An original bill to amend the Internal Revenue Code of 1986 to provide for the disclosure of income information to the Veterans' Administration for purposes of verifying information provided about their incomes by beneficiaries of programs under which income is relevant to eligibility; and to amend title 38, United States Code, to protect against the misuse of such information, and for other purposes.

Amends the Internal Revenue Code to permit disclosure to the Veterans Administration (VA) of income-related tax return information for the purpose of determining eligibility for specified veterans' pension and benefit programs.

Amends Federal law to prohibit the Administrator of the VA from using this tax return information to terminate, deny, suspend, or reduce a person's benefits or services without first: (1) taking appropriate steps to verify independently the amount and accessibility of the income in question, and (2) providing the affected individual with notice and an opportunity to respond to the findings. Restricts the Administrator's right to verify or act upon information relating to disability compensation.

Directs the Administrator to notify applicants for and recipients of VA benefits that income information they provide may be compared with tax return data.