Representative Greg Steube's (R-FL) Taxpayer Notification and Privacy Act has unanimously passed by the House of Representatives and now awaits the Senate for approval before heading to the Resolute Desk.
Rep. Steube's bill addresses a concern of many Americans during tax season: under current law, the Internal Revenue Service (IRS) must notify taxpayers before contacting third parties like banks, employers, or customers for additional tax information.
However, the notices are frequently lacking in detail, raising concerns that the IRS is soliciting information that the taxpayer can provide themselves without the taxpayer's consent or approval.
As a result, the Taxpayer Notification and Privacy Act is a relatively simple fix. It requires the IRS to more clearly inform taxpayers what information it is seeking, and it gives taxpayers adequate time to respond before the IRS reaches out to third parties.
"At its core, this common-sense legislation is a simple due-process idea: before the IRS goes to your bank, your employer, your vendor, or another third party for information about you," said Rep. Steube in a press release. "When you can reasonably provide that information yourself, you should be told what they're looking for and given a fair chance to respond."
Senator John Barrasso (R-WY), who introduced the Senate version of the bill, congratulated the Florida congressman, saying, "This bill will safeguard the rights of hardworking Americans and small businesses by preventing the IRS from going behind their backs to solicit personal financial information. I'll continue the fight in the Senate to pass this important taxpayer privacy bill into law."
Last April, Steube introduced the Family Business Legacy Act, which introduces additional estate tax deductions for contributions to 501(c)(4) organizations like churches or charities. Thus, the IRS can no longer exploit an unintended loophole produced by the Protecting Americans From Tax Hikes Act (PATH).
