Taxpayer Notification and Privacy Act

Floor Speech

Mr. Speaker, I thank the chairman and Representative Greg Steube for their work together with me on the Taxpayer Notification and Privacy Act.

It is commonsense, bipartisan legislation, passed unanimously out of the Ways and Means Committee, that would ensure that the IRS respects the privacy and the dignity of every taxpayer when collecting needed information.

As you heard from the chairman, under current law, the IRS must notify taxpayers before reaching out to third parties, like banks, employers, or even neighbors, to gather information. Yet, these notices are often vague. They fail to specify exactly what they want. At times, they don't even give taxpayers any opportunity to defend themselves or for the taxpayers to provide the information themselves.

The National Taxpayer Advocate Service has warned that the current approach falls short. It leaves honest Americans blindsided, and it can put people's reputations at risk in close-knit communities, where a whisper about IRS investigations can chill businesses and damage livelihoods.

The Taxpayer Notification and Privacy Act changes that. It would implement a National Taxpayer Advocate's recommendation to mandate tailored notices in which the IRS clearly--clearly states what information it needs and from exactly whom.

It then grants the taxpayer a full 45 days to supply that information. This empowers families. This empowers businesses to resolve issues privately with the IRS, protecting their reputation and relationships with local banks and other vendors.

This bill also includes certain exceptions for circumstances where the information is determined to be necessary or when the information is sought specifically to collect tax liability.

This strikes the balance we want in legislation creation between allowing taxpayers to resolve issues privately and ensuring that these notices cannot be used to avoid taxes.

Ultimately, taxpayers who have followed the law should not have to fear the IRS soliciting sensitive data behind their backs.

Mr. Speaker, I urge my colleagues to vote ``yes,'' and I reserve the balance of my time.

Just briefly, again, I thank Representative Steube and Chairman Smith for their leadership on this legislation, and I urge the House to pass this commonsense legislation.

The Taxpayer Notification and Privacy Act will ensure that taxpayers are treated with transparency, with dignity, and with fairness that we all deserve.

By giving Americans a clear chance to provide information to the IRS first, we can protect their privacy, their reputations, and their relationships. This will reduce unnecessary third-party probes, saving resources and protecting taxpayers. This strengthens trust between our constituents and the government while ensuring that taxes are properly collected.

Mr. Speaker, that is why I urge a ``yes'' vote, and I yield back the balance of my time.

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