A bill to amend the Internal Revenue Code of 1954 to provide for the disclosure of returns and return information for use in criminal investigations, and for other purposes.

Amends the Internal Revenue Code to allow disclosure of returns or return information to an officer or employee of any Federal agency for use in preparing any administrative, judicial, or grand jury proceeding involving the enforcement of a specific Federal criminal statute (but not involving tax administration) or in an investigation which may result in such a proceeding. Authorizes such disclosure only by ex parte order of a Federal district court judge or magistrate. Sets forth grounds for the granting of such order.

Requires the Secretary of the Treasury to disclose return information upon written request of the head or the Inspector General of a Federal agency or the Attorney General or his designee, to such officers and employees as are directly engaged in, and solely for use in or preparation for, any administrative, judicial, or grand jury proceeding involving the enforcement of a specific Federal criminal statute (but not involving tax administration) or in an investigation which may result in such a proceeding. Prohibits the disclosure of returns or return information which would identify a confidential informant or seriously impair a tax investigation.

Authorizes the Secretary to disclose return information (other than information which would identify a confidential informant or seriously impair a tax investigation) which may constitute evidence of a violation of Federal criminal laws to the extent necessary to apprise the head of the appropriate Federal agency responsible for enforcing such laws.

Permits the Secretary or his designee, in specified emergency circumstances, to disclose information to the extent necessary to apprise the appropriate Federal agency of such emergency.

Allows information disclosed pursuant to this Act to be entered into evidence in a proceeding not involving tax administration or in an ancillary proceeding to which the United States is a party. Limits such disclosure to the extent required by applicable discovery requirements. Prohibits admission of such information into evidence if the Secretary determines that it would identify a confidential informant or seriously impair a tax investigation.

Permits the disclosure of returns and return information to Federal agencies by order of a Federal district judge if necessary to locate fugitives from justice.

Permits an individual to bring an action for civil damages for the unauthorized disclosure of returns or return information by Federal officers or employees or others. Provides that an individual shall not be liable for a disclosure that results from a good faith but erroneous interpretation of the law. Limits the amount of recoverable damages.

Allows the disclosure of returns or return information by Federal agencies or by the Secretary for use in certain audits by the General Accounting Office.