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HR 6495

Taxpayer Notification and Privacy Act

119th Congress Introduced by Jimmy Panetta and 1 co-sponsor

H.R. 6495 - Taxpayer Notification and Privacy Act SummaryThe Taxpayer Notification and Privacy Act (H.R. 6495) aims to provide new protections for taxpayers by increasing transpare

Received in the Senate and Read twice and referred to the Committee on Finance.
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Bill Summary · HR 6495

H.R. 6495 - Taxpayer Notification and Privacy Act

Summary

The Taxpayer Notification and Privacy Act (H.R. 6495) aims to provide new protections for taxpayers by increasing transparency and reducing the need for the Internal Revenue Service (IRS) to contact third parties during audits or investigations. The key provisions of the bill include:

Purpose and Intent

  • Require the IRS to provide taxpayers with specific notices identifying each item of information it plans to request from third parties, in cases where the information could reasonably be provided by the taxpayer and has not been previously requested.
  • Give taxpayers a minimum of 45 days to respond and provide the requested information before the IRS contacts third parties.

Key Provisions

  • Amends section 7602(c) of the Internal Revenue Code to add new requirements for IRS notices to taxpayers before contacting third parties.
  • Requires the IRS notices to identify each specific item of information it plans to seek from third parties, if that information is related to determining the taxpayer's tax liability and could reasonably be provided by the taxpayer.
  • Provides taxpayers a minimum 45-day period to respond and provide the requested information before the IRS can contact third parties.
  • Includes an exception allowing the IRS to bypass the specificity requirement if the information is necessary for tax collection or the Secretary determines it is otherwise necessary.

Affected Parties and Impact

  • The bill aims to protect taxpayers by increasing transparency around IRS information gathering, reducing the need for third-party contacts, and giving taxpayers more opportunity to provide information directly.
  • The new notice requirements may increase administrative burdens on the IRS, but could also lead to more taxpayers voluntarily providing information and reducing the need for third-party contacts.

Conclusion

The Taxpayer Notification and Privacy Act seeks to strengthen taxpayer protections by requiring the IRS to be more transparent and specific when requesting information from third parties during audits and investigations. By giving taxpayers more advance notice and opportunity to provide information directly, the bill aims to preserve taxpayer privacy and reduce the need for outside contacts that could damage their reputation.

Compiled from official sources — confirm details with the bill’s official record.

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