Taxpayer Confidentiality Act of 1997

Taxpayer Confidentiality Act of 1997 - Amends the Internal Revenue Code to limit the authority of the Secretary of the Treasury to examine books and witnesses for tax administration purposes.

[Congressional Bills 105th Congress]
[From the U.S. Government Printing Office]
[H.R. 2563 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2563

To amend the Internal Revenue Code of 1986 to restrict the authority to 
    examine books and witnesses for purposes of tax administration.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 26, 1997

Ms. Dunn (for herself, Mr. Tanner, Mr. Watkins, Mr. Matsui, Mr. Weller, 
Mr. Kleczka, Mr. Sam Johnson of Texas, Mr. English of Pennsylvania, Mr. 
 Houghton, Mr. Ramstad, Mr. Barcia, Mr. Stenholm, Ms. Danner, Mr. Neal 
of Massachusetts, Mr. McIntyre, Mr. Herger, and Mr. Ensign) 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 authority to 
    examine books and witnesses for purposes of tax administration.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Taxpayer Confidentiality Act of 
1997''.

SEC. 2. RESTRICTIONS ON AUTHORITY TO EXAMINE BOOKS AND WITNESSES.

    (a) In General.--Subsection (b) of section 7602 of the Internal 
Revenue Code of 1986 (relating to examination of books and witnesses) 
is amended to read as follows:
    ``(b) Clarification of Authority To Summon, Etc.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        authority granted by subsection (a) shall be limited to--
                    ``(A) factual information on which the return is 
                based,
                    ``(B) factual information documenting gross income,
                    ``(C) factual information which may be relevant or 
                material to determining the taxpayer's income where the 
                Secretary determines that there is a reasonable 
                indication of unreported income, and
                    ``(D) other information which may be relevant or 
                material to--
                            ``(i) collecting any liability referred to 
                        in subsection (a), or
                            ``(ii) an inquiry into any offense 
                        connected with the administration or 
                        enforcement of the internal revenue laws.
            ``(2) Exception for john doe summons.--Paragraph (1) shall 
        not apply to a summons with respect to which the requirements 
        of section 7609(f) are met.
            ``(3) Factual information.--For purposes of this 
        subsection, the term `factual information' does not include 
        information reflecting thought processes, theories, analyses, 
        opinions, and mental impressions.''
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 7602(a) of such Code is 
        amended by striking ``which may be relevant or material to such 
        inquiry''.
            (2) Paragraphs (2) and (3) of section 7602(a) of such Code 
        are each amended by striking ``, as may be relevant or material 
        to such inquiry''.
            (3) Subsection (a) of section 7602 of such Code is amended 
        by striking ``or collecting any such liability,'' and inserting 
        ``collecting any such liability, or inquiring into any offense 
        connected with the administration or enforcement of the 
        internal revenue laws,''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
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