Taxpayer Information Protection and Privacy Act

Taxpayer Information Protection and Privacy Act - Amends the Internal Revenue Code to prohibit tax return preparers from: (1) soliciting taxpayers for consent to the disclosure or use of their tax return information for any purpose; and (2) disclosing tax return information to tax preparers located outside the United States without taxpayer consent.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5138 Introduced in House (IH)]







109th CONGRESS
  2d Session
                                H. R. 5138

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 6, 2006

 Mr. Hayworth 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.

    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 Information Protection and 
Privacy Act''.

SEC. 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.
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