Small Business Taxpayer Bill of Rights Act of 2023

The Small Business Taxpayer Bill of Rights Act of 2023 provides new protections for small business taxpayers by expanding eligibility to recover IRS costs and fees, increasing civil damages for IRS violations (up to $5 million for reckless or intentional disregard of tax laws), and creating new dispute resolution mechanisms. It limits IRS enforcement actions against small business primary residences, prohibits raising new issues during tax appeals, and increases penalties for IRS employees who violate tax laws. The bill also establishes a new $5,000 deduction for small businesses related to audit expenses and extends the term limit for the National Taxpayer Advocate. These changes aim to make the tax system more equitable for small businesses while increasing accountability for IRS actions.