What This Bill Does
This bill increases penalties for government employees and tax return preparers who share taxpayer information without permission. It also makes it easier for federal agencies to remove employees accused of illegally disclosing tax information.
Who It Affects
Federal government employees, tax return preparers (people who prepare tax forms for others), and taxpayers whose information might be disclosed.
Key Provisions
• Increases the penalty from $5,000 to $250,000 for unauthorized disclosure of taxpayer information by federal employees (Sec. 2(a))
• Increases the penalty from $1,000 or $100,000 to $250,000 for tax return preparers who disclose or misuse taxpayer information (Sec. 2(b))
• Removes the requirement that federal agencies follow certain employee appeal procedures when firing someone for illegally disclosing tax information (Sec. 3(a))
• Prevents dismissed employees from appealing their removal to the Merit Systems Protection Board (a review agency) if they were convicted of illegally disclosing tax information (Sec. 3(b))
What Changes
If this bill becomes law, the financial penalties for sharing someone's tax information without permission will increase significantly. Federal agencies will be able to fire employees for this offense without following standard dismissal procedures that normally allow employee appeals.
Important Definitions
None defined in bill text.
Effective Date
The penalty increases apply to disclosures made on or after the date the bill becomes law (Sec. 2(c)). Not specified in bill text for other provisions.
II
118TH CONGRESS
1ST SESSION
S. 1051
To amend title 5, United States Code, to lower the standard for removing
employees who disclose tax return information without authorization,
and for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH 29, 2023
Mr. BRAUN introduced the following bill; which was read twice and referred
to the Committee on Finance
A BILL
To amend title 5, United States Code, to lower the standard
for removing employees who disclose tax return informa-
tion without authorization, and for other purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Protect Taxpayers’
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Privacy Act’’.
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•S 1051 IS
SEC. 2. INCREASE OF PENALTY FOR UNAUTHORIZED DIS-
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CLOSURE OF TAXPAYER INFORMATION.
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(a) IN GENERAL.—Paragraph (1) of section 7213(a)
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of the Internal Revenue Code of 1986 is amended by strik-
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ing ‘‘$5,000’’ and inserting ‘‘$250,000’’.
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(b) DISCLOSURES BY TAX RETURN PREPARERS.—
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Subsection (a) of section 7216 of the Internal Revenue
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Code of 1986 is amended by striking ‘‘$1,000 ($100,000
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in the case of a disclosure or use to which section 6713(b)
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applies)’’ and inserting ‘‘$250,000’’.
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(c) EFFECTIVE DATE.—The amendments made by
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this section shall apply to disclosures made on or after
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the date of the enactment of this Act.
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SEC. 3. REMOVAL.
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(a) IN GENERAL.—Section 7701(c)(1)(A) of title 5,
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United States Code, is amended by inserting ‘‘or in the
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case of an action involving a removal from the service for
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an alleged violation of section 7213(a)(1) of the Internal
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Revenue Code of 1986,’’ after ‘‘described in section
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4303,’’.
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(b) RULE
OF CONSTRUCTION.—The amendments
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made by subsection (a) may not be construed to permit
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an officer or employee of the United States to submit an
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appeal to the Merit Systems Protection Board if that indi-
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vidual is dismissed from office or discharged from employ-
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•S 1051 IS
ment upon conviction for a violation of section 7213(a)(1)
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of the Internal Revenue Code of 1986.
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Æ
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