This bill requires the Internal Revenue Service to provide more specific notice to taxpayers when the IRS seeks information from third parties like banks, employers, or other organizations. Under the bill, the IRS must identify each specific piece of information it plans to request from these outside sources and give taxpayers at least 45 days (or longer if requested with good cause) to provide the information themselves before contacting third parties. The bill allows an exception if the IRS Secretary determines that information from third parties is necessary even if the taxpayer could provide it. The changes take effect 12 months after the bill becomes law and apply to all future IRS information requests from outside sources. Overall, the legislation aims to increase taxpayer privacy and transparency in IRS investigations by giving people advance notice and a chance to respond before their financial records or other sensitive information is requested from external organizations.
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