S. 4761 – Tax Court Parity Act

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Updated June 19, 2026 at 5:12 AM UTC

The Tax Court Parity Act updates the Internal Revenue Code to clarify the Tax Court’s power to fix clerical errors and to grant relief from final judgments or orders. It adds rules for when and how the court can correct mistakes, consider new evidence, or address fraud, and it outlines the timing for such motions and the right to appeal the court’s relief decisions. The changes affect taxpayers and their representatives who are involved in Tax Court cases.

Key Provisions

Amends IRC §7481 to add a new subsection (e) that lets the Tax Court correct clerical mistakes, oversights, or omissions in its judgments or orders, either on its own or on motion, without notice.
Allows the Tax Court, after a judgment is final, to grant relief from that judgment or order on motion for reasons such as mistake, newly discovered evidence, fraud or misconduct, a void judgment, or any other circumstance where justice requires.
Sets timing rules: motions for relief must be filed within a reasonable time and, for certain reasons (mistake, new evidence, fraud), no later than one year after the judgment or order.
Specifies that a pending motion for relief does not suspend the judgment’s operation or affect its finality.
Provides that parties can appeal the Tax Court’s decision to grant relief by filing a notice of appeal within 90 days.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

June 11, 2026

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SenateIntro Referral

Introduced in Senate

June 11, 2026

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

June 11, 2026

Bill Text

Latest available legislative text

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Introduced in SenateIssued June 11, 2026

II

119th CONGRESS

2d Session

S. 4761

IN THE SENATE OF THE UNITED STATES

June 11, 2026

Mr. Scott of South Carolina (for himself and Ms. Hassan) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to clarify the authority of the Tax Court to order relief from a judgment or order.

1.

Short title

This Act may be cited as the Tax Court Parity Act.

2.

Clarification of Tax Court authority to order relief from a judgment or order

Section 7481 of the Internal Revenue Code of 1986 is amended—

(1)

by striking and (d), in subsection (a) and inserting (d), and (e),; and

(2)

by adding at the end the following new subsection:

(e)

Relief from a judgment or order

(1)

Corrections based on clerical mistakes; oversights and omissions

(A)

In general

The Tax Court may correct a clerical mistake, or a mistake arising from oversight or omission, whenever one is found in a judgment, order, or other part of the record. The Tax Court may do so on motion or on its own, with or without notice.

(B)

Appellate court leave required on appeal

After an appeal has been docketed in the appellate court, and while such appeal is pending, any such mistake may be corrected only with the appellate court’s leave.

(2)

Grounds for relief from a final judgment or order

On motion and just terms, the Tax Court may relieve a party or its legal representative from a final judgment or order for any of the following reasons:

(A)

Mistake, inadvertence, surprise, or excusable neglect.

(B)

Newly discovered evidence that, with reasonable diligence, could not have been discovered in time to move for a new trial under rules prescribed by the Court and that would have a reasonable likelihood of changing the outcome.

(C)

Fraud (whether previously called intrinsic or extrinsic), misrepresentation, or misconduct by an opposing party.

(D)

The judgment is void.

(E)

Any other circumstance where justice so requires.

(3)

Timing and effect of the motion

(A)

Timing

A motion under paragraph (2)—

(i)

must be made within a reasonable time, and

(ii)

in the case of a reason described in subparagraphs (A), (B), or (C), not later than 1 year after the entry of the judgment or order.

(B)

Effect on finality

While pending, any such motion does not affect the judgment’s finality or suspend its operation.

(4)

Other powers to grant relief

This subsection shall not limit the Tax Court’s power to set aside a judgment for fraud on the Tax Court.

(5)

Court of appeals jurisdiction

If the Tax Court provides relief from a judgment or order that is otherwise final under this section, either or both parties may obtain review of such relief by filing a notice of appeal under this subchapter within 90 days of the Court’s judgment or order directing such relief.

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