Taxpayer Data Protection Act

Floor Speech

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Mr. SMITH of Missouri. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 8292) to amend the Internal Revenue Code of 1986 to increase penalties for unauthorized disclosure of taxpayer information, as amended.

The Clerk read the title of the bill.

The text of the bill is as follows: H.R. 8292

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.

This Act may be cited as the ``Taxpayer Data Protection Act''. SEC. 2. INCREASE IN PENALTIES FOR UNAUTHORIZED DISCLOSURES OF TAXPAYER INFORMATION.

(a) In General.--Paragraphs (1), (2), (3), (4), and (5) of section 7213(a) of the Internal Revenue Code of 1986 are each amended by striking ``$5,000, or imprisonment of not more than 5 years'' and inserting ``$250,000, or imprisonment of not more than 10 years''.

(b) Disclosures of Return Information of Multiple Taxpayers Treated as Multiple Violations.--Section 7213(a) of such Code is amended by adding at the end the following new paragraph:

``(6) Disclosures of return information of multiple taxpayers treated as multiple violations.--For purposes of paragraphs (1), (2), (3), (4), and (5), a separate violation occurs with respect to each taxpayer whose return or return information is disclosed in violation of any such paragraph.''.

(c) Effective Date.--The amendments made by this section shall apply to disclosures made after the date of the enactment of this Act.

Mr. Speaker, I rise to speak in favor of the Taxpayer Data Protection Act. When Americans file their taxes, they expect their personal data and tax information are confidential.

Between 2017 and 2021, Charles Littlejohn, who worked as a contractor for the IRS, stole taxpayer information, and he stole a lot of it. He gave it to The New York Times and ProPublica, who published articles containing that confidential tax information about President Trump and other notable figures. Mr. Littlejohn then destroyed evidence and obstructed law enforcement investigations.

Despite his efforts to cover up his crimes, Mr. Littlejohn admitted that he was ``aware of the potential consequences'' and, in fact, made his decision ``with the full knowledge that [he] would likely end up in a courtroom.''

Current law failed to deter Mr. Littlejohn from stealing and leaking private and sensitive taxpayer information. Moreover, the Department of Justice only charged Mr. Littlejohn with a single count of unauthorized disclosure of private tax information.

Given this lackluster charge, Republicans wrote the judge urging the court to sentence Mr. Littlejohn to the maximum sentence for the crimes he committed, particularly given the number of taxpayers impacted by his actions.

Mr. Littlejohn ultimately received the maximum sentence available, but the court was limited to the single count that the Department of Justice brought charges on.

This bipartisan bill ensures that the punishment fits the crime. Current law states that any violation shall be a felony punishable by a fine in any amount not to exceed $5,000 or imprisonment of not more than 5 years or both.

This bill increases the maximum penalty for the unauthorized disclosure of returns and return information to include a fine of up to $250,000 or imprisonment of not more than 10 years or both. It also ensures that prosecutors can consider each taxpayer impacted by a disclosure to support a separate and distinct violation of the law.

Increasing the punishment for this crime will result in better deterrence for potential criminals and fewer crimes of this sort being committed.

I urge all my colleagues to support this legislation and send a very clear message that Congress will not tolerate the theft and leak of taxpayer information.

Every taxpayer deserves to have their data protected from theft and illegal disclosure. Our voluntary tax filing system depends on trust, a trust that was betrayed by a criminal with political motives who calculated that the crime would be worth the current punishment.

Simply put, he knew the crime he was committing, he knew the likelihood he would end up in prison for just a few months or years, and he decided the risks were clearly worth his reward.

We have an opportunity to deter similar actions from happening again in the future by making the punishment match the crime.

Mr. Speaker, I urge my colleagues to join me in voting for the Taxpayer Data Protection Act, and I yield back the balance of my time.

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