In a positive development for the nonprofit sector, the Senate passed the Taxpayer Assistance and Service Act (S 5441) on September 30, 2026. This bipartisan measure, which seeks to strengthen taxpayer rights and improve tax administration, includes a provision that expressly establishes the right to appeal any determination to deny or revoke the tax exempt status of an organization before the Internal Revenue Service Independent Office of Appeals. The legislation also requires notice of these appeal rights to be provided to organizations whose tax exempt status has been denied or revoked.

Given recent efforts to increase scrutiny over, and impose new restrictions on, tax exempt organizations, we are pleased by the incorporation of this procedural safeguard for tax exempt organizations in this legislation. We will continue to monitor the Taxpayer Assistance and Service Act as it moves to the House.