The SHARE Act of 2025 would limit the enforcement authority of the Internal Revenue Service (IRS) and modify certain IRS reporting requirements. It would increase the gross receipts reporting threshold for some organizations, increase penalties for unauthorized disclosure of taxpayer information, and require the IRS to use artificial intelligence to estimate the tax gap - the difference between taxes owed and taxes actually paid.
Latest Action
Read twice and referred to the Committee on Finance.
AI Summary
Plain-English explanation of this bill
The SHARE Act of 2025 would limit the enforcement authority of the Internal Revenue Service (IRS) and modify certain IRS reporting requirements. It would increase the gross receipts reporting threshold for some organizations, increase penalties for unauthorized disclosure of taxpayer information, and require the IRS to use artificial intelligence to estimate the tax gap - the difference between taxes owed and taxes actually paid.
Last updated: 12/30/2025
Official Summary
Congressional Research Service summary
<p><strong>Simplify, Don't Amplify the IRS Act</strong></p> <p>This bill limits Internal Revenue Service (IRS) enforcement authority and modifies certain IRS reporting requirements.</p> <p>Among other provisions, the bill </p> <ul> <li> increases the gross receipts reporting threshold for certain religious and charitable organizations from $5,000 to $50,000;</li> <li> generally increases penalties for unauthorized disclosure of taxpayer information and for such disclosures by tax return preparers;</li> <li>requires the IRS to establish a fellowship program to recruit private sector tax experts to create a task force to. among other things, educate IRS employees on emerging issues, perform audits, and address offshore tax evasion; and </li> <li> sets forth provisions for reducing improper payments to taxpayers. </li> </ul> <p>The bill also requires the IRS to report annually on the tax gap estimate for the most recent taxable year. The IRS must use artificial intelligence to calculate an estimate of the tax gap. The bill defines <em>tax gap</em> as the difference between tax liabilities owed to the United States and those liabilities actually collected. </p> <p>The bill restricts funding for IRS audits and enforcement until the IRS publishes an updated tax gap projection.</p>
Key Points
Main provisions of the bill
Increases the gross receipts reporting threshold for certain religious and charitable organizations from $5,000 to $50,000.
Increases penalties for unauthorized disclosure of taxpayer information and for such disclosures by tax return preparers.
Requires the IRS to establish a fellowship program to recruit private sector tax experts to educate IRS employees, perform audits, and address offshore tax evasion.
Requires the IRS to use artificial intelligence to annually calculate an estimate of the tax gap.
Restricts IRS funding for audits and enforcement until the IRS publishes an updated tax gap projection.
How This Impacts Americans
Potential effects on citizens and communities
If enacted, this bill would primarily impact the IRS, tax-exempt organizations, and taxpayers. It would reduce IRS enforcement capabilities and require the agency to rely more on private sector expertise. This could change how the IRS conducts audits and investigations, particularly related to offshore tax evasion. The increased reporting thresholds and penalties could also affect some religious and charitable organizations.
Policy Areas
Primary Policy Area
Taxation
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
1101, 119th Congress (2025). "SHARE Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-s-1101