Small Tax Case Threshold Modernization Act

This Act may be cited as the “Small Tax Case Threshold Modernization Act”.

(a) In general.— Section 7463 of the Internal Revenue Code of 1986 is amended—

(1) by striking “$50,000” each place it appears in subsections (a) and (f) and inserting “$100,000”, and

(2) by adding at the end the following new subsection:

“(g) Inflation adjustment.—

(1) In general.— In the case of any petition or appeal filed in a calendar year beginning after 2026, each of the $100,000 amounts in subsections (a) and (f) shall be increased by an amount equal to—

(A) such dollar amount, multiplied by

(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting “calendar year 2025” for “calendar year 2016” in subparagraph (A)(ii) thereof.

(2) Rounding.— If any increase determined under paragraph (1) is not a multiple of $1,000, such increase shall be rounded to the next lowest multiple of $1,000.”.

(b) Conforming amendments.—

(1) The heading for section 7463 of such Code is amended by striking “Disputes involving $50,000 or less” and inserting “Small disputes”.

(2) The item relating to section 7463 in the table of section for part II of subchapter C of chapter 76 of such Code is amended by striking “Disputes involving $50,000 or less” and inserting “Small disputes”.

(c) Effective date.— The amendments made by this section shall apply to proceedings commencing after the date of the enactment of this Act.