Title: IRS Data Verification Modernization Act of 2017
Policy area: Taxation

Summary:
IRS Data Verification Modernization Act of 2017
This bill requires the Internal Revenue Service (IRS) to implement a program to ensure that disclosures of tax returns or return information by the IRS to a person verifying the income of a taxpayer for a legitimate business purpose are: (1) fully automated and accomplished through the Internet, and (2) accomplished in as close to real-time as is practicable.
The IRS must assess and collect a fee for the disclosures described above at rates that are sufficient to recover the costs related to implementing the program not later than five years after the costs are paid or incurred.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1958 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 1958

 To amend the Internal Revenue Code of 1986 to require Internet-based, 
     real-time responses to requests to verify taxpayer income for 
         legitimate business purposes, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 16, 2017

 Mr. Booker (for himself and Mr. Crapo) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to require Internet-based, 
     real-time responses to requests to verify taxpayer income for 
         legitimate business purposes, and for other purposes.

    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 ``IRS Data Verification Modernization 
Act of 2017''.

SEC. 2. DISCLOSURE OF TAXPAYER INFORMATION FOR THIRD-PARTY INCOME 
              VERIFICATION.

    (a) In General.--The Secretary of the Treasury or the Secretary's 
delegate (referred to in this section as the ``Secretary'') shall 
implement a program to ensure that any qualified disclosure--
            (1) is fully automated and accomplished through the 
        Internet; and
            (2) is accomplished in as close to real-time as is 
        practicable.
    (b) Qualified Disclosure.--For purposes of subsection (a), the term 
``qualified disclosure'' means a disclosure under section 6103(c) of 
the Internal Revenue Code of 1986 of returns or return information by 
the Secretary to a person seeking to verify the income of a taxpayer 
for a legitimate business purpose who has represented to the Secretary 
that such person will comply with the requirements of section 
6103(p)(4) of the Internal Revenue Code of 1986.
    (c) User Fee.--
            (1) In general.--The Secretary shall assess and collect a 
        fee for disclosures described in subsection (a) at such rates 
        as the Secretary determines are sufficient to recover the costs 
        related to implementing the program described in subsection (a) 
        not later than 5 years after such costs are paid or incurred. 
        Such costs shall include the costs of any necessary 
        infrastructure or technology.
            (2) Deposit of collections.--Amounts received from fees 
        authorized by paragraph (1) shall be deposited as an offsetting 
        collection in, and credited to, the account through which funds 
        are made available to carry out the activities described in 
        subsection (a).
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