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[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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