Small Business Taxpayer Bill of Rights Act of 2021

This bill modifies various tax enforcement procedures and requirements that affect small businesses and other taxpayers.

The bill modifies requirements regarding

• awarding costs and fees to small businesses for administrative and court proceedings,
• the amounts of damages and penalties that are allowed for violating various tax laws,
• dispute resolution and appeal procedures,
• enforcing liens against principal residences,
• terminating Internal Revenue Service (IRS) employees for misconduct,
• reviews by the Department of the Treasury Inspector General for Tax Administration, and
• the release of an IRS levy due to economic hardship for business taxpayers.

The bill also

• allows a tax deduction for a portion of a taxpayer's expenses for certain audits,
• prohibits ex parte communications between officers in the IRS Independent Office of Appeals and other IRS employees with respect to matters pending before the officers,
• establishes a 10-year term for the National Taxpayer Advocate, and
• repeals the requirement to submit a partial payment with an offer-in-compromise to settle a tax liability.