempt powers, and ensuring equitable tolling, the bill seeks to provide taxpayers with more efficient and fair judicial review. The overall impact is a more responsive Tax Court system that better balances enforcement with taxpayer rights.