H. R. 1226
One Hundred Fifth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the seventh day of January, one thousand nine hundred and ninety-seven
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 Representatives 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 adding after section 7213
the following new section:
‘‘SEC. 7213A. UNAUTHORIZED INSPECTION OF RETURNS OR RETURN
INFORMATION.
‘‘(a) PROHIBITIONS.—
‘‘(1) FEDERAL EMPLOYEES AND OTHER PERSONS.—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 paragraph (1)) willfully to
inspect, except as authorized in this title, any return or return
information acquired 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 convicted of any violation
of subsection (a) shall, in addition 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.—
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(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 subchapter A of
chapter 75 of such Code 1986 is amended by inserting after
the item relating to section 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
INSPECTION.—
Subsection (a) of section 7431 of the Internal Revenue Code of
1986 is amended—
(1) by striking ‘‘DISCLOSURE’’ in the headings for para-
graphs (1) and (2) and inserting ‘‘INSPECTION 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 DISCLO-
SURE.—If any person is criminally charged by indictment 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 practicable
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 erroneous,
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 disclosure or an inspection or
disclosure’’.
(3) Subsection (f ) of section 7431 of such Code, as redesig-
nated by subsection (b), is amended to read as follows:
‘‘(f) DEFINITIONS.—For purposes of this section, the terms
‘inspect’, ‘inspection’, ‘return’, and ‘return information’ have the
respective meanings given such terms by section 6103(b).’’.
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(4) The section heading for section 7431 of such Code
is amended by inserting ‘‘INSPECTION OR’’ before ‘‘DISCLOSURE’’.
(5) The table of sections for subchapter B of chapter 76
of such Code is amended by inserting ‘‘inspection 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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.