H.R. 5138 (109th): Taxpayer Information Protection and Privacy Act

109th Congress, 2005–2006. Text as of Apr 06, 2006 (Introduced).

Status & Summary | PDF | Source: GPO

I

109th CONGRESS

2d Session

H. R. 5138

IN THE HOUSE OF REPRESENTATIVES

April 6, 2006

introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to restrict the use of tax return information by preparers of returns.

1.

Short title

This Act may be cited as the Taxpayer Information Protection and Privacy Act.

2.

Restriction on use of tax return information by preparers of returns

(a)

In general

Section 7216 of the Internal Revenue Code of 1986 (relating to disclosure or use of information by preparers of returns) is amended by adding at the end the following new subsection:

(c)

Restriction on solicitations of consent

(1)

In general

A person described in subsection (a) may not solicit the taxpayer to consent to the disclosure or use of information described in such subsection for any purpose, including the use of such information by such person to solicit the taxpayer for additional tax-related services.

(2)

Regulatory exception not to apply

Subsection (b)(3) shall not apply with respect to any disclosure or use described in paragraph (1).

(d)

Consent required for tax preparation work performed outside United States

(1)

In general

The disclosure or use of information described in subsection (a) in the ordinary course of business by a person engaged in a business described in such subsection to any individual or person physically located outside of the United States shall be treated as a violation of subsection (a) unless the taxpayer consents to such disclosure or use.

(2)

United States

For purposes of this subsection, the term United States includes any territory or possession of the United States.

.

(b)

Effective date

The amendments made by this section shall apply to disclosures and uses after the date of the enactment of this Act.