II
Calendar No. 39
105TH CONGRESS
1ST SESSION
H. R. 1226
IN THE SENATE OF THE UNITED STATES
APRIL 16, 1997
Received
APRIL 17, 1997
Read twice and ordered placed on the calendar
AN ACT
To amend the Internal Revenue Code of 1986 to prevent
the unauthorized inspection of tax returns or tax return
information.
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 Browsing
Protection Act’’.
SEC. 2. PENALTY FOR UNAUTHORIZED INSPECTION OF TAX
RETURNS OR TAX RETURN INFORMATION.
(a) IN GENERAL.—Part I of subchapter A of chapter
75 of the Internal Revenue Code of 1986 (relating to
crimes, other offenses, and forfeitures) is amended by add-
ing after section 7213 the following new section:
‘‘SEC. 7213A. UNAUTHORIZED INSPECTION OF RETURNS OR
RETURN INFORMATION.
‘‘(a) PROHIBITIONS.—
‘‘(1) FEDERAL EMPLOYEES AND OTHER PER-
SONS.—It shall be unlawful for—
‘‘(A) any officer or employee of the United
States, or
‘‘(B) any person described in section
6103(n) or an officer or employee of any such
person,
willfully to inspect, except as authorized in this title,
any return or return information.
‘‘(2) STATE AND OTHER EMPLOYEES.—It shall
be unlawful for any person (not described in para-
graph (1)) willfully to inspect, except as authorized
in this title, any return or return information ac-
quired by such person or another person under a
provision of section 6103 referred to in section
7213(a)(2).
‘‘(b) PENALTY.—
‘‘(1) IN GENERAL.—Any violation of subsection
(a) shall be punishable upon conviction by a fine in
any amount not exceeding $1,000, or imprisonment
of not more than 1 year, or both, together with the
costs of prosecution.
‘‘(2) FEDERAL OFFICERS OR EMPLOYEES.—An
officer or employee of the United States who is con-
victed of any violation of subsection (a) shall, in ad-
dition to any other punishment, be dismissed from
office or discharged from employment.
‘‘(c) DEFINITIONS.—For purposes of this section, the
terms ‘inspect’, ‘return’, and ‘return information’ have the
respective meanings given such terms by section
6103(b).’’.
(b) TECHNICAL AMENDMENTS.—
(1) Paragraph (2) of section 7213(a) of such
Code is amended by inserting ‘‘(5),’’ after ‘‘(m)(2),
(4),’’.
(2) The table of sections for part I of sub-
chapter A of chapter 75 of such Code 1986 is
amended by inserting after the item relating to sec-
tion 7213 the following new item:
‘‘Sec. 7213A. Unauthorized inspection of returns or return information.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to violations occurring on and after
the date of the enactment of this Act.
SEC. 3. CIVIL DAMAGES FOR UNAUTHORIZED INSPECTION
OF RETURNS AND RETURN INFORMATION;
NOTIFICATION OF UNLAWFUL INSPECTION
OR DISCLOSURE.
(a) CIVIL DAMAGES FOR UNAUTHORIZED INSPEC-
TION.—Subsection (a) of section 7431 of the Internal Rev-
enue Code of 1986 is amended—
(1) by striking ‘‘DISCLOSURE’’ in the headings
for paragraphs (1) and (2) and inserting ‘‘INSPEC-
TION OR DISCLOSURE’’, and
(2) by striking ‘‘discloses’’ in paragraphs (1)
and (2) and inserting ‘‘inspects or discloses’’.
(b) NOTIFICATION OF UNLAWFUL INSPECTION OR
DISCLOSURE.—Section 7431 of such Code is amended by
redesignating subsections (e) and (f) as subsections (f)
and (g), respectively, and by inserting after subsection (d)
the following new subsection:
‘‘(e) NOTIFICATION OF UNLAWFUL INSPECTION AND
DISCLOSURE.—If any person is criminally charged by in-
dictment or information with inspection or disclosure of
a taxpayer’s return or return information in violation of—
‘‘(1) paragraph (1) or (2) of section 7213(a),
‘‘(2) section 7213A(a), or
‘‘(3) subparagraph (B) of section 1030(a)(2) of
title 18, United States Code,
the Secretary shall notify such taxpayer as soon as prac-
ticable of such inspection or disclosure.’’.
(c) NO DAMAGES FOR INSPECTION REQUESTED BY
TAXPAYER.—Subsection (b) of section 7431 of such Code
is amended to read as follows:
‘‘(b) EXCEPTIONS.—No liability shall arise under this
section with respect to any inspection or disclosure—
‘‘(1) which results from a good faith, but erro-
neous, interpretation of section 6103, or
‘‘(2) which is requested by the taxpayer.’’.
(d) CONFORMING AMENDMENTS.—
(1) Subsections (c)(1)(A), (c)(1)(B)(i), and (d)
of section 7431 of such Code are each amended by
inserting ‘‘inspection or’’ before ‘‘disclosure’’.
(2) Clause (ii) of section 7431(c)(1)(B) of such
Code is amended by striking ‘‘willful disclosure or a
disclosure’’ and inserting ‘‘willful inspection or dis-
closure or an inspection or disclosure’’.
(3) Subsection (f) of section 7431 of such Code,
as redesignated by subsection (b), is amended to
read as follows: