No Tax on Wrongful Delay Act of 2026

This bill would change federal tax law so that interest the IRS pays to taxpayers on tax overpayments is not counted as taxable income in certain cases. The exemption would apply to interest paid after an IRS examination (audit), after a lawsuit or proceeding brought by a taxpayer to get a tax credit or refund, or after a civil action by the United States to collect taxes. The change would apply to taxable years beginning after December 31, 2025.

Full text and official record on Congress.gov

Sponsors

• Marsha Blackburn Republican sponsor
• 0 cosponsors