IRS Data Verification Modernization Act of 2016

Bill: 114-hr-5725
Sponsor: full_name: Rep. McHenry, Patrick T. [R-NC-10]
Introduced: 2016-07-11
Policy area: Taxation
Subjects: Computer security and identity theft

Government information and archives

Internet and video services

Internet, web applications, social media

Tax administration and collection, taxpayers
Latest action: action_date: 2016-07-11
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2016-07-11
action_desc: Introduced in House
text: <p><b>IRS Data Verification Modernization Act of 2016 </b></p> <p>This bill specifies requirements for Internal Revenue Service (IRS) programs to disclose returns and return information to confirm a taxpayer's income for a legitimate business purpose. </p> <p>The IRS must ensure that the disclosure process is: (1) conducted entirely through fully automated and electronic means accessible through the Internet, and (2) able to be completed in as close to real-time as is practicable. In establishing the program, the IRS must, to the extent practicable, use resources in operation or in development at the IRS. </p> <p>Recipients authorized to receive returns or return information on behalf of taxpayers must maintain adequate security to protect the information being disclosed. </p>

tv_txt: I 114th CONGRESS 2d Session H. R. 5725 IN THE HOUSE OF REPRESENTATIVES July 11, 2016 Mr. McHenry 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 require website-based, real-time responses to requests to verify taxpayer income for legitimate business purposes.

1. Short title This Act may be cited as the IRS Data Verification Modernization Act of 2016 . 2. Disclosure of taxpayer information for third-party income verification (a) In general Section 6103(c) of the Internal Revenue Code of 1986 is amended— (1) by striking The Secretary may and inserting the following: (1) In general The Secretary shall , and (2) by adding at the end the following new paragraph: (2) Disclosure for income verification With respect to any program established by the Secretary to disclose returns and return information to an entity engaged in the process of confirming the income of a taxpayer for a legitimate business purpose, or a designee of any such entity, the Secretary shall ensure the following: (A) The disclosure process is conducted entirely through fully automated and electronic means accessible through the Internet. (B) The disclosure process is able to be completed in as close to real-time as is practicable. (3) Security requirements for recipients The recipients authorized to receive returns or return information on behalf of taxpayers shall maintain adequate security to protect the information being disclosed. . (b) Efficient use of agency resources In establishing the program to electronically automate income verification disclosures under section 6103(c)(2) of the Internal Revenue Code of 1986, as added by this section, the Secretary shall, to the extent practicable, make use of resources in operation or in development at the Internal Revenue Service, including databases, application programming interfaces, and other computerized systems, programs, and resources. (c) Report Not later than 6 months after the date of the enactment of this Act, the Secretary of the Treasury shall submit a written report to Congress on any progress made on the implementation of section 6103(c)(2) of the Internal Revenue Code of 1986, as added by this section. (d) Effective date The amendments made by this section shall apply with respect to disclosures made after the date that is one year after the date of the enactment of this Act.