79–006 

115TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 115–638 

21ST CENTURY IRS ACT 

APRIL 13, 2018.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. BRADY of Texas, from the Committee on Ways and Means, 

submitted the following 

R E P O R T 

[To accompany H.R. 5445] 

The Committee on Ways and Means, to whom was referred the 

bill (H.R. 5445) to amend the Internal Revenue Code of 1986 to improve cybersecurity and taxpayer identity protection, and modernize the information technology of the Internal Revenue Service, 

and for other purposes, having considered the same, report favorably thereon with an amendment and recommend that the bill as 

amended do pass. 

CONTENTS 

Page 

I. SUMMARY AND BACKGROUND ................................................................. 9 

A. Purpose and Summary ......................................................................... 9 

B. Background and Need for Legislation ................................................ 9 

C. Legislative History ............................................................................... 9 

II. EXPLANATION OF THE BILL ...................................................................... 10 

TITLE I—CYBER SECURITY AND IDENTITY PROTECTION ........................ 10 

1. Public-private partnership to address identity theft tax refund 

fraud (sec. 101 of the bill) .................................................................. 10 

2. Recommendations of Electronic Tax Administration Advisory Committee regarding identity theft and refund fraud (sec. 102 of 

the bill) ................................................................................................ 11 

3. Information Sharing and Analysis Center (sec. 103 of the bill 

and sec. 6103 of the Code) ................................................................. 12 

4. Compliance by contractors with confidentiality safeguards (sec. 

104 of the bill and sec. 6103 of the Code) ........................................ 16 

5. Report on electronic payments (sec. 105 of the bill) ........................... 18 

TITLE II—DEVELOPMENT OF INFORMATION TECHNOLOGY ................... 19 

1. Management of IRS information technology (sec. 201 of the bill 

and sec 7803 of the Code) .................................................................. 19 

2. Development of online accounts and portals (sec. 202 of the bill) .... 21 

3. Internet platform for Form 1099 filings (sec. 203 of the bill) ............ 22 

TITLE III—MODERNIZATION OF CONSENT–BASED INCOME 

VERIFICATION SYSTEM .................................................................................. 23 


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1. Disclosure of taxpayer information for third-party income 

verification (sec. 301 of the bill and sec. 6103 of the Code) ............ 23 

2. Limit redisclosures and uses of consent-based disclosures of tax 

return information (sec. 302 of the bill and sec. 6103 of the 

Code) ................................................................................................... 25 

TITLE IV—EXPANDED USE OF ELECTRONIC SYSTEMS ............................. 27 

1. Electronic filing of returns (sec. 401 of the bill and sec. 6011 

of the Code) ......................................................................................... 27 

2. Uniform standards for the use of electronic signatures for disclosure authorizations to, and other authorizations of, practitioners 

(sec. 402 of the bill and sec. 6061 of the Code) ................................ 28 

3. Payment of taxes by debit and credit cards (sec. 403 of the bill 

and sec. 6311 of the Code) ................................................................. 30 

III. VOTES OF THE COMMITTEE ...................................................................... 30 

IV. BUDGET EFFECTS OF THE BILL ............................................................... 30 

A. Committee Estimate of Budgetary Effects ......................................... 30 

B. Statement Regarding New Budget Authority and Tax Expenditures Budget Authority ...................................................................... 31 

C. Cost Estimate Prepared by the Congressional Budget Office ........... 31 

V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE 

HOUSE .......................................................................................................... 31 

A. Committee Oversight Findings and Recommendations .................... 31 

B. Statement of General Performance Goals and Objectives ................ 31 

C. Information Relating to Unfunded Mandates .................................... 31 

D. Applicability of House Rule XXI 5(b) .................................................. 32 

E. Tax Complexity Analysis ..................................................................... 32 

F. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 

Benefits ............................................................................................... 32 

G. Duplication of Federal Programs ........................................................ 32 

H. Disclosure of Directed Rule Makings ................................................. 32 

VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED 33 

A. Text of Existing Law Amended or Repealed by the Bill, as Reported .................................................................................................. 33 

B. Changes in Existing Law Proposed by the Bill, as Reported ........... 33 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE; ETC. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘21st Century IRS Act’’. 

(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment 

to, or repeal of, a section or other provision, the reference shall be considered to be 

made to a section or other provision of the Internal Revenue Code of 1986. 

(c) TABLE OF CONTENTS.—The table of contents of this Act is as follows: 

Sec. 1. Short title; etc. 

TITLE I—CYBERSECURITY AND IDENTITY PROTECTION 

Sec. 101. Public-private partnership to address identity theft refund fraud. 

Sec. 102. Recommendations of Electronic Tax Administration Advisory Committee regarding identity theft refund fraud. 

Sec. 103. Information sharing and analysis center. 

Sec. 104. Compliance by contractors with confidentiality safeguards. 

Sec. 105. Report on electronic payments. 

TITLE II—DEVELOPMENT OF INFORMATION TECHNOLOGY 

Sec. 201. Management of Internal Revenue Service information technology. 

Sec. 202. Development of online accounts and portals. 

Sec. 203. Internet platform for Form 1099 filings. 

TITLE III—MODERNIZATION OF CONSENT-BASED INCOME VERIFICATION SYSTEM 

Sec. 301. Disclosure of taxpayer information for third-party income verification. 

Sec. 302. Limit redisclosures and uses of consent-based disclosures of tax return information. 

TITLE IV—EXPANDED USE OF ELECTRONIC SYSTEMS 

Sec. 401. Electronic filing of returns. 

Sec. 402. Uniform standards for the use of electronic signatures for disclosure authorizations to, and other authorizations of, practitioners. 

Sec. 403. Payment of taxes by debit and credit cards. 


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TITLE I—CYBERSECURITY AND IDENTITY 

PROTECTION 

SEC. 101. PUBLIC-PRIVATE PARTNERSHIP TO ADDRESS IDENTITY THEFT REFUND FRAUD. 

The Secretary of the Treasury (or the Secretary’s delegate) shall work collaboratively with the public and private sectors to protect taxpayers from identity theft 

refund fraud. 

SEC. 102. RECOMMENDATIONS OF ELECTRONIC TAX ADMINISTRATION ADVISORY COMMITTEE REGARDING IDENTITY THEFT REFUND FRAUD. 

The Secretary of the Treasury shall ensure that the advisory group convened by 

the Secretary pursuant to section 2001(b)(2) of the Internal Revenue Service Restructuring and Reform Act of 1998 (commonly known as the Electronic Tax Administration Advisory Committee) studies (including by providing organized public forums) and makes recommendations to the Secretary regarding methods to prevent 

identity theft and refund fraud. 

SEC. 103. INFORMATION SHARING AND ANALYSIS CENTER. 

(a) IN GENERAL.—The Secretary of the Treasury (or the Secretary’s delegate) may 

participate in an information sharing and analysis center to centralize, standardize, 

and enhance data compilation and analysis to facilitate sharing actionable data and 

information with respect to identity theft tax refund fraud. 

(b) DEVELOPMENT OF PERFORMANCE METRICS.—The Secretary of the Treasury (or 

the Secretary’s delegate) shall develop metrics for measuring the success of such 

center in detecting and preventing identity theft tax refund fraud. 

(c) DISCLOSURE.— 

(1) IN GENERAL.—Section 6103(k) is amended by adding at the end the following new paragraph: 

‘‘(13) DISCLOSURE OF RETURN INFORMATION FOR PURPOSES OF CYBERSECURITY

AND THE PREVENTION OF IDENTITY THEFT TAX REFUND FRAUD.— 

‘‘(A) IN GENERAL.—Under such procedures and subject to such conditions 

as the Secretary may prescribe, the Secretary may disclose specified return 

information to specified ISAC participants to the extent that the Secretary 

determines such disclosure is in furtherance of effective Federal tax administration relating to the detection or prevention of identity theft tax refund 

fraud, validation of taxpayer identity, authentication of taxpayer returns, or 

detection or prevention of cybersecurity threats. 

‘‘(B) SPECIFIED ISAC PARTICIPANTS.—For purposes of this paragraph— 

‘‘(i) IN GENERAL.—The term ‘specified ISAC participant’ means— 

‘‘(I) any person designated by the Secretary as having primary 

responsibility for a function performed with respect to the information sharing and analysis center described in section 403(a) of the 

21st Century IRS Act, and 

‘‘(II) any person subject to the requirements of section 7216 and 

which is a participant in such information sharing and analysis 

center. 

‘‘(ii) INFORMATION SHARING AGREEMENT.—Such term shall not include 

any person unless such person has entered into a written agreement 

with the Secretary setting forth the terms and conditions for the disclosure of information to such person under this paragraph, including requirements regarding the protection and safeguarding of such information by such person. 

‘‘(C) SPECIFIED RETURN INFORMATION.—For purposes of this paragraph, 

the term ‘specified return information’ means— 

‘‘(i) in the case of a return which is in connection with a case of potential identity theft refund fraud— 

‘‘(I) in the case of such return filed electronically, the internet 

protocol address, device identification, email domain name, speed 

of completion, method of authentication, refund method, and such 

other return information related to the electronic filing characteristics of such return as the Secretary may identify for purposes of 

this subclause, and 

‘‘(II) in the case of such return prepared by a tax return preparer, identifying information with respect to such tax return preparer, including the preparer taxpayer identification number and 

electronic filer identification number of such preparer, 

‘‘(ii) in the case of a return which is in connection with a case of a 

identity theft refund fraud which has been confirmed by the Secretary 


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(pursuant to such procedures as the Secretary may provide), the information referred to in subclauses (I) and (II) of clause (i), the name and 

taxpayer identification number of the taxpayer as it appears on the return, and any bank account and routing information provided for making a refund in connection with such return, and 

‘‘(iii) in the case of any cybersecurity threat to the Internal Revenue 

Service, information similar to the information described in subclauses 

(I) and (II) of clause (i) with respect to such threat. 

‘‘(D) RESTRICTION ON USE OF DISCLOSED INFORMATION.— ‘‘(i) DESIGNATED THIRD PARTIES.—Any return information received by 

a person described in subparagraph (B)(i)(I) shall be used only for the 

purposes of and to the extent necessary in— 

‘‘(I) performing the function such person is designated to perform 

under such subparagraph, 

‘‘(II) facilitating disclosures authorized under subparagraph (A) 

to persons described in subparagraph (B)(i)(II), and 

‘‘(III) facilitating disclosures authorized under subsection (d) to 

participants in such information sharing and analysis center. 

‘‘(ii) RETURN PREPARERS.—Any return information received by a person described in subparagraph (B)(i)(II) shall be treated for purposes of 

section 7216 as information furnished to such person for, or in connection with, the preparation of a return of the tax imposed under chapter 

1. 

‘‘(E) DATA PROTECTION AND SAFEGUARDS.—Return information disclosed 

under this paragraph shall be subject to such protections and safeguards 

as the Secretary may require in regulations or other guidance or in the 

written agreement referred to in subparagraph (B)(ii). Such written agreement shall include a requirement that any unauthorized access to information disclosed under this paragraph, and any breach of any system in which 

such information is held, be reported to the Treasury Inspector General for 

Tax Administration.’’. 

(2) APPLICATION OF CIVIL AND CRIMINAL PENALTIES.— (A) Section 6103(a)(3) is amended by striking ‘‘subsection (k)(10)’’ and inserting ‘‘paragraph (10) or (13) of subsection (k)’’. 

(B) Section 7213(a)(2) is amended by inserting ‘‘or (13)’’ after ‘‘(k)(10)’’. 

SEC. 104. COMPLIANCE BY CONTRACTORS WITH CONFIDENTIALITY SAFEGUARDS. 

(a) IN GENERAL.—Section 6103(p) is amended by adding at the end the following 

new paragraph: 

‘‘(9) DISCLOSURE TO CONTRACTORS AND OTHER AGENTS.—Notwithstanding any 

other provision of this section, no return or return information shall be disclosed 

to any contractor or other agent of a Federal, State, or local agency unless such 

agency, to the satisfaction of the Secretary— 

‘‘(A) has requirements in effect which require each such contractor or 

other agent which would have access to returns or return information to 

provide safeguards (within the meaning of paragraph (4)) to protect the confidentiality of such returns or return information, 

‘‘(B) agrees to conduct an on-site review every 3 years (or a mid-point review in the case of contracts or agreements of less than 3 years in duration) 

of each contractor or other agent to determine compliance with such requirements, 

‘‘(C) submits the findings of the most recent review conducted under subparagraph (B) to the Secretary as part of the report required by paragraph 

(4)(E), and 

‘‘(D) certifies to the Secretary for the most recent annual period that such 

contractor or other agent is in compliance with all such requirements. 

The certification required by subparagraph (D) shall include the name and address of each contractor and other agent, a description of the contract or agreement with such contractor or other agent, and the duration of such contract or 

agreement. The requirements of this paragraph shall not apply to disclosures 

pursuant to subsection (n) for purposes of Federal tax administration.’’. 

(b) CONFORMING AMENDMENT.—Section 6103(p)(8)(B) is amended by inserting ‘‘or 

paragraph (9)’’ after ‘‘subparagraph (A)’’. 

(c) EFFECTIVE DATE.—The amendments made by this section shall apply to disclosures made after December 31, 2022. 

SEC. 105. REPORT ON ELECTRONIC PAYMENTS. 

Not later than 2 years after the date of the enactment of this Act, the Secretary 

(or the Secretary’s delegate), in coordination with the Bureau of Fiscal Service and 

the Internal Revenue Service, and in consultation with private sector financial instiVerDate Sep 11 2014 06:26 Apr 14, 2018 Jkt 079006 PO 00000 Frm 00004 Fmt 6659 Sfmt 6621 E:\HR\OC\HR638.XXX HR638

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tutions, shall submit a written report to Congress describing how the government 

can utilize new payment platforms to increase the number of tax refunds paid by 

electronic funds transfer. Such report shall weigh the interests of reducing identity 

theft tax refund fraud, reducing the Federal Government’s costs in delivering tax 

refunds, the costs and any associated fees charged to taxpayers (including monthly 

and point-of-service fees) to access their tax refunds, the impact on individuals who 

do not have access to financial accounts or institutions, and ensuring payments are 

made to accounts at a financial institution that complies with section 21 of the Federal Deposit Insurance Act, chapter 2 of title I of Public Law 91-508, and subchapter 

II of chapter 53 of title 31, United States Code (commonly referred to collectively 

as the ‘‘Bank Secrecy Act’’) and the USA PATRIOT Act. Such report shall include 

any legislative recommendations necessary to accomplish these goals. 

TITLE II—DEVELOPMENT OF INFORMATION 

TECHNOLOGY 

SEC. 201. MANAGEMENT OF INTERNAL REVENUE SERVICE INFORMATION TECHNOLOGY. 

(a) DUTIES AND RESPONSIBILITIES OF INTERNAL REVENUE SERVICE CHIEF INFORMA- TION OFFICER.—Section 7803 is amended by adding at the end the following new 

subsection: 

‘‘(f) INTERNAL REVENUE SERVICE CHIEF INFORMATION OFFICER.— ‘‘(1) IN GENERAL.—There shall be in the Internal Revenue Service an Internal 

Revenue Service Chief Information Officer (hereafter referred to in this subsection as the ‘IRS CIO’) who shall be appointed by the Administrator of the 

Internal Revenue Service. 

‘‘(2) CENTRALIZED RESPONSIBILITY FOR INTERNAL REVENUE SERVICE INFORMATION TECHNOLOGY.—The Administrator of the Internal Revenue Service (and 

the Secretary) shall act through the IRS CIO with respect to all development, 

implementation, and maintenance of information technology for the Internal 

Revenue Service. Any reference in this subsection to the IRS CIO which directs 

the IRS CIO to take any action, or to assume any responsibility, shall be treated as a reference to the Administrator of the Internal Revenue Service acting 

through the IRS CIO. 

‘‘(3) GENERAL DUTIES AND RESPONSIBILITIES.—The IRS CIO shall— 

‘‘(A) be responsible for the development, implementation, and maintenance of information technology for the Internal Revenue Service, 

‘‘(B) ensure that the information technology of the Internal Revenue Service is secure and integrated, 

‘‘(C) maintain operational control of all information technology for the Internal Revenue Service, 

‘‘(D) be the principal advocate for the information technology needs of the 

Internal Revenue Service, and 

‘‘(E) consult with the Chief Procurement Officer of the Internal Revenue 

Service to ensure that the information technology acquired for the Internal 

Revenue Service is consistent with— 

‘‘(i) the goals and requirements specified in subparagraphs (A) 

through (D), and 

‘‘(ii) the strategic plan developed under paragraph (4). 

‘‘(4) STRATEGIC PLAN.— 

‘‘(A) IN GENERAL.—The IRS CIO shall develop and implement a multiyear 

strategic plan for the information technology needs of the Internal Revenue 

Service. Such plan shall— 

‘‘(i) include performance measurements of such technology and of the 

implementation of such plan, 

‘‘(ii) include a plan for an integrated enterprise architecture of the information technology of the Internal Revenue Service, 

‘‘(iii) include and take into account the resources needed to accomplish such plan, 

‘‘(iv) take into account planned major acquisitions of information 

technology by the Internal Revenue Service, including Customer Account Data Engine 2 and the Enterprise Case Management System, 

and 

‘‘(v) align with the needs and strategic plan of the Internal Revenue 

Service. 

‘‘(B) PLAN UPDATES.—The IRS CIO shall, not less frequently than annually, review and update the strategic plan under subparagraph (A) (including the plan for an integrated enterprise architecture described in subparaVerDate Sep 11 2014 06:26 Apr 14, 2018 Jkt 079006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6621 E:\HR\OC\HR638.XXX HR638

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graph (A)(ii)) to take into account the development of new information technology and the needs of the Internal Revenue Service. 

‘‘(5) SCOPE OF AUTHORITY.— 

‘‘(A) INFORMATION TECHNOLOGY.—For purposes of this subsection, the 

term ‘information technology’ has the meaning given such term by section 

11101 of title 40, United States Code. 

‘‘(B) INTERNAL REVENUE SERVICE.—Any reference in this subsection to the 

Internal Revenue Service includes a reference to all components of the Internal Revenue Service, including— 

‘‘(i) the Office of the Taxpayer Advocate, 

‘‘(ii) the Criminal Investigation Division of the Internal Revenue 

Service, and 

‘‘(iii) except as otherwise provided by the Secretary with respect to 

information technology related to matters described in subsection 

(b)(3)(B), the Office of the Chief Counsel.’’. 

(b) INDEPENDENT VERIFICATION AND VALIDATION OF THE CUSTOMER ACCOUNT

DATA ENGINE 2 AND ENTERPRISE CASE MANAGEMENT SYSTEM.— 

(1) IN GENERAL.—The Administrator of the Internal Revenue Service shall 

enter into a contract with an independent reviewer to verify and validate the 

implementation plans (including the performance milestones and cost estimates 

included in such plans) developed for the Customer Account Data Engine 2 and 

the Enterprise Case Management System. 

(2) DEADLINE FOR COMPLETION.— Such contract shall require that such 

verification and validation be completed not later than the date which is 1 year 

after the date of the enactment of this Act. 

(3) APPLICATION TO PHASES OF CADE 2.— 

(A) IN GENERAL.—Paragraphs (1) and (2) shall not apply to phase 1 of the 

Customer Account Data Engine 2 and shall apply separately to each other 

phase. 

(B) DEADLINE FOR COMPLETING PLANS.—Not later than 1 year after the 

date of the enactment of this Act, the Administrator of the Internal Revenue Service shall complete the development of plans for all phases of the 

Customer Account Data Engine 2. 

(C) DEADLINE FOR COMPLETION OF VERIFICATION AND VALIDATION OF

PLANS.—In the case of any phase after phase 2 of the Customer Account 

Data Engine 2, paragraph (2) shall be applied by substituting ‘‘the date on 

which the plan for such phase was completed’’ for ‘‘the date of the enactment of this Act’’. 

(c) COORDINATION OF IRS CIO AND CHIEF PROCUREMENT OFFICER OF THE INTERNAL REVENUE SERVICE.— 

(1) IN GENERAL.—The Chief Procurement Officer of the Internal Revenue 

Service shall— 

(A) identify all significant IRS information technology acquisitions and 

provide written notification to the Internal Revenue Service Chief Information Officer (hereafter referred to in this subsection as the ‘‘IRS CIO’’) of 

each such acquisition in advance of such acquisition, and 

(B) regularly consult with the IRS CIO regarding acquisitions of information technology for the Internal Revenue Service, including meeting with 

the IRS CIO regarding such acquisitions upon request. 

(2) SIGNIFICANT IRS INFORMATION TECHNOLOGY ACQUISITIONS.—For purposes 

of this subsection, the term ‘‘significant IRS information technology acquisitions’’ means— 

(A) any acquisition of information technology for the Internal Revenue 

Service in excess of $1,000,000, and 

(B) such other acquisitions of information technology for the Internal Revenue Service (or categories of such acquisitions) as the IRS CIO, in consultation with the Chief Procurement Officer of the Internal Revenue Service, may identify. 

(3) SCOPE.—Terms used in this subsection which are also used in section 

7803(f) of the Internal Revenue Code of 1986 (as amended by subsection (a)) 

shall have the same meaning as when used in such section. 

SEC. 202. DEVELOPMENT OF ONLINE ACCOUNTS AND PORTALS. 

(a) IN GENERAL.—The Secretary of the Treasury or the Secretary’s delegate (hereafter referred to in this section as the ‘‘Secretary’’) shall— 

(1) develop secure individualized online accounts to provide services to taxpayers and their designated return preparers, including obtaining taxpayer information, making payment of taxes, sharing documentation, and (to the extent 

feasible) addressing and correcting issues, and 


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(2) develop a process for the acceptance of tax forms, and supporting documentation, in digital or other electronic format. 

(b) ELECTRONIC SERVICES TREATED AS SUPPLEMENTAL; APPLICATION OF SECURITY

STANDARDS.—The Secretary shall ensure that the processes described in subsection 

(a)— 

(1) are a supplement to, and not a replacement for, other services provided 

by the Internal Revenue Service to taxpayers, including face-to-face taxpayer 

assistance and services provided by phone, and 

(2) comply with applicable security standards and guidelines. 

(c) PROCESS FOR DEVELOPING ONLINE ACCOUNTS.— (1) DEVELOPMENT OF PLAN.—Not later than 1 year after the date of the enactment of this Act, the Secretary shall submit to Congress a written report describing the Secretary’s plan for developing the secure individualized online accounts described in subsection (a)(1). Such plan shall address the feasibility of 

taxpayers addressing and correcting issues through such accounts and whether 

access to such accounts should be restricted and in what manner. 

(2) DEADLINE.—The Secretary shall make every reasonable effort to make the 

secure individualized online accounts described in subsection (a)(1) available to 

taxpayers by December 31, 2023. 

SEC. 203. INTERNET PLATFORM FOR FORM 1099 FILINGS. 

(a) IN GENERAL.—Not later than January 1, 2023, the Secretary of the Treasury 

or the Secretary’s delegate (hereafter referred to in this section as the ‘‘Secretary’’) 

shall make available an Internet website or other electronic media, with a user 

interface and functionality similar to the Business Services Online Suite of Services 

provided by the Social Security Administration, that will provide access to resources 

and guidance provided by the Internal Revenue Service and will allow persons to— 

(1) prepare and file Forms 1099, 

(2) prepare Forms 1099 for distribution to recipients other than the Internal 

Revenue Service, and 

(3) maintain a record of completed and submitted Forms 1099. 

(b) ELECTRONIC SERVICES TREATED AS SUPPLEMENTAL; APPLICATION OF SECURITY

STANDARDS.—The Secretary shall ensure that the services described in subsection 

(a)— 

(1) are a supplement to, and not a replacement for, other services provided 

by the Internal Revenue Service to taxpayers, and 

(2) comply with applicable security standards and guidelines. 

TITLE III—MODERNIZATION OF CONSENTBASED INCOME VERIFICATION SYSTEM 

SEC. 301. DISCLOSURE OF TAXPAYER INFORMATION FOR THIRD-PARTY INCOME 

VERIFICATION. 

(a) IN GENERAL.—Not later than 1 year after the close of the 2-year period described in subsection (d)(1), the Secretary of the Treasury or the Secretary’s delegate 

(hereafter referred to in this section as the ‘‘Secretary’’) shall implement a program 

to ensure that any qualified disclosure— 

(1) is fully automated and accomplished through the Internet, and 

(2) is accomplished in as close to real-time as is practicable. 

(b) QUALIFIED DISCLOSURE.—For purposes of this section, 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 or creditworthiness of a taxpayer who is a borrower in the process of 

a loan application. 

(c) APPLICATION OF SECURITY STANDARDS.—The Secretary shall ensure that the 

program described in subsection (a) complies with applicable security standards and 

guidelines. 

(d) USER FEE.— (1) IN GENERAL.—During the 2-year period beginning on the first day of the 

6th calendar month beginning after the date of the enactment of this Act, the 

Secretary shall assess and collect a fee for qualified disclosures (in addition to 

any other fee assessed and collected for such disclosures) at such rates as the 

Secretary determines are sufficient to cover the costs related to implementing 

the program described in subsection (a), including the costs of any necessary infrastructure or technology. 

(2) DEPOSIT OF COLLECTIONS.—Amounts received from fees assessed and collected under paragraph (1) shall be deposited in, and credited to, an account 

solely for the purpose of carrying out the activities described in subsection (a). 


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Such amounts shall be available to carry out such activities without need of further appropriation and without fiscal year limitation. 

SEC. 302. LIMIT REDISCLOSURES AND USES OF CONSENT-BASED DISCLOSURES OF TAX RETURN INFORMATION. 

(a) IN GENERAL.—Section 6103(c) is amended by adding at the end the following: 

‘‘Persons designated by the taxpayer under this subsection to receive return information shall not use the information for any purpose other than the express purpose 

for which consent was granted and shall not disclose return information to any 

other person without the express permission of, or request by, the taxpayer.’’. 

(b) APPLICATION OF PENALTIES.—Section 6103(a)(3) is amended by inserting ‘‘subsection (c),’’ after ‘‘return information under’’. 

(c) EFFECTIVE DATE.—The amendments made by this section shall apply to disclosures made after the date of the enactment of this Act. 

TITLE IV—EXPANDED USE OF ELECTRONIC 

SYSTEMS 

SEC. 401. ELECTRONIC FILING OF RETURNS. 

(a) IN GENERAL.—Section 6011(e)(2)(A) is amended by striking ‘‘250’’ and inserting 

‘‘the applicable number of’’. 

(b) APPLICABLE NUMBER.—Section 6011(e) is amended by adding at the end the 

following new paragraph: 

‘‘(6) APPLICABLE NUMBER.—For purposes of paragraph (2)(A), the applicable 

number shall be determined in accordance with the following table: 

‘‘(A) in the case of calendar years before 2020, 250, 

‘‘(B) in the case of calendar year 2020, 100, and 

‘‘(C) in the case of calendar years after 2020, 10.’’. 

(c) RETURNS FILED BY A TAX RETURN PREPARER.—Section 6011(e)(3) is amended 

by adding at the end the following new subparagraph: 

‘‘(D) EXCEPTION FOR CERTAIN PREPARERS LOCATED IN AREAS WITHOUT

INTERNET ACCESS.—The Secretary may waive the requirement of subparagraph (A) if the Secretary determines, on the basis of an application by the 

tax return preparer, that the preparer cannot meet such requirement by 

reason of being located in a geographic area which does not have access to 

internet service (other than dial-up or satellite service).’’. 

(d) EFFECTIVE DATE.—The amendments made by this section shall take effect on 

the date of the enactment of this Act. 

SEC. 402. UNIFORM STANDARDS FOR THE USE OF ELECTRONIC SIGNATURES FOR DISCLOSURE AUTHORIZATIONS TO, AND OTHER AUTHORIZATIONS OF, PRACTITIONERS. 

Section 6061(b)(3) is amended to read as follows: 

‘‘(3) PUBLISHED GUIDANCE.— 

‘‘(A) IN GENERAL.—The Secretary shall publish guidance as appropriate to 

define and implement any waiver of the signature requirements or any 

method adopted under paragraph (1). 

‘‘(B) ELECTRONIC SIGNATURES FOR DISCLOSURE AUTHORIZATIONS TO, AND

OTHER AUTHORIZATIONS OF, PRACTITIONERS.—Not later than 6 months after 

the date of the enactment of this subparagraph, the Secretary shall publish 

guidance to establish uniform standards and procedures for the acceptance 

of taxpayers’ signatures appearing in electronic form with respect to any request for disclosure of a taxpayer’s return or return information under section 6103(c) to a practitioner or any power of attorney granted by a taxpayer to a practitioner. 

‘‘(C) PRACTITIONER.—For purposes of subparagraph (B), the term ‘practitioner’ means any individual in good standing who is regulated under section 330 of title 31, United States Code.’’. 

SEC. 403. PAYMENT OF TAXES BY DEBIT AND CREDIT CARDS. 

Section 6311(d)(2) is amended by adding at the end the following: ‘‘The preceding 

sentence shall not apply to the extent that the Secretary ensures that any such fee 

or other consideration is fully recouped by the Secretary in the form of fees paid 

to the Secretary by persons paying taxes imposed under subtitle A with credit, 

debit, or charge cards pursuant to such contract. Notwithstanding the preceding 

sentence, the Secretary shall seek to minimize the amount of any fee or other consideration that the Secretary pays under any such contract.’’. 


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I. SUMMARY AND BACKGROUND 

A. PURPOSE AND SUMMARY

The ‘‘21st Century IRS Act,’’ H.R. 5445, as reported by the Committee on Ways and Means, would modernize the Internal Revenue 

Service’s information technology (IT) infrastructure, enhance the 

role of the agency’s Chief Information Officer (CIO), and provide 

additional tools to protect taxpayer information and to combat 

identity theft tax refund fraud. 

B. BACKGROUND AND NEED FOR LEGISLATION

Over the past two years, the Ways and Means Oversight Subcommittee has spent significant time reviewing the Internal Revenue Service’s (IRS) use of information technology (IT). The Subcommittee found that the IRS relies heavily on an ageing IT infrastructure, some of which dates back to the 1960s, to administer the 

tax system. Additionally, the Committee found that, while the IRS 

spends approximately $2.4 billion annually on IT, it continues to 

struggle with undertaking and completing large IT modernization 

efforts. These issues result in the waste of billions of taxpayer dollars and time spent maintaining outdated legacy systems rather 

than deploying newer, more modern systems that are less costly to 

maintain. 

The IRS can no longer afford to continue running antiquated IT 

systems that are difficult, if not impossible, to maintain. Each year, 

the IRS is relying on fewer and fewer employees with the expertise 

to update outdated software. Failure of one of these legacy systems 

could be disastrous, potentially resulting in a range of issues from 

an inability to collect taxes to significant loss of taxpayer data. A 

lack of up-to-date, modern IRS IT systems also negatively impacts 

taxpayers seeking to comply with their tax responsibilities, often 

resulting in frustrating, prolonged interactions with the IRS that 

could be more easily and seamlessly resolved online. In addition, 

like many other public and private entities, the IRS has experienced cyberattacks and fraud schemes that seek to exploit stolen 

taxpayer information in order to steal tax refunds. 

This bipartisan legislation seeks to modernize the IRS and improve the ease and efficiency of the taxpayer experience when filing 

taxes, retrieving information, resolving issues, and making payments. The legislation also includes a number of provisions to 

strengthen the IRS’s ability to proactively combat identity theft tax 

refund fraud. 

C. LEGISLATIVE HISTORY

Background 

H.R. 5445 was introduced on April 10, 2018 and was referred to 

the Committee on Financial Services and the Committee on Ways 

and Means. 

Committee action 

The Committee on Ways and Means marked up H.R. 5445, the 

‘‘21st Century IRS Act’’ on April 11, 2018, and ordered the bill, as 

amended, favorably reported (with a quorum being present). 


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1 Internal Revenue Service, 2016 Security Summit: Protecting Taxpayers from Identity Theft 

Tax Refund Fraud (June 2016) at p. 3. https://www.irs.gov/pub/newsroom/ 

6_2016_security_summit_report.pdf. 2 Ibid. 

Committee hearings and roundtables 

During the 115th Congress, the Ways and Means Oversight Subcommittee held five hearings and four roundtables on reforming 

the IRS in terms of modernizing IT for a better taxpayer experience. Oversight Subcommittee hearings included: • April 26, 2017: Examining the 2017 Tax Filing Season; • May 19, 2017: IRS Reform: Lessons Learned from the National Taxpayer Advocate; • October 4, 2017: IRS Reform: Challenges to Modernizing 

IT Infrastructure; • December 13, 2017: IRS Reform: The Taxpayer Experience; and • January 30, 2018: Member Day Hearing on Legislation to 

Improve Tax Administration. 

Roundtables included: • June 22, 2017: Reforming the IRS—Lessons Learned from 

1998, Roundtable Part I; • July 12, 2017: Reforming the IRS—Lessons Learned from 

1998, Roundtable Part II; • October 12, 2017: IRS Security Summit; and • January 17, 2018: Briefing on the IRS’s Technology Roadmap. 

II. EXPLANATION OF THE BILL 

TITLE I—CYBER SECURITY AND IDENTITY PROTECTION 

1. PUBLIC-PRIVATE PARTNERSHIP TO ADDRESS IDENTITY THEFT TAX

REFUND FRAUD (SEC. 101 OF THE BILL) 

PRESENT LAW

The Security Summit, formed in 2015, is a partnership of the 

IRS, State tax agencies, and the private-sector tax industry to address tax refund fraud caused by identity theft. In 2016, the Security Summit group members identified and agreed to share more 

than 20 data components relating to Federal and State returns to 

improve fraud detection and prevention. For example, group members are sharing computer device identification data tied to the return’s origin, as well as the improper or repetitive use of the numbers that identify the internet address from where the return originates.1 Tax software providers agreed to enhance identity requirements and strengthen validation procedures for new and returning 

customers to protect their accounts from theft. Along with the IRS, 

40 State departments of revenue, and 21 tax industry members 

have signed onto a Memorandum of Understanding regarding roles, 

responsibilities and information sharing pathways among the IRS, 

States and industry.2

REASONS FOR CHANGE

The Committee believes the Security Summit has been a successful and productive venue for governmental and private organizaVerDate Sep 11 2014 06:26 Apr 14, 2018 Jkt 079006 PO 00000 Frm 00010 Fmt 6659 Sfmt 6602 E:\HR\OC\HR638.XXX HR638

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3 Electronic Tax Administration Advisory Committee, Publication 3415, Annual Report to Congress (June 2017), https://www.irs.gov/pub/irs-pdf/p3415.pdf. 

tions to work together to address the growing problem of identity 

theft tax refund fraud. The Committee is encouraged by the 

proactive steps that the IRS has taken to address this issue and 

wants to ensure that these efforts continue going forward. 

EXPLANATION OF PROVISION

The provision requires the Secretary to work collaboratively with 

the public and private sectors to protect taxpayers from identity 

theft tax refund fraud. 

EFFECTIVE DATE

The provision is effective on the date of enactment. 

2. RECOMMENDATIONS OF ELECTRONIC TAX ADMINISTRATION ADVISORY COMMITTEE REGARDING IDENTITY THEFT AND REFUND

FRAUD (SEC. 102 OF THE BILL) 

PRESENT LAW

The IRS Reform and Restructuring Act of 1998 (‘‘RRA98’’) authorized the Electronic Tax Administration Advisory Committee 

(‘‘ETAAC’’). ETAAC was intended to provide input to the IRS on 

electronic tax administration. ETAAC’s responsibilities involve researching, analyzing, and making recommendations on a variety of 

electronic tax administration issues. Pursuant to RRA98, ETAAC 

reports to Congress annually concerning: 

• IRS progress on reaching its goal to electronically receive 

80 percent of tax and information returns; 

• Legislative changes assisting the IRS in meeting the 80 

percent goal; 

• Status of the IRS strategic plan for electronic tax administration; and 

• Effects of e-filing tax and information returns on small 

businesses and the self-employed. 

According to the latest annual report, ETAAC members come 

from State departments of revenue, large tax preparation companies, solo tax practitioners, tax software companies, financial services industry and low income and consumer advocacy groups.3

REASONS FOR CHANGE

ETAAC’s focus on electronic tax administration issues makes it 

a suitable entity to examine and make recommendations regarding 

methods to address identity theft and refund fraud after evaluating 

various stakeholder viewpoints. ETAAC has already amended its 

charter to focus on the issue of identity theft and refund fraud. 

This provision codifies the recent changes to ETAAC’s charter and 

ensures that ETAAC will continue to examine this issue going forward. The Committee also finds ETAAC’s annual reports to Congress, which include recommendations to improve the work of the 

Security Summit, to be valuable sources of information and would 

like to ensure that this work continues. 


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4 All section references herein are to the Internal Revenue Code of 1986, as amended (herein 

‘‘Code’’), unless otherwise stated. 5 Internal Revenue Service, 2016 Security Summit: Protecting Taxpayers from Identity Theft 

Tax Refund Fraud (June 2016) https://www.irs.gov/pub/newsroom/ 

6_2016_security_summit_report.pdf.sec. 

6Sec. 6103(a). 

7Sec. 6103(b)(2)(A). 

EXPLANATION OF PROVISION

The provision requires ETAAC to study (including through organized public forums) and make recommendations to the Secretary 

regarding methods to prevent identity theft and refund fraud. 

EFFECTIVE DATE

The provision is effective on the date of enactment. 

3. INFORMATION SHARING AND ANALYSIS CENTER (SEC. 103 OF THE

BILL AND SEC. 6103 OF THE CODE 4) 

PRESENT LAW

Information Sharing and Analysis Center 

The Security Summit, formed in 2015, is a partnership of the 

IRS, State tax agencies, and the private-sector tax industry to address tax refund fraud caused by identity theft. In 2016, the Security Summit created an Identity Theft Tax Refund Fraud Information Sharing and Analysis Center (‘‘ISAC’’).5 The ISAC is a secure, 

web-based venue for States, industry and the IRS to share and exchange information. The ISAC enables the IRS and the States to 

work together with external third parties to serve as an early 

warning system for tax refund fraud, identity theft schemes, and 

cybersecurity issues. A third-party contractor, hosts, maintains, 

and facilitates the web-based leads reporting and information sharing process for the ISAC. 

Confidentiality and disclosure of return information 

As a general rule, returns and return information are confidential and cannot be disclosed unless authorized by the Code.6 The 

definition of return information is very broad and generally includes any information received or collected by the IRS with respect to liability under the Code of any person for any tax, penalty, 

interest or offense. The term ‘‘return information’’ includes, among 

other items: 

a taxpayer’s identity, the nature, source, or amount of his income, 

payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax withheld, deficiencies, overassessments, or tax payments, whether the taxpayer’s return was, is 

being, or will be examined or subject to other investigation or processing, or any other data, received by, recorded by, prepared 

by, furnished to, or collected by the Secretary with respect 

to a return or with respect to the determination of the existence, or possible existence, of liability (or the amount thereof) of any person under this title for any tax, penalty, interest, fine, forfeiture, or other imposition, or offense . . . (emphasis added) 7


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8Sec. 6103(d) (disclosures to States), 6103(k)(6)(investigative disclosures) and the Treasury 

regulations under sec. 6103(p)(2)(B). 9Sec. 6103(k)(6); Treas. Reg. sec. 301.6103(k)(6)–1. 

10Treas. Reg. sec. 301.6103(p)(2)(B)–1. 11 Sec. 6713. 

There are several exceptions to the general rule of confidentiality. Such exceptions include provisions to permit disclosures to 

State tax administration officials, for IRS employees and officers to 

make investigative disclosures, and rules to allow one authorized 

party to disclose to another authorized party with the permission 

of the Commissioner.8

The IRS exchanges confidential information with State tax agencies under the authority of section 6103(d). The disclosures are 

made pursuant to written request from the head of the State tax 

agency, which designates the State tax officials who can receive the 

information. The information can only be used for State tax purposes, not for general State civil or criminal law enforcement. The 

State officials can redisclose the information to other officers and 

employees of the State tax agency, the agency’s legal representative, or the agency’s contractors (but only for State tax administration purposes). The IRS uses this authority to alert State tax administration officials to tax refund fraud schemes. 

IRS officers and employees may disclose return information to 

the extent that such disclosure is necessary in obtaining information, which is not otherwise reasonably available, with respect to 

the correct determination of tax, liability for tax, or the amount to 

be collected, or with respect to the enforcement of any other provision of Title 26. Such disclosures are to be made only in such situations and under such conditions as the Secretary may prescribe by 

regulation.9 This provision generally cannot be used to provide confidential return information on an industry-wide basis to alert return preparers to potential fraud schemes. 

Under the Treasury regulations, returns or return information 

that have been obtained by a Federal, State, or local agency, or its 

agents or contractors, in accordance with section 6103 (the first recipient) may be disclosed by the first recipient to another recipient 

authorized to receive such returns or return information under section 6103 (the second recipient).10 The disclosure must be approved 

by the Commissioner of the IRS. The second recipient may receive 

only such returns or return information as authorized by the provision of section 6103 applicable to such recipient and only for a purpose authorized by and subject to any conditions imposed by section 6103, including applicable safeguards. 

Preparer disclosure penalties 

The Code provides for a civil penalty for a tax return preparer 

who (i) discloses any information furnished to the preparer for, or 

in connection with, the preparation of such return or (ii) uses such 

information for any purpose other than to prepare or assist in preparing any such return.11 There is a corresponding criminal penalty under section 7216 of the Code for knowing or reckless conduct. The same exceptions from the imposition of the criminal penalty apply for purposes of the civil penalty. In general, the penalty 

does not apply for disclosures permitted by the Code or pursuant 

to an order of a court. Further, the penalty does not apply to the 


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use of information in the preparation of, or in connection with the 

preparation of State and local tax returns and declarations of estimated tax of the person to whom the information relates. The Code 

also permits the Secretary to provide additional exceptions through 

regulations. The Secretary has prescribed by regulation the circumstances not involving tax preparation in which disclosure and 

use of a taxpayer’s information by a tax return preparer is permitted. 

Penalties for the unauthorized disclosure or inspection of return information 

The unauthorized disclosure of a return or return information is 

a felony punishable by fine of up to $5,000, five years imprisonment or both. Unauthorized inspection is a misdemeanor, punishable by a fine of up to $1,000, one year imprisonment, or both. 

REASONS FOR CHANGE

As the profitability and ease of identity theft grows, the threat 

to the tax system from fraudulent tax refund filings increases. 

While the IRS has traditionally been more reactionary to external 

threats, the Committee is encouraged to see the IRS look for new 

and alternative ways to combat identity theft tax refund fraud, 

particularly through its participation in the ISAC pilot. The Committee believes there is a need for all parts of the tax system, including the IRS, State tax administrators, and return preparers, to 

work proactively together to combat identity theft tax refund fraud. 

To be effective in this collaboration, stakeholders with the ability 

to guard the tax system need to be able to receive the necessary 

information about potential risks quickly. Therefore, the Committee believes it is appropriate to provide a narrowly tailored exception to the general rules of confidentiality to facilitate alerts of 

potential tax refund fraud schemes and cyber security threats to 

the IRS. 

EXPLANATION OF PROVISION

ISAC participation and performance metrics 

The provision provides that the Secretary may participate in an 

information sharing and analysis center. The purpose of such participation is to centralize, standardize and enhance data compilation and analysis to facilitate sharing actionable data and information with respect to identity theft tax refund fraud. The provision 

requires the Secretary to develop metrics for measuring the success 

of such center in detecting and preventing identity theft tax refund 

fraud. 

Disclosure of return information to certain ISAC participants 

In general 

The provision authorizes the disclosure of specified return information to ISAC participants who have entered into a written information sharing agreement with the Secretary. Under such procedures and subject to such conditions as the Secretary may prescribe, the Secretary may disclose specified return information to 

specified ISAC participants if such disclosure is in furtherance of 

effective Federal tax administration relating to the following: (1) 


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the detection or prevention of identity theft tax refund fraud; (2) 

validation of taxpayer identity; (3) authentication of taxpayer returns; or (4) the detection or prevention of cybersecurity threats to 

the IRS. 

Terminology 

Specified ISAC participant 

The term ‘‘specified ISAC participant’’ means any person designated by the Secretary as having primary responsibility for a 

function performed by the ISAC and any return preparer (or other 

person) subject to section 7216 and who is a participant in the 

ISAC. A person is only a specified ISAC participant if such person 

has entered into a written information sharing agreement with the 

Secretary. The information sharing agreement must set forth the 

terms and conditions for the disclosure of information to such person, including the requirements imposed on such person for the 

protection and safeguarding of such information. The information 

sharing agreement must require that recipients of return information under the provision are required to affirmatively report to the 

Treasury Inspector General for Tax Administration any unauthorized access or disclosure of information and any breaches of any 

system holding the information. 

Specified return information 

For purposes of the provision, the term ‘‘specified return information’’ means, in the case of a return filed electronically which is in 

connection with a case of potential identity theft tax refund fraud, 

return information related to the electronic filing characteristics of 

such return. Such characteristics include: internet protocol address, 

device identification, email domain name, speed of completion, 

method of authentication, refund method, and such other return information relating to the electronic filing characteristics of such return as the Secretary may prescribe. In addition, with respect to 

a return prepared by a tax return preparer in connection with a 

case of potential identity theft refund fraud, ‘‘specified return information’’ also includes identifying information with respect to such 

tax return preparer, including the preparer taxpayer identification 

number (‘‘PTIN’’) and electronic filer identification number 

(‘‘EFIN’’) of such preparer. 

With respect to a return for which identity theft refund fraud has 

been confirmed by the Secretary (pursuant to such procedures as 

the Secretary may provide), ‘‘specified return information’’ also includes the name and taxpayer identification number of the taxpayer as it appears on the return, and any bank account and routing information provided for making a refund in connection with 

such return. 

Finally, in the case of any cybersecurity threat to the IRS, information similar to that associated with cases of potential identity 

theft refund fraud (e.g. electronic characteristics and preparer identifying information) are considered specified return information 

with respect to such threat. 


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12Sec. 6103(p)(4)(D). 13Sec. 6103(p)(4)(E). 14Sec. 6103(p)(4) (flush language) and (7); Treas. Reg. sec. 301.6103(p)(7)–1. 

Restriction on use of disclosed information 

Any return information received by a specified ISAC participant 

under the provision is to be used only for the purposes of and to 

the extent necessary in (1) performing the function the person is 

designated to perform with respect to the ISAC, (2) facilitating authorized disclosures to return preparers who are specified ISAC 

participants, and (3) facilitating disclosures authorized under section 6103(d) to State tax authorities who are participants in the 

ISAC. Return information received by specified ISAC participants 

who are return preparers is treated for purposes of section 7216 as 

information furnished to such person for, or in connection with, the 

preparation of a return of tax. 

Data protection, safeguards, penalties 

As noted above, to be a specified ISAC participant, the person 

must enter into an information sharing agreement that includes, 

among other responsibilities, requirements for the protection and 

safeguarding of information received under the provision. The return information disclosed under the provision is subject to such 

protections and safeguards as the Secretary may require by regulations, other guidance, or written information sharing agreement. 

Recipients of return information under the provision are subject to 

civil and criminal penalties for the unauthorized disclosure or inspection of returns or return information. 

EFFECTIVE DATE

The provision is generally effective on the date of enactment. The 

disclosure provisions are effective for disclosures made on or after 

the date of enactment. 

4. COMPLIANCE BY CONTRACTORS WITH CONFIDENTIALITY

SAFEGUARDS (SEC. 104 OF THE BILL AND SEC. 6103 OF THE CODE) 

PRESENT LAW

Section 6103 permits the disclosure of returns and return information to State agencies, as well as to other Federal agencies for 

specified purposes. Section 6103(p)(4) requires, as a condition of receiving returns and return information, that State agencies (and 

others) provide safeguards as prescribed by the Secretary of the 

Treasury by regulation that are necessary or appropriate to protect 

the confidentiality of returns or return information.12 It also requires that a report be furnished to the Secretary at such time and 

containing such information as prescribed by the Secretary regarding the procedures established and utilized for ensuring the confidentiality of returns and return information.13 After an administrative review, the Secretary may take such actions as are necessary to ensure these requirements are met, including the refusal 

to disclose returns and return information.14

Under present law, employees of a State tax agency may disclose 

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15Sec. 6103(n) and Treas. Reg. sec. 301.6103(n)–1(a). ‘‘Tax administration’’ includes ‘‘the administration, management, conduct, direction, and supervision of the execution and application 

of internal revenue laws or related statutes (or equivalent laws and statutes of a State) . . .’’ 

Sec. 6103(b)(4). 16Treas. Reg. sec. 301.6013(n)–1(a). Such services include the processing, storage, transmission or reproduction of such returns or return information, the programming, maintenance, 

repair, or testing of equipment or other property, or the providing of other services for purposes 

of tax administration. 17Treas. Reg. sec. 301.6103(n)–1(a) and (b). A disclosure is necessary if such procurement or 

the performance of such services cannot otherwise be reasonably, properly, or economically accomplished without such disclosure. Treas. Reg. sec. 301.6103(n)–1(b). The regulations limit the 

quantity of information to that needed to perform the contract. 18Treas. Reg. sec. 301.6103(n)–1(a). 19Treas. Reg. sec. 301.6103(n)–1(d). 20Treas. Reg. sec. 301.6103(n)–1(d)(1). 21Treas. Reg. sec. 301.6103(n)–1(d)(2). 22Treas. Reg. sec. 301.6103(n)–1(d). 

tion purposes.15 These disclosures can be made only to the extent 

necessary to procure contractually equipment, other property, or 

services, related to tax administration.16

The contractors can make redisclosures of returns and return information to their employees as necessary to accomplish the tax administration purposes of the contract, but only to contractor personnel whose duties require disclosure.17 Treasury regulations prohibit redisclosure to anyone other than contractor personnel without the written approval of the IRS.18

By regulation, all contracts must provide that the contractor will 

comply with all applicable restrictions and conditions for protecting 

confidentiality prescribed by regulation, published rules or procedures, or written communication to the contractor.19 Failure to 

comply with such restrictions or conditions may cause the IRS to 

terminate or suspend the duties under the contract or the disclosures of returns and return information to the contractor.20 In addition, the IRS can suspend disclosures to the State tax agency 

until the IRS determines that the conditions are or will be satisfied.21 The IRS may take such other actions as are deemed necessary to ensure that such conditions or requirements are or will 

be satisfied.22

REASONS FOR CHANGE

The Committee notes the increasing use of contractors by government agencies to perform the work of the government. In the Committee’s view, the IRS has insufficient resources to monitor the 

compliance of every contractor in addition to its other duties. Further, the Committee finds that it is appropriate to require that 

Federal, State, and local agency recipients of tax information monitor and certify that their contractors and other agents have in 

place adequate safeguards to protect this information. 

EXPLANATION OF PROVISION

The provision requires that a State, local, or Federal agency conduct on-site reviews every three years of all of its contractors or 

other agents receiving Federal returns and return information. If 

the duration of the contract or agreement is less than three years, 

a review is required at the mid-point of the contract. The purpose 

of the review is to assess the contractor’s efforts to safeguard Federal returns and return information. This review is intended to 

cover secure storage, restricting access, computer security, and 

other safeguards deemed appropriate by the Secretary. Under the 


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23The Bank Secrecy Act, 31 U.S.C. secs. 5311–5332. 24Pub. L. No. 107–56. 

provision, the State, local, or Federal agency is required to submit 

a report of its findings to the IRS and certify annually that such 

contractors and other agents are in compliance with the requirements to safeguard the confidentiality of Federal returns and return information. The certification is required to include the name 

and address of each contractor or other agent with the agency, the 

duration of the contract, and a description of the contract or agreement with the State, local, or Federal agency. 

The provision does not apply to contracts for purposes of Federal 

tax administration. 

This provision does not alter or affect in any way the right of the 

IRS to conduct safeguard reviews of State, local, or Federal agency 

contractors or other agents. It also does not affect the right of the 

IRS to initially approve the safeguard language in the contract or 

agreement and the safeguards in place prior to any disclosures 

made in connection with such contracts or agreements. 

EFFECTIVE DATE

The provision is effective for disclosures made after December 31, 

2022. 

5. REPORT ON ELECTRONIC PAYMENTS (SEC. 105 OF THE BILL) 

PRESENT LAW

The Secretary is not currently required by Congress to examine 

expansion of electronic fund transfers. 

REASONS FOR CHANGE

The Committee is interested in creating safe, efficient, and innovative ways for taxpayers to receive their federal income tax refunds electronically. The Committee believes that the report will be 

helpful in accomplishing these goals. 

EXPLANATION OF PROVISION

Not later than two years after the date of the enactment, the 

Secretary, or the Secretary’s designee, in coordination with the Bureau of Fiscal Service and the Internal Revenue Service, and in 

consultation with private sector financial institutions, is required 

to submit a written report to Congress describing how the IRS can 

utilize new payment platforms to increase the number of tax refunds paid by electronic funds transfer. The report is required to 

consider the interests of reducing identity theft tax refund fraud, 

reducing the IRS’s costs in delivering tax refunds, the costs and 

any associated fees charged to taxpayers (including monthly and 

point-of-service fees) to access their tax refunds, the impact on individuals who do not have access to financial accounts or institutions, 

and ensuring payments are made to accounts that comply with the 

Bank Secrecy Act 23 and the USA PATRIOT Act of 2001.24 The report is required to include legislative recommendations necessary 

to accomplish these goals. 


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25Sec. 7803. 

EFFECTIVE DATE

The provision is effective on the date of enactment. 

TITLE II—DEVELOPMENT OF INFORMATION TECHNOLOGY 

1. MANAGEMENT OF IRS INFORMATION TECHNOLOGY (SEC. 201 OF

THE BILL AND SEC. 7803 OF THE CODE) 

PRESENT LAW

The Code describes duties and responsibilities for the Commissioner, the Chief Counsel, and the Office of the Taxpayer Advocate 

of the IRS.25 It does not presently enumerate duties and responsibilities of an IRS Chief Information Officer (‘‘IRS CIO’’). 

Also, the Code does not explicitly provide for development and 

implementation of a multiyear strategic plan for the information 

technology needs of the IRS, and does not require verification and 

validation of major acquisitions of information technology by the 

IRS, including the Customer Account Data Engine 2 (‘‘CADE 2’’) 

and the Enterprise Case Management System (ECM). 

REASONS FOR CHANGE

The Committee believes it is important for the IRS to afford taxpayers peace of mind that their most sensitive information is being 

responsibly protected by their government, using the latest technology. The Committee believes the appointment of an IRS CIO 

with operational control of all information technology infrastructure for the IRS, and responsibility for the development and implementation of realistic multiyear strategic plans, in conjunction with 

the verification and validation of major acquisitions of information 

technology are important components in the development, maintenance, and implementation of information technology that is secure 

and integrated. 

The Committee also has concerns about audits from the IRS’s 

oversight bodies, which report that offices or divisions within the 

IRS, other than the Office of Information Technology, have procured solutions that the Committee considers to be within the definition of IT, but for which the Office of Information Technology was 

not notified or consulted. The Committee believes that strengthening of the roles and responsibilities of the CIO and clarifying the 

definition of ‘‘information technology’’ will assist the IRS in better 

administering and overseeing its IT. 

The Committee believes that it is important to mandate the independent verification and validation of CADE 2 and ECM plans to 

ensure that the planning for each of these projects is reasonable 

and achievable. The Committee notes that the IRS has struggled 

for years to complete both of these projects. CADE 2, the IRS’s replacement for the Individual Master File that houses individuals’ 

tax account data, initially began development in 2009 with an estimated completion in 2015. However, to date, the IRS has spent almost $2 billion on this project and is not able to provide a completion date for all phases of the project. While the IRS initiated the 

ECM project in 2015, after initially selecting and procuring an 

ECM solution, the IRS later determined that this solution could not 


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26 ‘‘Administrator’’ is used in lieu of ‘‘Commissioner’’ to reflect the proposed change made in 

H.R. 5444, the ‘‘Taxpayer First Act,’’ contemporaneously reported favorably out of Committee. 

be deployed enterprise-wide. Both of these systems are central to 

the success of the IRS in meeting its mission. If Congress is to continue to support and fund these programs, certainty is needed that 

the IRS will be able to plan for and implement these programs. 

EXPLANATION OF PROVISION

Under the provision, the Administrator 26 of the IRS will appoint 

an IRS CIO. The Administrator and the Secretary will act through 

the IRS CIO with respect to the development, implementation, and 

maintenance of information technology for the IRS. The IRS CIO 

will be responsible for the development, implementation, and maintenance of information technology for the IRS, for ensuring that the 

information technology of the IRS is secure and integrated, for 

maintaining operational control of all information technology for 

the IRS, for acting as the principal advocate for the information 

technology needs of the IRS, and for consulting with the Chief Procurement Officer of the IRS to ensure that the information technology acquired for the IRS is consistent with the strategic plan. 

The IRS CIO will also be responsible for developing and implementing a multiyear strategic plan for the information technology 

needs of the IRS. This plan should include performance measures 

of such technology and its implementation, and a plan for an integrated enterprise architecture of the information technology of the 

IRS. It should take into account the resources needed to accomplish 

such a plan, as well as planned major acquisitions of information 

technology by the IRS, including CADE 2 and the ECM System. 

The plan should also align with the needs and strategic plan of the 

IRS. The IRS CIO will review and update this plan at least once 

a year, taking into account the development of new information 

technology and the needs of the IRS. 

Under the provision, the Administrator of the IRS will develop 

plans for each phase except phase one of CADE 2 and enter into 

a contract with an independent reviewer to verify and validate implementation plans developed for each phase except phase one of 

CADE 2 and for the ECM System. Furthermore, the Chief Procurement Officer of the IRS is directed to regularly consult with the 

IRS CIO and to identify all significant IRS information technology 

acquisitions in excess of $1,000,000, providing written notification 

to the IRS CIO of each such acquisition in advance of acquisition. 

EFFECTIVE DATE

The provision is generally effective on the date of enactment. 

The verification and validation of phase two of CADE 2 and the 

ECM System are to be completed within one year after the date of 

enactment. The development of plans for all subsequent phases of 

CADE 2 should be completed within one year after the date of enactment and the verification and validation of each phase should 

be completed within one year after the date on which the plan for 

such phase is completed. 


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2. DEVELOPMENT OF ONLINE ACCOUNTS AND PORTALS (SEC. 202 OF

THE BILL) 

PRESENT LAW

The Code does not expressly provide for the development of individualized online accounts. 

REASONS FOR CHANGE

The Committee believes it is important for the IRS to provide 

customer service akin to that expected in the private sector by 

treating taxpayers with respect, ensuring that taxpayers can ask 

questions and receive assistance, and incorporating the latest technology, including online services, call-back options, and improved 

support on the phone. The Committee believes the development of 

secure, individualized online accounts will improve customer service to taxpayers by allowing taxpayers and their designated return 

preparers to access a variety of services including, for example, obtaining copies of their tax information, paying taxes, sharing documentation, and addressing and correcting issues. 

The Committee notes that the IRS has been slow to adopt online 

accounts as an additional means through which to provide taxpayer 

services. Furthermore, the online services currently offered are disjointed and not always easily accessible. Similar to the electronic 

filing goal laid out in RRA98, Congress has included this provision 

to signal to the IRS the need to provide robust, online services to 

taxpayers and their designated preparers as an alternatives service 

channel. The Committee believes that doing so would free up much 

needed resources to provide phone and in-person services to those 

who would prefer to use them. 

During hearings held on this issue, the Committee heard multiple reports of taxpayers or their preparers who were unable to 

submit needed forms and documentation to the IRS electronically, 

creating additional burdens on taxpayers and their preparers. The 

Committee also notes that the IRS currently has a number of 

forms, including those for amended returns, which cannot be filed 

electronically with the IRS. Those forms, even if prepared electronically, must then be printed and mailed to the IRS. In an effort to 

reduce taxpayer burden and shorten the time in which the IRS receives and processes forms and documents, the Committee would 

like the IRS to develop a portal for the receipt of forms and documentation. 

EXPLANATION OF PROVISION

Under the provision, the Secretary will develop secure, individualized online accounts to provide services to taxpayers and their 

designated return preparers, including, for example, obtaining taxpayer information, making payment of taxes, sharing documentation, and addressing and correcting issues. The Secretary will also 

develop a process for accepting returns of tax and supporting documentation in electronic format. These electronic services should be 

a supplement to, and not a replacement for, other services provided 

by the IRS to taxpayers, including face-to-face taxpayer assistance 

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27 Available at http://www.ssa.gov/bso/bsowelcome.htm. 

ices are intended to enhance taxpayers’ options for submitting their 

tax forms and supporting documents in a secure and cost-effective 

manner for faster, more efficient interactions with the IRS. 

The IRS will formulate a plan for development of online accounts 

and report the plan to Congress within a year of enactment. The 

IRS should consider as part of this plan, the feasibility of taxpayers 

addressing and correcting issues through such accounts, and 

whether access to these accounts should be restricted in any way. 

EFFECTIVE DATE

Not later than one year after the date of enactment, the Secretary will submit to Congress a written report describing the plan 

for development of online accounts. 

The Secretary will make every reasonable effort to make secure 

individualized online accounts available to taxpayers by December 

31, 2023. 

3. INTERNET PLATFORM FOR FORM 1099 FILINGS (SEC. 203 OF THE

BILL) 

PRESENT LAW

The Code does not presently require the IRS to make available 

an internet platform for the preparation or filing of information returns, such as the series, Form 1099. 

REASONS FOR CHANGE

The Committee believes that it is desirable to provide a simple 

and secure manner for small businesses to file critical tax information returns electronically. The Committee further believes that 

such a secure manner of filing can be modeled on an existing online 

platform, Social Security Administration (‘‘SSA’’) Business Services 

Online. The Committee believes that an online platform for submitting information returns to the IRS, similar to SSA Business Services Online, could improve compliance of small business taxpayers 

while reducing their administrative burden. Businesses would be 

able to prepare and file information returns such as IRS Form 

1099–MISC, Miscellaneous Income, online while preparing the 

payee statements and creating necessary business records. 

EXPLANATION OF PROVISION

The provision requires the Secretary of the Treasury (or his or 

her delegate) to make available, by January 1, 2023, an internet 

website or other electronic medium (the ‘‘website’’), with a user 

interface and functionality similar to the Business Services Online 

Suite of Services provided by the Social Security Administration.27

The website will allow persons, with access to resources and guidance provided by the IRS, to prepare, file, and distribute Forms 

1099, and maintain a record of completed and submitted Forms 

1099. The Secretary is required to ensure that the services provided on the website are not a replacement for services currently 

provided by the IRS, and that the website comply with applicable 

security standards. 


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28Sec. 6103(a). 29Treas. Reg. sec. 301.6103(c)–1. The regulations also specify the requirements for a nonwritten request for information or consent to disclosure to allow a third party to provide information 

or assistance relating to the taxpayer’s return or to a transaction or other contact between the 

taxpayer and the IRS. 30 Internal Revenue Service, Income Verification Express Service, https://www.irs.gov/individuals/international-taxpayers/income-verification-express-service (February 26, 2018). 31There are various Forms 1099: Form 1099–B, Proceeds From Broker or Barter Exchange 

Transactions; Form 1099–DIV, Dividends and Distributions; 1099–INT, Interest Income; 1099– 

MISC, Miscellaneous Income; 1099–OID, Original Issue Discount; or 1099–R, Distributions 

From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 

EFFECTIVE DATE

The provision is effective on the date of enactment. 

TITLE III—MODERNIZATION OF CONSENT-BASED INCOME 

VERIFICATION SYSTEM 

1. DISCLOSURE OF TAXPAYER INFORMATION FOR THIRD-PARTY INCOME VERIFICATION (SEC. 301 OF THE BILL AND SEC. 6103 OF THE

CODE) 

PRESENT LAW

Disclosure of return information with consent of the taxpayer 

As a general rule, returns and return information are confidential and cannot be disclosed unless authorized by Title 26.28 Under 

section 6103(c), the IRS may disclose the return or return information of a taxpayer to a third party designated by the taxpayer in 

a request for or consent to such disclosure. Treasury regulations set 

forth the requirements for such consent.29 A request for consent to 

disclosure in written form must be a separate written document 

pertaining solely to the authorized disclosure. At the time the consent is signed and dated by the taxpayer, the written document 

must indicate: (1) the taxpayer’s taxpayer identity information; (2) 

the identity of the person(s) to whom disclosure is to be made; (3) 

the type of return (or specified portion of the return) or return information (and the particular data) that is to be disclosed; and (4) 

the taxable year(s) covered by the return or return information. 

The regulations also require that the consent be submitted within 

120 days of the date signed and dated by the taxpayer. 

INCOME VERIFICATION EXPRESS SERVICE (IVES)

Mortgage lenders and others in the financial community use the 

IRS’s Income Verification Express Service (IVES) to confirm the income of a borrower during the processing of a loan application.30

Customers of IVES fax to a specified IRS office a signed Form 

4506–T (‘‘Request for Transcript of Tax Return’’) or Form 4506T– 

EZ (‘‘Short Form Request for Individual Tax Return Transcript’’). 

The IRS provides three types of transcript information as part of 

the IVES program: (1) a return transcript; (2) Form W–2 (‘‘Wage 

and Tax Statement’’) transcript information; and (3) Form 1099 31

transcript information. 

The IRS imposes a $2.00 fee for each transcript requested. The 

requested transcript information is delivered to a secure mailbox 

on the IRS’s e-Services electronic platform, generally within two to 

three business days. 


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32 Applicants also must choose one or more of the reasons listed on the form as the basis for 

using the IVES program: mortgage services, background check, credit check, banking service, 

licensing requirement, or other (must be specified). 

To participate in the IVES program, companies must register 

and identify employees to act as agents to receive transcripts on 

the company’s behalf.32 According to the Form 13803 (‘‘Application 

to Participate in the Income Verification Express Services (IVES) 

Program’’), the IRS conducts a suitability check on the applicant 

and all the principals listed on the application to determine the applicant’s suitability to be an IVES participant. After an applicant 

passes the suitability check and the IRS completes processing the 

application, the IRS notifies the applicant of acceptance to participate in the program. 

REASONS FOR CHANGE

The Committee believes that fully automating the IVES program 

to allow for electronic submissions, as well as electronic responses, 

will reduce operational costs, and reduce paperwork burdens for 

borrowers. The Committee also believes that automating the IVES 

program will remove unnecessary delays to allow small businesses 

to access capital more quickly, thereby making borrowing more affordable, easier, and safer for consumers and small business. The 

Committee intends that the automated process be as close to real 

time as possible while providing the same data fields currently provided by the non-automated version. While convenience is important, the Committee also wants to emphasize that convenience 

should not compromise the security of information within the system. Therefore, the Committee believes it is appropriate that the 

Secretary ensure that the program comply with applicable security 

standards, such as regulations and guidance provided by the National Institute of Standards and Technology. 

EXPLANATION OF PROVISION

As noted above, the current IVES program requires that transcript information requests be submitted to the IRS by fax and 

then the transcripts are furnished electronically to a secure mailbox. After a specified time period, the provision requires the Secretary (or his delegate) to implement a qualified disclosure program 

that is fully automated, accomplished through the Internet; and 

through which disclosures are accomplished in as close to real-time 

as is practicable. The program is to comply with applicable security 

standards and guidelines. The term ‘‘qualified disclosure’’ means a 

disclosure made pursuant to section 6103(c) to a person seeking to 

verify the income of a taxpayer who is a borrower in the process 

of a loan application. ‘‘Qualified disclosure’’ is intended as a reference to the types of disclosures made under the current IVES 

program. 

To cover the costs of implementing such a program, for a twoyear period beginning six months after the date of enactment, the 

Secretary is authorized to assess and collect a fee for qualified disclosures at such rates as the Secretary determines are sufficient to 

cover the costs related to implementing the program, including the 

costs of any necessary infrastructure or technology. Such fees are 

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33Sec. 6103(a). 34Treas. Reg. sec. 301.6103(c)–1. 35Sec. 7206(1). 

sures. The amounts received from the fees assessed and collected 

are to be deposited in and credited to an account solely for the purpose of carrying out the activities associated with implementing the 

qualified disclosure program. Not later than one year after the 

close of the two-year period, the Secretary is required to implement 

the program. 

EFFECTIVE DATE

The provision is effective on the date of enactment. 

2. LIMIT REDISCLOSURES AND USES OF CONSENT-BASED DISCLO- SURES OF TAX RETURN INFORMATION (SEC. 302 OF THE BILL AND

SEC. 6103 OF THE CODE) 

PRESENT LAW

In general 

As a general rule, returns and return information are confidential and cannot be disclosed unless authorized by the Code.33

Under section 6103(c), a taxpayer may designate in a request or 

consent to the disclosure by the IRS of his or her return or return 

information to a third party. Treasury regulations set forth the requirements for such consent.34 The Treasury regulations require 

that the taxpayer sign and date a written consent. At the time the 

consent is signed and dated by the taxpayer, the written document 

must indicate: (1) the taxpayer’s identity information; (2) the identity of the person to whom disclosure is to be made; (3) the type 

of return (or specified portion of the return) or return information 

(and the particular data) that is to be disclosed; and (4) the taxable 

year covered by the return or return information. The regulations 

also require that the consent be submitted within 120 days of the 

date signed and dated by the taxpayer. Present law does not require that a recipient receiving returns or return information by 

consent maintain the confidentiality of the information received. 

Under present law, the recipient is also free to use the information 

for purposes other than for which the information was solicited 

from the taxpayer. 

Criminal penalties 

Under section 7206, it is a felony to willfully make and subscribe 

any document that contains or is verified by a written declaration 

that it is made under penalties of perjury and which the maker or 

subscriber does not believe to be true and correct as to every material matter.35 Upon conviction, such person may be fined up to 

$100,000 ($500,000 in the case of a corporation) or imprisoned up 

to three years, or both, together with the costs of prosecution. 

Under section 7213, criminal penalties apply to: (1) willful unauthorized disclosures of returns and return information by Federal 

and State employees and other persons; (2) the offering of any item 

of material value in exchange for a return or return information 

and the receipt of such information pursuant to such an offer; and 

(3) the unauthorized disclosure of return information received by 


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certain shareholders under the material interest provision of section 6103. Under section 7213, a court can impose a fine up to 

$5,000, up to five years imprisonment, or both, together with the 

costs of prosecution. If the offense is committed by a Federal employee or officer, the employee or officer will be discharged from office upon conviction. 

The willful and unauthorized inspection of returns and return information can subject Federal and State employees and others to 

a maximum fine of $1,000, up to a year in prison, or both, in addition to the costs of prosecution. If the offense is committed by a 

Federal employee or officer, the employee or officer will be discharged from office upon conviction. 

Civil damage remedies for unauthorized disclosure or inspection 

If a Federal employee makes an unauthorized disclosure or inspection, a taxpayer can bring suit against the United States in 

Federal district court. If a person other than a Federal employee 

makes an unauthorized disclosure or inspection, suit may be 

brought directly against such person. No liability results from a 

disclosure based on a good faith, but erroneous, interpretation of 

section 6103. A disclosure or inspection made at the request of the 

taxpayer will also relieve liability. 

Upon a finding of liability, a taxpayer can recover the greater of 

$1,000 per act of unauthorized disclosure (or inspection), or the 

sum of actual damages plus, in the case of an inspection or disclosure that was willful or the result of gross negligence, punitive 

damages. The taxpayer may also recover the costs of the action 

and, if found to be a prevailing party, reasonable attorney fees. 

The taxpayer has two years from the date of the discovery of the 

unauthorized inspection or disclosure to bring suit. The IRS is required to notify a taxpayer of an unauthorized inspection or disclosure as soon as practicable after any person is criminally charged 

by indictment or information for unlawful inspection or disclosure. 

REASONS FOR CHANGE

The Committee is concerned that information obtained by consent is not subject to the same protection and limits on use as 

other taxpayer information. The Committee believes that this provision addresses the numerous privacy concerns raised by current 

law. 

EXPLANATION OF PROVISION

The provision provides that persons designated by the taxpayer 

to receive return information shall not use the information for any 

purpose other than the express purpose for which consent was 

granted, and shall not disclose return information to any other person without the express permission of, or request by, the taxpayer. 

EFFECTIVE DATE

The provision is effective for disclosures made after the date of 

enactment. 


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36The Electronic Tax Administration Advisory Committee, the body charged with oversight 

of IRS progress in reaching that goal projected an overall e-filing rate of 80.1 percent in the 

2017 filing season based on all Federal returns. See Electronic Tax Administration Advisory 

Committee, Annual Report to Congress, June 2017, IRS Pub. 3415, page 5. 37Sec. 6011(e). 38Section 6011(e)(3)(B) defines a ‘‘specified tax return preparer’’ as any return preparer who 

reasonably expects to file more than 10 individual income tax returns during a calendar year. 

TITLE IV—EXPANDED USE OF ELECTRONIC SYSTEMS 

1. ELECTRONIC FILING OF RETURNS (SEC. 401 OF THE BILL AND SEC. 

6011 OF THE CODE) 

PRESENT LAW

In general 

The IRS Reform and Restructuring Act of 1998 (‘‘RRA98’’) states 

a Congressional policy to promote the paperless filing of Federal 

tax returns. Section 2001(a) of RRA98 set a goal for the IRS to 

have at least 80 percent of all Federal tax and information returns 

filed electronically by 2007.36 Section 2001(b) of RRA98 requires 

the IRS to establish a 10-year strategic plan to eliminate barriers 

to electronic filing. 

Present law requires the Secretary to issue regulations regarding 

electronic filing and specifies certain limitations on the rules that 

may be included in such regulations.37 The statute requires that 

Federal income tax returns prepared by specified tax return preparers be filed electronically,38 and that all partnerships with more 

than 100 partners be required to file electronically. For taxpayers 

other than partnerships, the statute prohibits any requirement 

that persons who file fewer than 250 returns during a calendar 

year file electronically. With respect to individuals, estates, and 

trusts, the Secretary may permit, but generally cannot require, 

electronic filing of income tax returns. In crafting any of these required regulations, the Secretary must take into account the ability 

of taxpayers to comply at a reasonable cost. The regulations require corporations that have assets of $10 million or more and file at least 250 returns during a calendar year 

to file electronically their Form 1120/1120S income tax returns 

(U.S. Corporation Income Tax Return/U.S. Income Tax Return for 

an S Corporation) and Form 990 information returns (Return of 

Organization Exempt from Income Tax) for tax years ending on or 

after December 31, 2006. In determining whether the 250 returns 

threshold is met, income tax, information, excise tax, and employment tax returns filed within one calendar year are counted. 

REASONS FOR CHANGE

Consistent with the policy expressed in RRA98, the Committee 

supports paperless filing as the preferred and most convenient 

means of filing Federal tax and information returns. Electronic filing produces a number of benefits both for taxpayers and the IRS, 

including shorter processing times, fewer errors, and better data. 

The Committee believes that the efficiencies and cost savings 

achieved through electronic filing justify expanding such requirements. The Committee is aware that present law restricts the IRS’s 

ability to expand the scope of returns that are required to be filed 

electronically. The Committee believes that the widespread adopVerDate Sep 11 2014 06:26 Apr 14, 2018 Jkt 079006 PO 00000 Frm 00027 Fmt 6659 Sfmt 6602 E:\HR\OC\HR638.XXX HR638

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39Sec. 6103(a). 40Treas. Reg. sec. 301.6103(c)–1. 

tion of computer technology since RRA98 has reduced the additional burden that mandatory e-filing imposes on taxpayers. 

EXPLANATION OF PROVISION

The provision relaxes the current restrictions on the authority of 

the Secretary to mandate electronic filing based on the number of 

returns required to be filed by a taxpayer in a given taxable period. 

First, it phases in a reduction in the threshold requirement that 

taxpayers have an obligation to file a specified number of returns 

and statements during a calendar year in order to be subject to a 

regulatory mandate. That threshold is reduced from 250 to 100 for 

calendar year 2020, from 100 to 10 for calendar year 2021 and for 

calendar years thereafter. 

Second, the provision authorizes the Secretary to waive the requirement that a Federal income tax return prepared by a specified 

tax return preparer be filed electronically if a tax return preparer 

applies for a waiver and demonstrates that the inability to file electronically is due to lack of internet availability (other than dial-up 

or satellite service) in the geographic location in which the return 

preparation business is operated. 

EFFECTIVE DATE

The provision is effective on the date of enactment. 

2. UNIFORM STANDARDS FOR THE USE OF ELECTRONIC SIGNATURES

FOR DISCLOSURE AUTHORIZATIONS TO, AND OTHER AUTHORIZATIONS OF, PRACTITIONERS (SEC. 402 OF THE BILL AND SEC. 6061 

OF THE CODE) 

PRESENT LAW

Disclosure of return information by consent of the taxpayer 

As a general rule, returns and return information are confidential and cannot be disclosed unless authorized by the Code.39

Under section 6103(c), the IRS may disclose the return or return 

information of a taxpayer to a third party designated by the taxpayer in a request for or consent to such disclosure. Treasury regulations set forth the requirements for such consent.40 A request for 

consent to disclosure in written form must be a separate written 

document pertaining solely to the authorized disclosure. At the 

time the consent is signed and dated by the taxpayer, the written 

document must indicate (1) the taxpayer’s taxpayer identity information; (2) the identity of the person(s) to whom disclosure is to 

be made; (3) the type of return (or specified portion of the return) 

or return information (and the particular data) that is to be disclosed; and (4) the taxable year(s) covered by the return or return 

information. The regulations also require that the consent be submitted within 120 days of the date signed and dated by the taxpayer. 


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41Sec. 6061. 

Electronic signatures 

The Secretary is required to develop procedures for the acceptance of signatures in digital and other electronic form.41 Until such 

time as such procedures are in place, the Secretary may waive the 

requirement of a signature for, or provide for alternative methods 

of signing or subscribing, a particular type or class of return, declaration, statement or other document required or permitted to be 

made or written under the internal revenue laws and regulations. 

The Secretary is required to publish guidance as appropriate to define and implement any waiver of the signature requirements or alternative method of signing or subscribing. 

IRS Forms 

Form 2848 (Power of Attorney and Declaration of Representative) is used to authorize an individual to represent the taxpayer 

before the IRS. The individual must be eligible to practice before 

the IRS. 

Form 8821 (Tax Information Authorization) authorizes an individual or organization to request and inspect a taxpayer’s confidential tax return information. Form 4506–T (Request for Transcript 

of Tax Return) authorizes an individual or organization to request 

and inspect transcripts of a taxpayer’s confidential return information. These forms do not authorize an individual to represent the 

taxpayer before the IRS. 

REASONS FOR CHANGE

In the private sector, electronic signatures are widely accepted 

and there are many commercially available options to facilitate the 

acceptance of electronic signatures. The Committee believes that 

the establishment of uniform guidance for verification of electronic 

signatures will reduce operational costs and facilitate practitioner 

representation. 

EXPLANATION OF PROVISION

For a request for disclosure to a practitioner with consent of the 

taxpayer, or for any power of attorney granted by a taxpayer to a 

practitioner, the provision requires the Secretary to publish guidance to establish uniform standards and procedures for the acceptance of taxpayers’ signatures appearing in electronic form with respect to such requests or power of attorney. Such guidance must 

be published within six months of the date of enactment. For purposes of the provision, a ‘‘practitioner’’ means an individual in good 

standing who is regulated under 31 U.S.C. sec. 330 (relating to 

practice before the Department of the Treasury). 

EFFECTIVE DATE

The provision is effective on the date of enactment. 


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42Sec. 6311. 43Sec. 6311(d)(2). 

3. PAYMENT OF TAXES BY DEBIT AND CREDIT CARDS (SEC. 403 OF

THE BILL AND SEC. 6311 OF THE CODE) 

PRESENT LAW

The Code generally permits the payment of taxes by commercially acceptable means such as credit cards.42 The Secretary may 

not pay any fee or provide any other consideration in connection 

with the use of credit, debit, or charge cards for the payment of income taxes.43

REASONS FOR CHANGE

The Committee believes that removing the prohibition on the 

Secretary paying any fees or provide, any other consideration in 

connection with the use of credit, debit, or charge cards will allow 

the IRS to realize benefits similar to those realized by any business 

that accepts payment by credit card, including a guarantee that the 

funds will be paid over and a reduction in the costs of handling 

paper checks. The Committee believes that the proposal could result in increased collections by allowing busy taxpayers to more 

easily make a payment by credit card over the telephone without 

having to wait for the IRS to connect them to third party providers. 

EXPLANATION OF PROVISION

The provision removes the prohibition on paying any fees or providing any other consideration in connection with the use of credit, 

debit, or charge cards for the payment of income taxes to the extent 

taxpayers paying in this manner are fully responsible for any fees 

or consideration incurred. The provision requires the Secretary to 

seek to minimize the amount of any fee or other consideration that 

the Secretary pays under any contract. 

EFFECTIVE DATE

The provision is effective on the date of enactment. 

III. VOTES OF THE COMMITTEE 

In compliance with clause 3(b) of rule XIII of the House of Representatives, the following statement is made concerning the vote 

of the Committee on Ways and Means during the markup consideration of H.R. 5445, the ‘‘21st Century IRS Act,’’ on April 11, 2018. 

The bill, H.R. 5445, as amended, was ordered favorably reported 

to the House of Representatives by a voice vote (with a quorum 

being present). 

IV. BUDGET EFFECTS OF THE BILL 

A. COMMITTEE ESTIMATE OF BUDGETARY EFFECTS

In compliance with clause 3(d) of rule XIII of the Rules of the 

House of Representatives, the following statement is made concerning the effects on the budget of the bill, H.R. 5445, as reported. 

The bill, as reported, is to increase Federal fiscal year budget receipts by less than $500,000 for the period 2018 through 2028. 


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Pursuant to clause 8 of rule XIII of the Rules of the House of 

Representatives, the following statement is made by the Joint Committee on Taxation with respect to the provisions of the bill amending the Internal Revenue Code of 1986: The gross budgetary effect 

(before incorporating macroeconomic effects) in any fiscal year is 

less than 0.25 percent of the current projected gross domestic product of the United States for that fiscal year; therefore, the bill is 

not ‘‘major legislation’’ for purposes of requiring that the estimate 

include the budgetary effects of changes in economic output, employment, capital stock and other macroeconomic variables. 

B. STATEMENT REGARDING NEW BUDGET AUTHORITY AND TAX

EXPENDITURES BUDGET AUTHORITY

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee states that the bill involves no new or increased budget authority. The Committee further states that the revenue-reducing tax provision involves a new 

tax expenditure. See Part IV.A., above. 

C. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET

OFFICE

In compliance with clause 3(c)(3) of rule XIII of the Rules of the 

House of Representatives, the Committee advises that the Congressional Budget Office did not provide a cost estimate for the resolution. 

V. OTHER MATTERS TO BE DISCUSSED UNDER THE 

RULES OF THE HOUSE 

A. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee advises that the findings and 

recommendations of the Committee, based on oversight activities 

under clause 2(b)(1) of rule X of the Rules of the House of Representatives, are incorporated into the description portions of this 

report. 

B. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

With respect to clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, the Committee advises that the bill contains no measure that authorizes funding, so no statement of general performance goals and objectives for which any measure authorizes funding is required. 

C. INFORMATION RELATING TO UNFUNDED MANDATES

This information is provided in accordance with section 423 of 

the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104–4). 

The Committee has determined that the bill does not contain 

Federal mandates on the private sector. The Committee has determined that the bill does not impose a Federal intergovernmental 

mandate on State, local, or tribal governments. 


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D. APPLICABILITY OF HOUSE RULE XXI 5(b) 

Rule XXI 5(b) of the Rules of the House of Representatives provides, in part, that ‘‘A bill or joint resolution, amendment, or conference report carrying a Federal income tax rate increase may not 

be considered as passed or agreed to unless so determined by a 

vote of not less than three-fifths of the Members voting, a quorum 

being present.’’ The Committee has carefully reviewed the bill and 

states that the bill does not involve any Federal income tax rate 

increases within the meaning of the rule. 

E. TAX COMPLEXITY ANALYSIS

Section 4022(b) of the Internal Revenue Service Restructuring 

and Reform Act of 1998 (‘‘IRS Reform Act’’) requires the staff of the 

Joint Committee on Taxation (in consultation with the Internal 

Revenue Service and the Treasury Department) to provide a tax 

complexity analysis. The complexity analysis is required for all legislation reported by the Senate Committee on Finance, the House 

Committee on Ways and Means, or any committee of conference if 

the legislation includes a provision that directly or indirectly 

amends the Internal Revenue Code of 1986 and has widespread applicability to individuals or small businesses. 

Pursuant to clause 3(h)(1) of rule XIII of the Rules of the House 

of Representatives, the staff of the Joint Committee on Taxation 

has determined that a complexity analysis is not required under 

section 4022(b) of the IRS Reform Act because the bill contains no 

provisions that amend the Internal Revenue Code of 1986 and that 

have ‘‘widespread applicability’’ to individuals or small businesses, 

within the meaning of the rule. 

F. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND

LIMITED TARIFF BENEFITS

With respect to clause 9 of rule XXI of the Rules of the House 

of Representatives, the Committee has carefully reviewed the provisions of the bill and states that the provisions of the bill do not 

contain any congressional earmarks, limited tax benefits, or limited 

tariff benefits within the meaning of the rule. 

G. DUPLICATION OF FEDERAL PROGRAMS

In compliance with Sec. 3(c)(5) of rule XIII of the Rules of the 

House of Representatives, the Committee states that no provision 

of the bill establishes or reauthorizes: (1) a program of the Federal 

Government known to be duplicative of another Federal program, 

(2) a program included in any report from the Government Accountability Office to Congress pursuant to section 21 of Public 

Law 111–139, or (3) a program related to a program identified in 

the most recent Catalog of Federal Domestic Assistance, published 

pursuant to section 6104 of title 31, United States Code. 

H. DISCLOSURE OF DIRECTED RULE MAKINGS

In compliance with Sec. 3(i) of H. Res. 5 (115th Congress), the 

following statement is made concerning directed rule makings: The 

Committee advises that the bill requires no directed rule makings 

within the meaning of such section. 


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VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS 

REPORTED 

A. TEXT OF EXISTING LAW AMENDED OR REPEALED BY THE BILL, AS

REPORTED

In compliance with clause 3(e)(1)(A) of rule XIII of the Rules of 

the House of Representatives, the text of each section proposed to 

be amended or repealed by the bill, as reported, is shown below: 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

and existing law in which no change is proposed is shown in 

roman): 

INTERNAL REVENUE CODE OF 1986 

* * * * * * * 

Subtitle F—Procedure and Administration 

* * * * * * * 

CHAPTER 61—INFORMATION AND RETURNS 

* * * * * * * 

Subchapter A—Returns and Records 

* * * * * * * 

PART II—TAX RETURNS OR STATEMENTS 

* * * * * * * 

Subpart A—General Requirement 

* * * * * * * 

SEC. 6011. GENERAL REQUIREMENT OF RETURN, STATEMENT, OR 

LIST. 

(a) GENERAL RULE.—When required by regulations prescribed by 

the Secretary any person made liable for any tax imposed by this 

title, or with respect to the collection thereof, shall make a return 

or statement according to the forms and regulations prescribed by 

the Secretary. Every person required to make a return or statement shall include therein the information required by such forms 

or regulations. 

(b) IDENTIFICATION OF TAXPAYER.—The Secretary is authorized to 

require such information with respect to persons subject to the 

taxes imposed by chapter 21 or chapter 24 as is necessary or helpful in securing proper identification of such persons. 

(c) RETURNS, ETC., OF DISCS AND FORMER DISCS AND FORMER

FSC’S.— 


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(1) RECORDS AND INFORMATION.—A DISC, former DISC, or 

former FSC (as defined in section 922 as in effect before its repeal by the FSC Repeal and Extraterritorial Income Exclusion 

Act of 2000) shall for the taxable year— 

(A) furnish such information to persons who were shareholders at any time during such taxable year, and to the 

Secretary, and 

(B) keep such records, as may be required by regulations 

prescribed by the Secretary. 

(2) RETURNS.—A DISC shall file for the taxable year such returns as may be prescribed by the Secretary by forms or regulations. 

(d) AUTHORITY TO REQUIRE INFORMATION CONCERNING SECTION

912 ALLOWANCES.—The Secretary may by regulations require any 

individual who receives allowances which are excluded from gross 

income under section 912 for any taxable year to include on his return of the taxes imposed by subtitle A for such taxable year such 

information with respect to the amount and type of such allowances as the Secretary determines to be appropriate. 

(e) REGULATIONS REQUIRING RETURNS ON MAGNETIC MEDIA, 

ETC..— 

(1) IN GENERAL.—The Secretary shall prescribe regulations 

providing standards for determining which returns must be 

filed on magnetic media or in other machine-readable form. Except as provided in paragraph (3), the Secretary may not require returns of any tax imposed by subtitle A on individuals, 

estates, and trusts to be other than on paper forms supplied 

by the Secretary. 

(2) REQUIREMENTS OF REGULATIONS.—In prescribing regulations under paragraph (1), the Secretary— 

(A) shall not require any person to file returns on magnetic media unless such person is required to file at least 

ø250¿ the applicable number of returns during the calendar year, and 

(B) shall take into account (among other relevant factors) the ability of the taxpayer to comply at reasonable 

cost with the requirements of such regulations. 

(3) SPECIAL RULE FOR TAX RETURN PREPARERS.— 

(A) IN GENERAL.—The Secretary shall require that any 

individual income tax return prepared by a tax return preparer be filed on magnetic media if— 

(i) such return is filed by such tax return preparer, 

and 

(ii) such tax return preparer is a specified tax return 

preparer for the calendar year during which such return is filed. 

(B) SPECIFIED TAX RETURN PREPARER.—For purposes of 

this paragraph, the term ‘‘specified tax return preparer’’ 

means, with respect to any calendar year, any tax return 

preparer unless such preparer reasonably expects to file 10 

or fewer individual income tax returns during such calendar year. 

(C) INDIVIDUAL INCOME TAX RETURN.—For purposes of 

this paragraph, the term ‘‘individual income tax return’’ 


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means any return of the tax imposed by subtitle A on individuals, estates, or trusts. 

(D) EXCEPTION FOR CERTAIN PREPARERS LOCATED IN

AREAS WITHOUT INTERNET ACCESS.—The Secretary may 

waive the requirement of subparagraph (A) if the Secretary 

determines, on the basis of an application by the tax return 

preparer, that the preparer cannot meet such requirement 

by reason of being located in a geographic area which does 

not have access to internet service (other than dial-up or 

satellite service). 

(4) SPECIAL RULE FOR RETURNS FILED BY FINANCIAL INSTITUTIONS WITH RESPECT TO WITHHOLDING ON FOREIGN TRANSFERS.—The numerical limitation under paragraph (2)(A) shall 

not apply to any return filed by a financial institution (as defined in section 1471(d)(5)) with respect to tax for which such 

institution is made liable under section 1461 or 1474(a). 

(5) SPECIAL RULES FOR PARTNERSHIPS.— 

(A) PARTNERSHIPS PERMITTED TO BE REQUIRED TO FILE

ON MAGNETIC MEDIA.—In the case of a partnership, paragraph (2)(A) shall be applied by substituting for ‘‘250’’ the 

following amount: 

(i) In the case of returns and statements relating to 

calendar year 2018, ‘‘200’’. 

(ii) In the case of returns and statements relating to 

calendar year 2019, ‘‘150’’. 

(iii) In the case of returns and statements relating 

to calendar year 2020, ‘‘100’’. 

(iv) In the case of returns and statements relating to 

calendar year 2021, ‘‘50’’. 

(v) In the case of returns and statements relating to 

calendar years after 2021, ‘‘20’’. 

(B) PARTNERSHIPS REQUIRED TO FILE ON MAGNETIC

MEDIA.—Notwithstanding subparagraph (A) and paragraph 

(2)(A), the Secretary shall require partnerships having 

more than 100 partners to file returns on magnetic media. 

(6) APPLICABLE NUMBER.—For purposes of paragraph (2)(A), 

the applicable number shall be determined in accordance with 

the following table: 

(A) in the case of calendar years before 2020, 250, 

(B) in the case of calendar year 2020, 100, and 

(C) in the case of calendar years after 2020, 10. 

(f) PROMOTION OF ELECTRONIC FILING.— 

(1) IN GENERAL.—The Secretary is authorized to promote the 

benefits of and encourage the use of electronic tax administration programs, as they become available, through the use of 

mass communications and other means. 

(2) INCENTIVES.—The Secretary may implement procedures 

to provide for the payment of appropriate incentives for electronically filed returns. 

(g) DISCLOSURE OF REPORTABLE TRANSACTION TO TAX-EXEMPT

ENTITY.—Any taxable party to a prohibited tax shelter transaction 

(as defined in section 4965(e)(1)) shall by statement disclose to any 

tax-exempt entity (as defined in section 4965(c)) which is a party 

to such transaction that such transaction is such a prohibited tax 

shelter transaction. 


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(h) INCOME, ESTATE, AND GIFT TAXES FOR REQUIREMENT THAT

RETURNS OF INCOME, ESTATE, AND GIFT.—taxes be made whether 

or not there is tax liability, see subparts B and C. 

* * * * * * * 

PART IV—SIGNING AND VERIFYING OF RETURNS AND 

OTHER DOCUMENTS 

* * * * * * * 

SEC. 6061. SIGNING OF RETURNS AND OTHER DOCUMENTS. 

(a) GENERAL RULE.—Except as otherwise provided by subsection 

(b) and sections 6062 and 6063, any return, statement, or other 

document required to be made under any provision of the internal 

revenue laws or regulations shall be signed in accordance with 

forms or regulations prescribed by the Secretary. 

(b) ELECTRONIC SIGNATURES.— (1) IN GENERAL.—The Secretary shall develop procedures for 

the acceptance of signatures in digital or other electronic form. 

Until such time as such procedures are in place, the Secretary 

may— 

(A) waive the requirement of a signature for; or 

(B) provide for alternative methods of signing or subscribing, 

a particular type or class of return, declaration, statement, or 

other document required or permitted to be made or written 

under internal revenue laws and regulations. 

(2) TREATMENT OF ALTERNATIVE METHODS.—Notwithstanding 

any other provision of law, any return, declaration, statement, 

or other document filed and verified, signed, or subscribed 

under any method adopted under paragraph (1)(B) shall be 

treated for all purposes (both civil and criminal, including penalties for perjury) in the same manner as though signed or 

subscribed. 

ø(3) PUBLISHED GUIDANCE.—The Secretary shall publish 

guidance as appropriate to define and implement any waiver 

of the signature requirements or any method adopted under 

paragraph (1).¿ 

(3) PUBLISHED GUIDANCE.— 

(A) IN GENERAL.—The Secretary shall publish guidance 

as appropriate to define and implement any waiver of the 

signature requirements or any method adopted under paragraph (1). 

(B) ELECTRONIC SIGNATURES FOR DISCLOSURE AUTHORIZATIONS TO, AND OTHER AUTHORIZATIONS OF, PRACTITIONERS.—Not later than 6 months after the date of the enactment of this subparagraph, the Secretary shall publish 

guidance to establish uniform standards and procedures 

for the acceptance of taxpayers’ signatures appearing in 

electronic form with respect to any request for disclosure of 

a taxpayer’s return or return information under section 

6103(c) to a practitioner or any power of attorney granted 

by a taxpayer to a practitioner. 

(C) PRACTITIONER.—For purposes of subparagraph (B), 

the term ‘‘practitioner’’ means any individual in good 


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standing who is regulated under section 330 of title 31, 

United States Code. 

* * * * * * * 

Subchapter B—Miscellaneous Provisions 

* * * * * * * 

SEC. 6103. CONFIDENTIALITY AND DISCLOSURE OF RETURNS AND RETURN INFORMATION. 

(a) GENERAL RULE.—Returns and return information shall be 

confidential, and except as authorized by this title— 

(1) no officer or employee of the United States, 

(2) no officer or employee of any State, any local law enforcement agency receiving information under subsection (i)(1)(C) or 

(7)(A), any local child support enforcement agency, or any local 

agency administering a program listed in subsection (l)(7)(D) 

who has or had access to returns or return information under 

this section or section 6104(c), and 

(3) no other person (or officer or employee thereof) who has 

or had access to returns or return information under subsection 

(c), subsection (e)(1)(D)(iii), øsubsection (k)(10)¿ paragraph (10) 

or (13) of subsection (k), paragraph (6), (10), (12), (16), (19), 

(20), or (21) of subsection (l), paragraph (2) or (4)(B) of subsection (m), or subsection (n), 

shall disclose any return or return information obtained by him in 

any manner in connection with his service as such an officer or an 

employee or otherwise or under the provisions of this section. For 

purposes of this subsection, the term ‘‘officer or employee’’ includes 

a former officer or employee. 

(b) DEFINITIONS.—For purposes of this section— 

(1) RETURN.—The term ‘‘return’’ means any tax or information return, declaration of estimated tax, or claim for refund 

required by, or provided for or permitted under, the provisions 

of this title which is filed with the Secretary by, on behalf of, 

or with respect to any person, and any amendment or supplement thereto, including supporting schedules, attachments, or 

lists which are supplemental to, or part of, the return so filed. 

(2) RETURN INFORMATION.—The term ‘‘return information’’ 

means— 

(A) a taxpayer’s identity, the nature, source, or amount 

of his income, payments, receipts, deductions, exemptions, 

credits, assets, liabilities, net worth, tax liability, tax withheld, deficiencies, overassessments, or tax payments, 

whether the taxpayer’s return was, is being, or will be examined or subject to other investigation or processing, or 

any other data, received by, recorded by, prepared by, furnished to, or collected by the Secretary with respect to a 

return or with respect to the determination of the existence, or possible existence, of liability (or the amount 

thereof) of any person under this title for any tax, penalty, 

interest, fine, forfeiture, or other imposition, or offense, 

(B) any part of any written determination or any background file document relating to such written determinaVerDate Sep 11 2014 06:26 Apr 14, 2018 Jkt 079006 PO 00000 Frm 00037 Fmt 6659 Sfmt 6602 E:\HR\OC\HR638.XXX HR638

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tion (as such terms are defined in section 6110(b)) which 

is not open to public inspection under section 6110, 

(C) any advance pricing agreement entered into by a taxpayer and the Secretary and any background information 

related to such agreement or any application for an advance pricing agreement, and 

(D) any agreement under section 7121, and any similar 

agreement, and any background information related to 

such an agreement or request for such an agreement, 

but such term does not include data in a form which cannot 

be associated with, or otherwise identify, directly or indirectly, 

a particular taxpayer. Nothing in the preceding sentence, or in 

any other provision of law, shall be construed to require the 

disclosure of standards used or to be used for the selection of 

returns for examination, or data used or to be used for determining such standards, if the Secretary determines that such 

disclosure will seriously impair assessment, collection, or enforcement under the internal revenue laws. 

(3) TAXPAYER RETURN INFORMATION.—The term ‘‘taxpayer return information’’ means return information as defined in 

paragraph (2) which is filed with, or furnished to, the Secretary by or on behalf of the taxpayer to whom such return information relates. 

(4) TAX ADMINISTRATION.—The term ‘‘tax administration’’— 

(A) means— 

(i) the administration, management, conduct, direction, and supervision of the execution and application 

of the internal revenue laws or related statutes (or 

equivalent laws and statutes of a State) and tax conventions to which the United States is a party, and 

(ii) the development and formulation of Federal tax 

policy relating to existing or proposed internal revenue 

laws, related statutes, and tax conventions, and 

(B) includes assessment, collection, enforcement, litigation, publication, and statistical gathering functions under 

such laws, statutes, or conventions. 

(5) STATE.— 

(A) IN GENERAL.—The term ‘‘State’’ means— 

(i) any of the 50 States, the District of Columbia, the 

Commonwealth of Puerto Rico, the Virgin Islands, 

Guam, American Samoa, and the Commonwealth of 

the Northern Mariana Islands, 

(ii) for purposes of subsections (a)(2), (b)(4), (d)(1), 

(h)(4), and (p), any municipality— 

(I) with a population in excess of 250,000 (as determined under the most recent decennial United 

States census data available), 

(II) which imposes a tax on income or wages, 

and 

(III) with which the Secretary (in his sole discretion) has entered into an agreement regarding 

disclosure, and 

(iii) for purposes of subsections (a)(2), (b)(4), (d)(1), 

(h)(4), and (p), any governmental entity— 


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(I) which is formed and operated by a qualified 

group of municipalities, and 

(II) with which the Secretary (in his sole discretion) has entered into an agreement regarding disclosure. 

(B) REGIONAL INCOME TAX AGENCIES.—For purposes of 

subparagraph (A)(iii)— 

(i) QUALIFIED GROUP OF MUNICIPALITIES.—The term 

‘‘qualified group of municipalities’’ means, with respect 

to any governmental entity, 2 or more municipalities— 

(I) each of which imposes a tax on income or 

wages, 

(II) each of which, under the authority of a 

State statute, administers the laws relating to the 

imposition of such taxes through such entity, and 

(III) which collectively have a population in excess of 250,000 (as determined under the most recent decennial United States census data available). 

(ii) REFERENCES TO STATE LAW, ETC.—For purposes 

of applying subparagraph (A)(iii) to the subsections referred to in such subparagraph, any reference in such 

subsections to State law, proceedings, or tax returns 

shall be treated as references to the law, proceedings, 

or tax returns, as the case may be, of the municipalities which form and operate the governmental entity 

referred to in such subparagraph. 

(iii) DISCLOSURE TO CONTRACTORS AND OTHER

AGENTS.—Notwithstanding any other provision of this 

section, no return or return information shall be disclosed to any contractor or other agent of a governmental entity referred to in subparagraph (A)(iii) unless such entity, to the satisfaction of the Secretary— 

(I) has requirements in effect which require 

each such contractor or other agent which would 

have access to returns or return information to 

provide safeguards (within the meaning of subsection (p)(4)) to protect the confidentiality of such 

returns or return information, 

(II) agrees to conduct an on-site review every 3 

years (or a mid-point review in the case of contracts or agreements of less than 3 years in duration) of each contractor or other agent to determine compliance with such requirements, 

(III) submits the findings of the most recent review conducted under subclause (II) to the Secretary as part of the report required by subsection 

(p)(4)(E), and 

(IV) certifies to the Secretary for the most recent annual period that such contractor or other 

agent is in compliance with all such requirements. 

The certification required by subclause (IV) shall include the name and address of each contractor and 

other agent, a description of the contract or agreement 

with such contractor or other agent, and the duration 


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of such contract or agreement. The requirements of 

this clause shall not apply to disclosures pursuant to 

subsection (n) for purposes of Federal tax administration and a rule similar to the rule of subsection 

(p)(8)(B) shall apply for purposes of this clause. 

(6) TAXPAYER IDENTITY.—The term ‘‘taxpayer identity’’ 

means the name of a person with respect to whom a return is 

filed, his mailing address, his taxpayer identifying number (as 

described in section 6109), or a combination thereof. 

(7) INSPECTION.—The terms ‘‘inspected’’ and ‘‘inspection’’ 

mean any examination of a return or return information. 

(8) DISCLOSURE.—The term ‘‘disclosure’’ means the making 

known to any person in any manner whatever a return or return information. 

(9) FEDERAL AGENCY.—The term ‘‘Federal agency’’ means an 

agency within the meaning of section 551(1) of title 5, United 

States Code. 

(10) CHIEF EXECUTIVE OFFICER.—The term ‘‘chief executive 

officer’’ means, with respect to any municipality, any elected official and the chief official (even if not elected) of such municipality. 

(11) TERRORIST INCIDENT, THREAT, OR ACTIVITY.—The term 

‘‘terrorist incident, threat, or activity’’ means an incident, 

threat, or activity involving an act of domestic terrorism (as defined in section 2331(5) of title 18, United States Code) or 

international terrorism (as defined in section 2331(1) of such 

title). 

(c) DISCLOSURE OF RETURNS AND RETURN INFORMATION TO DESIGNEE OF TAXPAYER.—The Secretary may, subject to such requirements and conditions as he may prescribe by regulations, disclose 

the return of any taxpayer, or return information with respect to 

such taxpayer, to such person or persons as the taxpayer may designate in a request for or consent to such disclosure, or to any other 

person at the taxpayer’s request to the extent necessary to comply 

with a request for information or assistance made by the taxpayer 

to such other person. However, return information shall not be disclosed to such person or persons if the Secretary determines that 

such disclosure would seriously impair Federal tax administration. 

Persons designated by the taxpayer under this subsection to receive 

return information shall not use the information for any purpose 

other than the express purpose for which consent was granted and 

shall not disclose return information to any other person without 

the express permission of, or request by, the taxpayer. 

(d) DISCLOSURE TO STATE TAX OFFICIALS AND STATE AND LOCAL

LAW ENFORCEMENT AGENCIES.— 

(1) IN GENERAL.—Returns and return information with respect to taxes imposed by chapters 1, 2, 6, 11, 12, 21, 23, 24, 

31, 32, 44, 51, and 52 and subchapter D of chapter 36 shall be 

open to inspection by, or disclosure to, any State agency, body, 

or commission, or its legal representative, which is charged 

under the laws of such State with responsibility for the administration of State tax laws for the purpose of, and only to the 

extent necessary in, the administration of such laws, including 

any procedures with respect to locating any person who may 

be entitled to a refund. Such inspection shall be permitted, or 


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such disclosure made, only upon written request by the head 

of such agency, body, or commission, and only to the representatives of such agency, body, or commission designated in such 

written request as the individuals who are to inspect or to receive the returns or return information on behalf of such agency, body, or commission. Such representatives shall not include 

any individual who is the chief executive officer of such State 

or who is neither an employee or legal representative of such 

agency, body, or commission nor a person described in subsection (n). However, such return information shall not be disclosed to the extent that the Secretary determines that such 

disclosure would identify a confidential informant or seriously 

impair any civil or criminal tax investigation. 

(2) DISCLOSURE TO STATE AUDIT AGENCIES.— 

(A) IN GENERAL.—Any returns or return information obtained under paragraph (1) by any State agency, body, or 

commission may be open to inspection by, or disclosure to, 

officers and employees of the State audit agency for the 

purpose of, and only to the extent necessary in, making an 

audit of the State agency, body, or commission referred to 

in paragraph (1). 

(B) STATE AUDIT AGENCY.—For purposes of subparagraph (A), the term ‘‘State audit agency’’ means any State 

agency, body, or commission which is charged under the 

laws of the State with the responsibility of auditing State 

revenues and programs. 

(3) EXCEPTION FOR REIMBURSEMENT UNDER SECTION 7624.— Nothing in this section shall be construed to prevent the Secretary from disclosing to any State or local law enforcement 

agency which may receive a payment under section 7624 the 

amount of the recovered taxes with respect to which such a 

payment may be made. 

(4) AVAILABILITY AND USE OF DEATH INFORMATION.— (A) IN GENERAL.—No returns or return information may 

be disclosed under paragraph (1) to any agency, body, or 

commission of any State (or any legal representative thereof) during any period during which a contract meeting the 

requirements of subparagraph (B) is not in effect between 

such State and the Secretary of Health and Human Services. 

(B) CONTRACTUAL REQUIREMENTS.—A contract meets the 

requirements of this subparagraph if— 

(i) such contract requires the State to furnish the 

Secretary of Health and Human Services information 

concerning individuals with respect to whom death 

certificates (or equivalent documents maintained by 

the State or any subdivision thereof) have been officially filed with it, and 

(ii) such contract does not include any restriction on 

the use of information obtained by such Secretary pursuant to such contract, except that such contract may 

provide that such information is only to be used by the 

Secretary (or any other Federal agency) for purposes 

of ensuring that Federal benefits or other payments 

are not erroneously paid to deceased individuals. 


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Any information obtained by the Secretary of Health and 

Human Services under such a contract shall be exempt 

from disclosure under section 552 of title 5, United States 

Code, and from the requirements of section 552a of such 

title 5. 

(C) SPECIAL EXCEPTION.—The provisions of subparagraph (A) shall not apply to any State which on July 1, 

1993, was not, pursuant to a contract, furnishing the Secretary of Health and Human Services information concerning individuals with respect to whom death certificates 

(or equivalent documents maintained by the State or any 

subdivision thereof) have been officially filed with it. 

(5) DISCLOSURE FOR COMBINED EMPLOYMENT TAX REPORTING.— 

(A) IN GENERAL.—The Secretary may disclose taxpayer 

identity information and signatures to any agency, body, 

or commission of any State for the purpose of carrying out 

with such agency, body, or commission a combined Federal 

and State employment tax reporting program approved by 

the Secretary. Subsections (a)(2) and (p)(4) and sections 

7213 and 7213A shall not apply with respect to disclosures 

or inspections made pursuant to this paragraph. 

(B) TERMINATION.—The Secretary may not make any 

disclosure under this paragraph after December 31, 2007. 

(6) LIMITATION ON DISCLOSURE REGARDING REGIONAL INCOME

TAX AGENCIES TREATED AS STATES.—For purposes of paragraph 

(1), inspection by or disclosure to an entity described in subsection (b)(5)(A)(iii) shall be for the purpose of, and only to the 

extent necessary in, the administration of the laws of the member municipalities in such entity relating to the imposition of 

a tax on income or wages. Such entity may not redisclose any 

return or return information received pursuant to paragraph 

(1) to any such member municipality. 

(e) DISCLOSURE TO PERSONS HAVING MATERIAL INTEREST.— 

(1) IN GENERAL.—The return of a person shall, upon written 

request, be open to inspection by or disclosure to— 

(A) in the case of the return of an individual— 

(i) that individual, 

(ii) the spouse of that individual if the individual 

and such spouse have signified their consent to consider a gift reported on such return as made one-half 

by him and one-half by the spouse pursuant to the 

provisions of section 2513; or 

(iii) the child of that individual (or such child’s legal 

representative) to the extent necessary to comply with 

the provisions of section 1(g); 

(B) in the case of an income tax return filed jointly, either of the individuals with respect to whom the return is 

filed; 

(C) in the case of the return of a partnership, any person 

who was a member of such partnership during any part of 

the period covered by the return; 

(D) in the case of the return of a corporation or a subsidiary thereof— 


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(i) any person designated by resolution of its board 

of directors or other similar governing body, 

(ii) any officer or employee of such corporation upon 

written request signed by any principal officer and attested to by the secretary or other officer, 

(iii) any bona fide shareholder of record owning 1 

percent or more of the outstanding stock of such corporation, 

(iv) if the corporation was an S corporation, any person who was a shareholder during any part of the period covered by such return during which an election 

under section 1362(a) was in effect, or 

(v) if the corporation has been dissolved, any person 

authorized by applicable State law to act for the corporation or any person who the Secretary finds to 

have a material interest which will be affected by information contained therein; 

(E) in the case of the return of an estate— 

(i) the administrator, executor, or trustee of such estate, and 

(ii) any heir at law, next of kin, or beneficiary under 

the will, of the decedent, but only if the Secretary 

finds that such heir at law, next of kin, or beneficiary 

has a material interest which will be affected by information contained therein; and 

(F) in the case of the return of a trust— 

(i) the trustee or trustees, jointly or separately, and 

(ii) any beneficiary of such trust, but only if the Secretary finds that such beneficiary has a material interest which will be affected by information contained 

therein. 

(2) INCOMPETENCY.—If an individual described in paragraph 

(1) is legally incompetent, the applicable return shall, upon 

written request, be open to inspection by or disclosure to the 

committee, trustee, or guardian of his estate. 

(3) DECEASED INDIVIDUALS.—The return of a decedent shall, 

upon written request, be open to inspection by or disclosure 

to— 

(A) the administrator, executor, or trustee of his estate, 

and 

(B) any heir at law, next of kin, or beneficiary under the 

will, of such decedent, or a donee of property, but only if 

the Secretary finds that such heir at law, next of kin, beneficiary, or donee has a material interest which will be affected by information contained therein. 

(4) TITLE 11 CASES AND RECEIVERSHIP PROCEEDINGS.—If— 

(A) there is a trustee in a title 11 case in which the debtor is the person with respect to whom the return is filed, 

or 

(B) substantially all of the property of the person with 

respect to whom the return is filed is in the hands of a receiver, 

such return or returns for prior years of such person shall, 

upon written request, be open to inspection by or disclosure to 

such trustee or receiver, but only if the Secretary finds that 


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such trustee or receiver, in his fiduciary capacity, has a material interest which will be affected by information contained 

therein. 

(5) INDIVIDUAL’S TITLE 11 CASE.— (A) IN GENERAL.—In any case to which section 1398 applies (determined without regard to section 1398(b)(1)), 

any return of the debtor for the taxable year in which the 

case commenced or any preceding taxable year shall, upon 

written request, be open to inspection by or disclosure to 

the trustee in such case. 

(B) RETURN OF ESTATE AVAILABLE TO DEBTOR.—Any return of an estate in a case to which section 1398 applies 

shall, upon written request, be open to inspection by or 

disclosure to the debtor in such case. 

(C) SPECIAL RULE FOR INVOLUNTARY CASES.—In an involuntary case, no disclosure shall be made under subparagraph (A) until the order for relief has been entered by the 

court having jurisdiction of such case unless such court 

finds that such disclosure is appropriate for purposes of 

determining whether an order for relief should be entered. 

(6) ATTORNEY IN FACT.—Any return to which this subsection 

applies shall, upon written request, also be open to inspection 

by or disclosure to the attorney in fact duly authorized in writing by any of the persons described in paragraph (1), (2), (3), 

(4), (5), (8), or (9) to inspect the return or receive the information on his behalf, subject to the conditions provided in such 

paragraphs. 

(7) RETURN INFORMATION.—Return information with respect 

to any taxpayer may be open to inspection by or disclosure to 

any person authorized by this subsection to inspect any return 

of such taxpayer if the Secretary determines that such disclosure would not seriously impair Federal tax administration. 

(8) DISCLOSURE OF COLLECTION ACTIVITIES WITH RESPECT TO

JOINT RETURN.—If any deficiency of tax with respect to a joint 

return is assessed and the individuals filing such return are no 

longer married or no longer reside in the same household, upon 

request in writing by either of such individuals, the Secretary 

shall disclose in writing to the individual making the request 

whether the Secretary has attempted to collect such deficiency 

from such other individual, the general nature of such collection activities, and the amount collected. The preceding sentence shall not apply to any deficiency which may not be collected by reason of section 6502. 

(9) DISCLOSURE OF CERTAIN INFORMATION WHERE MORE THAN

1 PERSON SUBJECT TO PENALTY UNDER SECTION 6672.—If the 

Secretary determines that a person is liable for a penalty 

under section 6672(a) with respect to any failure, upon request 

in writing of such person, the Secretary shall disclose in writing to such person— 

(A) the name of any other person whom the Secretary 

has determined to be liable for such penalty with respect 

to such failure, and 

(B) whether the Secretary has attempted to collect such 

penalty from such other person, the general nature of such 

collection activities, and the amount collected. 


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(10) LIMITATION ON CERTAIN DISCLOSURES UNDER THIS SUB- SECTION.—In the case of an inspection or disclosure under this 

subsection relating to the return of a partnership, S corporation, trust, or an estate, the information inspected or disclosed 

shall not include any supporting schedule, attachment, or list 

which includes the taxpayer identity information of a person 

other than the entity making the return or the person conducting the inspection or to whom the disclosure is made. 

(11) DISCLOSURE OF INFORMATION REGARDING STATUS OF IN- VESTIGATION OF VIOLATION OF THIS SECTION.—In the case of a 

person who provides to the Secretary information indicating a 

violation of section 7213, 7213A, or 7214 with respect to any 

return or return information of such person, the Secretary may 

disclose to such person (or such person’s designee)— 

(A) whether an investigation based on the person’s provision of such information has been initiated and whether it 

is open or closed, 

(B) whether any such investigation substantiated such a 

violation by any individual, and 

(C) whether any action has been taken with respect to 

such individual (including whether a referral has been 

made for prosecution of such individual). 

(f) DISCLOSURE TO COMMITTEES OF CONGRESS.— (1) COMMITTEE ON WAYS AND MEANS, COMMITTEE ON FI- NANCE, AND JOINT COMMITTEE ON TAXATION.—Upon written 

request from the chairman of the Committee on Ways and 

Means of the House of Representatives, the chairman of the 

Committee on Finance of the Senate, or the chairman of the 

Joint Committee on Taxation, the Secretary shall furnish such 

committee with any return or return information specified in 

such request, except that any return or return information 

which can be associated with, or otherwise identify, directly or 

indirectly, a particular taxpayer shall be furnished to such 

committee only when sitting in closed executive session unless 

such taxpayer otherwise consents in writing to such disclosure. 

(2) CHIEF OF STAFF OF JOINT COMMITTEE ON TAXATION.— Upon written request by the Chief of Staff of the Joint Committee on Taxation, the Secretary shall furnish him with any 

return or return information specified in such request. Such 

Chief of Staff may submit such return or return information to 

any committee described in paragraph (1), except that any return or return information which can be associated with, or 

otherwise identify, directly or indirectly, a particular taxpayer 

shall be furnished to such committee only when sitting in 

closed executive session unless such taxpayer otherwise consents in writing to such disclosure. 

(3) OTHER COMMITTEES.—Pursuant to an action by, and upon 

written request by the chairman of, a committee of the Senate 

or the House of Representatives (other than a committee specified in paragraph (1)) specially authorized to inspect any return or return information by a resolution of the Senate or the 

House of Representatives or, in the case of a joint committee 

(other than the joint committee specified in paragraph (1)) by 

concurrent resolution, the Secretary shall furnish such committee, or a duly authorized and designated subcommittee 


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thereof, sitting in closed executive session, with any return or 

return information which such resolution authorizes the committee or subcommittee to inspect. Any resolution described in 

this paragraph shall specify the purpose for which the return 

or return information is to be furnished and that such information cannot reasonably be obtained from any other source. 

(4) AGENTS OF COMMITTEES AND SUBMISSION OF INFORMATION

TO SENATE OR HOUSE OF REPRESENTATIVES.— (A) COMMITTEES DESCRIBED IN PARAGRAPH (1).—Any committee described in paragraph (1) or the Chief of Staff of 

the Joint Committee on Taxation shall have the authority, 

acting directly, or by or through such examiners or agents 

as the chairman of such committee or such chief of staff 

may designate or appoint, to inspect returns and return information at such time and in such manner as may be determined by such chairman or chief of staff. Any return or 

return information obtained by or on behalf of such committee pursuant to the provisions of this subsection may 

be submitted by the committee to the Senate or the House 

of Representatives, or to both. The Joint Committee on 

Taxation may also submit such return or return information to any other committee described in paragraph (1), except that any return or return information which can be 

associated with, or otherwise identify, directly or indirectly, a particular taxpayer shall be furnished to such 

committee only when sitting in closed executive session 

unless such taxpayer otherwise consents in writing to such 

disclosure. 

(B) OTHER COMMITTEES.—Any committee or subcommittee described in paragraph (3) shall have the right, 

acting directly, or by or through no more than four examiners or agents, designated or appointed in writing in 

equal numbers by the chairman and ranking minority 

member of such committee or subcommittee, to inspect returns and return information at such time and in such 

manner as may be determined by such chairman and 

ranking minority member. Any return or return information obtained by or on behalf of such committee or subcommittee pursuant to the provisions of this subsection 

may be submitted by the committee to the Senate or the 

House of Representatives, or to both, except that any return or return information which can be associated with, 

or otherwise identify, directly or indirectly, a particular 

taxpayer, shall be furnished to the Senate or the House of 

Representatives only when sitting in closed executive session unless such taxpayer otherwise consents in writing to 

such disclosure. 

(5) DISCLOSURE BY WHISTLEBLOWER.—Any person who otherwise has or had access to any return or return information 

under this section may disclose such return or return information to a committee referred to in paragraph (1) or any individual authorized to receive or inspect information under paragraph (4)(A) if such person believes such return or return information may relate to possible misconduct, maladministration, 

or taxpayer abuse. 


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(g) DISCLOSURE TO PRESIDENT AND CERTAIN OTHER PERSONS.— (1) IN GENERAL.—Upon written request by the President, 

signed by him personally, the Secretary shall furnish to the 

President, or to such employee or employees of the White 

House Office as the President may designate by name in such 

request, a return or return information with respect to any 

taxpayer named in such request. Any such request shall 

state— 

(A) the name and address of the taxpayer whose return 

or return information is to be disclosed, 

(B) the kind of return or return information which is to 

be disclosed, 

(C) the taxable period or periods covered by such return 

or return information, and 

(D) the specific reason why the inspection or disclosure 

is requested. 

(2) DISCLOSURE OF RETURN INFORMATION AS TO PRESI- DENTIAL APPOINTEES AND CERTAIN OTHER FEDERAL GOVERNMENT APPOINTEES.—The Secretary may disclose to a duly authorized representative of the Executive Office of the President 

or to the head of any Federal agency, upon written request by 

the President or head of such agency, or to the Federal Bureau 

of Investigation on behalf of and upon written request by the 

President or such head, return information with respect to an 

individual who is designated as being under consideration for 

appointment to a position in the executive or judicial branch 

of the Federal Government. Such return information shall be 

limited to whether such individual— 

(A) has filed returns with respect to the taxes imposed 

under chapter 1 for not more than the immediately preceding 3 years; 

(B) has failed to pay any tax within 10 days after notice 

and demand, or has been assessed any penalty under this 

title for negligence, in the current year or immediately preceding 3 years; 

(C) has been or is under investigation for possible criminal offenses under the internal revenue laws and the results of any such investigation; or 

(D) has been assessed any civil penalty under this title 

for fraud. 

Within 3 days of the receipt of any request for any return information with respect to any individual under this paragraph, 

the Secretary shall notify such individual in writing that such 

information has been requested under the provisions of this 

paragraph. 

(3) RESTRICTION ON DISCLOSURE.—The employees to whom 

returns and return information are disclosed under this subsection shall not disclose such returns and return information 

to any other person except the President or the head of such 

agency without the personal written direction of the President 

or the head of such agency. 

(4) RESTRICTION ON DISCLOSURE TO CERTAIN EMPLOYEES.— Disclosure of returns and return information under this subsection shall not be made to any employee whose annual rate 

of basic pay is less than the annual rate of basic pay specified 


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for positions subject to section 5316 of title 5, United States 

Code. 

(5) REPORTING REQUIREMENTS.—Within 30 days after the 

close of each calendar quarter, the President and the head of 

any agency requesting returns and return information under 

this subsection shall each file a report with the Joint Committee on Taxation setting forth the taxpayers with respect to 

whom such requests were made during such quarter under this 

subsection, the returns or return information involved, and the 

reasons for such requests. The President shall not be required 

to report on any request for returns and return information 

pertaining to an individual who was an officer or employee of 

the executive branch of the Federal Government at the time 

such request was made. Reports filed pursuant to this paragraph shall not be disclosed unless the Joint Committee on 

Taxation determines that disclosure thereof (including identifying details) would be in the national interest. Such reports 

shall be maintained by the Joint Committee on Taxation for a 

period not exceeding 2 years unless, within such period, the 

Joint Committee on Taxation determines that a disclosure to 

the Congress is necessary. 

(h) DISCLOSURE TO CERTAIN FEDERAL OFFICERS AND EMPLOYEES

FOR PURPOSES OF TAX ADMINISTRATION, ETC..— 

(1) DEPARTMENT OF THE TREASURY.—Returns and return information shall, without written request, be open to inspection 

by or disclosure to officers and employees of the Department 

of the Treasury whose official duties require such inspection or 

disclosure for tax administration purposes. 

(2) DEPARTMENT OF JUSTICE.—In a matter involving tax administration, a return or return information shall be open to 

inspection by or disclosure to officers and employees of the Department of Justice (including United States attorneys) personally and directly engaged in, and solely for their use in, any 

proceeding before a Federal grand jury or preparation for any 

proceeding (or investigation which may result in such a proceeding) before a Federal grand jury or any Federal or State 

court, but only if— 

(A) the taxpayer is or may be a party to the proceeding, 

or the proceeding arose out of, or in connection with, determining the taxpayer’s civil or criminal liability, or the collection of such civil liability in respect of any tax imposed 

under this title; 

(B) the treatment of an item reflected on such return is 

or may be related to the resolution of an issue in the proceeding or investigation; or 

(C) such return or return information relates or may relate to a transactional relationship between a person who 

is or may be a party to the proceeding and the taxpayer 

which affects, or may affect, the resolution of an issue in 

such proceeding or investigation. 

(3) FORM OF REQUEST.—In any case in which the Secretary 

is authorized to disclose a return or return information to the 

Department of Justice pursuant to the provisions of this subsection— 


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(A) if the Secretary has referred the case to the Department of Justice, or if the proceeding is authorized by subchapter B of chapter 76, the Secretary may make such disclosure on his own motion, or 

(B) if the Secretary receives a written request from the 

Attorney General, the Deputy Attorney General, or an Assistant Attorney General for a return of, or return information relating to, a person named in such request and 

setting forth the need for the disclosure, the Secretary 

shall disclose return or return the information so requested. 

(4) DISCLOSURE IN JUDICIAL AND ADMINISTRATIVE TAX PROCEEDINGS.—A return or return information may be disclosed in 

a Federal or State judicial or administrative proceeding pertaining to tax administration, but only— 

(A) if the taxpayer is a party to the proceeding, or the 

proceeding arose out of, or in connection with, determining 

the taxpayer’s civil or criminal liability, or the collection of 

such civil liability, in respect of any tax imposed under 

this title; 

(B) if the treatment of an item reflected on such return 

is directly related to the resolution of an issue in the proceeding; 

(C) if such return or return information directly relates 

to a transactional relationship between a person who is a 

party to the proceeding and the taxpayer which directly affects the resolution of an issue in the proceeding; or 

(D) to the extent required by order of a court pursuant 

to section 3500 of title 18, United States Code, or rule 16 

of the Federal Rules of Criminal Procedure, such court 

being authorized in the issuance of such order to give due 

consideration to congressional policy favoring the confidentiality of returns and return information as set forth in 

this title. 

However, such return or return information shall not be disclosed as provided in subparagraph (A), (B), or (C) if the Secretary determines that such disclosure would identify a confidential informant or seriously impair a civil or criminal tax 

investigation. 

(5) WITHHOLDING OF TAX FROM SOCIAL SECURITY BENEFITS.— 

Upon written request of the payor agency, the Secretary may 

disclose available return information from the master files of 

the Internal Revenue Service with respect to the address and 

status of an individual as a nonresident alien or as a citizen 

or resident of the United States to the Social Security Administration or the Railroad Retirement Board (whichever is appropriate) for purposes of carrying out its responsibilities for withholding tax under section 1441 from social security benefits (as 

defined in section 86(d)). 

(6) INTERNAL REVENUE SERVICE OVERSIGHT BOARD.— (A) IN GENERAL.—Notwithstanding paragraph (1), and 

except as provided in subparagraph (B), no return or return information may be disclosed to any member of the 

Oversight Board described in subparagraph (A) or (D) of 

section 7802(b)(1) or to any employee or detailee of such 


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Board by reason of their service with the Board. Any request for information not permitted to be disclosed under 

the preceding sentence, and any contact relating to a specific taxpayer, made by any such individual to an officer or 

employee of the Internal Revenue Service shall be reported 

by such officer or employee to the Secretary, the Treasury 

Inspector General for Tax Administration, and the Joint 

Committee on Taxation. 

(B) EXCEPTION FOR REPORTS TO THE BOARD.—If— 

(i) the Commissioner or the Treasury Inspector General for Tax Administration prepares any report or 

other matter for the Oversight Board in order to assist 

the Board in carrying out its duties; and 

(ii) the Commissioner or such Inspector General determines it is necessary to include any return or return information in such report or other matter to enable the Board to carry out such duties, such return 

or return information (other than information regarding taxpayer identity) may be disclosed to members, 

employees, or detailees of the Board solely for the purpose of carrying out such duties. 

(i) DISCLOSURE TO FEDERAL OFFICERS OR EMPLOYEES FOR ADMIN- ISTRATION OF FEDERAL LAWS NOT RELATING TO TAX ADMINISTRA- TION.— 

(1) DISCLOSURE OF RETURNS AND RETURN INFORMATION FOR

USE IN CRIMINAL INVESTIGATIONS.— (A) IN GENERAL.—Except as provided in paragraph (6), 

any return or return information with respect to any specified taxable period or periods shall, pursuant to and upon 

the grant of an ex parte order by a Federal district court 

judge or magistrate judge under subparagraph (B), be open 

(but only to the extent necessary as provided in such 

order) to inspection by, or disclosure to, officers and employees of any Federal agency who are personally and directly engaged in— 

(i) preparation for any judicial or administrative 

proceeding pertaining to the enforcement of a specifically designated Federal criminal statute (not involving tax administration) to which the United States or 

such agency is or may be a party, or pertaining to the 

case of a missing or exploited child, 

(ii) any investigation which may result in such a 

proceeding, or 

(iii) any Federal grand jury proceeding pertaining to 

enforcement of such a criminal statute to which the 

United States or such agency is or may be a party, or 

to such a case of a missing or exploited child, 

solely for the use of such officers and employees in such 

preparation, investigation, or grand jury proceeding. 

(B) APPLICATION FOR ORDER.—The Attorney General, the 

Deputy Attorney General, the Associate Attorney General, 

any Assistant Attorney General, any United States attorney, any special prosecutor appointed under section 593 of 

title 28, United States Code, or any attorney in charge of 

a criminal division organized crime strike force established 


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pursuant to section 510 of title 28, United States Code, 

may authorize an application to a Federal district court 

judge or magistrate judge for the order referred to in subparagraph (A). Upon such application, such judge or magistrate judge may grant such order if he determines on the 

basis of the facts submitted by the applicant that— 

(i) there is reasonable cause to believe, based upon 

information believed to be reliable, that a specific 

criminal act has been committed, 

(ii) there is reasonable cause to believe that the return or return information is or may be relevant to a 

matter relating to the commission of such act, and 

(iii) the return or return information is sought exclusively for use in a Federal criminal investigation or 

proceeding concerning such act (or any criminal investigation or proceeding, in the case of a matter relating 

to a missing or exploited child), and the information 

sought to be disclosed cannot reasonably be obtained, 

under the circumstances, from another source. 

(C) DISCLOSURE TO STATE AND LOCAL LAW ENFORCEMENT

AGENCIES IN THE CASE OF MATTERS PERTAINING TO A MISS- ING OR EXPLOITED CHILD.— (i) IN GENERAL.—In the case of an investigation pertaining to a missing or exploited child, the head of any 

Federal agency, or his designee, may disclose any return or return information obtained under subparagraph (A) to officers and employees of any State or 

local law enforcement agency, but only if— 

(I) such State or local law enforcement agency is 

part of a team with the Federal agency in such investigation, and 

(II) such information is disclosed only to such officers and employees who are personally and directly engaged in such investigation. 

(ii) LIMITATION ON USE OF INFORMATION.—Information disclosed under this subparagraph shall be solely 

for the use of such officers and employees in locating 

the missing child, in a grand jury proceeding, or in 

any preparation for, or investigation which may result 

in, a judicial or administrative proceeding. 

(iii) MISSING CHILD.—For purposes of this subparagraph, the term ‘‘missing child’’ shall have the meaning given such term by section 403 of the Missing 

Children’s Assistance Act (42 U.S.C. 5772). 

(iv) EXPLOITED CHILD.—For purposes of this subparagraph, the term ‘‘exploited child’’ means a minor 

with respect to whom there is reason to believe that 

a specified offense against a minor (as defined by section 111(7) of the Sex Offender Registration and Notification Act (42 U.S.C. 16911(7))) has or is occurring. 

(2) DISCLOSURE OF RETURN INFORMATION OTHER THAN TAX- PAYER RETURN INFORMATION FOR USE IN CRIMINAL INVESTIGA- TIONS.— 

(A) IN GENERAL.—Except as provided in paragraph (6), 

upon receipt by the Secretary of a request which meets the 


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requirements of subparagraph (B) from the head of any 

Federal agency or the Inspector General thereof, or, in the 

case of the Department of Justice, the Attorney General, 

the Deputy Attorney General, the Associate Attorney General, any Assistant Attorney General, the Director of the 

Federal Bureau of Investigation, the Administrator of the 

Drug Enforcement Administration, any United States attorney, any special prosecutor appointed under section 593 

of title 28, United States Code, or any attorney in charge 

of a criminal division organized crime strike force established pursuant to section 510 of title 28, United States 

Code, the Secretary shall disclose return information 

(other than taxpayer return information) to officers and 

employees of such agency who are personally and directly 

engaged in— 

(i) preparation for any judicial or administrative 

proceeding described in paragraph (1)(A)(i), 

(ii) any investigation which may result in such a 

proceeding, or 

(iii) any grand jury proceeding described in paragraph (1)(A)(iii), 

solely for the use of such officers and employees in such 

preparation, investigation, or grand jury proceeding. 

(B) REQUIREMENTS.—A request meets the requirements 

of this subparagraph if the request is in writing and sets 

forth— 

(i) the name and address of the taxpayer with respect to whom the requested return information relates; 

(ii) the taxable period or periods to which such return information relates; 

(iii) the statutory authority under which the proceeding or investigation described in subparagraph (A) 

is being conducted; and 

(iv) the specific reason or reasons why such disclosure is, or may be, relevant to such proceeding or investigation. 

(C) TAXPAYER IDENTITY.—For purposes of this paragraph, a taxpayer’s identity shall not be treated as taxpayer return information. 

(3) DISCLOSURE OF RETURN INFORMATION TO APPRISE APPROPRIATE OFFICIALS OF CRIMINAL OR TERRORIST ACTIVITIES OR

EMERGENCY CIRCUMSTANCES.— 

(A) POSSIBLE VIOLATIONS OF FEDERAL CRIMINAL LAW.— 

(i) IN GENERAL.—Except as provided in paragraph 

(6), the Secretary may disclose in writing return information (other than taxpayer return information) 

which may constitute evidence of a violation of any 

Federal criminal law (not involving tax administration) to the extent necessary to apprise the head of the 

appropriate Federal agency charged with the responsibility of enforcing such law. The head of such agency 

may disclose such return information to officers and 

employees of such agency to the extent necessary to 

enforce such law. 


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(ii) TAXPAYER IDENTITY.—If there is return information (other than taxpayer return information) which 

may constitute evidence of a violation by any taxpayer 

of any Federal criminal law (not involving tax administration), such taxpayer’s identity may also be disclosed under clause (i). 

(B) EMERGENCY CIRCUMSTANCES.— (i) DANGER OF DEATH OR PHYSICAL INJURY.—Under 

circumstances involving an imminent danger of death 

or physical injury to any individual, the Secretary may 

disclose return information to the extent necessary to 

apprise appropriate officers or employees of any Federal or State law enforcement agency of such circumstances. 

(ii) FLIGHT FROM FEDERAL PROSECUTION.—Under 

circumstances involving the imminent flight of any individual from Federal prosecution, the Secretary may 

disclose return information to the extent necessary to 

apprise appropriate officers or employees of any Federal law enforcement agency of such circumstances. 

(C) TERRORIST ACTIVITIES, ETC..— (i) IN GENERAL.—Except as provided in paragraph 

(6), the Secretary may disclose in writing return information (other than taxpayer return information) that 

may be related to a terrorist incident, threat, or activity to the extent necessary to apprise the head of the 

appropriate Federal law enforcement agency responsible for investigating or responding to such terrorist 

incident, threat, or activity. The head of the agency 

may disclose such return information to officers and 

employees of such agency to the extent necessary to 

investigate or respond to such terrorist incident, 

threat, or activity. 

(ii) DISCLOSURE TO THE DEPARTMENT OF JUSTICE.— 

Returns and taxpayer return information may also be 

disclosed to the Attorney General under clause (i) to 

the extent necessary for, and solely for use in preparing, an application under paragraph (7)(D). 

(iii) TAXPAYER IDENTITY.—For purposes of this subparagraph, a taxpayer’s identity shall not be treated 

as taxpayer return information. 

(4) USE OF CERTAIN DISCLOSED RETURNS AND RETURN INFORMATION IN JUDICIAL OR ADMINISTRATIVE PROCEEDINGS.— 

(A) RETURNS AND TAXPAYER RETURN INFORMATION.—Except as provided in subparagraph (C), any return or taxpayer return information obtained under paragraph (1) or 

(7)(C) may be disclosed in any judicial or administrative 

proceeding pertaining to enforcement of a specifically designated Federal criminal statute or related civil forfeiture 

(not involving tax administration) to which the United 

States or a Federal agency is a party— 

(i) if the court finds that such return or taxpayer return information is probative of a matter in issue relevant in establishing the commission of a crime or the 

guilt or liability of a party, or 


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(ii) to the extent required by order of the court pursuant to section 3500 of title 18, United States Code, 

or rule 16 of the Federal Rules of Criminal Procedure. 

(B) RETURN INFORMATION (OTHER THAN TAXPAYER RE- TURN INFORMATION).—Except as provided in subparagraph 

(C), any return information (other than taxpayer return information) obtained under paragraph (1), (2), (3)(A) or (C), 

or (7) may be disclosed in any judicial or administrative 

proceeding pertaining to enforcement of a specifically designated Federal criminal statute or related civil forfeiture 

(not involving tax administration) to which the United 

States or a Federal agency is a party. 

(C) CONFIDENTIAL INFORMANT; IMPAIRMENT OF INVESTIGATIONS.—No return or return information shall be admitted into evidence under subparagraph (A)(i) or (B) if 

the Secretary determines and notifies the Attorney General or his delegate or the head of the Federal agency that 

such admission would identify a confidential informant or 

seriously impair a civil or criminal tax investigation. 

(D) CONSIDERATION OF CONFIDENTIALITY POLICY.—In ruling upon the admissibility of returns or return information, and in the issuance of an order under subparagraph 

(A)(ii), the court shall give due consideration to congressional policy favoring the confidentiality of returns and return information as set forth in this title. 

(E) REVERSIBLE ERROR.—The admission into evidence of 

any return or return information contrary to the provisions 

of this paragraph shall not, as such, constitute reversible 

error upon appeal of a judgment in the proceeding. 

(5) DISCLOSURE TO LOCATE FUGITIVES FROM JUSTICE.— 

(A) IN GENERAL.—Except as provided in paragraph (6), 

the return of an individual or return information with respect to such individual shall, pursuant to and upon the 

grant of an ex parte order by a Federal district court judge 

or magistrate judge under subparagraph (B), be open (but 

only to the extent necessary as provided in such order) to 

inspection by, or disclosure to, officers and employees of 

any Federal agency exclusively for use in locating such individual. 

(B) APPLICATION FOR ORDER.—Any person described in 

paragraph (1)(B) may authorize an application to a Federal district court judge or magistrate judge for an order 

referred to in subparagraph (A). Upon such application, 

such judge or magistrate judge may grant such order if he 

determines on the basis of the facts submitted by the applicant that— 

(i) a Federal arrest warrant relating to the commission of a Federal felony offense has been issued for an 

individual who is a fugitive from justice, 

(ii) the return of such individual or return information with respect to such individual is sought exclusively for use in locating such individual, and 

(iii) there is reasonable cause to believe that such 

return or return information may be relevant in determining the location of such individual. 


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(6) CONFIDENTIAL INFORMANTS; IMPAIRMENT OF INVESTIGA- TIONS.—The Secretary shall not disclose any return or return 

information under paragraph (1), (2), (3)(A) or (C), (5), (7), or 

(8) if the Secretary determines (and, in the case of a request 

for disclosure pursuant to a court order described in paragraph 

(1)(B) or (5)(B), certifies to the court) that such disclosure 

would identify a confidential informant or seriously impair a 

civil or criminal tax investigation. 

(7) DISCLOSURE UPON REQUEST OF INFORMATION RELATING TO

TERRORIST ACTIVITIES, ETC..— (A) DISCLOSURE TO LAW ENFORCEMENT AGENCIES.— (i) IN GENERAL.—Except as provided in paragraph 

(6), upon receipt by the Secretary of a written request 

which meets the requirements of clause (iii), the Secretary may disclose return information (other than 

taxpayer return information) to officers and employees 

of any Federal law enforcement agency who are personally and directly engaged in the response to or investigation of any terrorist incident, threat, or activity. 

(ii) DISCLOSURE TO STATE AND LOCAL LAW ENFORCE- MENT AGENCIES.—The head of any Federal law enforcement agency may disclose return information obtained under clause (i) to officers and employees of any 

State or local law enforcement agency but only if such 

agency is part of a team with the Federal law enforcement agency in such response or investigation and 

such information is disclosed only to officers and employees who are personally and directly engaged in 

such response or investigation. 

(iii) REQUIREMENTS.—A request meets the requirements of this clause if— 

(I) the request is made by the head of any Federal law enforcement agency (or his delegate) involved in the response to or investigation of any 

terrorist incident, threat, or activity, and 

(II) the request sets forth the specific reason or 

reasons why such disclosure may be relevant to a 

terrorist incident, threat, or activity. 

(iv) LIMITATION ON USE OF INFORMATION.—Information disclosed under this subparagraph shall be solely 

for the use of the officers and employees to whom such 

information is disclosed in such response or investigation. 

(v) TAXPAYER IDENTITY.—For purposes of this subparagraph, a taxpayer’s identity shall not be treated 

as taxpayer return information. 

(B) DISCLOSURE TO INTELLIGENCE AGENCIES.— 

(i) IN GENERAL.—Except as provided in paragraph 

(6), upon receipt by the Secretary of a written request 

which meets the requirements of clause (ii), the Secretary may disclose return information (other than 

taxpayer return information) to those officers and employees of the Department of Justice, the Department 

of the Treasury, and other Federal intelligence agencies who are personally and directly engaged in the 


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collection or analysis of intelligence and counterintelligence information or investigation concerning any 

terrorist incident, threat, or activity. For purposes of 

the preceding sentence, the information disclosed 

under the preceding sentence shall be solely for the 

use of such officers and employees in such investigation, collection, or analysis. 

(ii) REQUIREMENTS.—A request meets the requirements of this subparagraph if the request— 

(I) is made by an individual described in clause 

(iii), and 

(II) sets forth the specific reason or reasons why 

such disclosure may be relevant to a terrorist incident, threat, or activity. 

(iii) REQUESTING INDIVIDUALS.—An individual described in this subparagraph is an individual— 

(I) who is an officer or employee of the Department of Justice or the Department of the Treasury 

who is appointed by the President with the advice 

and consent of the Senate or who is the Director 

of the United States Secret Service, and 

(II) who is responsible for the collection and 

analysis of intelligence and counterintelligence information concerning any terrorist incident, 

threat, or activity. 

(iv) TAXPAYER IDENTITY.—For purposes of this subparagraph, a taxpayer’s identity shall not be treated 

as taxpayer return information. 

(C) DISCLOSURE UNDER EX PARTE ORDERS.— 

(i) IN GENERAL.—Except as provided in paragraph 

(6), any return or return information with respect to 

any specified taxable period or periods shall, pursuant 

to and upon the grant of an ex parte order by a Federal district court judge or magistrate judge under 

clause (ii), be open (but only to the extent necessary 

as provided in such order) to inspection by, or disclosure to, officers and employees of any Federal law enforcement agency or Federal intelligence agency who 

are personally and directly engaged in any investigation, response to, or analysis of intelligence and counterintelligence information concerning any terrorist incident, threat, or activity. Return or return information opened to inspection or disclosure pursuant to the 

preceding sentence shall be solely for the use of such 

officers and employees in the investigation, response, 

or analysis, and in any judicial, administrative, or 

grand jury proceedings, pertaining to such terrorist incident, threat, or activity. 

(ii) APPLICATION FOR ORDER.—The Attorney General, 

the Deputy Attorney General, the Associate Attorney 

General, any Assistant Attorney General, or any 

United States attorney may authorize an application 

to a Federal district court judge or magistrate judge 

for the order referred to in clause (i). Upon such application, such judge or magistrate judge may grant such 


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57 

order if he determines on the basis of the facts submitted by the applicant that— 

(I) there is reasonable cause to believe, based 

upon information believed to be reliable, that the 

return or return information may be relevant to a 

matter relating to such terrorist incident, threat, 

or activity, and 

(II) the return or return information is sought 

exclusively for use in a Federal investigation, 

analysis, or proceeding concerning any terrorist 

incident, threat, or activity. 

(D) SPECIAL RULE FOR EX PARTE DISCLOSURE BY THE

IRS.— 

(i) IN GENERAL.—Except as provided in paragraph 

(6), the Secretary may authorize an application to a 

Federal district court judge or magistrate judge for the 

order referred to in subparagraph (C)(i). Upon such 

application, such judge or magistrate judge may grant 

such order if he determines on the basis of the facts 

submitted by the applicant that the requirements of 

subparagraph (C)(ii)(I) are met. 

(ii) LIMITATION ON USE OF INFORMATION.—Information disclosed under clause (i)— 

(I) may be disclosed only to the extent necessary 

to apprise the head of the appropriate Federal law 

enforcement agency responsible for investigating 

or responding to a terrorist incident, threat, or activity, and 

(II) shall be solely for use in a Federal investigation, analysis, or proceeding concerning any 

terrorist incident, threat, or activity. 

The head of such Federal agency may disclose such information to officers and employees of such agency to 

the extent necessary to investigate or respond to such 

terrorist incident, threat, or activity. 

(8) COMPTROLLER GENERAL.— (A) RETURNS AVAILABLE FOR INSPECTION.—Except as 

provided in subparagraph (C), upon written request by the 

Comptroller General of the United States, returns and return information shall be open to inspection by, or disclosure to, officers and employees of the Government Accountability Office for the purpose of, and to the extent 

necessary in, making— 

(i) an audit of the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, 

Department of Justice, or the Tax and Trade Bureau, 

Department of the Treasury, which may be required 

by section 713 of title 31, United States Code, or 

(ii) any audit authorized by subsection (p)(6), 

except that no such officer or employee shall, except to the 

extent authorized by subsection (f) or (p)(6), disclose to any 

person, other than another officer or employee of such office whose official duties require such disclosure, any return or return information described in section 4424(a) in 

a form which can be associated with, or otherwise identify, 


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directly or indirectly, a particular taxpayer, nor shall such 

officer or employee disclose any other return or return information, except as otherwise expressly provided by law, 

to any person other than such other officer or employee of 

such office in a form which can be associated with, or otherwise identify, directly or indirectly, a particular taxpayer. 

(B) AUDITS OF OTHER AGENCIES.— (i) IN GENERAL.—Nothing in this section shall prohibit any return or return information obtained under 

this title by any Federal agency (other than an agency 

referred to in subparagraph (A)) or by a Trustee as defined in the District of Columbia Retirement Protection Act of 1997, for use in any program or activity 

from being open to inspection by, or disclosure to, officers and employees of the Government Accountability 

Office if such inspection or disclosure is— 

(I) for purposes of, and to the extent necessary 

in, making an audit authorized by law of such 

program or activity, and 

(II) pursuant to a written request by the Comptroller General of the United States to the head of 

such Federal agency. 

(ii) INFORMATION FROM SECRETARY.—If the Comptroller General of the United States determines that 

the returns or return information available under 

clause (i) are not sufficient for purposes of making an 

audit of any program or activity of a Federal agency 

(other than an agency referred to in subparagraph 

(A)), upon written request by the Comptroller General 

to the Secretary, returns and return information (of 

the type authorized by subsection (l) or (m) to be made 

available to the Federal agency for use in such program or activity) shall be open to inspection by, or disclosure to, officers and employees of the Government 

Accountability Office for the purpose of, and to the extent necessary in, making such audit. 

(iii) REQUIREMENT OF NOTIFICATION UPON COMPLE- TION OF AUDIT.—Within 90 days after the completion 

of an audit with respect to which returns or return information were opened to inspection or disclosed under 

clause (i) or (ii), the Comptroller General of the United 

States shall notify in writing the Joint Committee on 

Taxation of such completion. Such notice shall include— 

(I) a description of the use of the returns and return information by the Federal agency involved, 

(II) such recommendations with respect to the 

use of returns and return information by such 

Federal agency as the Comptroller General deems 

appropriate, and 

(III) a statement on the impact of any such recommendations on confidentiality of returns and 

return information and the administration of this 

title. 


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(iv) CERTAIN RESTRICTIONS MADE APPLICABLE.—The 

restrictions contained in subparagraph (A) on the disclosure of any returns or return information open to 

inspection or disclosed under such subparagraph shall 

also apply to returns and return information open to 

inspection or disclosed under this subparagraph. 

(C) DISAPPROVAL BY JOINT COMMITTEE ON TAXATION.— 

Returns and return information shall not be open to inspection or disclosed under subparagraph (A) or (B) with 

respect to an audit— 

(i) unless the Comptroller General of the United 

States notifies in writing the Joint Committee on Taxation of such audit, and 

(ii) if the Joint Committee on Taxation disapproves 

such audit by a vote of at least two-thirds of its members within the 30-day period beginning on the day 

the Joint Committee on Taxation receives such notice. 

(j) STATISTICAL USE.— 

(1) DEPARTMENT OF COMMERCE.—Upon request in writing by 

the Secretary of Commerce, the Secretary shall furnish— 

(A) such returns, or return information reflected thereon, 

to officers and employees of the Bureau of the Census, and 

(B) such return information reflected on returns of corporations to officers and employees of the Bureau of Economic Analysis, 

as the Secretary may prescribe by regulation for the purpose 

of, but only to the extent necessary in, the structuring of censuses and national economic accounts and conducting related 

statistical activities authorized by law. 

(2) FEDERAL TRADE COMMISSION.—Upon request in writing 

by the Chairman of the Federal Trade Commission, the Secretary shall furnish such return information reflected on any 

return of a corporation with respect to the tax imposed by 

chapter 1 to officers and employees of the Division of Financial 

Statistics of the Bureau of Economics of such commission as 

the Secretary may prescribe by regulation for the purpose of, 

but only to the extent necessary in, administration by such division of legally authorized economic surveys of corporations. 

(3) DEPARTMENT OF TREASURY.—Returns and return information shall be open to inspection by or disclosure to officers 

and employees of the Department of the Treasury whose official duties require such inspection or disclosure for the purpose 

of, but only to the extent necessary in, preparing economic or 

financial forecasts, projections, analyses, and statistical studies 

and conducting related activities. Such inspection or disclosure 

shall be permitted only upon written request which sets forth 

the specific reason or reasons why such inspection or disclosure 

is necessary and which is signed by the head of the bureau or 

office of the Department of the Treasury requesting the inspection or disclosure. 

(4) ANONYMOUS FORM.—No person who receives a return or 

return information under this subsection shall disclose such return or return information to any person other than the taxpayer to whom it relates except in a form which cannot be asVerDate Sep 11 2014 06:26 Apr 14, 2018 Jkt 079006 PO 00000 Frm 00059 Fmt 6659 Sfmt 6602 E:\HR\OC\HR638.XXX HR638

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sociated with, or otherwise identify, directly or indirectly, a 

particular taxpayer. 

(5) DEPARTMENT OF AGRICULTURE.—Upon request in writing 

by the Secretary of Agriculture, the Secretary shall furnish 

such returns, or return information reflected thereon, as the 

Secretary may prescribe by regulation to officers and employees of the Department of Agriculture whose official duties require access to such returns or information for the purpose of, 

but only to the extent necessary in, structuring, preparing, and 

conducting the census of agriculture pursuant to the Census of 

Agriculture Act of 1997 (Public Law 105-113). 

(6) CONGRESSIONAL BUDGET OFFICE.—Upon written request 

by the Director of the Congressional Budget Office, the Secretary shall furnish to officers and employees of the Congressional Budget Office return information for the purpose of, but 

only to the extent necessary for, long-term models of the social 

security and medicare programs. 

(k) DISCLOSURE OF CERTAIN RETURNS AND RETURN INFORMATION

FOR TAX ADMINISTRATION PURPOSES.— 

(1) DISCLOSURE OF ACCEPTED OFFERS-IN-COMPROMISE.—Return information shall be disclosed to members of the general 

public to the extent necessary to permit inspection of any accepted offer-in-compromise under section 7122 relating to the 

liability for a tax imposed by this title. 

(2) DISCLOSURE OF AMOUNT OF OUTSTANDING LIEN.—If a notice of lien has been filed pursuant to section 6323(f), the 

amount of the outstanding obligation secured by such lien may 

be disclosed to any person who furnishes satisfactory written 

evidence that he has a right in the property subject to such 

lien or intends to obtain a right in such property. 

(3) DISCLOSURE OF RETURN INFORMATION TO CORRECT

MISSTATEMENTS OF FACT.—The Secretary may, but only following approval by the Joint Committee on Taxation, disclose 

such return information or any other information with respect 

to any specific taxpayer to the extent necessary for tax administration purposes to correct a misstatement of fact published 

or disclosed with respect to such taxpayer’s return or any 

transaction of the taxpayer with the Internal Revenue Service. 

(4) DISCLOSURE OF COMPETENT AUTHORITY UNDER INCOME

TAX CONVENTION.—A return or return information may be disclosed to a competent authority of a foreign government which 

has an income tax or gift and estate tax convention, or other 

convention or bilateral agreement relating to the exchange of 

tax information, with the United States but only to the extent 

provided in, and subject to the terms and conditions of, such 

convention or bilateral agreement. 

(5) STATE AGENCIES REGULATING TAX RETURN PREPARERS.— 

Taxpayer identity information with respect to any tax return 

preparer, and information as to whether or not any penalty 

has been assessed against such tax return preparer under section 6694, 6695, or 7216, may be furnished to any agency, 

body, or commission lawfully charged under any State or local 

law with the licensing, registration, or regulation of tax return 

preparers. Such information may be furnished only upon written request by the head of such agency, body, or commission 


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designating the officers or employees to whom such information is to be furnished. Information may be furnished and used 

under this paragraph only for purposes of the licensing, registration, or regulation of tax return preparers. 

(6) DISCLOSURE BY CERTAIN OFFICERS AND EMPLOYEES FOR

INVESTIGATIVE PURPOSES.—An internal revenue officer or employee and an officer or employee of the Office of Treasury Inspector General for Tax Administration may, in connection 

with his official duties relating to any audit, collection activity, 

or civil or criminal tax investigation or any other offense under 

the internal revenue laws, disclose return information to the 

extent that such disclosure is necessary in obtaining information, which is not otherwise reasonably available, with respect 

to the correct determination of tax, liability for tax, or the 

amount to be collected or with respect to the enforcement of 

any other provision of this title. Such disclosures shall be made 

only in such situations and under such conditions as the Secretary may prescribe by regulation. 

(7) DISCLOSURE OF EXCISE TAX REGISTRATION INFORMATION.— 

To the extent the Secretary determines that disclosure is necessary to permit the effective administration of subtitle D, the 

Secretary may disclose— 

(A) the name, address, and registration number of each 

person who is registered under any provision of subtitle D 

(and, in the case of a registered terminal operator, the address of each terminal operated by such operator), and 

(B) the registration status of any person. 

(8) LEVIES ON CERTAIN GOVERNMENT PAYMENTS.— (A) DISCLOSURE OF RETURN INFORMATION IN LEVIES ON

FINANCIAL MANAGEMENT SERVICE.—In serving a notice of 

levy, or release of such levy, with respect to any applicable 

government payment, the Secretary may disclose to officers and employees of the Financial Management Service— 

(i) return information, including taxpayer identity 

information, 

(ii) the amount of any unpaid liability under this 

title (including penalties and interest), and 

(iii) the type of tax and tax period to which such unpaid liability relates. 

(B) RESTRICTION ON USE OF DISCLOSED INFORMATION.— 

Return information disclosed under subparagraph (A) may 

be used by officers and employees of the Financial Management Service only for the purpose of, and to the extent 

necessary in, transferring levied funds in satisfaction of 

the levy, maintaining appropriate agency records in regard 

to such levy or the release thereof, notifying the taxpayer 

and the agency certifying such payment that the levy has 

been honored, or in the defense of any litigation ensuing 

from the honor of such levy. 

(C) APPLICABLE GOVERNMENT PAYMENT.—For purposes of 

this paragraph, the term ‘‘applicable government payment’’ 

means— 

(i) any Federal payment (other than a payment for 

which eligibility is based on the income or assets (or 


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both) of a payee) certified to the Financial Management Service for disbursement, and 

(ii) any other payment which is certified to the Financial Management Service for disbursement and 

which the Secretary designates by published notice. 

(9) DISCLOSURE OF INFORMATION TO ADMINISTER SECTION

6311.—The Secretary may disclose returns or return information to financial institutions and others to the extent the Secretary deems necessary for the administration of section 6311. 

Disclosures of information for purposes other than to accept 

payments by checks or money orders shall be made only to the 

extent authorized by written procedures promulgated by the 

Secretary. 

(10) DISCLOSURE OF CERTAIN RETURNS AND RETURN INFORMATION TO CERTAIN PRISON OFFICIALS.— 

(A) IN GENERAL.—Under such procedures as the Secretary may prescribe, the Secretary may disclose to officers 

and employees of the Federal Bureau of Prisons and of any 

State agency charged with the responsibility for administration of prisons any returns or return information with 

respect to individuals incarcerated in Federal or State 

prison systems whom the Secretary has determined may 

have filed or facilitated the filing of a false or fraudulent 

return to the extent that the Secretary determines that 

such disclosure is necessary to permit effective Federal tax 

administration. 

(B) DISCLOSURE TO CONTRACTOR-RUN PRISONS.—Under 

such procedures as the Secretary may prescribe, the disclosures authorized by subparagraph (A) may be made to contractors responsible for the operation of a Federal or State 

prison on behalf of such Bureau or agency. 

(C) RESTRICTIONS ON USE OF DISCLOSED INFORMATION.— 

Any return or return information received under this paragraph shall be used only for the purposes of and to the extent necessary in taking administrative action to prevent 

the filing of false and fraudulent returns, including administrative actions to address possible violations of administrative rules and regulations of the prison facility and in 

administrative and judicial proceedings arising from such 

administrative actions. 

(D) RESTRICTIONS ON REDISCLOSURE AND DISCLOSURE TO

LEGAL REPRESENTATIVES.—Notwithstanding subsection 

(h)— 

(i) RESTRICTIONS ON REDISCLOSURE.—Except as provided in clause (ii), any officer, employee, or contractor 

of the Federal Bureau of Prisons or of any State agency charged with the responsibility for administration 

of prisons shall not disclose any information obtained 

under this paragraph to any person other than an officer or employee or contractor of such Bureau or agency personally and directly engaged in the administration of prison facilities on behalf of such Bureau or 

agency. 

(ii) DISCLOSURE TO LEGAL REPRESENTATIVES.—The 

returns and return information disclosed under this 


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paragraph may be disclosed to the duly authorized 

legal representative of the Federal Bureau of Prisons, 

State agency, or contractor charged with the responsibility for administration of prisons, or of the incarcerated individual accused of filing the false or fraudulent 

return who is a party to an action or proceeding described in subparagraph (C), solely in preparation for, 

or for use in, such action or proceeding. 

(11) DISCLOSURE OF RETURN INFORMATION TO DEPARTMENT

OF STATE FOR PURPOSES OF PASSPORT REVOCATION UNDER SEC- TION 7345.— (A) IN GENERAL.—The Secretary shall, upon receiving a 

certification described in section 7345, disclose to the Secretary of State return information with respect to a taxpayer who has a seriously delinquent tax debt described in 

such section. Such return information shall be limited to— 

(i) the taxpayer identity information with respect to 

such taxpayer, and 

(ii) the amount of such seriously delinquent tax 

debt. 

(B) RESTRICTION ON DISCLOSURE.—Return information 

disclosed under subparagraph (A) may be used by officers 

and employees of the Department of State for the purposes 

of, and to the extent necessary in, carrying out the requirements of section 32101 of the FAST Act. 

(12) QUALIFIED TAX COLLECTION CONTRACTORS.—Persons providing services pursuant to a qualified tax collection contract 

under section 6306 may, if speaking to a person who has identified himself or herself as having the name of the taxpayer to 

which a tax receivable (within the meaning of such section) relates, identify themselves as contractors of the Internal Revenue Service and disclose the business name of the contractor, 

and the nature, subject, and reason for the contact. Disclosures 

under this paragraph shall be made only in such situations 

and under such conditions as have been approved by the Secretary. 

(13) DISCLOSURE OF RETURN INFORMATION FOR PURPOSES OF

CYBERSECURITY AND THE PREVENTION OF IDENTITY THEFT TAX

REFUND FRAUD.— (A) IN GENERAL.—Under such procedures and subject to 

such conditions as the Secretary may prescribe, the Secretary may disclose specified return information to specified 

ISAC participants to the extent that the Secretary determines such disclosure is in furtherance of effective Federal 

tax administration relating to the detection or prevention of 

identity theft tax refund fraud, validation of taxpayer identity, authentication of taxpayer returns, or detection or prevention of cybersecurity threats. 

(B) SPECIFIED ISAC PARTICIPANTS.—For purposes of this 

paragraph— 

(i) IN GENERAL.—The term ‘‘specified ISAC participant’’ means— 

(I) any person designated by the Secretary as 

having primary responsibility for a function performed with respect to the information sharing 


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and analysis center described in section 403(a) of 

the 21st Century IRS Act, and 

(II) any person subject to the requirements of section 7216 and which is a participant in such information sharing and analysis center. 

(ii) INFORMATION SHARING AGREEMENT.—Such term 

shall not include any person unless such person has 

entered into a written agreement with the Secretary setting forth the terms and conditions for the disclosure 

of information to such person under this paragraph, 

including requirements regarding the protection and 

safeguarding of such information by such person. 

(C) SPECIFIED RETURN INFORMATION.—For purposes of 

this paragraph, the term ‘‘specified return information’’ 

means— 

(i) in the case of a return which is in connection with 

a case of potential identity theft refund fraud— 

(I) in the case of such return filed electronically, 

the internet protocol address, device identification, 

email domain name, speed of completion, method 

of authentication, refund method, and such other 

return information related to the electronic filing 

characteristics of such return as the Secretary may 

identify for purposes of this subclause, and 

(II) in the case of such return prepared by a tax 

return preparer, identifying information with respect to such tax return preparer, including the 

preparer taxpayer identification number and electronic filer identification number of such preparer, 

(ii) in the case of a return which is in connection 

with a case of a identity theft refund fraud which has 

been confirmed by the Secretary (pursuant to such procedures as the Secretary may provide), the information 

referred to in subclauses (I) and (II) of clause (i), the 

name and taxpayer identification number of the taxpayer as it appears on the return, and any bank account and routing information provided for making a 

refund in connection with such return, and 

(iii) in the case of any cybersecurity threat to the Internal Revenue Service, information similar to the information described in subclauses (I) and (II) of clause 

(i) with respect to such threat. 

(D) RESTRICTION ON USE OF DISCLOSED INFORMATION.— 

(i) DESIGNATED THIRD PARTIES.—Any return information received by a person described in subparagraph 

(B)(i)(I) shall be used only for the purposes of and to 

the extent necessary in— 

(I) performing the function such person is designated to perform under such subparagraph, 

(II) facilitating disclosures authorized under 

subparagraph (A) to persons described in subparagraph (B)(i)(II), and 

(III) facilitating disclosures authorized under 

subsection (d) to participants in such information 

sharing and analysis center. 


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(ii) RETURN PREPARERS.—Any return information received by a person described in subparagraph (B)(i)(II) 

shall be treated for purposes of section 7216 as information furnished to such person for, or in connection 

with, the preparation of a return of the tax imposed 

under chapter 1. 

(E) DATA PROTECTION AND SAFEGUARDS.—Return information disclosed under this paragraph shall be subject to 

such protections and safeguards as the Secretary may require in regulations or other guidance or in the written 

agreement referred to in subparagraph (B)(ii). Such written 

agreement shall include a requirement that any unauthorized access to information disclosed under this paragraph, 

and any breach of any system in which such information 

is held, be reported to the Treasury Inspector General for 

Tax Administration. 

(l) DISCLOSURE OF RETURNS AND RETURN INFORMATION FOR PUR- POSES OTHER THAN TAX ADMINISTRATION.— (1) DISCLOSURE OF CERTAIN RETURNS AND RETURN INFORMATION TO SOCIAL SECURITY ADMINISTRATION AND RAILROAD RE- TIREMENT BOARD.—The Secretary may, upon written request, 

disclose returns and return information with respect to— 

(A) taxes imposed by chapters 2, 21, and 24, to the Social Security Administration for purposes of its administration of the Social Security Act; 

(B) a plan to which part I of subchapter D of chapter 1 

applies, to the Social Security Administration for purposes 

of carrying out its responsibility under section 1131 of the 

Social Security Act, limited, however to return information 

described in section 6057(d); and 

(C) taxes imposed by chapter 22, to the Railroad Retirement Board for purposes of its administration of the Railroad Retirement Act. 

(2) DISCLOSURE OF RETURNS AND RETURN INFORMATION TO

THE DEPARTMENT OF LABOR AND PENSION BENEFIT GUARANTY

CORPORATION.—The Secretary may, upon written request, furnish returns and return information to the proper officers and 

employees of the Department of Labor and the Pension Benefit 

Guaranty Corporation for purposes of, but only to the extent 

necessary in, the administration of titles I and IV of the Employee Retirement Income Security Act of 1974. 

(3) DISCLOSURE THAT APPLICANT FOR FEDERAL LOAN HAS TAX

DELINQUENT ACCOUNT.— 

(A) IN GENERAL.—Upon written request, the Secretary 

may disclose to the head of the Federal agency administering any included Federal loan program whether or not 

an applicant for a loan under such program has a tax delinquent account. 

(B) RESTRICTION ON DISCLOSURE.—Any disclosure under 

subparagraph (A) shall be made only for the purpose of, 

and to the extent necessary in, determining the creditworthiness of the applicant for the loan in question. 

(C) INCLUDED FEDERAL LOAN PROGRAM DEFINED.—For 

purposes of this paragraph, the term ‘‘included Federal 

loan program’’ means any program under which the 


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United States or a Federal agency makes, guarantees, or 

insures loans. 

(4) DISCLOSURE OF RETURNS AND RETURN INFORMATION FOR

USE IN PERSONNEL OR CLAIMANT REPRESENTATIVE MATTERS.— 

The Secretary may disclose returns and return information— 

(A) upon written request— 

(i) to an employee or former employee of the Department of the Treasury, or to the duly authorized legal 

representative of such employee or former employee, 

who is or may be a party to any administrative action 

or proceeding affecting the personnel rights of such 

employee or former employee; or 

(ii) to any person, or to the duly authorized legal 

representative of such person, whose rights are or may 

be affected by an administrative action or proceeding 

under section 330 of title 31, United States Code, 

solely for use in the action or proceeding, or in preparation 

for the action or proceeding, but only to the extent that the 

Secretary determines that such returns or return information is or may be relevant and material to the action or 

proceeding; or 

(B) to officers and employees of the Department of the 

Treasury for use in any action or proceeding described in 

subparagraph (A), or in preparation for such action or proceeding, to the extent necessary to advance or protect the 

interests of the United States. 

(5) SOCIAL SECURITY ADMINISTRATION.—Upon written request by the Commissioner of Social Security, the Secretary 

may disclose information returns filed pursuant to part III of 

subchapter A of chapter 61 of this subtitle for the purpose of— 

(A) carrying out, in accordance with an agreement entered into pursuant to section 232 of the Social Security 

Act, an effective return processing program; or 

(B) providing information regarding the mortality status 

of individuals for epidemiological and similar research in 

accordance with section 1106(d) of the Social Security Act. 

(6) DISCLOSURE OF RETURN INFORMATION TO FEDERAL, STATE, 

AND LOCAL CHILD SUPPORT ENFORCEMENT AGENCIES.— 

(A) RETURN INFORMATION FROM INTERNAL REVENUE

SERVICE.—The Secretary may, upon written request, disclose to the appropriate Federal, State, or local child support enforcement agency— 

(i) available return information from the master files 

of the Internal Revenue Service relating to the social 

security account number (or numbers, if the individual 

involved has more than one such number), address, filing status, amounts and nature of income, and the 

number of dependents reported on any return filed by, 

or with respect to, any individual with respect to 

whom child support obligations are sought to be established or enforced pursuant to the provisions of part D 

of title IV of the Social Security Act and with respect 

to any individual to whom such support obligations 

are owing, and 


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(ii) available return information reflected on any return filed by, or with respect to, any individual described in clause (i) relating to the amount of such individual’s gross income (as defined in section 61) or 

consisting of the names and addresses of payors of 

such income and the names of any dependents reported on such return, but only if such return information is not reasonably available from any other source. 

(B) DISCLOSURE TO CERTAIN AGENTS.—The following information disclosed to any child support enforcement agency under subparagraph (A) with respect to any individual 

with respect to whom child support obligations are sought 

to be established or enforced may be disclosed by such 

agency to any agent of such agency which is under contract with such agency to carry out the purposes described 

in subparagraph (C): 

(i) The address and social security account number 

(or numbers) of such individual. 

(ii) The amount of any reduction under section 

6402(c) (relating to offset of past-due support against 

overpayments) in any overpayment otherwise payable 

to such individual. 

(C) RESTRICTION ON DISCLOSURE.—Information may be 

disclosed under this paragraph only for purposes of, and to 

the extent necessary in, establishing and collecting child 

support obligations from, and locating, individuals owing 

such obligations. 

(7) Disclosure of return information to Federal, State, and 

local agencies administering certain programs under the Social 

Security Act, the Food and Nutrition Act of 2008 of 1977, or 

title 38, United States Code, or certain housing assistance programs 

(A) RETURN INFORMATION FROM SOCIAL SECURITY ADMINISTRATION.—The Commissioner of Social Security shall, 

upon written request, disclose return information from returns with respect to net earnings from self-employment 

(as defined in section 1402), wages (as defined in section 

3121(a) or 3401(a)), and payments of retirement income, 

which have been disclosed to the Social Security Administration as provided by paragraph (1) or (5) of this subsection, to any Federal, State, or local agency administering a program listed in subparagraph (D). 

(B) RETURN INFORMATION FROM INTERNAL REVENUE

SERVICE.—The Secretary shall, upon written request, disclose current return information from returns with respect 

to unearned income from the Internal Revenue Service 

files to any Federal, State, or local agency administering 

a program listed in subparagraph (D). 

(C) RESTRICTION ON DISCLOSURE.—The Commissioner of 

Social Security and the Secretary shall disclose return information under subparagraphs (A) and (B) only for purposes of, and to the extent necessary in, determining eligibility for, or the correct amount of, benefits under a program listed in subparagraph (D). 


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(D) PROGRAMS TO WHICH RULE APPLIES.—The programs 

to which this paragraph applies are: 

(i) a State program funded under part A of title IV 

of the Social Security Act; 

(ii) medical assistance provided under a State plan 

approved under title XIX of the Social Security Act or 

subsidies provided under section 1860D-14 of such Act; 

(iii) supplemental security income benefits provided 

under title XVI of the Social Security Act, and federally administered supplementary payments of the type 

described in section 1616(a) of such Act (including payments pursuant to an agreement entered into under 

section 212(a) of Public Law 93-66); 

(iv) any benefits provided under a State plan approved under title I, X, XIV, or XVI of the Social Security Act (as those titles apply to Puerto Rico, Guam, 

and the Virgin Islands); 

(v) unemployment compensation provided under a 

State law described in section 3304 of this title; 

(vi) assistance provided under the Food and Nutrition Act of 2008; 

(vii) State-administered supplementary payments of 

the type described in section 1616(a) of the Social Security Act (including payments pursuant to an agreement entered into under section 212(a) of Public Law 

93-66); 

(viii)(I) any needs-based pension provided under 

chapter 15 of title 38, United States Code, or under 

any other law administered by the Secretary of Veterans Affairs; 

(II) parents’ dependency and indemnity compensation provided under section 1315 of title 38, 

United States Code; 

(III) health-care services furnished under sections 1710(a)(2)(G), 1710(a)(3), and 1710(b) of such 

title; and 

(IV) compensation paid under chapter 11 of title 

38, United States Code, at the 100 percent rate 

based solely on unemployability and without regard to the fact that the disability or disabilities 

are not rated as 100 percent disabling under the 

rating schedule; and 

(ix) any housing assistance program administered by 

the Department of Housing and Urban Development 

that involves initial and periodic review of an applicant’s or participant’s income, except that return information may be disclosed under this clause only on 

written request by the Secretary of Housing and 

Urban Development and only for use by officers and 

employees of the Department of Housing and Urban 

Development with respect to applicants for and participants in such programs. 

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closed under this paragraph for use with respect to any 

program described in clause (viii)(IV). 

(8) DISCLOSURE OF CERTAIN RETURN INFORMATION BY SOCIAL

SECURITY ADMINISTRATION TO FEDERAL, STATE, AND LOCAL

CHILD SUPPORT ENFORCEMENT AGENCIES.— (A) IN GENERAL.—Upon written request, the Commissioner of Social Security shall disclose directly to officers 

and employees of a Federal or State or local child support 

enforcement agency return information from returns with 

respect to social security account numbers, net earnings 

from self-employment (as defined in section 1402), wages 

(as defined in section 3121(a) or 3401(a)), and payments of 

retirement income which have been disclosed to the Social 

Security Administration as provided by paragraph (1) or 

(5) of this subsection. 

(B) RESTRICTION ON DISCLOSURE.—The Commissioner of 

Social Security shall disclose return information under 

subparagraph (A) only for purposes of, and to the extent 

necessary in, establishing and collecting child support obligations from, and locating, individuals owing such obligations. For purposes of the preceding sentence, the term 

‘‘child support obligations’’ only includes obligations which 

are being enforced pursuant to a plan described in section 

454 of the Social Security Act which has been approved by 

the Secretary of Health and Human Services under part D 

of title IV of such Act. 

(C) STATE OR LOCAL CHILD SUPPORT ENFORCEMENT AGEN- CY.—For purposes of this paragraph, the term ‘‘State or 

local child support enforcement agency’’ means any agency 

of a State or political subdivision thereof operating pursuant to a plan described in subparagraph (B). 

(9) DISCLOSURE OF ALCOHOL FUEL PRODUCERS TO ADMINISTRATORS OF STATE ALCOHOL LAWS.—Notwithstanding any other 

provision of this section, the Secretary may disclose— 

(A) the name and address of any person who is qualified 

to produce alcohol for fuel use under section 5181, and 

(B) the location of any premises to be used by such person in producing alcohol for fuel, 

to any State agency, body, or commission, or its legal representative, which is charged under the laws of such State 

with responsibility for administration of State alcohol laws 

solely for use in the administration of such laws. 

(10) DISCLOSURE OF CERTAIN INFORMATION TO AGENCIES REQUESTING A REDUCTION UNDER SUBSECTION (C), (D), (E), OR (F) OF

SECTION 6402.— 

(A) RETURN INFORMATION FROM INTERNAL REVENUE

SERVICE.—The Secretary may, upon receiving a written request, disclose to officers and employees of any agency 

seeking a reduction under subsection (c), (d), (e), or (f) of 

section 6402, to officers and employees of the Department 

of Labor for purposes of facilitating the exchange of data 

in connection with a request made under subsection (f)(5) 

of section 6402, and to officers and employees of the Department of the Treasury in connection with such reduction— 


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(i) taxpayer identity information with respect to the 

taxpayer against whom such a reduction was made or 

not made and with respect to any other person filing 

a joint return with such taxpayer, 

(ii) the fact that a reduction has been made or has 

not been made under such subsection with respect to 

such taxpayer, 

(iii) the amount of such reduction, 

(iv) whether such taxpayer filed a joint return, and 

(v) the fact that a payment was made (and the 

amount of the payment) to the spouse of the taxpayer 

on the basis of a joint return. 

(B)(i) Restriction on use of disclosed information 

Any officers and employees of an agency receiving return 

information under subparagraph (A) shall use such information only for the purposes of, and to the extent necessary in, establishing appropriate agency records, locating 

any person with respect to whom a reduction under subsection (c), (d), (e), or (f) of section 6402 is sought for purposes of collecting the debt with respect to which the reduction is sought, or in the defense of any litigation or administrative procedure ensuing from a reduction made 

under subsection (c), (d), (e), or (f) of section 6402 and to 

officers and employees of the Department of the Treasury 

in connection with such reduction. 

(ii) Notwithstanding clause (i), return information 

disclosed to officers and employees of the Department 

of Labor may be accessed by agents who maintain and 

provide technological support to the Department of Labor’s Interstate Connection Network (ICON) solely for 

the purpose of providing such maintenance and support. 

(11) DISCLOSURE OF RETURN INFORMATION TO CARRY OUT

FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.— 

(A) IN GENERAL.—The Commissioner of Social Security 

shall, on written request, disclose to the Office of Personnel Management return information from returns with 

respect to net earnings from self-employment (as defined 

in section 1402), wages (as defined in section 3121(a) or 

3401(a)), and payments of retirement income, which have 

been disclosed to the Social Security Administration as 

provided by paragraph (1) or (5). 

(B) RESTRICTION ON DISCLOSURE.—The Commissioner of 

Social Security shall disclose return information under 

subparagraph (A) only for purposes of, and to the extent 

necessary in, the administration of chapters 83 and 84 of 

title 5, United States Code. 

(12) DISCLOSURE OF CERTAIN TAXPAYER IDENTITY INFORMATION FOR VERIFICATION OF EMPLOYMENT STATUS OF MEDICARE

BENEFICIARY AND SPOUSE OF MEDICARE BENEFICIARY.— (A) RETURN INFORMATION FROM INTERNAL REVENUE

SERVICE.—The Secretary shall, upon written request from 

the Commissioner of Social Security, disclose to the Commissioner available filing status and taxpayer identity information from the individual master files of the Internal 


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Revenue Service relating to whether any medicare beneficiary identified by the Commissioner was a married individual (as defined in section 7703) for any specified year 

after 1986, and, if so, the name of the spouse of such individual and such spouse’s TIN. 

(B) RETURN INFORMATION FROM SOCIAL SECURITY ADMINISTRATION.—The Commissioner of Social Security shall, 

upon written request from the Administrator of the Centers for Medicare & Medicaid Services, disclose to the Administrator the following information: 

(i) The name and TIN of each medicare beneficiary 

who is identified as having received wages (as defined 

in section 3401(a)), above an amount (if any) specified 

by the Secretary of Health and Human Services, from 

a qualified employer in a previous year. 

(ii) For each medicare beneficiary who was identified 

as married under subparagraph (A) and whose spouse 

is identified as having received wages, above an 

amount (if any) specified by the Secretary of Health 

and Human Services, from a qualified employer in a 

previous year— 

(I) the name and TIN of the medicare beneficiary, and 

(II) the name and TIN of the spouse. 

(iii) With respect to each such qualified employer, 

the name, address, and TIN of the employer and the 

number of individuals with respect to whom written 

statements were furnished under section 6051 by the 

employer with respect to such previous year. 

(C) DISCLOSURE BY CENTERS FOR MEDICARE & MEDICAID

SERVICES.—With respect to the information disclosed 

under subparagraph (B), the Administrator of the Centers 

for Medicare & Medicaid Services may disclose— 

(i) to the qualified employer referred to in such subparagraph the name and TIN of each individual identified under such subparagraph as having received 

wages from the employer (hereinafter in this subparagraph referred to as the ‘‘employee’’) for purposes of 

determining during what period such employee or the 

employee’s spouse may be (or have been) covered 

under a group health plan of the employer and what 

benefits are or were covered under the plan (including 

the name, address, and identifying number of the 

plan), 

(ii) to any group health plan which provides or provided coverage to such an employee or spouse, the 

name of such employee and the employee’s spouse (if 

the spouse is a medicare beneficiary) and the name 

and address of the employer, and, for the purpose of 

presenting a claim to the plan— 

(I) the TIN of such employee if benefits were 

paid under title XVIII of the Social Security Act 

with respect to the employee during a period in 

which the plan was a primary plan (as defined in 


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section 1862(b)(2)(A) of the Social Security Act), 

and 

(II) the TIN of such spouse if benefits were paid 

under such title with respect to the spouse during 

such period, and 

(iii) to any agent of such Administrator the information referred to in subparagraph (B) for purposes of 

carrying out clauses (i) and (ii) on behalf of such Administrator. 

(D) SPECIAL RULES.— 

(i) RESTRICTIONS ON DISCLOSURE.—Information may 

be disclosed under this paragraph only for purposes of, 

and to the extent necessary in, determining the extent 

to which any medicare beneficiary is covered under 

any group health plan. 

(ii) TIMELY RESPONSE TO REQUESTS.—Any request 

made under subparagraph (A) or (B) shall be complied 

with as soon as possible but in no event later than 120 

days after the date the request was made. 

(E) DEFINITIONS.—For purposes of this paragraph— 

(i) MEDICARE BENEFICIARY.—The term ‘‘medicare 

beneficiary’’ means an individual entitled to benefits 

under part A, or enrolled under part B, of title XVIII 

of the Social Security Act, but does not include such 

an individual enrolled in part A under section 1818. 

(ii) GROUP HEALTH PLAN.—The term ‘‘group health 

plan’’ means any group health plan (as defined in section 5000(b)(1)). 

(iii) QUALIFIED EMPLOYER.—The term ‘‘qualified employer’’ means, for a calendar year, an employer which 

has furnished written statements under section 6051 

with respect to at least 20 individuals for wages paid 

in the year. 

(13) DISCLOSURE OF RETURN INFORMATION TO CARRY OUT INCOME CONTINGENT REPAYMENT OF STUDENT LOANS.— 

(A) IN GENERAL.—The Secretary may, upon written request from the Secretary of Education, disclose to officers 

and employees of the Department of Education return information with respect to a taxpayer who has received an 

applicable student loan and whose loan repayment 

amounts are based in whole or in part on the taxpayer’s 

income. Such return information shall be limited to— 

(i) taxpayer identity information with respect to 

such taxpayer, 

(ii) the filing status of such taxpayer, and 

(iii) the adjusted gross income of such taxpayer. 

(B) RESTRICTION ON USE OF DISCLOSED INFORMATION.— 

Return information disclosed under subparagraph (A) may 

be used by officers and employees of the Department of 

Education only for the purposes of, and to the extent necessary in, establishing the appropriate income contingent 

repayment amount for an applicable student loan. 

(C) APPLICABLE STUDENT LOAN.—For purposes of this 

paragraph, the term ‘‘applicable student loan’’ means— 


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(i) any loan made under the program authorized 

under part D of title IV of the Higher Education Act 

of 1965, and 

(ii) any loan made under part B or E of title IV of 

the Higher Education Act of 1965 which is in default 

and has been assigned to the Department of Education. 

(D) TERMINATION.—This paragraph shall not apply to 

any request made after December 31, 2007. 

(14) DISCLOSURE OF RETURN INFORMATION TO UNITED STATES

CUSTOMS SERVICE.—The Secretary may, upon written request 

from the Commissioner of the United States Customs Service, 

disclose to officers and employees of the Department of the 

Treasury such return information with respect to taxes imposed by chapters 1 and 6 as the Secretary may prescribe by 

regulations, solely for the purpose of, and only to the extent 

necessary in— 

(A) ascertaining the correctness of any entry in audits as 

provided for in section 509 of the Tariff Act of 1930 (19 

U.S.C. 1509), or 

(B) other actions to recover any loss of revenue, or to collect duties, taxes, and fees, determined to be due and 

owing pursuant to such audits. 

(15) DISCLOSURE OF RETURNS FILED UNDER SECTION 6050I.— 

The Secretary may, upon written request, disclose to officers 

and employees of— 

(A) any Federal agency, 

(B) any agency of a State or local government, or 

(C) any agency of the government of a foreign country, 

information contained on returns filed under section 6050I. 

Any such disclosure shall be made on the same basis, and 

subject to the same conditions, as apply to disclosures of 

information on reports filed under section 5313 of title 31, 

United States Code; except that no disclosure under this 

paragraph shall be made for purposes of the administration of any tax law. 

(16) DISCLOSURE OF RETURN INFORMATION FOR PURPOSES OF

ADMINISTERING THE DISTRICT OF COLUMBIA RETIREMENT PRO- TECTION ACT OF 1997.— (A) IN GENERAL.—Upon written request available return 

information (including such information disclosed to the 

Social Security Administration under paragraph (1) or (5) 

of this subsection), relating to the amount of wage income 

(as defined in section 3121(a) or 3401(a)), the name, address, and identifying number assigned under section 

6109, of payors of wage income, taxpayer identity (as defined in subsection 6103 (b)(6)), and the occupational status reflected on any return filed by, or with respect to, any 

individual with respect to whom eligibility for, or the correct amount of, benefits under the District of Columbia Retirement Protection Act of 1997, is sought to be determined, shall be disclosed by the Commissioner of Social 

Security, or to the extent not available from the Social Security Administration, by the Secretary, to any duly authorized officer or employee of the Department of the 


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Treasury, or a Trustee or any designated officer or employee of a Trustee (as defined in the District of Columbia 

Retirement Protection Act of 1997), or any actuary engaged by a Trustee under the terms of the District of Columbia Retirement Protection Act of 1997, whose official 

duties require such disclosure, solely for the purpose of, 

and to the extent necessary in, determining an individual’s 

eligibility for, or the correct amount of, benefits under the 

District of Columbia Retirement Protection Act of 1997. 

(B) DISCLOSURE FOR USE IN JUDICIAL OR ADMINISTRATIVE

PROCEEDINGS.—Return information disclosed to any person 

under this paragraph may be disclosed in a judicial or administrative proceeding relating to the determination of an 

individual’s eligibility for, or the correct amount of, benefits under the District of Columbia Retirement Protection 

Act of 1997. 

(17) DISCLOSURE TO NATIONAL ARCHIVES AND RECORDS AD- MINISTRATION.—The Secretary shall, upon written request from 

the Archivist of the United States, disclose or authorize the 

disclosure of returns and return information to officers and employees of the National Archives and Records Administration 

for purposes of, and only to the extent necessary in, the appraisal of records for destruction or retention. No such officer 

or employee shall, except to the extent authorized by subsection (f), (i)(8), or (p), disclose any return or return information disclosed under the preceding sentence to any person 

other than to the Secretary, or to another officer or employee 

of the National Archives and Records Administration whose official duties require such disclosure for purposes of such appraisal. 

(18) DISCLOSURE OF RETURN INFORMATION FOR PURPOSES OF

CARRYING OUT A PROGRAM FOR ADVANCE PAYMENT OF CREDIT

FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS.—The 

Secretary may disclose to providers of health insurance for any 

certified individual (as defined in section 7527(c)) return information with respect to such certified individual only to the extent necessary to carry out the program established by section 

7527 (relating to advance payment of credit for health insurance costs of eligible individuals). 

(19) DISCLOSURE OF RETURN INFORMATION FOR PURPOSES OF

PROVIDING TRANSITIONAL ASSISTANCE UNDER MEDICARE DISCOUNT CARD PROGRAM.— 

(A) IN GENERAL.—The Secretary, upon written request 

from the Secretary of Health and Human Services pursuant to carrying out section 1860D-31 of the Social Security 

Act, shall disclose to officers, employees, and contractors of 

the Department of Health and Human Services with respect to a taxpayer for the applicable year— 

(i)(I) whether the adjusted gross income, as modified 

in accordance with specifications of the Secretary of 

Health and Human Services for purposes of carrying 

out such section, of such taxpayer and, if applicable, 

such taxpayer’s spouse, for the applicable year, exceeds the amounts specified by the Secretary of Health 

and Human Services in order to apply the 100 and 135 


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percent of the poverty lines under such section, (II) 

whether the return was a joint return, and (III) the 

applicable year, or 

(ii) if applicable, the fact that there is no return filed 

for such taxpayer for the applicable year. 

(B) DEFINITION OF APPLICABLE YEAR.—For the purposes 

of this subsection, the term ‘‘applicable year’’ means the 

most recent taxable year for which information is available 

in the Internal Revenue Service’s taxpayer data information systems, or, if there is no return filed for such taxpayer for such year, the prior taxable year. 

(C) RESTRICTION ON USE OF DISCLOSED INFORMATION.— 

Return information disclosed under this paragraph may be 

used only for the purposes of determining eligibility for 

and administering transitional assistance under section 

1860D-31 of the Social Security Act. 

(20) DISCLOSURE OF RETURN INFORMATION TO CARRY OUT

MEDICARE PART B PREMIUM SUBSIDY ADJUSTMENT AND PART D 

BASE BENEFICIARY PREMIUM INCREASE.— 

(A) IN GENERAL.—The Secretary shall, upon written request from the Commissioner of Social Security, disclose to 

officers, employees, and contractors of the Social Security 

Administration return information of a taxpayer whose 

premium (according to the records of the Secretary) may 

be subject to adjustment under section 1839(i) or increase 

under section 1860D-13(a)(7) of the Social Security Act. 

Such return information shall be limited to— 

(i) taxpayer identity information with respect to 

such taxpayer, 

(ii) the filing status of such taxpayer, 

(iii) the adjusted gross income of such taxpayer, 

(iv) the amounts excluded from such taxpayer’s 

gross income under sections 135 and 911 to the extent 

such information is available, 

(v) the interest received or accrued during the taxable year which is exempt from the tax imposed by 

chapter 1 to the extent such information is available, 

(vi) the amounts excluded from such taxpayer’s 

gross income by sections 931 and 933 to the extent 

such information is available, 

(vii) such other information relating to the liability 

of the taxpayer as is prescribed by the Secretary by 

regulation as might indicate in the case of a taxpayer 

who is an individual described in subsection 

(i)(4)(B)(iii) of section 1839 of the Social Security Act 

that the amount of the premium of the taxpayer under 

such section may be subject to adjustment under subsection (i) of such section or increase under section 

1860D-13(a)(7) of such Act and the amount of such adjustment, and 

(viii) the taxable year with respect to which the preceding information relates. 

(B) RESTRICTION ON USE OF DISCLOSED INFORMATION.— 

(i) IN GENERAL.—Return information disclosed under 

subparagraph (A) may be used by officers, employees, 


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and contractors of the Social Security Administration 

only for the purposes of, and to the extent necessary 

in, establishing the appropriate amount of any premium adjustment under such section 1839(i) or increase under such section 1860D-13(a)(7) or for the 

purpose of resolving taxpayer appeals with respect to 

any such premium adjustment or increase. 

(ii) DISCLOSURE TO OTHER AGENCIES.—Officers, employees, and contractors of the Social Security Administration may disclose— 

(I) the taxpayer identity information and the 

amount of the premium subsidy adjustment or 

premium increase with respect to a taxpayer described in subparagraph (A) to officers, employees, 

and contractors of the Centers for Medicare and 

Medicaid Services, to the extent that such disclosure is necessary for the collection of the premium 

subsidy amount or the increased premium 

amount, 

(II) the taxpayer identity information and the 

amount of the premium subsidy adjustment or the 

increased premium amount with respect to a taxpayer described in subparagraph (A) to officers 

and employees of the Office of Personnel Management and the Railroad Retirement Board, to the 

extent that such disclosure is necessary for the 

collection of the premium subsidy amount or the 

increased premium amount, 

(III) return information with respect to a taxpayer described in subparagraph (A) to officers 

and employees of the Department of Health and 

Human Services to the extent necessary to resolve 

administrative appeals of such premium subsidy 

adjustment or increased premium, and 

(IV) return information with respect to a taxpayer described in subparagraph (A) to officers 

and employees of the Department of Justice for 

use in judicial proceedings to the extent necessary 

to carry out the purposes described in clause (i). 

(21) DISCLOSURE OF RETURN INFORMATION TO CARRY OUT ELIGIBILITY REQUIREMENTS FOR CERTAIN PROGRAMS.— 

(A) IN GENERAL.—The Secretary, upon written request 

from the Secretary of Health and Human Services, shall 

disclose to officers, employees, and contractors of the Department of Health and Human Services return information of any taxpayer whose income is relevant in determining any premium tax credit under section 36B or any 

cost-sharing reduction under section 1402 of the Patient 

Protection and Affordable Care Act or eligibility for participation in a State medicaid program under title XIX of the 

Social Security Act, a State’s children’s health insurance 

program under title XXI of the Social Security Act, or a 

basic health program under section 1331 of Patient Protection and Affordable Care Act. Such return information 

shall be limited to— 


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(i) taxpayer identity information with respect to 

such taxpayer, 

(ii) the filing status of such taxpayer, 

(iii) the number of individuals for whom a deduction 

is allowed under section 151 with respect to the taxpayer (including the taxpayer and the taxpayer’s 

spouse), 

(iv) the modified adjusted gross income (as defined 

in section 36B) of such taxpayer and each of the other 

individuals included under clause (iii) who are required to file a return of tax imposed by chapter 1 for 

the taxable year, 

(v) such other information as is prescribed by the 

Secretary by regulation as might indicate whether the 

taxpayer is eligible for such credit or reduction (and 

the amount thereof), and 

(vi) the taxable year with respect to which the preceding information relates or, if applicable, the fact 

that such information is not available. 

(B) INFORMATION TO EXCHANGE AND STATE AGENCIES.— 

The Secretary of Health and Human Services may disclose 

to an Exchange established under the Patient Protection 

and Affordable Care Act or its contractors, or to a State 

agency administering a State program described in subparagraph (A) or its contractors, any inconsistency between the information provided by the Exchange or State 

agency to the Secretary and the information provided to 

the Secretary under subparagraph (A). 

(C) RESTRICTION ON USE OF DISCLOSED INFORMATION.— 

Return information disclosed under subparagraph (A) or 

(B) may be used by officers, employees, and contractors of 

the Department of Health and Human Services, an Exchange, or a State agency only for the purposes of, and to 

the extent necessary in— 

(i) establishing eligibility for participation in the Exchange, and verifying the appropriate amount of, any 

credit or reduction described in subparagraph (A), 

(ii) determining eligibility for participation in the 

State programs described in subparagraph (A). 

(22) DISCLOSURE OF RETURN INFORMATION TO DEPARTMENT

OF HEALTH AND HUMAN SERVICES FOR PURPOSES OF ENHANCING MEDICARE PROGRAM INTEGRITY.— 

(A) IN GENERAL.—The Secretary shall, upon written request from the Secretary of Health and Human Services, 

disclose to officers and employees of the Department of 

Health and Human Services return information with respect to a taxpayer who has applied to enroll, or reenroll, 

as a provider of services or supplier under the Medicare 

program under title XVIII of the Social Security Act. Such 

return information shall be limited to— 

(i) the taxpayer identity information with respect to 

such taxpayer; 

(ii) the amount of the delinquent tax debt owed by 

that taxpayer; and 


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(iii) the taxable year to which the delinquent tax 

debt pertains. 

(B) RESTRICTION ON DISCLOSURE.—Return information 

disclosed under subparagraph (A) may be used by officers 

and employees of the Department of Health and Human 

Services for the purposes of, and to the extent necessary 

in, establishing the taxpayer’s eligibility for enrollment or 

reenrollment in the Medicare program, or in any administrative or judicial proceeding relating to, or arising from, 

a denial of such enrollment or reenrollment, or in determining the level of enhanced oversight to be applied with 

respect to such taxpayer pursuant to section 1866(j)(3) of 

the Social Security Act. 

(C) DELINQUENT TAX DEBT.—For purposes of this paragraph, the term ‘‘delinquent tax debt’’ means an outstanding debt under this title for which a notice of lien has 

been filed pursuant to section 6323, but the term does not 

include a debt that is being paid in a timely manner pursuant to an agreement under section 6159 or 7122, or a 

debt with respect to which a collection due process hearing 

under section 6330 is requested, pending, or completed and 

no payment is required. 

(m) DISCLOSURE OF TAXPAYER IDENTITY INFORMATION.— 

(1) TAX REFUNDS.—The Secretary may disclose taxpayer 

identity information to the press and other media for purposes 

of notifying persons entitled to tax refunds when the Secretary, 

after reasonable effort and lapse of time, has been unable to 

locate such persons. 

(2) FEDERAL CLAIMS.— 

(A) IN GENERAL.—Except as provided in subparagraph 

(B), the Secretary may, upon written request, disclose the 

mailing address of a taxpayer for use by officers, employees, or agents of a Federal agency for purposes of locating 

such taxpayer to collect or compromise a Federal claim 

against the taxpayer in accordance with sections 3711, 

3717, and 3718 of title 31. 

(B) SPECIAL RULE FOR CONSUMER REPORTING AGENCY.— 

In the case of an agent of a Federal agency which is a consumer reporting agency (within the meaning of section 

603(f) of the Fair Credit Reporting Act (15 U.S.C. 

1681a(f))), the mailing address of a taxpayer may be disclosed to such agent under subparagraph (A) only for the 

purpose of allowing such agent to prepare a commercial 

credit report on the taxpayer for use by such Federal agency in accordance with sections 3711, 3717, and 3718 of title 

31. 

(3) NATIONAL INSTITUTE FOR OCCUPATIONAL SAFETY AND

HEALTH.—Upon written request, the Secretary may disclose 

the mailing address of taxpayers to officers and employees of 

the National Institute for Occupational Safety and Health solely for the purpose of locating individuals who are, or may have 

been, exposed to occupational hazards in order to determine 

the status of their health or to inform them of the possible 

need for medical care and treatment. 


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(4) INDIVIDUALS WHO OWE AN OVERPAYMENT OF FEDERAL

PELL GRANTS OR WHO HAVE DEFAULTED ON STUDENT LOANS ADMINISTERED BY THE DEPARTMENT OF EDUCATION.— 

(A) IN GENERAL.—Upon written request by the Secretary 

of Education, the Secretary may disclose the mailing address of any taxpayer— 

(i) who owes an overpayment of a grant awarded to 

such taxpayer under subpart 1 of part A of title IV of 

the Higher Education Act of 1965, or 

(ii) who has defaulted on a loan— 

(I) made under part B, D, or E of title IV of the 

Higher Education Act of 1965, or 

(II) made pursuant to section 3(a)(1) of the Migration and Refugee Assistance Act of 1962 to a 

student at an institution of higher education, 

for use only by officers, employees, or agents of the Department of Education for purposes of locating such taxpayer 

for purposes of collecting such overpayment or loan. 

(B) DISCLOSURE TO EDUCATIONAL INSTITUTIONS, ETC..— 

Any mailing address disclosed under subparagraph (A)(i) 

may be disclosed by the Secretary of Education to— 

(i) any lender, or any State or nonprofit guarantee 

agency, which is participating under part B or D of 

title IV of the Higher Education Act of 1965, or 

(ii) any educational institution with which the Secretary of Education has an agreement under subpart 

1 of part A, or part D or E, of title IV of such Act, 

for use only by officers, employees, or agents of such lender, guarantee agency, or institution whose duties relate to 

the collection of student loans for purposes of locating individuals who have defaulted on student loans made under 

such loan programs for purposes of collecting such loans. 

(5) INDIVIDUALS WHO HAVE DEFAULTED ON STUDENT LOANS

ADMINISTERED BY THE DEPARTMENT OF HEALTH AND HUMAN

SERVICES.— 

(A) IN GENERAL.—Upon written request by the Secretary 

of Health and Human Services, the Secretary may disclose 

the mailing address of any taxpayer who has defaulted on 

a loan made under part C of title VII of the Public Health 

Service Act or under subpart II of part B of title VIII of 

such Act, for use only by officers, employees, or agents of 

the Department of Health and Human Services for purposes of locating such taxpayer for purposes of collecting 

such loan. 

(B) DISCLOSURE TO SCHOOLS AND ELIGIBLE LENDERS.— 

Any mailing address disclosed under subparagraph (A) 

may be disclosed by the Secretary of Health and Human 

Services to— 

(i) any school with which the Secretary of Health 

and Human Services has an agreement under subpart 

II of part C of title VII of the Public Health Service 

Act or subpart II of part B of title VIII of such Act, 

or 


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(ii) any eligible lender (within the meaning of section 737(4) of such Act) participating under subpart I 

of part C of title VII of such Act, 

for use only by officers, employees, or agents of such school 

or eligible lender whose duties relate to the collection of 

student loans for purposes of locating individuals who have 

defaulted on student loans made under such subparts for 

the purposes of collecting such loans. 

(6) BLOOD DONOR LOCATOR SERVICE.— 

(A) IN GENERAL.—Upon written request pursuant to section 1141 of the Social Security Act, the Secretary shall 

disclose the mailing address of taxpayers to officers and 

employees of the Blood Donor Locator Service in the Department of Health and Human Services. 

(B) RESTRICTION ON DISCLOSURE.—The Secretary shall 

disclose return information under subparagraph (A) only 

for purposes of, and to the extent necessary in, assisting 

under the Blood Donor Locator Service authorized persons 

(as defined in section 1141(h)(1) of the Social Security Act) 

in locating blood donors who, as indicated by donated blood 

or products derived therefrom or by the history of the subsequent use of such blood or blood products, have or may 

have the virus for acquired immune deficiency syndrome, 

in order to inform such donors of the possible need for 

medical care and treatment. 

(C) SAFEGUARDS.—The Secretary shall destroy all related blood donor records (as defined in section 1141(h)(2) 

of the Social Security Act) in the possession of the Department of the Treasury upon completion of their use in making the disclosure required under subparagraph (A), so as 

to make such records undisclosable. 

(7) SOCIAL SECURITY ACCOUNT STATEMENT FURNISHED BY SOCIAL SECURITY ADMINISTRATION.—Upon written request by the 

Commissioner of Social Security, the Secretary may disclose 

the mailing address of any taxpayer who is entitled to receive 

a social security account statement pursuant to section 1143(c) 

of the Social Security Act, for use only by officers, employees 

or agents of the Social Security Administration for purposes of 

mailing such statement to such taxpayer. 

(n) CERTAIN OTHER PERSONS.—Pursuant to regulations prescribed by the Secretary, returns and return information may be 

disclosed to any person, including any person described in section 

7513(a), to the extent necessary in connection with the processing, 

storage, transmission, and reproduction of such returns and return 

information, the programming, maintenance, repair, testing, and 

procurement of equipment, and the providing of other services, for 

purposes of tax administration. 

(o) DISCLOSURE OF RETURNS AND RETURN INFORMATION WITH

RESPECT TO CERTAIN TAXES.— 

(1) TAXES IMPOSED BY SUBTITLE E.— 

(A) IN GENERAL.—Returns and return information with 

respect to taxes imposed by subtitle E (relating to taxes on 

alcohol, tobacco, and firearms) shall be open to inspection 

by or disclosure to officers and employees of a Federal 


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agency whose official duties require such inspection or disclosure. 

(B) USE IN CERTAIN PROCEEDINGS.—Returns and return 

information disclosed to a Federal agency under subparagraph (A) may be used in an action or proceeding (or in 

preparation for such action or proceeding) brought under 

section 625 of the American Jobs Creation Act of 2004 for 

the collection of any unpaid assessment or penalty arising 

under such Act. 

(2) TAXES IMPOSED BY CHAPTER 35.—Returns and return information with respect to taxes imposed by chapter 35 (relating 

to taxes on wagering) shall, notwithstanding any other provision of this section, be open to inspection by or disclosure only 

to such person or persons and for such purpose or purposes as 

are prescribed by section 4424. 

(p) PROCEDURE AND RECORDKEEPING.— 

(1) MANNER, TIME, AND PLACE OF INSPECTIONS.—Requests for 

the inspection or disclosure of a return or return information 

and such inspection or disclosure shall be made in such manner and at such time and place as shall be prescribed by the 

Secretary. 

(2) PROCEDURE.— (A) REPRODUCTION OF RETURNS.—A reproduction or certified reproduction of a return shall, upon written request, 

be furnished to any person to whom disclosure or inspection of such return is authorized under this section. A reasonable fee may be prescribed for furnishing such reproduction or certified reproduction. 

(B) DISCLOSURE OF RETURN INFORMATION.—Return information disclosed to any person under the provisions of this 

title may be provided in the form of written documents, reproductions of such documents, films or photoimpressions, 

or electronically produced tapes, disks, or records, or by 

any other mode or means which the Secretary determines 

necessary or appropriate. A reasonable fee may be prescribed for furnishing such return information. 

(C) USE OF REPRODUCTIONS.—Any reproduction of any 

return, document, or other matter made in accordance 

with this paragraph shall have the same legal status as 

the original, and any such reproduction shall, if properly 

authenticated, be admissible in evidence in any judicial or 

administrative proceeding as if it were the original, whether or not the original is in existence. 

(3) RECORDS OF INSPECTION AND DISCLOSURE.— 

(A) SYSTEM OF RECORDKEEPING.—Except as otherwise 

provided by this paragraph, the Secretary shall maintain 

a permanent system of standardized records or accountings of all requests for inspection or disclosure of returns 

and return information (including the reasons for and 

dates of such requests) and of returns and return information inspected or disclosed under this section and section 

6104(c). Notwithstanding the provisions of section 552a(c) 

of title 5, United States Code, the Secretary shall not be 

required to maintain a record or accounting of requests for 

inspection or disclosure of returns and return information, 


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or of returns and return information inspected or disclosed, under the authority of subsections (c), (e), (f)(5), 

(h)(1), (3)(A), or (4), (i)(4), or (8)(A)(ii),(k)(1), (2),(6), (8), or 

(9), (l)(1), (4)(B), (5), (7), (8), (9), (10), (11), (12), (13), (14), 

(15), (16), (17), or (18), (m), or (n). The records or accountings required to be maintained under this paragraph shall 

be available for examination by the Joint Committee on 

Taxation or the Chief of Staff of such joint committee. 

Such record or accounting shall also be available for examination by such person or persons as may be, but only to 

the extent, authorized to make such examination under 

section 552a(c)(3) of title 5, United States Code. 

(B) REPORT BY THE SECRETARY.—The Secretary shall, 

within 90 days after the close of each calendar year, furnish to the Joint Committee on Taxation a report with respect to, or summary of, the records or accountings described in subparagraph (A) in such form and containing 

such information as such joint committee or the Chief of 

Staff of such joint committee may designate. Such report 

or summary shall not, however, include a record or accounting of any request by the President under subsection 

(g) for, or the disclosure in response to such request of, any 

return or return information with respect to any individual 

who, at the time of such request, was an officer or employee of the executive branch of the Federal Government. 

Such report or summary, or any part thereof, may be disclosed by such joint committee to such persons and for 

such purposes as the joint committee may, by record vote 

of a majority of the members of the joint committee, determine. 

(C) PUBLIC REPORT ON DISCLOSURES.—The Secretary 

shall, within 90 days after the close of each calendar year, 

furnish to the Joint Committee on Taxation for disclosure 

to the public a report with respect to the records or accountings described in subparagraph (A) which— 

(i) provides with respect to each Federal agency, 

each agency, body, or commission described in subsection (d), (i)(3)(B)(i) or (7)(A)(ii), or (l)(6), and the 

Government Accountability Office the number of— 

(I) requests for disclosure of returns and return 

information, 

(II) instances in which returns and return information were disclosed pursuant to such requests 

or otherwise, 

(III) taxpayers whose returns, or return information with respect to whom, were disclosed pursuant to such requests, and 

(ii) describes the general purposes for which such requests were made, 

(4) SAFEGUARDS.—Any Federal agency described in subsection (h)(2), (h)(5), (i)(1), (2), (3), (5), or (7), (j)(1), (2), or (5), 

(k)(8), (10), or (11), (l)(1), (2), (3), (5), (10), (11), (13), (14), (17), 

or (22) or (o)(1)(A), the Government Accountability Office, the 

Congressional Budget Office, or any agency, body, or commission described in subsection (d), (i)(1)(C), (3)(B)(i), or 7(A)(ii), or 


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(k)(10), (l)(6), (7), (8), (9), (12), (15), or (16), any appropriate 

State officer (as defined in section 6104(c)), or any other person 

described in subsection (k)(10), subsection (l)(10), (16), (18), 

(19), or (20), or any entity described in subsection (l)(21), shall, 

as a condition for receiving returns or return information— 

(A) establish and maintain, to the satisfaction of the Secretary, a permanent system of standardized records with 

respect to any request, the reason for such request, and 

the date of such request made by or of it and any disclosure of return or return information made by or to it; 

(B) establish and maintain, to the satisfaction of the Secretary, a secure area or place in which such returns or return information shall be stored; 

(C) restrict, to the satisfaction of the Secretary, access to 

the returns or return information only to persons whose 

duties or responsibilities require access and to whom disclosure may be made under the provisions of this title; 

(D) provide such other safeguards which the Secretary 

determines (and which he prescribes in regulations) to be 

necessary or appropriate to protect the confidentiality of 

the returns or return information; 

(E) furnish a report to the Secretary, at such time and 

containing such information as the Secretary may prescribe, which describes the procedures established and utilized by such agency, body, or commission, the Government Accountability Office, or the Congressional Budget 

Office for ensuring the confidentiality of returns and return information required by this paragraph; and 

(F) upon completion of use of such returns or return information— 

(i) in the case of an agency, body, or commission described in subsection (d), (i)(3)(B)(i), (k)(10), or (l)(6), 

(7), (8), (9), or (16), any appropriate State officer (as 

defined in section 6104(c)), or any other person described in subsection (k)(10) or subsection (l)(10), (16), 

(18), (19), or (20) return to the Secretary such returns 

or return information (along with any copies made 

therefrom) or make such returns or return information 

undisclosable in any manner and furnish a written report to the Secretary describing such manner, 

(ii) in the case of an agency described in subsections 

(h)(2), (h)(5), (i)(1), (2), (3), (5) or (7), (j)(1), (2), or (5), 

(k)(8), (10), or (11), (l)(1), (2), (3), (5), (10), (11), (12), 

(13), (14), (15), (17), or (22), or (o)(1)(A) or any entity 

described in subsection (l)(21),,, the Government Accountability Office, or the Congressional Budget Office, 

either— 

(I) return to the Secretary such returns or return information (along with any copies made 

therefrom), 

(II) otherwise make such returns or return information undisclosable, or 

(III) to the extent not so returned or made 

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graph continue to be met with respect to such returns or return information, and 

(iii) in the case of the Department of Health and 

Human Services for purposes of subsection (m)(6), destroy all such return information upon completion of 

its use in providing the notification for which the information was obtained, so as to make such information undisclosable; 

except that the conditions of subparagraphs (A), (B), (C), (D), 

and (E) shall cease to apply with respect to any return or return information if, and to the extent that, such return or return information is disclosed in the course of any judicial or 

administrative proceeding and made a part of the public record 

thereof. If the Secretary determines that any such agency, 

body, or commission, including an agency, an appropriate State 

officer (as defined in section 6104(c)), or any other person described in subsection (k)(10) or subsection (l)(10), (16), (18), 

(19), or (20) or any entity described in subsection (l)(21),, or the 

Government Accountability Office or the Congressional Budget 

Office, has failed to, or does not, meet the requirements of this 

paragraph, he may, after any proceedings for review established under paragraph (7), take such actions as are necessary 

to ensure such requirements are met, including refusing to disclose returns or return information to such agency, body, or 

commission, including an agency, an appropriate State officer 

(as defined in section 6104(c)), or any other person described 

in subsection (k)(10) or subsection (l)(10), (16), (18), (19), or 

(20) or any entity described in subsection (l)(21),, or the Government Accountability Office or the Congressional Budget Office, until he determines that such requirements have been or 

will be met. In the case of any agency which receives any mailing address under paragraph (2), (4), (6), or (7) of subsection 

(m) and which discloses any such mailing address to any agent 

or which receives any information under paragraph (6)(A), (10), 

(12)(B), or (16) of subsection (l) and which discloses any such 

information to any agent, or any person including an agent described in subsection (l)(10) or (16), this paragraph shall apply 

to such agency and each such agent or other person (except 

that, in the case of an agent, or any person including an agent 

described in subsection (l)(10) or (16), any report to the Secretary or other action with respect to the Secretary shall be 

made or taken through such agency). For purposes of applying 

this paragraph in any case to which subsection (m)(6) applies, 

the term ‘‘return information’’ includes related blood donor 

records (as defined in section 1141(h)(2) of the Social Security 

Act). 

(5) REPORT ON PROCEDURES AND SAFEGUARDS.—After the 

close of each calendar year, the Secretary shall furnish to each 

committee described in subsection (f)(1) a report which describes the procedures and safeguards established and utilized 

by such agencies, bodies, or commissions, the Government Accountability Office, and the Congressional Budget Office for ensuring the confidentiality of returns and return information as 

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stances of deficiencies in, and failure to establish or utilize, 

such procedures. 

(6) AUDIT OF PROCEDURES AND SAFEGUARDS.— 

(A) AUDIT BY COMPTROLLER GENERAL.—The Comptroller 

General may audit the procedures and safeguards established by such agencies, bodies, or commissions and the 

Congressional Budget Office pursuant to this subsection to 

determine whether such safeguards and procedures meet 

the requirements of this subsection and ensure the confidentiality of returns and return information. The Comptroller General shall notify the Secretary before any such 

audit is conducted. 

(B) RECORDS OF INSPECTION AND REPORTS BY THE COMPTROLLER GENERAL.—The Comptroller General shall— 

(i) maintain a permanent system of standardized 

records and accountings of returns and return information inspected by officers and employees of the Government Accountability Office under subsection 

(i)(8)(A)(ii) and shall, within 90 days after the close of 

each calendar year, furnish to the Secretary a report 

with respect to, or summary of, such records or accountings in such form and containing such information as the Secretary may prescribe, and 

(ii) furnish an annual report to each committee described in subsection (f) and to the Secretary setting 

forth his findings with respect to any audit conducted 

pursuant to subparagraph (A). 

The Secretary may disclose to the Joint Committee any report furnished to him under clause (i). 

(7) ADMINISTRATIVE REVIEW.—The Secretary shall by regulations prescribe procedures which provide for administrative review of any determination under paragraph (4) that any agency, body, or commission described in subsection (d) has failed 

to meet the requirements of such paragraph. 

(8) STATE LAW REQUIREMENTS.— 

(A) SAFEGUARDS.—Notwithstanding any other provision 

of this section, no return or return information shall be 

disclosed after December 31, 1978, to any officer or employee of any State which requires a taxpayer to attach to, 

or include in, any State tax return a copy of any portion 

of his Federal return, or information reflected on such Federal return, unless such State adopts provisions of law 

which protect the confidentiality of the copy of the Federal 

return (or portion thereof) attached to, or the Federal return information reflected on, such State tax return. 

(B) DISCLOSURE OF RETURNS OR RETURN INFORMATION IN

STATE RETURNS.—Nothing in subparagraph (A) or paragraph (9) shall be construed to prohibit the disclosure by 

an officer or employee of any State of any copy of any portion of a Federal return or any information on a Federal 

return which is required to be attached or included in a 

State return to another officer or employee of such State 

(or political subdivision of such State) if such disclosure is 

specifically authorized by State law. 


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(9) DISCLOSURE TO CONTRACTORS AND OTHER AGENTS.—Notwithstanding any other provision of this section, no return or 

return information shall be disclosed to any contractor or other 

agent of a Federal, State, or local agency unless such agency, 

to the satisfaction of the Secretary— 

(A) has requirements in effect which require each such 

contractor or other agent which would have access to returns or return information to provide safeguards (within 

the meaning of paragraph (4)) to protect the confidentiality 

of such returns or return information, 

(B) agrees to conduct an on-site review every 3 years (or 

a mid-point review in the case of contracts or agreements 

of less than 3 years in duration) of each contractor or other 

agent to determine compliance with such requirements, 

(C) submits the findings of the most recent review conducted under subparagraph (B) to the Secretary as part of 

the report required by paragraph (4)(E), and 

(D) certifies to the Secretary for the most recent annual 

period that such contractor or other agent is in compliance 

with all such requirements. 

The certification required by subparagraph (D) shall include 

the name and address of each contractor and other agent, a description of the contract or agreement with such contractor or 

other agent, and the duration of such contract or agreement. 

The requirements of this paragraph shall not apply to disclosures pursuant to subsection (n) for purposes of Federal tax administration. 

(q) REGULATIONS.—The Secretary is authorized to prescribe such 

other regulations as are necessary to carry out the provisions of 

this section. 

* * * * * * * 

CHAPTER 64—COLLECTION 

* * * * * * * 

Subchapter B—Receipt of Payment 

* * * * * * * 

SEC. 6311. PAYMENT OF TAX BY COMMERCIALLY ACCEPTABLE MEANS. 

(a) AUTHORITY TO RECEIVE.—It shall be lawful for the Secretary 

to receive for internal revenue taxes (or in payment for internal 

revenue stamps) any commercially acceptable means that the Secretary deems appropriate to the extent and under the conditions 

provided in regulations prescribed by the Secretary. 

(b) ULTIMATE LIABILITY.—If a check, money order, or other method of payment, including payment by credit card, debit card, or 

charge card so received is not duly paid, or is paid and subsequently charged back to the Secretary, the person by whom such 

check, or money order, or other method of payment has been tendered shall remain liable for the payment of the tax or for the 

stamps, and for all legal penalties and additions, to the same extent as if such check, money order, or other method of payment had 

not been tendered. 


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(c) LIABILITY OF BANKS AND OTHERS.—If any certified, treasurer’s, or cashier’s check (or other guaranteed draft), or any money 

order, or any other means of payment that has been guaranteed by 

a financial institution (such as a credit card, debit card, or charge 

card transaction which has been guaranteed expressly by a financial institution) so received is not duly paid, the United States 

shall, in addition to its right to exact payment from the party originally indebted therefor, have a lien for— 

(1) the amount of such check (or draft) upon all assets of the 

financial institution on which drawn, 

(2) the amount of such money order upon all the assets of 

the issuer thereof, or 

(3) the guaranteed amount of any other transaction upon all 

the assets of the institution making such guarantee, 

and such amount shall be paid out of such assets in preference to 

any other claims whatsoever against such financial institution, 

issuer, or guaranteeing institution, except the necessary costs and 

expenses of administration and the reimbursement of the United 

States for the amount expended in the redemption of the circulating notes of such financial institution. 

(d) PAYMENT BY OTHER MEANS.— 

(1) AUTHORITY TO PRESCRIBE REGULATIONS.—The Secretary 

shall prescribe such regulations as the Secretary deems necessary to receive payment by commercially acceptable means, 

including regulations that— 

(A) specify which methods of payment by commercially 

acceptable means will be acceptable, 

(B) specify when payment by such means will be considered received, 

(C) identify types of nontax matters related to payment 

by such means that are to be resolved by persons ultimately liable for payment and financial intermediaries, 

without the involvement of the Secretary, and 

(D) ensure that tax matters will be resolved by the Secretary, without the involvement of financial intermediaries. 

(2) AUTHORITY TO ENTER INTO CONTRACTS.—Notwithstanding 

section 3718(f) of title 31, United States Code, the Secretary is 

authorized to enter into contracts to obtain services related to 

receiving payment by other means where cost beneficial to the 

Government. The Secretary may not pay any fee or provide 

any other consideration under any such contract for the use of 

credit, debit, or charge cards for the payment of taxes imposed 

by subtitle A. The preceding sentence shall not apply to the extent that the Secretary ensures that any such fee or other consideration is fully recouped by the Secretary in the form of fees 

paid to the Secretary by persons paying taxes imposed under 

subtitle A with credit, debit, or charge cards pursuant to such 

contract. Notwithstanding the preceding sentence, the Secretary 

shall seek to minimize the amount of any fee or other consideration that the Secretary pays under any such contract. 

(3) SPECIAL PROVISIONS FOR USE OF CREDIT CARDS.—If use of 

credit cards is accepted as a method of payment of taxes pursuant to subsection (a)— 


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(A) a payment of internal revenue taxes (or a payment 

for internal revenue stamps) by a person by use of a credit 

card shall not be subject to section 161 of the Truth in 

Lending Act (15 U.S.C. 1666), or to any similar provisions 

of State law, if the error alleged by the person is an error 

relating to the underlying tax liability, rather than an 

error relating to the credit card account such as a computational error or numerical transposition in the credit 

card transaction or an issue as to whether the person authorized payment by use of the credit card, 

(B) a payment of internal revenue taxes (or a payment 

for internal revenue stamps) shall not be subject to section 

170 of the Truth in Lending Act (15 U.S.C. 1666i), or to 

any similar provisions of State law, 

(C) a payment of internal revenue taxes (or a payment 

for internal revenue stamps) by a person by use of a debit 

card shall not be subject to section 908 of the Electronic 

Fund Transfer Act (15 U.S.C. 1693f), or to any similar provisions of State law, if the error alleged by the person is 

an error relating to the underlying tax liability, rather 

than an error relating to the debit card account such as a 

computational error or numerical transposition in the 

debit card transaction or an issue as to whether the person 

authorized payment by use of the debit card, 

(D) the term ‘‘creditor’’ under section 103(f) of the Truth 

in Lending Act (15 U.S.C. 1602(f)) shall not include the 

Secretary with respect to credit card transactions in payment of internal revenue taxes (or payment for internal 

revenue stamps), and 

(E) notwithstanding any other provision of law to the 

contrary, in the case of payment made by credit card or 

debit card transaction of an amount owed to a person as 

the result of the correction of an error under section 161 

of the Truth in Lending Act (15 U.S.C. 1666) or section 

908 of the Electronic Fund Transfer Act (15 U.S.C. 1693f), 

the Secretary is authorized to provide such amount to such 

person as a credit to that person’s credit card or debit card 

account through the applicable credit card or debit card 

system. 

(e) CONFIDENTIALITY OF INFORMATION.— 

(1) IN GENERAL.—Except as otherwise authorized by this 

subsection, no person may use or disclose any information relating to credit or debit card transactions obtained pursuant to 

section 6103(k)(9) other than for purposes directly related to 

the processing of such transactions, or the billing or collection 

of amounts charged or debited pursuant thereto. 

(2) EXCEPTIONS.— 

(A) Debit or credit card issuers or others acting on behalf 

of such issuers may also use and disclose such information 

for purposes directly related to servicing an issuer’s accounts. 

(B) Debit or credit card issuers or others directly involved in the processing of credit or debit card transactions 

or the billing or collection of amounts charged or debited 


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thereto may also use and disclose such information for 

purposes directly related to— 

(i) statistical risk and profitability assessment; 

(ii) transferring receivables, accounts, or interest 

therein; 

(iii) auditing the account information; 

(iv) complying with Federal, State, or local law; and 

(v) properly authorized civil, criminal, or regulatory 

investigation by Federal, State, or local authorities. 

(3) PROCEDURES.—Use and disclosure of information under 

this paragraph shall be made only to the extent authorized by 

written procedures promulgated by the Secretary. 

(4) CROSS REFERENCE.—For provision providing for civil damages for violation of paragraph (1), see section 7431. 

* * * * * * * 

CHAPTER 75—CRIMES, OTHER OFFENSES, AND 

FORFEITURES 

* * * * * * * 

Subchapter A—Crimes 

* * * * * * * 

PART I—GENERAL PROVISIONS 

* * * * * * * 

SEC. 7213. UNAUTHORIZED DISCLOSURE OF INFORMATION. 

(a) RETURNS AND RETURN INFORMATION.— 

(1) FEDERAL EMPLOYEES AND OTHER PERSONS.—It shall be 

unlawful for any officer or employee of the United States or 

any person described in section 6103(n) (or an officer or employee of any such person), or any former officer or employee, 

willfully to disclose to any person, except as authorized in this 

title, any return or return information (as defined in section 

6103(b)). Any violation of this paragraph shall be a felony punishable upon conviction by a fine in any amount not exceeding 

$5,000, or imprisonment of not more than 5 years, or both, together with the costs of prosecution, and if such offense is committed by any officer or employee of the United States, he 

shall, in addition to any other punishment, be dismissed from 

office or discharged from employment upon conviction for such 

offense. 

(2) STATE AND OTHER EMPLOYEES.—It shall be unlawful for 

any person (not described in paragraph (1)) willfully to disclose 

to any person, except as authorized in this title, any return or 

return information (as defined in section 6103(b)) acquired by 

him or another person under subsection (d), (i)(1)(C), (3)(B)(i), 

or (7)(A)(ii), (k)(10) or (13), (l)(6), (7), (8), (9), (10), (12), (15), 

(16), (19), (20), or (21) or (m)(2), (4), (5), (6), or (7) of section 

6103 or under section 6104(c). Any violation of this paragraph 

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ceeding $5,000, or imprisonment of not more than 5 years, or 

both, together with the costs of prosecution. 

(3) OTHER PERSONS.—It shall be unlawful for any person to 

whom any return or return information (as defined in section 

6103(b)) is disclosed in a manner unauthorized by this title 

thereafter willfully to print or publish in any manner not provided by law any such return or return information. Any violation of this paragraph shall be a felony punishable by a fine 

in any amount not exceeding $5,000, or imprisonment of not 

more than 5 years, or both, together with the costs of prosecution. 

(4) SOLICITATION.—It shall be unlawful for any person willfully to offer any item of material value in exchange for any 

return or return information (as defined in section 6103(b)) and 

to receive as a result of such solicitation any such return or return information. Any violation of this paragraph shall be a 

felony punishable by a fine in any amount not exceeding 

$5,000, or imprisonment of not more than 5 years, or both, together with the costs of prosecution. 

(5) SHAREHOLDERS.—It shall be unlawful for any person to 

whom a return or return information (as defined in section 

6103(b)) is disclosed pursuant to the provisions of section 

6103(e)(1)(D)(iii) willfully to disclose such return or return information in any manner not provided by law. Any violation of 

this paragraph shall be a felony punishable by a fine in any 

amount not to exceed $5,000, or imprisonment of not more 

than 5 years, or both, together with the costs of prosecution. 

(b) DISCLOSURE OF OPERATIONS OF MANUFACTURER OR PRODUCER.—Any officer or employee of the United States who divulges 

or makes known in any manner whatever not provided by law to 

any person the operations, style of work, or apparatus of any manufacturer or producer visited by him in the discharge of his official 

duties shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $1,000, or imprisoned not more 

than 1 year, or both, together with the costs of prosecution; and the 

offender shall be dismissed from office or discharged from employment. 

(c) DISCLOSURES BY CERTAIN DELEGATES OF SECRETARY.—All provisions of law relating to the disclosure of information, and all provisions of law relating to penalties for unauthorized disclosure of 

information, which are applicable in respect of any function under 

this title when performed by an officer or employee of the Treasury 

Department are likewise applicable in respect of such function 

when performed by any person who is a ‘‘delegate’’ within the 

meaning of section 7701(a)(12)(B). 

(d) DISCLOSURE OF SOFTWARE.—Any person who willfully divulges or makes known software (as defined in section 7612(d)(1)) 

to any person in violation of section 7612 shall be guilty of a felony 

and, upon conviction thereof, shall be fined not more than $5,000, 

or imprisoned not more than 5 years, or both, together with the 

costs of prosecution. 

(e) CROSS REFERENCES.— (1) PENALTIES FOR DISCLOSURE OF INFORMATION BY PREPARERS OF RETURNS.—For penalty for disclosure or use of information by preparers of returns, see section 7216. 


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(2) PENALTIES FOR DISCLOSURE OF CONFIDENTIAL INFORMA- TION FOR PENALTIES FOR DISCLOSURE OF CONFIDENTIAL INFOR- MATION BY.—any officer or employee of the United States or 

any department or agency thereof, see 18 U.S.C. 1905. 

* * * * * * * 

CHAPTER 80—GENERAL RULES 

* * * * * * * 

Subchapter A—Application of Internal Revenue 

Laws 

* * * * * * * 

SEC. 7803. COMMISSIONER OF INTERNAL REVENUE; OTHER OFFICIALS. 

(a) COMMISSIONER OF INTERNAL REVENUE.— 

(1) APPOINTMENT.— 

(A) IN GENERAL.—There shall be in the Department of 

the Treasury a Commissioner of Internal Revenue who 

shall be appointed by the President, by and with the advice and consent of the Senate. Such appointment shall be 

made from individuals who, among other qualifications, 

have a demonstrated ability in management. 

(B) TERM.—The term of the Commissioner of Internal 

Revenue shall be a 5-year term, beginning with a term to 

commence on November 13, 1997. Each subsequent term 

shall begin on the day after the date on which the previous 

term expires. 

(C) VACANCY.—Any individual appointed as Commissioner of Internal Revenue during a term as defined in 

subparagraph (B) shall be appointed for the remainder of 

that term. 

(D) REMOVAL.—The Commissioner may be removed at 

the will of the President. 

(E) REAPPOINTMENT.—The Commissioner may be appointed to serve more than one term. 

(2) DUTIES.—The Commissioner shall have such duties and 

powers as the Secretary may prescribe, including the power 

to— 

(A) administer, manage, conduct, direct, and supervise 

the execution and application of the internal revenue laws 

or related statutes and tax conventions to which the 

United States is a party; and 

(B) recommend to the President a candidate for appointment as Chief Counsel for the Internal Revenue Service 

when a vacancy occurs, and recommend to the President 

the removal of such Chief Counsel. 

If the Secretary determines not to delegate a power specified 

in subparagraph (A) or (B), such determination may not take 

effect until 30 days after the Secretary notifies the Committees 

on Ways and Means, Government Reform and Oversight, and 

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mittees on Finance, Governmental Affairs, and Appropriations 

of the Senate. 

(3) EXECUTION OF DUTIES IN ACCORD WITH TAXPAYER

RIGHTS.—In discharging his duties, the Commissioner shall ensure that employees of the Internal Revenue Service are familiar with and act in accord with taxpayer rights as afforded by 

other provisions of this title, including— 

(A) the right to be informed, 

(B) the right to quality service, 

(C) the right to pay no more than the correct amount of 

tax, 

(D) the right to challenge the position of the Internal 

Revenue Service and be heard, 

(E) the right to appeal a decision of the Internal Revenue Service in an independent forum, 

(F) the right to finality, 

(G) the right to privacy, 

(H) the right to confidentiality, 

(I) the right to retain representation, and 

(J) the right to a fair and just tax system. 

(4) CONSULTATION WITH BOARD.—The Commissioner shall 

consult with the Oversight Board on all matters set forth in 

paragraphs (2) and (3) (other than paragraph (3)(A)) of section 

7802(d). 

(b) CHIEF COUNSEL FOR THE INTERNAL REVENUE SERVICE.— 

(1) APPOINTMENT.—There shall be in the Department of the 

Treasury a Chief Counsel for the Internal Revenue Service who 

shall be appointed by the President, by and with the consent 

of the Senate. 

(2) DUTIES.—The Chief Counsel shall be the chief law officer 

for the Internal Revenue Service and shall perform such duties 

as may be prescribed by the Secretary, including the duty— 

(A) to be legal advisor to the Commissioner and the 

Commissioner’s officers and employees; 

(B) to furnish legal opinions for the preparation and review of rulings and memoranda of technical advice; 

(C) to prepare, review, and assist in the preparation of 

proposed legislation, treaties, regulations, and Executive 

orders relating to laws which affect the Internal Revenue 

Service; 

(D) to represent the Commissioner in cases before the 

Tax Court; and 

(E) to determine which civil actions should be litigated 

under the laws relating to the Internal Revenue Service 

and prepare recommendations for the Department of Justice regarding the commencement of such actions. 

If the Secretary determines not to delegate a power specified 

in subparagraph (A), (B), (C), (D), or (E), such determination 

may not take effect until 30 days after the Secretary notifies 

the Committees on Ways and Means, Government Reform and 

Oversight, and Appropriations of the House of Representatives 

and the Committees on Finance, Governmental Affairs, and 

Appropriations of the Senate. 


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(3) PERSONS TO WHOM CHIEF COUNSEL REPORTS.—The Chief 

Counsel shall report directly to the Commissioner of Internal 

Revenue, except that— 

(A) the Chief Counsel shall report to both the Commissioner and the General Counsel for the Department of the 

Treasury with respect to— 

(i) legal advice or interpretation of the tax law not 

relating solely to tax policy; 

(ii) tax litigation; and (B) the Chief Counsel shall report to the General Counsel with respect to legal advice or interpretation of the tax law relating solely to 

tax policy. 

If there is any disagreement between the Commissioner and 

the General Counsel with respect to any matter jointly referred 

to them under subparagraph (A), such matter shall be submitted to the Secretary or Deputy Secretary for resolution. 

(4) CHIEF COUNSEL PERSONNEL.—All personnel in the Office 

of Chief Counsel shall report to the Chief Counsel. 

(c) OFFICE OF THE TAXPAYER ADVOCATE.— 

(1) ESTABLISHMENT.— 

(A) IN GENERAL.—There is established in the Internal 

Revenue Service an office to be known as the ‘‘Office of the 

Taxpayer Advocate’’. 

(B) NATIONAL TAXPAYER ADVOCATE.— (i) IN GENERAL.—The Office of the Taxpayer Advocate shall be under the supervision and direction of an 

official to be known as the ‘‘National Taxpayer Advocate’’. The National Taxpayer Advocate shall report directly to the Commissioner of Internal Revenue and 

shall be entitled to compensation at the same rate as 

the highest rate of basic pay established for the Senior 

Executive Service under section 5382 of title 5, United 

States Code, or, if the Secretary of the Treasury so determines, at a rate fixed under section 9503 of such 

title. 

(ii) APPOINTMENT.—The National Taxpayer Advocate 

shall be appointed by the Secretary of the Treasury 

after consultation with the Commissioner of Internal 

Revenue and the Oversight Board and without regard 

to the provisions of title 5, United States Code, relating to appointments in the competitive service or the 

Senior Executive Service. 

(iii) QUALIFICATIONS.—An individual appointed 

under clause (ii) shall have— 

(I) a background in customer service as well as 

tax law; and 

(II) experience in representing individual taxpayers. 

(iv) RESTRICTION ON EMPLOYMENT.—An individual 

may be appointed as the National Taxpayer Advocate 

only if such individual was not an officer or employee 

of the Internal Revenue Service during the 2-year period ending with such appointment and such individual agrees not to accept any employment with the 

Internal Revenue Service for at least 5 years after 


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ceasing to be the National Taxpayer Advocate. Service 

as an officer or employee of the Office of the Taxpayer 

Advocate shall not be taken into account in applying 

this clause. 

(2) FUNCTIONS OF OFFICE.— 

(A) IN GENERAL.—It shall be the function of the Office of 

the Taxpayer Advocate to— 

(i) assist taxpayers in resolving problems with the 

Internal Revenue Service; 

(ii) identify areas in which taxpayers have problems 

in dealings with the Internal Revenue Service; 

(iii) to the extent possible, propose changes in the 

administrative practices of the Internal Revenue Service to mitigate problems identified under clause (ii); 

and 

(iv) identify potential legislative changes which may 

be appropriate to mitigate such problems. 

(B) ANNUAL REPORTS.— 

(i) OBJECTIVES.—Not later than June 30 of each calendar year, the National Taxpayer Advocate shall report to the Committee on Ways and Means of the 

House of Representatives and the Committee on Finance of the Senate on the objectives of the Office of 

the Taxpayer Advocate for the fiscal year beginning in 

such calendar year. Any such report shall contain full 

and substantive analysis, in addition to statistical information. 

(ii) ACTIVITIES.—Not later than December 31 of each 

calendar year, the National Taxpayer Advocate shall 

report to the Committee on Ways and Means of the 

House of Representatives and the Committee on Finance of the Senate on the activities of the Office of 

the Taxpayer Advocate during the fiscal year ending 

during such calendar year. Any such report shall contain full and substantive analysis, in addition to statistical information, and shall— 

(I) identify the initiatives the Office of the Taxpayer Advocate has taken on improving taxpayer 

services and Internal Revenue Service responsiveness; 

(II) contain recommendations received from individuals with the authority to issue Taxpayer Assistance Orders under section 7811; 

(III) contain a summary of at least 20 of the 

most serious problems encountered by taxpayers, 

including a description of the nature of such problems; 

(IV) contain an inventory of the items described 

in subclauses (I), (II), and (III) for which action 

has been taken and the result of such action; 

(V) contain an inventory of the items described 

in subclauses (I), (II), and (III) for which action remains to be completed and the period during 

which each item has remained on such inventory; 


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(VI) contain an inventory of the items described 

in subclauses (I), (II), and (III) for which no action 

has been taken, the period during which each 

item has remained on such inventory, the reasons 

for the inaction, and identify any Internal Revenue Service official who is responsible for such 

inaction; 

(VII) identify any Taxpayer Assistance Order 

which was not honored by the Internal Revenue 

Service in a timely manner, as specified under 

section 7811(b); 

(VIII) contain recommendations for such administrative and legislative action as may be appropriate to resolve problems encountered by taxpayers; 

(IX) identify areas of the tax law that impose 

significant compliance burdens on taxpayers or 

the Internal Revenue Service, including specific 

recommendations for remedying these problems; 

(X) identify the 10 most litigated issues for each 

category of taxpayers, including recommendations 

for mitigating such disputes; and 

(XI) include such other information as the National Taxpayer Advocate may deem advisable. 

(iii) REPORT TO BE SUBMITTED DIRECTLY.—Each report required under this subparagraph shall be provided directly to the committees described in clause (i) 

without any prior review or comment from the Commissioner, the Secretary of the Treasury, the Oversight Board, any other officer or employee of the Department of the Treasury, or the Office of Management and Budget. 

(iv) COORDINATION WITH REPORT OF TREASURY IN- SPECTOR GENERAL FOR TAX ADMINISTRATION.—To the 

extent that information required to be reported under 

clause (ii) is also required to be reported under paragraph (1) or (2) of subsection (d) by the Treasury Inspector General for Tax Administration, the National 

Taxpayer Advocate shall not contain such information 

in the report submitted under such clause. 

(C) OTHER RESPONSIBILITIES.—The National Taxpayer 

Advocate shall— 

(i) monitor the coverage and geographic allocation of 

local offices of taxpayer advocates; 

(ii) develop guidance to be distributed to all Internal 

Revenue Service officers and employees outlining the 

criteria for referral of taxpayer inquiries to local offices of taxpayer advocates; 

(iii) ensure that the local telephone number for each 

local office of the taxpayer advocate is published and 

available to taxpayers served by the office; and 

(iv) in conjunction with the Commissioner, develop 

career paths for local taxpayer advocates choosing to 

make a career in the Office of the Taxpayer Advocate. 

(D) PERSONNEL ACTIONS.— 


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(i) IN GENERAL.—The National Taxpayer Advocate 

shall have the responsibility and authority to— 

(I) appoint local taxpayer advocates and make 

available at least 1 such advocate for each State; 

and 

(II) evaluate and take personnel actions (including dismissal) with respect to any employee of any 

local office of a taxpayer advocate described in 

subclause (I). 

(ii) CONSULTATION.—The National Taxpayer Advocate may consult with the appropriate supervisory personnel of the Internal Revenue Service in carrying out 

the National Taxpayer Advocate’s responsibilities 

under this subparagraph. 

(3) RESPONSIBILITIES OF COMMISSIONER.—The Commissioner 

shall establish procedures requiring a formal response to all 

recommendations submitted to the Commissioner by the National Taxpayer Advocate within 3 months after submission to 

the Commissioner. 

(4) OPERATION OF LOCAL OFFICES.— 

(A) IN GENERAL.—Each local taxpayer advocate— 

(i) shall report to the National Taxpayer Advocate or 

delegate thereof; 

(ii) may consult with the appropriate supervisory 

personnel of the Internal Revenue Service regarding 

the daily operation of the local office of the taxpayer 

advocate; 

(iii) shall, at the initial meeting with any taxpayer 

seeking the assistance of a local office of the taxpayer 

advocate, notify such taxpayer that the taxpayer advocate offices operate independently of any other Internal Revenue Service office and report directly to Congress through the National Taxpayer Advocate; and 

(iv) may, at the taxpayer advocate’s discretion, not 

disclose to the Internal Revenue Service contact with, 

or information provided by, such taxpayer. 

(B) MAINTENANCE OF INDEPENDENT COMMUNICATIONS.— 

Each local office of the taxpayer advocate shall maintain 

a separate phone, facsimile, and other electronic communication access, and a separate post office address. 

(d) ADDITIONAL DUTIES OF THE TREASURY INSPECTOR GENERAL

FOR TAX ADMINISTRATION.— 

(1) ANNUAL REPORTING.—The Treasury Inspector General for 

Tax Administration shall include in one of the semiannual reports under section 5 of the Inspector General Act of 1978— 

(A) an evaluation of the compliance of the Internal Revenue Service with— 

(i) restrictions under section 1204 of the Internal 

Revenue Service Restructuring and Reform Act of 

1998 on the use of enforcement statistics to evaluate 

Internal Revenue Service employees; 

(ii) restrictions under section 7521 on directly contacting taxpayers who have indicated that they prefer 

their representatives be contacted; 


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(iii) required procedures under section 6320 upon 

the filing of a notice of a lien; 

(iv) required procedures under subchapter D of 

chapter 64 for seizure of property for collection of 

taxes, including required procedures under section 

6330 regarding levies; and 

(v) restrictions under section 3707 of the Internal 

Revenue Service Restructuring and Reform Act of 

1998 on designation of taxpayers; 

(B) a review and a certification of whether or not the 

Secretary is complying with the requirements of section 

6103(e)(8) to disclose information to an individual filing a 

joint return on collection activity involving the other individual filing the return; 

(C) information regarding extensions of the statute of 

limitations for assessment and collection of tax under section 6501 and the provision of notice to taxpayers regarding requests for such extension; 

(D) an evaluation of the adequacy and security of the 

technology of the Internal Revenue Service; 

(E) any termination or mitigation under section 1203 of 

the Internal Revenue Service Restructuring and Reform 

Act of 1998; 

(F) information regarding improper denial of requests for 

information from the Internal Revenue Service identified 

under paragraph (3)(A); and 

(G) information regarding any administrative or civil actions with respect to violations of the fair debt collection 

provisions of section 6304, including— 

(i) a summary of such actions initiated since the 

date of the last report; and 

(ii) a summary of any judgments or awards granted 

as a result of such actions. 

(2) SEMIANNUAL REPORTS.— 

(A) IN GENERAL.—The Treasury Inspector General for 

Tax Administration shall include in each semiannual report under section 5 of the Inspector General Act of 1978— 

(i) the number of taxpayer complaints during the reporting period; 

(ii) the number of employee misconduct and taxpayer abuse allegations received by the Internal Revenue Service or the Inspector General during the period from taxpayers, Internal Revenue Service employees, and other sources; 

(iii) a summary of the status of such complaints and 

allegations; and 

(iv) a summary of the disposition of such complaints 

and allegations, including the outcome of any Department of Justice action and any monies paid as a settlement of such complaints and allegations. 

(B) Clauses (iii) and (iv) of subparagraph (A) shall only 

apply to complaints and allegations of serious employee 

misconduct. 

(3) OTHER RESPONSIBILITIES.—The Treasury Inspector General for Tax Administration shall— 


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(A) conduct periodic audits of a statistically valid sample 

of the total number of determinations made by the Internal Revenue Service to deny written requests to disclose 

information to taxpayers on the basis of section 6103 of 

this title or section 552(b)(7) of title 5, United States Code; 

(B) establish and maintain a toll-free telephone number 

for taxpayers to use to confidentially register complaints of 

misconduct by Internal Revenue Service employees and incorporate the telephone number in the statement required 

by section 6227 of the Omnibus Taxpayer Bill of Rights 

(Internal Revenue Service Publication No. 1); and 

(C) not later than December 31, 2010, submit a written 

report to Congress on the implementation of section 

6103(k)(10). 

(f) INTERNAL REVENUE SERVICE CHIEF INFORMATION OFFICER.— 

(1) IN GENERAL.—There shall be in the Internal Revenue 

Service an Internal Revenue Service Chief Information Officer 

(hereafter referred to in this subsection as the ‘‘IRS CIO’’) who 

shall be appointed by the Administrator of the Internal Revenue 

Service. 

(2) CENTRALIZED RESPONSIBILITY FOR INTERNAL REVENUE

SERVICE INFORMATION TECHNOLOGY.—The Administrator of the 

Internal Revenue Service (and the Secretary) shall act through 

the IRS CIO with respect to all development, implementation, 

and maintenance of information technology for the Internal 

Revenue Service. Any reference in this subsection to the IRS 

CIO which directs the IRS CIO to take any action, or to assume 

any responsibility, shall be treated as a reference to the Administrator of the Internal Revenue Service acting through the IRS 

CIO. 

(3) GENERAL DUTIES AND RESPONSIBILITIES.—The IRS CIO 

shall— 

(A) be responsible for the development, implementation, 

and maintenance of information technology for the Internal 

Revenue Service, 

(B) ensure that the information technology of the Internal 

Revenue Service is secure and integrated, 

(C) maintain operational control of all information technology for the Internal Revenue Service, 

(D) be the principal advocate for the information technology needs of the Internal Revenue Service, and 

(E) consult with the Chief Procurement Officer of the Internal Revenue Service to ensure that the information technology acquired for the Internal Revenue Service is consistent with— 

(i) the goals and requirements specified in subparagraphs (A) through (D), and 

(ii) the strategic plan developed under paragraph (4). 

(4) STRATEGIC PLAN.— (A) IN GENERAL.—The IRS CIO shall develop and implement a multiyear strategic plan for the information technology needs of the Internal Revenue Service. Such plan 

shall— 

(i) include performance measurements of such technology and of the implementation of such plan, 


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(ii) include a plan for an integrated enterprise architecture of the information technology of the Internal 

Revenue Service, 

(iii) include and take into account the resources 

needed to accomplish such plan, 

(iv) take into account planned major acquisitions of 

information technology by the Internal Revenue Service, including Customer Account Data Engine 2 and 

the Enterprise Case Management System, and 

(v) align with the needs and strategic plan of the Internal Revenue Service. 

(B) PLAN UPDATES.—The IRS CIO shall, not less frequently than annually, review and update the strategic 

plan under subparagraph (A) (including the plan for an integrated enterprise architecture described in subparagraph 

(A)(ii)) to take into account the development of new information technology and the needs of the Internal Revenue 

Service. 

(5) SCOPE OF AUTHORITY.— 

(A) INFORMATION TECHNOLOGY.—For purposes of this 

subsection, the term ‘‘information technology’’ has the 

meaning given such term by section 11101 of title 40, 

United States Code. 

(B) INTERNAL REVENUE SERVICE.—Any reference in this 

subsection to the Internal Revenue Service includes a reference to all components of the Internal Revenue Service, 

including— 

(i) the Office of the Taxpayer Advocate, 

(ii) the Criminal Investigation Division of the Internal Revenue Service, and 

(iii) except as otherwise provided by the Secretary 

with respect to information technology related to matters described in subsection (b)(3)(B), the Office of the 

Chief Counsel. 

* * * * * * * 

Æ 


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