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Bill

S 5275

Presidential Tax Accountability and Audit Integrity Act

119th Congress Introduced by Maria Cantwell and 3 co-sponsors

Prohibits any covered instrument affecting federal tax matters involving the President or closely related individuals during the President’s term, and requires public reporting of

Introduced in Senate
2
WeVote Research Nonpartisan
Bill Summary · S 5275

Summary of Bill: Presidential Tax Accountability and Audit Integrity Act (S.5275, 119th Congress)

Purpose and intent

  • The bill aims to increase transparency and prevent the use of formal tax instruments to influence or released claims related to the President and certain related individuals or entities.
  • It would prohibit the Treasury (Secretary) from entering into, granting, or giving effect to any “covered instrument” that purports to affect federal tax matters involving the President, individuals related to the President, or related persons, during the President’s term in office.
  • The measure adds reporting and disclosure requirements to publicize information about any covered instruments and the taxpayers affected.

Key provisions and changes

  1. Prohibition on covered instruments (new Sec. 7124, redesignation to 7125)

    • The Secretary of the Treasury may not enter into, grant, or make any covered instrument after enactment.
    • The Secretary shall not give effect to any covered instrument in administering or enforcing internal revenue laws.
    • Covered instrument: any term of an agreement, order, waiver, release, addendum, instruction, or similar instrument that purports to affect any Federal tax matter involving:
      • the President,
      • any individual in a specified close familial or professional relationship to the President (as defined in the bill),
      • any person related to such individuals, and entered into during the period the President is serving in office.

  2. Definition of related persons

    • The bill provides specific criteria for when someone is “related” to the President for purposes of coverage, including relationships that would trigger disallowance of losses under sections 267 or 707(b) or common control in business ventures.

  3. Reporting and disclosure (Sec. 7124(d))

    • The Secretary must publicly disclose, and report to Congress, the identity of taxpayers to whom any covered instrument applies and actions taken to comply with or enforce the covered instrument.
    • Reports must be:
      • Due within 7 days after a covered instrument is entered into, granted, or made (or within 7 days after enactment for instruments entered before enactment).
      • Then every 30 days thereafter, for up to three years after the President’s term ends, or until the covered instrument is rescinded, whichever comes first.
    • The bill authorizes disclosures of return information to the public to the extent necessary to carry out these reporting requirements.

  4. Disclosure-related amendments to the Internal Revenue Code

    • Adds new disclosure authority to Section 6103(k) to permit public disclosure of return information as needed for section 7124(d) reporting.
    • Requires conforming amendments to Section 6103(p)(3)(A) to reflect the new disclosure category.

  5. Clerical amendments

    • Adjusts the table of contents for Chapter 74 to reflect the new Sec. 7124 and establishes the new title reference (7124 to 7125).

  6. Special rules for prior instruments (existing cases)

    • For “applicable persons” affected by covered instruments entered before enactment, the statute sets extended assessment and collection periods that run until the later of:
      • three years after the end of the President’s term for the related individual, or
      • the standard 6501 clock (three or more years per tax code, depending on the case).
    • Defines “applicable person” and “applicable tax” in relation to the extended period.

Who would be affected

  • The Treasury Secretary and Internal Revenue Service (IRS) would be responsible for implementing the prohibition, reporting, and disclosure requirements.
  • Taxpayers who are identified as being involved in or affected by a covered instrument involving the President or related persons.
  • Public and Congress, as the bill mandates public disclosure of information related to covered instruments and related taxpayer actions.
  • Individuals and entities in relationships to the President or relateds as defined under the act (including certain family or business connections).

Procedural and timeline aspects

  • Introduction date: August 6, 2026.
  • Status: Read twice and referred to the Senate Committee on Finance.
  • Effective date: Provisions generally apply to covered instruments entered, granted, or made on or after January 20, 2025. Disclosure provisions apply from the date of enactment.
  • Reporting cadence: Initial report within 7 days of instrument creation, then every 30 days for up to 3 years after the President’s term ends (unless the instrument is rescinded earlier).
  • Special rules apply to pre-enactment instruments for extending assessment limitations.

Observations

  • The bill focuses on preventing the negotiation or release of tax claims tied to the President or closely related individuals during and around the presidential term.
  • It emphasizes transparency by publicizing identified taxpayers and actions related to these instruments.
  • It creates new enforcement and reporting mechanisms that would impact how sensitive tax information can be disclosed and tracked in relation to high-level executive office matters.

If you’d like, I can compare this bill to existing law on penalties, tax equity, or presidential accountability provisions, or provide a side-by-side with current Sec. 7124 language once available.

Compiled from official sources — confirm details with the bill’s official record.

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