A bill to amend the Internal Revenue Code of 1954 to restrict the authority for inspection of tax returns and the disclosure of information contained therein, and for other purposes.

States that all tax returns are confidential and private records, but that they may be opened to inspection by the following persons at such times and in such manner as the Commissioner of Internal Revenue by regulation shall prescribe: (1) the taxpayer or his attorney; (2) officers and employees of the Internal Revenue Service, the Treasury Department, and the Justice Department for tax administration and economic stabilization purposes; (3) shareholders of record owning 1 percent or more of a corporation; (4) tax officials of the States, District of Columbia, territories and possessions; (5) the Ways and Means Committee of the House, Finance Committee of the Senate, and Joint Committee on Internal Revenue and Taxation, or by other specifically authorized committees and persons; (6) the Attorney General, his assistants, and United States attorneys in the performance of official duties or for litigation; and (7) officers and employees of the executive department if necessary to enforcement of Federal statutes.

Prescribes acceptable reasons for inspecting tax returns and authorizes the Internal Revenue Service to establish the manner in which they shall be inspected.

Repeals the provisions of the Internal Revenue Code of 1954 that prescribed the manner in and the extent to which unemployment tax returns may be inspected by State officials, shareholders and committees of Congress.

Adds State employees and shareholders to the provisions of the Internal Revenue Code prohibiting Federal employees from disclosing tax return information, and prescribing penalties for such disclosure.