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 infor-
mation.’’
(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 Reve-
nue 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 DIS-
CLOSURE.—Section 7431 of such Code is amended by redes-
ignating subsections (e) and (f) as subsections (f) and (g),
respectively, and by inserting after subsection (d) the follow-
ing 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 insert-
ing ‘‘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:
‘‘(f) DEFINITIONS.—For purposes of this section, the
terms ‘inspect’, ‘inspection’, ‘return’, and ‘return informa-
tion’ have the respective meanings given such terms by sec-
tion 6103(b).’’
(4) The section heading for section 7431 of such
Code is amended by inserting ‘‘INSPECTION OR’’ be-
fore ‘‘DISCLOSURE’’.
(5) The table of sections for subchapter B of
chapter 76 of such Code is amended by inserting ‘‘in-
spection or’’ before ‘‘disclosure’’ in the item relating
to section 7431.
(6) Paragraph (2) of section 7431(g) of such
Code, as redesignated by subsection (b), is amended
by striking ‘‘any use’’ and inserting ‘‘any inspection
or use’’.
(e) EFFECTIVE DATE.—The amendments made by this
section shall apply to inspections and disclosures occurring
on and after the date of the enactment of this Act.
Union Calendar No. 36
105TH CONGRESS
1ST SESSION
H. R. 1226
[Report No. 105–51]
A BILL
To amend the Internal Revenue Code of 1986 to
prevent the unauthorized inspection of tax re-
turns or tax return information.
APRIL 14, 1997
Reported with an amendment, committed to the Commit-
tee of the Whole House on the State of the Union, and
ordered to be printed