WASHINGTON, D.C. (September 30, 2026) – Today, Independent Sector applauded Senate passage of the Taxpayer Assistance and Service Act, legislation aimed at modernizing and streamlining IRS operations and strengthening taxpayer rights during audit procedures and other interactions with the IRS. The legislation includes an amendment, offered by Senators James Lankford (R-OK) and Raphael Warnock (D-GA) and supported by Independent Sector, that would protect due process for nonprofit organizations by explicitly adding “determinations of tax-exempt status” to the list of situations under which taxpayers have a right to appeal and requiring that notice of this right is provided. View the letter of support from Independent Sector President Dr. Akilah Watkins to Senate Finance Committee leadership.
“For nonprofit organizations, tax-exempt status is a privilege and a responsibility, a measure of trust earned through good governance and service to their communities every day. This trust depends on an IRS that is rigorous, transparent, and protected from political or ideological pressures,” said Dr. Akilah Watkins, President and CEO of Independent Sector. “The bipartisan Taxpayer Assistance and Service Act is an important step towards safeguarding fair and impartial due process for every American, including the millions of nonprofit organizations entrusted with tax-exempt status. I am grateful to Senators Lankford and Warnock for strengthening this bill by ensuring nonprofit organizations have access to the same due process protections as all other sectors of our society, preserving the independence and integrity of charitable service for generations to come.”
Additional Information on the Taxpayer Assistance and Service Act Nonprofit Due Process Amendment
Title VI of the Taxpayer Assistance and Service Act would bolster the IRS Independent Office of Appeals by allowing it to hire its own attorneys, providing direct hire authority, and requiring it consider all hazards of litigation in resolving any case.
The amendment advanced by Senators Lankford and Warnock includes the following provisions aimed at securing due process for nonprofit organizations:
- The Amendment codifies that nonprofit organizations are eligible for this strengthened appeals process by explicitly adding “determinations of tax-exempt status” to the list of situations under which taxpayers have a right to appeal. This would apply to revocations of status for existing organizations and to denials of initial application for tax exempt status. This list currently appears on page 144 of the Committee-passed text.
- The Amendment codifies that nonprofit organizations must be made aware of their right to appeal by the IRS. This is current practice but is not in law. This language currently appears on page 147 of the Committee-passed text.
###
Independent Sector is the national membership organization that connects, strengthens, and advocates for nonprofits and philanthropies. Learn more at independentsector.org.
Media Contact: Chloe Kessock, chloek@independentsector.org, 727-433-2972
