This bill modifies provisions of the Taxpayer First Act relating to taxpayer identity verification (i.e., the electronic Income Verification Express Service) and disclosures of taxpayer information.
The bill requires the Internal Revenue Service (IRS) to implement a program that insures that certain disclosures of taxpayer returns or return information are accomplished only after a financial institution or other relevant entity (other than the taxpayer) has formed a reasonable belief that the identity of the taxpayer has been authenticated.
The bill requires the IRS to ensure that the taxpayer information disclosure program complies with specified security standards and guidelines, including those relating to security and confidentiality of taxpayer information.
The bill prohibits the IRS from requiring a taxpayer seeking a disclosure of information to access any information technology system or service used by the IRS for any purpose relating to a disclosure, including identity verification or the provision of electronic consent.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9589 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 9589
To ensure the successful development of the electronic Income
Verification Express Service of the Internal Revenue Service by
amending the Taxpayer First Act to clarify that taxpayer identity
verification is the responsibility of users of the system rather than
the taxpayer, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 15, 2022
Mr. McHenry (for himself and Mr. Panetta) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To ensure the successful development of the electronic Income
Verification Express Service of the Internal Revenue Service by
amending the Taxpayer First Act to clarify that taxpayer identity
verification is the responsibility of users of the system rather than
the taxpayer, 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. IDENTITY VERIFICATION RESPONSIBILITY.
(a) In General.--Section 2201 of the Taxpayer First Act (Public Law
116-25) is amended--
(1) in subsection (a), by striking ``and'' at the end of
paragraph (1), by redesignating paragraph (2) as paragraph (3),
and by inserting after paragraph (1) the following new
paragraph:
``(2) is accomplished only after a financial institution
(or a service provider, subsidiary, affiliate, agent,
subcontractor, or assignee of a financial institution) has
formed a reasonable belief that the identity of the taxpayer
has been authenticated; and''; and
(2) in subsection (b), by striking ``by the Secretary to a
person seeking to verify the income or creditworthiness of a
taxpayer who is a borrower in the process of a loan
application'' and inserting ``, including business tax return
information, by the Secretary to a taxpayer or financial
institution (or a service provider, subsidiary, affiliate,
agent, subcontractor, or assignee of a financial institution)
designated by a taxpayer seeking to verify the income or
creditworthiness of a taxpayer who is a borrower in the process
of a financial application''.
(b) Financial Institution Definition, Standards and Guidelines.--
Section 2201 of such Act is amended--
(1) in subsection (c)--
(A) by striking ``The Secretary'' and inserting--
``(1) In general.--The Secretary''; and
(B) by adding at the end the following new
paragraph:
``(2) Standards.--The Secretary shall ensure that any
standards and guidelines deemed applicable to the system
described in this section--
``(A) Enable a taxpayer to provide the appropriate
designation and electronic consent to a financial
institution (or a service provider, subsidiary,
affiliate, agent, subcontractor, or assignee of a
financial institution), including those defined in
section 106 of the Electronic Signatures in Global and
National Commerce Act (15 U.S.C. 7006);
``(B) Enable a financial institution (or a service
provider, subsidiary, affiliate, agent, subcontractor,
or assignee of a financial institution) to act upon
such designation and consent to request a qualified
disclosure directly with the system implemented
pursuant to this section; and
``(C) Ensure the security and confidentiality of
taxpayer information, to the extent such standards and
guidelines do not conflict with other standards and
guidelines applicable to financial institutions.''; and
(2) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively, and by inserting after subsection
(b) the following new subsection:
``(c) Financial Institution.--For purposes of this section, the
term `financial institution' has the meaning given such term in section
509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6809).''.
(c) Limitation on Authority.--Section 2201 of such Act is amended
by adding at the end the following new subsection:
``(f) Limitation on Authority.--The Secretary may not require a
taxpayer seeking a qualified disclosure to access any information
technology system or service used by or on behalf of the Internal
Revenue Service pursuant to this section for any purpose relating to a
qualified disclosure, including identity verification or the provision
of electronic consent.''.
(d) Effective Date.--The amendments made by this section shall take
effect as if included in section 2201 of the Taxpayer First Act (Public
Law 116-25).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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