Title: Protecting Taxpayer Confidentiality Through Safeguards Act
Policy area: Taxation

Summary:
Protecting Taxpayer Confidentiality Through Safeguards Act
This bill amends the Internal Revenue Code to prohibit the disclosure of tax returns or return information to a contractor or other agent of a federal, state, or local agency unless the agency requires the contractor or agent to provide certain safeguards to protect the confidentiality of the returns or return information.
The bill also requires the agency to conduct on-site reviews to determine compliance with requirements and meet certain reporting and certification requirements.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5376 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 5376

 To amend the Internal Revenue Code of 1986 to ensure that contractors 
  to whom return information is disclosed comply with confidentiality 
                              safeguards.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 21, 2018

 Mr. Renacci 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 ensure that contractors 
  to whom return information is disclosed comply with confidentiality 
                              safeguards.

    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 ``Protecting Taxpayer Confidentiality 
Through Safeguards Act''.

SEC. 2. COMPLIANCE BY CONTRACTORS WITH CONFIDENTIALITY SAFEGUARDS.

    (a) In General.--Section 6103(p) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(9) Disclosure to contractors and other agents.--
        Notwithstanding any other provision of this section, no return 
        or return information shall be disclosed to any contractor or 
        other agent of a Federal, State, or local agency unless such 
        agency, to the satisfaction of the Secretary--
                    ``(A) has requirements in effect which require each 
                such contractor or other agent which would have access 
                to returns or return information to provide safeguards 
                (within the meaning of paragraph (4)) to protect the 
                confidentiality of such returns or return information,
                    ``(B) agrees to conduct an on-site review every 3 
                years (or a mid-point review in the case of contracts 
                or agreements of less than 3 years in duration) of each 
                contractor or other agent to determine compliance with 
                such requirements,
                    ``(C) submits the findings of the most recent 
                review conducted under subparagraph (B) to the 
                Secretary as part of the report required by paragraph 
                (4)(E), and
                    ``(D) certifies to the Secretary for the most 
                recent annual period that such contractor or other 
                agent is in compliance with all such requirements.
        The certification required by subparagraph (D) shall include 
        the name and address of each contractor and other agent, a 
        description of the contract or agreement with such contractor 
        or other agent, and the duration of such contract or agreement. 
        The requirements of this paragraph shall not apply to 
        disclosures pursuant to subsection (n) for purposes of Federal 
        tax administration.''.
    (b) Conforming Amendment.--Section 6103(p)(8)(B) of such Code is 
amended by inserting ``or paragraph (9)'' after ``subparagraph (A)''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to disclosures made after the date of the enactment of 
        this Act.
            (2) Certifications.--The first certification under section 
        6103(p)(9)(D) of the Internal Revenue Code of 1986, as added by 
        subsection (a), shall be made with respect to the portion of 
        calendar year 2018 following the date of the enactment of this 
        Act.
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