S.Amdt. 2628

SA 2628. Mr. REED submitted an amendment intended to be proposed by
him to the bill H.R. 1, to provide for reconciliation pursuant to title
II of H. Con. Res. 14; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. ____. AUDITS.

(a) In General.--Subchapter A of chapter 78 is amended by
inserting after section 7606 the following new section:

``SEC. 7607. AUDITS.

``(a) In General.--
``(1) Audit requirement.--The Internal Revenue Service
shall not initiate any audit for a taxable year of a taxpayer
whose taxable income for the preceding taxable year was not
in excess of the threshold amount unless audits have been
completed of--
``(A) all corporations whose taxable income for the
preceding taxable year was in excess of $10,000,000, and
``(B) all taxpayers other than corporations whose taxable
income for the preceding taxable year was in excess of
$5,000,000.
``(2) Threshold amount.--For purposes of paragraph (1), the
threshold amount is--
``(A) $200,000 in the case of a joint return,
``(B) $150,000 in the case of a head of a household (as
defined in section 2(b)), and
``(C) $100,000 in any other case.
``(b) Adjustment for Inflation.--In the case of a return
for any taxable year beginning after December 31, 2026, each
of the dollar amounts in subsection (a)(2) shall be increased
by an amount equal to--
``(1) such dollar amount, multiplied by
``(2) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting `calendar year 2025'
for `calendar year 2016' in subparagraph (A)(ii) thereof.
If any amount as increased under the preceding sentence is
not a multiple of $100, such amount shall be rounded to the
nearest multiple of $100.''.
(b) Clerical Amendment.--The table of sections for
subchapter A of chapter 78 is amended by inserting after the
item relating to section 7606 the following new item:

``Sec. 7607. Audits.''.
(c) Effective Date.--The amendments made by this section
shall apply to returns for taxable years beginning after
December 31, 2025.
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