H. R. 5138
IN THE HOUSE OF REPRESENTATIVES
April 6, 2006
Mr. Hayworth introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to restrict the use of tax return information by preparers of returns.
This Act may be cited as the
Taxpayer Information Protection and Privacy Act.
Restriction on use of tax return information by preparers of returns
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:
Restriction on solicitations of consent
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.
Regulatory exception not to apply
Subsection (b)(3) shall not apply with respect to any disclosure or use described in paragraph (1).
Consent required for tax preparation work performed outside United States
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.
For purposes of this subsection, the term United States includes any territory or possession of the United States.
The amendments made by this section shall apply to disclosures and uses after the date of the enactment of this Act.