On May 19, 2026, the U.S. House of Representatives passed H.R. 6506, the Taxpayer Due Process Enhancement Act. The legislation responds directly to the Supreme Court's 2025 decision in Commissioner v. Zuch and introduces targeted enhancements to Collection Due Process (CDP) procedures for IRS liens, levies, and related collection actions. This publication reflects tax law and regulations applicable as of May 2026 and is subject to change without notice.
This article examines the Supreme Court's 2025 decision in Commissioner v. Zuch, the key procedural enhancements introduced by H.R. 6506, changes to Tax Court jurisdiction and refund offset rules in CDP hearings, and California conformity considerations.
Background on the Commissioner v. Zuch Decision
The Supreme Court's 2025 decision in Commissioner v. Zuch narrowed certain taxpayer protections in Collection Due Process hearings. The ruling permitted the IRS to apply overpayments or refunds to disputed liabilities during CDP proceedings and imposed procedural timelines that could result in loss of Tax Court jurisdiction. These developments prompted congressional action to restore and strengthen taxpayer safeguards in collection matters.
Main Provisions of the Taxpayer Due Process Enhancement Act (H.R. 6506)
H.R. 6506 restores and expands protections in CDP hearings by:
- Suspending the refund statute of limitations while a Collection Due Process hearing is pending.
- Prohibiting the IRS from offsetting or applying overpayments or refunds against disputed tax liabilities during the pendency of a CDP hearing.
- Expanding Tax Court jurisdiction to review CDP determinations and prevent cases from becoming moot due to procedural timing issues.
These changes apply to collection actions initiated on or after the bill's effective date. California collection practices administered by the Franchise Tax Board generally mirror federal Collection Due Process rules; taxpayers facing FTB liens or levies should monitor parallel state procedures that may be affected by the federal changes.
The provisions of H.R. 6506 take effect upon enactment (pending Senate action and presidential signature as of the publication date). Taxpayers who have received IRS notices of federal tax lien, proposed levy, or other collection actions should review their cases promptly. Timely filing of Form 12153 (accessed May 25, 2026) remains required to initiate or continue CDP rights.
Compliance Resources and Tools
Official IRS forms and instructions, including Form 12153 and Publication 594 (both accessed May 25, 2026), are available on IRS.gov. The full text of H.R. 6506 (accessed May 25, 2026) is accessible through Congress.gov.
- H.R. 6506 responds to the 2025 Supreme Court decision in Commissioner v. Zuch by enhancing Collection Due Process protections.
- The legislation suspends the refund statute of limitations during the pendency of a CDP hearing.
- IRS offsets of overpayments or refunds against disputed liabilities are prohibited while a CDP hearing is ongoing.
- Tax Court jurisdiction in CDP cases is expanded to prevent mootness caused by procedural timing.
- California FTB collection practices generally align with federal CDP rules, creating parallel considerations for state-level matters.
- Taxpayers with active or recent IRS collection notices should evaluate the impact of these changes on their specific circumstances.
References
- U.S. House of Representatives. (2026). H.R. 6506 – Taxpayer Due Process Enhancement Act. Congress.gov. Accessed May 25, 2026. https://www.congress.gov/bill/119th-congress/house-bill/6506.
- Internal Revenue Service. (2026). Publication 594: The IRS Collection Process. IRS.gov. Accessed May 25, 2026. https://www.irs.gov/publications/p594.
- Internal Revenue Service. (2026). Instructions for Form 12153. IRS.gov. Accessed May 25, 2026. https://www.irs.gov/instructions/i12153.
- Internal Revenue Service. (2026). Collection Due Process. IRS.gov. Accessed May 25, 2026. https://www.irs.gov/businesses/small-businesses-self-employed/collection-due-process.
- Franchise Tax Board. (2026). Collection and Enforcement – FTB Publication 4058. FTB.ca.gov. Accessed May 25, 2026. https://www.ftb.ca.gov/forms/2026/2026-4058.pdf.
- U.S. Supreme Court. (2025). Commissioner v. Zuch, 603 U.S. ___ (2025).
The information contained in this publication is provided for educational and general informational purposes only. It does not constitute tax advice, accounting advice, legal advice, or any other form of professional advice and does not create a client-professional relationship.
The content reflects tax law and regulations applicable on the date of publication only and is subject to change without notice. Examples and illustrations are hypothetical and do not represent any specific taxpayer situation.
No reader should act or refrain from acting on the basis of this publication without first obtaining specific written advice from a licensed CPA based on the reader's individual facts and circumstances.
Any federal tax advice contained herein is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
Parsi Team Specific Notice: This publication was prepared by non-licensed content personnel under the direct supervision and final approval of a licensed CPA. The reviewing CPA assumes professional responsibility for the technical accuracy and compliance of the content.