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S. 1958 (115th): IRS Data Verification Modernization Act of 2017

The text of the bill below is as of Oct 16, 2017 (Introduced).



1st Session

S. 1958


October 16, 2017

(for himself and Mr. Crapo) introduced the following bill; which was read twice and referred to the Committee on Finance


To amend the Internal Revenue Code of 1986 to require Internet-based, real-time responses to requests to verify taxpayer income for legitimate business purposes, and for other purposes.


Short title

This Act may be cited as the IRS Data Verification Modernization Act of 2017.


Disclosure of taxpayer information for third-party income verification


In general

The Secretary of the Treasury or the Secretary’s delegate (referred to in this section as the Secretary) shall implement a program to ensure that any qualified disclosure—


is fully automated and accomplished through the Internet; and


is accomplished in as close to real-time as is practicable.


Qualified disclosure

For purposes of subsection (a), the term qualified disclosure means a disclosure under section 6103(c) of the Internal Revenue Code of 1986 of returns or return information by the Secretary to a person seeking to verify the income of a taxpayer for a legitimate business purpose who has represented to the Secretary that such person will comply with the requirements of section 6103(p)(4) of the Internal Revenue Code of 1986.


User fee


In general

The Secretary shall assess and collect a fee for disclosures described in subsection (a) at such rates as the Secretary determines are sufficient to recover the costs related to implementing the program described in subsection (a) not later than 5 years after such costs are paid or incurred. Such costs shall include the costs of any necessary infrastructure or technology.


Deposit of collections

Amounts received from fees authorized by paragraph (1) shall be deposited as an offsetting collection in, and credited to, the account through which funds are made available to carry out the activities described in subsection (a).