Tax Court Parity Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4761 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 4761

To amend the Internal Revenue Code of 1986 to clarify the authority of
        the Tax Court to order relief from a judgment or order.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 11, 2026

Mr. Scott of South Carolina (for himself and Ms. Hassan) introduced the
 following bill; which was read twice and referred to the Committee on
                                Finance

_______________________________________________________________________

                                 A BILL

To amend the Internal Revenue Code of 1986 to clarify the authority of
        the Tax Court to order relief from a judgment or order.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Court Parity Act''.

SEC. 2. CLARIFICATION OF TAX COURT AUTHORITY TO ORDER RELIEF FROM A
              JUDGMENT OR ORDER.

    Section 7481 of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``and (d),'' in subsection (a) and
        inserting ``(d), and (e),''; and
            (2) by adding at the end the following new subsection:
    ``(e) Relief From a Judgment or Order.--
            ``(1) Corrections based on clerical mistakes; oversights
        and omissions.--
                    ``(A) In general.--The Tax Court may correct a
                clerical mistake, or a mistake arising from oversight
                or omission, whenever one is found in a judgment,
                order, or other part of the record. The Tax Court may
                do so on motion or on its own, with or without notice.
                    ``(B) Appellate court leave required on appeal.--
                After an appeal has been docketed in the appellate
                court, and while such appeal is pending, any such
                mistake may be corrected only with the appellate
                court's leave.
            ``(2) Grounds for relief from a final judgment or order.--
        On motion and just terms, the Tax Court may relieve a party or
        its legal representative from a final judgment or order for any
        of the following reasons:
                    ``(A) Mistake, inadvertence, surprise, or excusable
                neglect.
                    ``(B) Newly discovered evidence that, with
                reasonable diligence, could not have been discovered in
                time to move for a new trial under rules prescribed by
                the Court and that would have a reasonable likelihood
                of changing the outcome.
                    ``(C) Fraud (whether previously called intrinsic or
                extrinsic), misrepresentation, or misconduct by an
                opposing party.
                    ``(D) The judgment is void.
                    ``(E) Any other circumstance where justice so
                requires.
            ``(3) Timing and effect of the motion.--
                    ``(A) Timing.--A motion under paragraph (2)--
                            ``(i) must be made within a reasonable
                        time, and
                            ``(ii) in the case of a reason described in
                        subparagraphs (A), (B), or (C), not later than
                        1 year after the entry of the judgment or
                        order.
                    ``(B) Effect on finality.--While pending, any such
                motion does not affect the judgment's finality or
                suspend its operation.
            ``(4) Other powers to grant relief.--This subsection shall
        not limit the Tax Court's power to set aside a judgment for
        fraud on the Tax Court.
            ``(5) Court of appeals jurisdiction.--If the Tax Court
        provides relief from a judgment or order that is otherwise
        final under this section, either or both parties may obtain
        review of such relief by filing a notice of appeal under this
        subchapter within 90 days of the Court's judgment or order
        directing such relief.''.
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