WeVote
Log In

Bill

Bill

S 4761

Tax Court Parity Act

119th Congress Introduced by Maggie Hassan and 1 co-sponsor

The bill explicitly grants the Tax Court authority to grant relief from final judgments or orders, with defined grounds, procedures, and timelines.

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 4761

Overview

  • Bill: S. 4761 (Tax Court Parity Act)
  • Session: 119th Congress (Senate)
  • Introduced: June 11, 2026 by Sen. Tim Scott (for himself and Sen. Maggie Hassan)
  • Purpose: Amend the Internal Revenue Code to clarify and expand the Tax Court’s authority to order relief from judgments or orders.

Main purpose and intent

  • The bill seeks to ensure the Tax Court has explicit authority to grant relief from a judgment or order, addressing scenarios where errors or fairness concerns warrant reconsideration.
  • It aims to provide parity in relief mechanisms by codifying specific grounds and procedures for relief, similar to methods available in other courts.

Key provisions and changes

  • Amends Section 7481 of the Internal Revenue Code by:
    • Replacing existing language to include a new subsection (e) titled “Relief from a Judgment or Order.”
    • Allowing the Tax Court to correct clerical mistakes or mistakes arising from oversights or omissions in judgments, orders, or other parts of the record. Corrections can be made on motion or sua sponte, with or without notice.
    • Requiring appellate court leave to correct such mistakes after an appeal has been docketed and is pending.
    • Establishing grounds for relief from a final judgment or order on motion and just terms, including:
    • Mistake, inadvertence, surprise, or excusable neglect.
    • Newly discovered evidence that could not have been discovered with reasonable diligence in time for a new trial and would likely change the outcome.
    • Fraud, misrepresentation, or misconduct by the opposing party.
    • The judgment is void.
    • Any other circumstance where justice requires.
    • Setting timing rules for motions:
    • Motions must be made within a reasonable time.
    • For grounds listed in the above (A)–(C) (mistake, new evidence, fraud/misconduct), filed within 1 year after entry of judgment or order.
    • Clarifying that pending relief motions do not affect the judgment’s finality or suspend its operation.
    • Not limiting the Tax Court’s power to set aside a judgment for fraud on the Tax Court.
    • Providing pathway for appellate review of relief from final judgments or orders: either party may file a notice of appeal within 90 days of the Court’s judgment or order directing such relief.

Who/what is affected

  • Affected: Tax Court and parties involved in federal tax litigation (taxpayers and the IRS as represented by counsel).
  • The change adds explicit authority and procedures for correcting errors and granting relief from final judgments or orders, potentially altering how certain tax disputes can be revisited or corrected after decisions.

Procedural and timeline aspects

  • Effective mechanism for corrections of clerical mistakes includes both on-motion and sua sponte corrections, with appellate leave required once an appeal is pending.
  • Relief motions can be brought for specified grounds within one year for grounds (A)–(C) and within a reasonable time for other grounds; finality and operation of the judgment are not suspended during the motion.
  • If relief is granted, either party may seek further review in the Court of Appeals by filing a notice of appeal within 90 days of the relief-directed judgment or order.
  • The bill establishes a clear statutory path for aligning Tax Court relief procedures with appeal rights and timelines.

Practical implications

  • Potentially faster and more precise correction of errors without necessitating full re-litigation.
  • Explicit grounds for relief may broaden the ability to challenge final judgments in tax disputes.
  • Creates a formal process to address clerical errors and newly discovered evidence, improving court accuracy and fairness.
  • Introduces a defined appellate review route for relief decisions, adding transparency to the post-judgment process.

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

Sign in to ask a question.