I 
118TH CONGRESS 
1ST SESSION H. R. 3335 
To ensure the successful development of the electronic Income Verification 
Express Service of the Internal Revenue Service by amending the Tax-
payer First Act to clarify that taxpayer identity verification is the respon-
sibility of users of the system rather than the taxpayer, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 15, 2023 
Mr. MCHENRY (for himself and Mr. PANETTA) introduced the following bill; 
which was referred to the Committee on Ways and Means 
A BILL 
To ensure the successful development of the electronic In-
come Verification Express Service of the Internal Rev-
enue Service by amending the Taxpayer First Act to 
clarify that taxpayer identity verification is the responsi-
bility of users of the system rather than the taxpayer, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. IDENTITY VERIFICATION RESPONSIBILITY. 
(a) IN GENERAL.—Section 2201 of the Taxpayer 
First Act (Public Law 116–25) is amended— 
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(1) in subsection (a), by striking ‘‘and’’ at the 
end of paragraph (1), by redesignating paragraph 
(2) as paragraph (3), and by inserting after para-
graph (1) the following new paragraph: 
‘‘(2) is accomplished only after a financial insti-
tution (or a service provider, subsidiary, affiliate, 
agent, subcontractor, or assignee of a financial insti-
tution) has formed a reasonable belief that the iden-
tity of the taxpayer has been authenticated; and’’; 
and 
(2) in subsection (b), by striking ‘‘by the Sec-
retary to a person seeking to verify the income or 
creditworthiness of a taxpayer who is a borrower in 
the process of a loan application’’ and inserting ‘‘, 
including business tax return information, by the 
Secretary to a taxpayer or financial institution (or a 
service provider, subsidiary, affiliate, agent, subcon-
tractor, or assignee of a financial institution) des-
ignated by a taxpayer seeking to verify the income 
or creditworthiness of a taxpayer who is in the proc-
ess of a financial application’’. 
(b) FINANCIAL INSTITUTION DEFINITION, STAND-
ARDS AND GUIDELINES.—Section 2201(c) of such Act is 
amended— 
(1) in subsection (c)— 
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(A) by striking ‘‘The Secretary’’ and in-
serting: 
‘‘(1) IN GENERAL.—The Secretary’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) STANDARDS.—The Secretary shall ensure 
that any standards and guidelines deemed applicable 
to the system described in this section— 
‘‘(A) Enable a taxpayer to provide the ap-
propriate designation and electronic consent to 
a financial institution (or a service provider, 
subsidiary, affiliate, agent, subcontractor, or as-
signee of a financial institution), including 
those defined in section 106 of the Electronic 
Signatures in Global and National Commerce 
Act (15 U.S.C. 7006); 
‘‘(B) Enable a financial institution (or a 
service provider, subsidiary, affiliate, agent, 
subcontractor, or assignee of a financial institu-
tion) to act upon such designation and consent 
to request a qualified disclosure directly with 
the system implemented pursuant to this sec-
tion; and 
‘‘(C) Ensure the security and confiden-
tiality of taxpayer information, to the extent 
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such standards and guidelines do not conflict 
with other standards and guidelines applicable 
to financial institutions.’’, and 
(2) by redesignating subsections (c) and (d) as 
subsections (d) and (e), respectively, and by insert-
ing after subsection (b) the following new subsection: 
‘‘(c) FINANCIAL INSTITUTION.—For purposes of this 
section, the term ‘financial institution’ has the meaning 
given such term in section 509 of the Gramm-Leach-Bliley 
Act (15 U.S.C. 6809).’’. 
(c) LIMITATION ON AUTHORITY.—Section 2201 of 
such Act is amended by adding at the end the following 
new subsection: 
‘‘(f) LIMITATION
ON AUTHORITY.—The Secretary 
may not require a taxpayer seeking a qualified disclosure 
to access any information technology system or service 
used by or on behalf of the Internal Revenue Service pur-
suant to this section for any purpose relating to a qualified 
disclosure, including identity verification or the provision 
of electronic consent.’’. 
(d) CLARIFICATION REGARDING CERTAIN BUSINESS 
TAX RETURN INFORMATION AVAILABLE
FOR DISCLO-
SURE.—Section 2201 of such Act, as amended by sub-
section (c), is amended by adding at the end the following 
new subsection: 
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‘‘(g) PROGRAM REQUIRED TO MAKE CERTAIN IN-
FORMATION AVAILABLE
FOR DISCLOSURE.—The Sec-
retary shall ensure that the program implemented under 
this section makes certain business tax return information 
available for disclosure, including, but not limited to, the 
following: 
‘‘(1) The following information from Schedule 
K–1 of Forms 1065 and 1120: 
‘‘(A) Names of owners. 
‘‘(B) Percentage of capital ownership of 
each owner. 
‘‘(C) Distributions to each owner. 
‘‘(D) In the case of Form 1065, direct 
payments to partners. 
‘‘(2) The following information from Schedule 
G of Form 1120: 
‘‘(A) Names of owners. 
‘‘(B) Percentage of capital ownership of 
each owner. 
‘‘(3) With respect to each entity identified on 
Schedule C of Form 1040, the following information 
from such Schedule: 
‘‘(A) Name of such entity. 
‘‘(B) Names of owners of such entity. 
‘‘(C) Income statement of each entity. 
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‘‘(4) All information available on the following 
forms or schedules: 
‘‘(A) Schedule L. 
‘‘(B) Schedule M. 
‘‘(C) Form 1125–E. 
‘‘(D) Any schedules or supplemental sched-
ules of Form 1040 (or any other personal in-
come tax return form) which includes informa-
tion related to any income, deduction, gain, 
loss, or credit which is derived in the conduct 
of any trade or business (other than the trade 
or business of being an employee). 
‘‘(5) NAICS codes with respect to all forms and 
schedules. 
Each reference to a form or schedule in this subsection 
shall be treated as including a reference to any form or 
schedule which is a successor or alternative to such form 
or schedule.’’. 
(e) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall take effect as if included in section 
2201 of the Taxpayer First Act (Public Law 116– 
25). 
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(2) CLARIFICATION REGARDING CERTAIN BUSI-
NESS TAX RETURN INFORMATION AVAILABLE FOR 
DISCLOSURE.—The amendment made by subsection 
(d) shall take effect on the date which is 1 year after 
the date of the enactment of this Act. 
Æ 
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