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A coalition of organizations representing small businesses and entrepreneurs is urging congressional leadership to move quickly on the Taxpayer Assistance and Service (TAS) Act (H.R. 5349), bipartisan legislation intended to modernize the Internal Revenue Service (IRS), improve taxpayer services, strengthen protections against filing fraud, and reduce the administrative burdens facing businesses.

In a draft letter addressed to House Speaker Mike Johnson and Democratic Leader Hakeem Jeffries, the organizations call on the House to approve the legislation following its unanimous passage in the Senate on September 30, 2026. The Senate approved an amended version of the bill, meaning the House must take further action before the legislation can be sent to the President.

The letter emphasizes that small businesses stand to benefit significantly from improvements in IRS customer service. Unlike larger corporations, small businesses generally do not have in-house tax departments and must rely on business owners, outside accountants, and other professional advisors to manage their tax obligations. Delays in receiving answers from the IRS, resolving notices, or determining the status of returns and refunds can consume valuable time and resources that would otherwise be directed toward employees, customers, and business operations.

A central component of the TAS Act is improving how taxpayers interact with the IRS. The legislation would provide more timely information about tax returns and refunds, establish a public dashboard showing IRS backlogs and telephone wait times, expand callback options, and modernize online taxpayer accounts. The expanded online accounts would allow business owners and authorized tax professionals to view IRS correspondence and submit responses electronically. These changes are intended to reduce the need for telephone calls and paper correspondence while making it easier for taxpayers to resolve routine issues.

The legislation also addresses fraudulent tax filings and the misuse of electronic filing credentials. Drawing on the bipartisan EFIN Verification Act, the TAS Act would require electronic filing identification numbers (EFINs) to be validated before returns are submitted. Filing software would be required to block submissions involving credentials that are invalid, suspended, or revoked. For small businesses and taxpayers, these provisions are intended to strengthen the security of the electronic filing system and reduce the risk that fraudulent actors can use compromised filing credentials to submit returns in someone else’s name.

The TAS Act includes several provisions specifically relevant to small businesses. Among them is authorization for voluntary withholding agreements that would allow businesses making payments to independent contractors to withhold taxes on their behalf. This could help contractors and sole proprietors avoid unexpectedly large tax liabilities when filing their annual returns.

The legislation would also extend the federal mailbox rule to electronic submissions and payments, strengthen standards and accountability for paid tax preparers, and expand taxpayers’ ability to resolve refund disputes through the U.S. Tax Court. These provisions address practical challenges businesses and individual taxpayers encounter when meeting filing requirements, working with tax preparers, and resolving disputes with the IRS.