Taxpayer Privacy Protection Act of 2006

Taxpayer Privacy Protection Act of 2006 - Amends the Internal Revenue Code to: (1) prohibit tax return preparers from disclosing income tax return information to another tax return preparer or to a contractor of a tax return preparer; and (2) repeal the authority of the Secretary of the Treasury to enter into qualified tax collection contracts.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5084 Introduced in House (IH)]







109th CONGRESS
  2d Session
                                H. R. 5084

 To amend the Internal Revenue Code of 1986 to restrict the disclosure 
  information by tax return preparers to third party entities and to 
               prohibit private tax collection contracts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 4, 2006

 Mr. Dingell 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 disclosure 
  information by tax return preparers to third party entities and to 
               prohibit private tax collection contracts.

    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 Privacy Protection Act of 
2006''.

SEC. 2. RESTRICTION ON DISCLOSURE OF INFORMATION BY TAX RETURN 
              PREPARERS TO THIRD PARTY ENTITIES.

    (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) Prohibition on Disclosure to Third Party Entities.--A tax 
return preparer shall not disclose the information described in 
subsection (a) to another tax return preparer, or to a person under 
contract with a tax return preparer, for the purpose of performing 
auxiliary services in connection with the preparation of returns of the 
tax imposed by chapter 1.''.
    (b) Conforming Amendments.--
            (1) Section 7216 of such Code, as amended by subsection 
        (a), is further amended by inserting after subsection (c) the 
        following new subsection:
    ``(d) Tax Return Preparer.--For purposes of this section, the term 
`tax return preparer' means any person who is engaged in the business 
of preparing, or providing services in connection with the preparation 
of, returns of the tax imposed by chapter 1, or any person who for 
compensation prepares any such return for any other person.''.
            (2) Subsection (a) of section 7216 of such Code is amended 
        by striking ``person who is engaged in the business of 
        preparing, or providing services in connection with the 
        preparation of, returns of the tax imposed by chapter 1, or any 
        person who for compensation prepares any such return for any 
        other person, and'' and inserting ``tax return preparer''.
    (c) Effective Date.--The amendments made by this section shall 
apply to disclosures and uses after the date of the enactment of this 
Act.

SEC. 3. REPEAL OF AUTHORITY TO ENTER INTO PRIVATE TAX COLLECTION 
              CONTRACTS.

    (a) In General.--Subchapter A of chapter 64 of the Internal Revenue 
Code of 1986 (relating to collection) is amended by striking section 
6306.
    (b) Conforming Amendments.--
            (1) Subchapter B of chapter 64 of such Code is amended by 
        striking section 7433A.
            (2) Section 7809(a) of such Code is amended by striking 
        ``6306,''.
            (3) Section 7811 of such Code is amended by striking 
        subsection (g).
            (4) Section 1203 of the Internal Revenue Service 
        Restructuring Act of 1998 is amended by striking subsection 
        (e).
            (5) The table of sections of subchapter A of chapter 64 of 
        such Code is amended by striking the item relating to section 
        6306.
            (6) The table of sections of subchapter B of chapter 64 of 
        such Code is amended by striking the item relating to section 
        7433A.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act but shall not apply to 
any contract entered into before such date.
    (d) Termination of Reporting Requirement.--The reporting 
requirement of section 881(e) of the American Jobs Creation Act of 2004 
shall not apply after the date of the enactment of this Act.
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