Steube, Barrasso Taxpayer Privacy Bill Passes the House

Watch Representative Steube's Remarks Here

WASHINGTON - U.S. Representative Greg Steube (R-Fla.) announced that the Taxpayer Notification and Privacy Act, introduced with Senator John Barrasso (R-Wyo.), passed the House unanimously.

"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. "When you can reasonably provide that information yourself, you should be told what they're looking for and given a fair chance to respond."

"Congratulations to Representative Steube for his leadership in passing our bipartisan Taxpayer Notification and Privacy Act in the House," said Senator Barrasso. "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."

"When the IRS seeks additional information about a taxpayer, the agency should not be able to just go behind their back and do so without their knowledge. But right now, the IRS can do just that," said Ways and Means Committee Chairman Jason Smith (MO-08). "This puts the individual taxpayer in a situation where their privacy, their livelihood, their reputation could all be unduly harmed. That's unacceptable, and thanks to the Taxpayer Notification and Privacy Actand Representative Steube - who has been a tireless advocate for the American taxpayer and focused on holding a powerful agency like the IRS accountable - taxpayers will be better protected. This is not only about a right to privacy but also the principle of fairness that all Americans should be afforded under the law."

"When gathering information on taxpayers, the IRS is mandated by law to let them know prior to contacting any third parties like banks, employers, or even neighbors. However, those types of notices from the IRS often are vague and fail to give taxpayers a chance to provide any type of defense or details to the IRS. That can leave honest Americans blindsided and put their reputations at risk," said Rep. Panetta, who also co-led the bill. "The Taxpayer Notification and Privacy Act would ensure that taxpayers are informed through carefully tailored, detailed notices, with sufficient time to resolve their issues privately. Taxpayers who have followed the law shouldn't fear the IRS soliciting sensitive information behind their backs, and I'm glad, and it's understandable, that my colleagues overwhelmingly passed this bipartisan legislation."

The bill also has the support of the National Taxpayers Union.

Background: Current federal law requires the IRS to notify taxpayers before reaching out to third parties such as banks, employers, or customers. In many cases, however, those notices lack meaningful details about what information the agency seeks. The Taxpayer Notification and Privacy Act addresses this gap by requiring that the IRS clearly identify the information it intends to request and provide taxpayers with a reasonable time to respond before contacting third parties.

Read the full bill text here.