Section 1 Short title
This Act may be cited as the “Protecting Taxpayer Confidentiality Through Safeguards Act”.
Protecting Taxpayer Confidentiality Through Safeguards Act
A BILL
To amend the Internal Revenue Code of 1986 to ensure that contractors to whom return information is disclosed comply with confidentiality safeguards.
Sec. 2 Compliance by contractors with confidentiality safeguards
In General— Section 6103(p) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
“(9) Disclosure to contractors and other agents—Notwithstanding any other provision of this section, no return or return information shall be disclosed to any contractor or other agent of a Federal, State, or local agency unless such agency, to the satisfaction of the Secretary—
“(A) has requirements in effect which require each such contractor or other agent which would have access to returns or return information to provide safeguards (within the meaning of paragraph (4)) to protect the confidentiality of such returns or return information,
“(B) agrees to conduct an on-site review every 3 years (or a mid-point review in the case of contracts or agreements of less than 3 years in duration) of each contractor or other agent to determine compliance with such requirements,
“(C) submits the findings of the most recent review conducted under subparagraph (B) to the Secretary as part of the report required by paragraph (4)(E), and
“(D) certifies to the Secretary for the most recent annual period that such contractor or other agent is in compliance with all such requirements.”
Conforming Amendment— Section 6103(p)(8)(B) of such Code is amended by inserting “or paragraph (9)” after “subparagraph (A)”.
Effective Date—
In general— The amendments made by this section shall apply to disclosures made after the date of the enactment of this Act.
Certifications— The first certification under section 6103(p)(9)(D) of the Internal Revenue Code of 1986, as added by subsection (a), shall be made with respect to the portion of calendar year 2018 following the date of the enactment of this Act.