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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Taxpayer Privacy Pro-
tection Act of 2006’’. 
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SEC. 2. RESTRICTION ON DISCLOSURE OF INFORMATION 
BY TAX RETURN PREPARERS TO THIRD 
PARTY ENTITIES. 
(a) IN GENERAL.—Section 7216 of the Internal Rev-
enue Code of 1986 (relating to disclosure or use of infor-
mation by preparers of returns) is amended by adding at 
the end the following new subsection: 
‘‘(c) PROHIBITION ON DISCLOSURE TO THIRD PARTY 
ENTITIES.—A tax return preparer shall not disclose the 
information described in subsection (a) to another tax re-
turn preparer, or to a person under contract with a tax 
return preparer, for the purpose of performing auxiliary 
services in connection with the preparation of returns of 
the tax imposed by chapter 1.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 7216 of such Code, as amended by 
subsection (a), is further amended by inserting after 
subsection (c) the following new subsection: 
‘‘(d) TAX RETURN PREPARER.—For purposes of this 
section, the term ‘tax return preparer’ means any person 
who is engaged in the business of preparing, or providing 
services in connection with the preparation of, returns of 
the tax imposed by chapter 1, or any person who for com-
pensation prepares any such return for any other per-
son.’’. 
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(2) Subsection (a) of section 7216 of such Code 
is amended by striking ‘‘person who is engaged in 
the business of preparing, or providing services in 
connection with the preparation of, returns of the 
tax imposed by chapter 1, or any person who for 
compensation prepares any such return for any 
other person, and’’ and inserting ‘‘tax return pre-
parer’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to disclosures and uses after the 
date of the enactment of this Act. 
SEC. 3. REPEAL OF AUTHORITY TO ENTER INTO PRIVATE 
TAX COLLECTION CONTRACTS. 
(a) IN GENERAL.—Subchapter A of chapter 64 of the 
Internal Revenue Code of 1986 (relating to collection) is 
amended by striking section 6306. 
(b) CONFORMING AMENDMENTS.— 
(1) Subchapter B of chapter 64 of such Code 
is amended by striking section 7433A. 
(2) Section 7809(a) of such Code is amended 
by striking ‘‘6306,’’. 
(3) Section 7811 of such Code is amended by 
striking subsection (g). 
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(4) Section 1203 of the Internal Revenue Serv-
ice Restructuring Act of 1998 is amended by strik-
ing subsection (e). 
(5) The table of sections of subchapter A of 
chapter 64 of such Code is amended by striking the 
item relating to section 6306. 
(6) The table of sections of subchapter B of 
chapter 64 of such Code is amended by striking the 
item relating to section 7433A. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act but shall not apply to any contract entered 
into before such date. 
(d) TERMINATION OF REPORTING REQUIREMENT.— 
The reporting requirement of section 881(e) of the Amer-
ican Jobs Creation Act of 2004 shall not apply after the 
date of the enactment of this Act. 
Æ 
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