In the meantime, we need to make sure the current system treats taxpayers fairly, while protecting their rights and privacy. So next week, we'll begin work on a new taxpayer bill of rights. This Taxpayer Bill of Rights builds on the IRS Reform Act we passed in 1998 - the first reform of the IRS since 1952. Taxpayer information is some of the most sacred information we entrust to the government. And to its credit, the IRS has improved in this area.
Many states have access to federal tax information.
So our plan makes them conduct annual, on-site, reviews to safeguard against illegal disclosures and computer hackers. Our plan also requires the IRS to notify taxpayers immediately if their tax information is obtained illegally by third parties. Finally, our plan will deal with privacy abuses that occur when banks ask taxpayers to sign undated forms authorizing the release of tax information. In many cases, the forms don't even say who is to receive the information. We're going to shut down that practice once and for all.