Lawmakers Rebuff Supreme Court’s Tax Court Jurisdiction Ruling

Legislation that would empower taxpayers against the IRS garnishing refunds to pay disputed tax liabilities or seeking to obtain their personal information from third parties was unanimously approved by the House Ways and Means Committee on Wednesday.

The panel voted 41-0 to advance the bill (H.R. 6506) by Rep. Nathaniel Moran (R-Texas) that would bar the IRS from diverting taxpayers’ refunds toward tax liabilities while they’re in dispute. It would also suspend the statute of limitations for taxpayers who are seeking a refund while battling a levy, and expand the US Tax Court’s jurisdiction in such cases.

The measure ...