5 Tax Bills Congress Advanced in March 2026 + IRS Tax Deadline 2026 Warnings
March 2026 brought significant tax-related legislative activity from Washington. On March 25, the House Ways and Means Committee approved five bipartisan tax bills covering disaster relief, educator deductions, IRS modernization, and whistleblower protections. At the same time, the IRS tax deadline 2026 of April 15 carries an urgent warning: more than 1.3 million taxpayers are owed a combined $1.2 billion in unclaimed 2022 refunds — but they must act before April 15 or forfeit those funds forever. At SW Accounting & Consulting Corp, we track these developments closely. Here is everything you need to know.
Which Tax Bills Did the Ways and Means Committee Pass in March 2026? 🏛️
During a March 25, 2026 markup, the House Ways and Means Committee approved five bipartisan tax-related bills — three by 43-0 votes and two by 41-0 votes.
| Bill | Key Provision | 10-Year Cost | Vote |
|---|---|---|---|
| Survivor Justice Tax Prevention Act (H.R. 2347) | Excludes sexual assault damages (non-punitive) from gross income | $89M | 41-0 |
| Doug LaMalfa Federal Disaster Tax Relief Act (H.R. 5366) | Extends personal casualty loss rules and wildfire exclusion through 2027 | $408M | 43-0 |
| Supporting Early-Childhood Educators’ Deduction Act (H.R. 5334) | Extends $350 educator expense deduction to Pre-K teachers | $648M | 43-0 |
| Taxpayer Experience Improvement Act (H.R. 7971) | IRS modernization: dashboards, callback tech, expanded electronic access | $0 | 43-0 |
| IRS Whistleblower Program Improvement Act (H.R. 7959) | Strengthens whistleblower awards, privacy protections, attorney fee rules | $44M | 41-0 |
Survivor Justice Tax Prevention Act: Under existing law, damages for physical injuries are excluded from gross income. However, damages awarded to survivors of sexual assault have historically been taxed as ordinary income unless the injuries were deemed physical. H.R. 2347 equalizes the treatment, excluding all non-punitive damages from sexual abuse or unwanted sexual conduct from gross income regardless of whether injuries were physical. Introduced by Reps. Smucker (R-Pa.) and Moore (D-Wis.), approved 41-0.
Federal Disaster Tax Relief Act: Renamed the Doug LaMalfa Act in honor of the California congressman who passed away in January 2026, this bill extends personal casualty loss rules for disasters and excludes wildfire recovery payments from gross income. The casualty loss provision applies to losses after December 31, 2024. The wildfire exclusion covers payments received in taxable years beginning after December 31, 2025. California residents in wildfire-affected areas will be particularly impacted.
Supporting Early-Childhood Educators’ Deduction Act: Currently K-12 teachers can claim an above-the-line deduction of up to $350 for out-of-pocket classroom expenses. H.R. 5334 extends this same deduction to Pre-K educators — recognizing that early childhood teachers frequently spend their own money on supplies. The provision applies to expenses paid in taxable years beginning after December 31, 2025.
These five bipartisan bills represent incremental but meaningful tax relief measures. While they must still pass the full House and Senate before becoming law, the unanimous or near-unanimous committee votes signal strong prospects. Our advice: do not plan around these provisions yet, but stay aware — particularly the disaster relief extension if you were affected by a 2025 wildfire or major disaster in California.
What Happened with the Senate Vote on Clean Energy Tax Credits? ⚡
The Senate voted 47-53 to reject a Congressional Review Act (CRA) resolution that would have overturned IRS Notice 2025-42, which tightened the beginning-of-construction rules for solar and wind energy tax credits under the OBBBA.
S.J. Res. 107, introduced by Senate Democrats including Finance Committee Ranking Member Ron Wyden (D-Ore.) and Minority Leader Chuck Schumer (D-N.Y.), targeted IRS Notice 2025-42. That notice revised the rules for when solar and wind facilities qualify as having begun construction — a threshold for the section 45Y production tax credit (PTC) and section 48E investment tax credit (ITC) under the One Big Beautiful Bill Act (OBBBA, P.L. 119-21).
Under the OBBBA, wind and solar facilities that begin construction after July 4, 2026, and are not placed in service by December 31, 2027, lose eligibility for these credits. Democrats argued Notice 2025-42 was too restrictive and would drive up energy costs. Republicans countered that it prevents abuse of the credit system. With the CRA resolution failing, the notice remains in effect.
IRS Notice 2025-42 is now the operative standard for beginning-of-construction (BOC) rules for solar and wind facilities. The July 4, 2026 BOC deadline is critical — missing it means your facility will not qualify for the section 45Y PTC or section 48E ITC. Contact your tax advisor now to confirm your facility’s BOC status under the revised rules.
Is There Really $1.2 Billion in Unclaimed IRS Refunds for 2022? 💵
Yes — the IRS estimates that more than 1.3 million taxpayers are owed a combined $1.2 billion in unclaimed 2022 refunds. They must file a 2022 return by April 15, 2026, or those funds are permanently forfeited.
Under federal law, taxpayers have three years from the original filing deadline to claim a refund. For tax year 2022 (originally due April 18, 2023), that window closes on April 15, 2026. After that date, unclaimed refunds become the property of the US Treasury. Common reasons taxpayers miss refunds:
- Low-income workers with part-time or seasonal jobs who had withholding but were not required to file
- Students or young adults who had federal income tax withheld but did not realize they were owed a refund
- Individuals who changed addresses and never received IRS communications
- People who may have qualified for the Earned Income Tax Credit (EITC) but did not file
If you or someone you know did not file a 2022 federal return, contact a CPA immediately to file before April 15, 2026.
What Is the 2026-2027 IRS Priority Guidance Plan and Why Does It Matter? 📋
Through Notice 2026-23, the Treasury and IRS invited the public to submit recommendations for the 2026-2027 Priority Guidance Plan — the roadmap for IRS regulatory activity through June 2027.
The Priority Guidance Plan identifies tax issues the IRS intends to address through regulations, revenue rulings, notices, and other guidance. The 2026-2027 plan covers July 1, 2026 through June 30, 2027. This is a formal opportunity for tax professionals, businesses, and industry groups to flag ambiguous areas of tax law where official guidance is urgently needed — particularly from the OBBBA, the Corporate Alternative Minimum Tax (CAMT), and other recent legislation.
IRS CEO Frank J. Bisignano — who also serves as the commissioner of the Social Security Administration — is expected to testify before the Senate Finance Committee on April 15, 2026 (the filing deadline itself). This hearing will be his first appearance before the Finance Committee and senators are expected to press him on IRS filing season performance, taxpayer data sharing practices, and agency priorities.
IRS Filing Season Reminders: Electronic Filing and Paper Check Delays 🖨️
The IRS is urging all taxpayers with outstanding returns to file electronically through IRS Free File, available at IRS.gov at no cost for eligible taxpayers. Electronic filing remains the fastest and most secure way to submit a return and receive a refund.
Separately, the IRS has issued 1.4 million CP53E notices warning that affected taxpayers who do not have bank account information on file could wait more than 10 weeks to receive paper check refunds. Two Democratic taxwriters — Reps. Danny Davis (Ill.) and Terri Sewell (Ala.) — pressed Treasury Secretary Scott Bessent about these delays in a March 25 letter, citing lack of a complete response to their earlier inquiry. If you receive a CP53E notice, provide your bank account information through your MyIRS online account to receive your refund electronically.
- File electronically: Avoid 10+ week paper check delays by filing your 2025 return electronically with direct deposit information
- Check for unfiled 2022 returns: The April 15, 2026 deadline to claim 2022 refunds is approaching. Act now before it is too late.
- Monitor clean energy projects: The July 4, 2026 OBBBA beginning-of-construction deadline for solar/wind credits is firm after the Senate vote
- Watch bipartisan tax bills: Monitor H.R. 2347, 5366, 5334, 7971, and 7959 as they advance to the full House
