S. 5078: Small Tax Case Threshold Modernization Act

This bill would change the rules for Tax Court cases involving smaller tax disputes.

What it changes

• It would raise the maximum amount in dispute for a case to qualify as a small tax case from $50,000 to $100,000.
• It would also update the law so that this dollar limit increases over time with inflation, starting for cases filed after 2026.
• The bill would rename the section heading from “Disputes involving $50,000 or less” to simply “Small disputes.”

What that means in practice

• More taxpayers with smaller-to-moderate tax disputes would be able to use the small tax case process in Tax Court.
• This process is generally meant for simpler cases and is often less formal than regular Tax Court proceedings.
• The bill would apply only to proceedings that begin after the bill becomes law.

Relevant Companies

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