S 3587
No Tax on Wrongful Delay Act of 2026
Jurisdiction
US Congress
Session
119th Congress (2025-2026)
Last updated at
Jun 14, 2026, 8:35 AM
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Sign in to take action- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Bill overview
This bill, the No Tax on Wrongful Delay Act of 2026, aims to prevent taxpayers from being penalized with taxes on interest earned when they successfully challenge the IRS in an audit or legal proceeding. It proposes an exemption from gross income for interest paid to taxpayers by the IRS after a favorable outcome in such cases, specifically following audits, lawsuits, or civil actions related to tax collection. The goal is to ensure that taxpayers aren't further burdened when they win disputes with the IRS.
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