I 

109TH CONGRESS 

2D SESSION H. R. 5084 

To amend the Internal Revenue Code of 1986 to restrict the disclosure 

information by tax return preparers to third party entities and to prohibit 

private tax collection contracts. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 4, 2006 

Mr. DINGELL introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to restrict 

the disclosure information by tax return preparers to 

third party entities and to prohibit private tax collection 

contracts. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Taxpayer Privacy Pro5 tection Act of 2006’’. 


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1 SEC. 2. RESTRICTION ON DISCLOSURE OF INFORMATION 

2 BY TAX RETURN PREPARERS TO THIRD 

3 PARTY ENTITIES. 

4 (a) IN GENERAL.—Section 7216 of the Internal Rev5 enue Code of 1986 (relating to disclosure or use of infor6 mation by preparers of returns) is amended by adding at 

7 the end the following new subsection: 

8 ‘‘(c) PROHIBITION ON DISCLOSURE TO THIRD PARTY

9 ENTITIES.—A tax return preparer shall not disclose the 

10 information described in subsection (a) to another tax re11 turn preparer, or to a person under contract with a tax 

12 return preparer, for the purpose of performing auxiliary 

13 services in connection with the preparation of returns of 

14 the tax imposed by chapter 1.’’. 

15 (b) CONFORMING AMENDMENTS.— 

16 (1) Section 7216 of such Code, as amended by 

17 subsection (a), is further amended by inserting after 

18 subsection (c) the following new subsection: 

19 ‘‘(d) TAX RETURN PREPARER.—For purposes of this 

20 section, the term ‘tax return preparer’ means any person 

21 who is engaged in the business of preparing, or providing 

22 services in connection with the preparation of, returns of 

23 the tax imposed by chapter 1, or any person who for com24 pensation prepares any such return for any other per25 son.’’. 


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1 (2) Subsection (a) of section 7216 of such Code 

2 is amended by striking ‘‘person who is engaged in 

3 the business of preparing, or providing services in 

4 connection with the preparation of, returns of the 

5 tax imposed by chapter 1, or any person who for 

6 compensation prepares any such return for any 

7 other person, and’’ and inserting ‘‘tax return pre8 parer’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to disclosures and uses after the 

11 date of the enactment of this Act. 

12 SEC. 3. REPEAL OF AUTHORITY TO ENTER INTO PRIVATE 

13 TAX COLLECTION CONTRACTS. 

14 (a) IN GENERAL.—Subchapter A of chapter 64 of the 

15 Internal Revenue Code of 1986 (relating to collection) is 

16 amended by striking section 6306. 

17 (b) CONFORMING AMENDMENTS.— 

18 (1) Subchapter B of chapter 64 of such Code 

19 is amended by striking section 7433A. 

20 (2) Section 7809(a) of such Code is amended 

21 by striking ‘‘6306,’’. 

22 (3) Section 7811 of such Code is amended by 

23 striking subsection (g). 


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1 (4) Section 1203 of the Internal Revenue Serv2 ice Restructuring Act of 1998 is amended by strik3 ing subsection (e). 

4 (5) The table of sections of subchapter A of 

5 chapter 64 of such Code is amended by striking the 

6 item relating to section 6306. 

7 (6) The table of sections of subchapter B of 

8 chapter 64 of such Code is amended by striking the 

9 item relating to section 7433A. 

10 (c) EFFECTIVE DATE.—The amendments made by 

11 this section shall take effect on the date of the enactment 

12 of this Act but shall not apply to any contract entered 

13 into before such date. 

14 (d) TERMINATION OF REPORTING REQUIREMENT.— 

15 The reporting requirement of section 881(e) of the Amer16 ican Jobs Creation Act of 2004 shall not apply after the 

17 date of the enactment of this Act. 

Æ 


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