A bill to amend the Internal Revenue Code of 1986 to increase criminal and civil penalties for unauthorized disclosure of taxpayer information, and for other purposes.
About This Bill
Committee
Latest Action · June 11, 2026
Read twice and referred to the Committee on Finance.
This bill increases penalties for people who illegally disclose confidential taxpayer information. For general employees or contractors who unauthorized share tax data, criminal penalties jump from a maximum of $5,000 fine and five years imprisonment to $250,000 and seven years imprisonment. The bill creates a new specific crime for IRS contractors who fail to protect taxpayer information, with penalties of either $500,000 or 25 percent of their total contract value with the IRS, whichever is greater. Additionally, civil damages that taxpayers can recover for unauthorized disclosure increase from $1,000 to $5,000 per violation. These enhanced penalties take effect immediately upon the bill's enactment and apply to all future disclosures.
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