WASHINGTON, D.C. – U.S. Senators John Barrasso (R-Wyo.) and Reverend Raphael Warnock (D-Ga.), both members of the Senate Finance Committee, recently introduced the Taxpayer Notification and Privacy Act. The bipartisan legislation gives additional protection to taxpayers by providing more transparency from the Internal Revenue Service (IRS).

Current law requires the IRS to notify taxpayers before contacting third parties – such as banks or employers – when investigating whether or not a person owes taxes, but does not require the IRS to disclose to taxpayers what specific information they are seeking. The Barrasso-Warnock legislation would require the IRS to disclose exactly what information it is seeking from third parties and give taxpayers 45 days to provide that information directly to the IRS themselves.

“Wyoming taxpayers shouldn’t have to worry about the Internal Revenue Service (IRS) soliciting personal financial information behind their backs. They deserve to have the option to provide this sensitive information to the IRS directly,” said Senator Barrasso. “By providing that opportunity, our bipartisan bill will safeguard the reputation of taxpayers and small business owners across the country. It will also force the IRS to be as transparent as possible when it comes to the privacy of hardworking Americans.”

“I’m always focused on securing stronger consumer protections for Georgians,” said Senator Reverend Warnock. “I’m proud to partner with Senator Barrasso to ensure the IRS is transparent with taxpayers and that my constituents have the tools to protect their reputations.”

Background:

The Taxpayer Notification and Privacy Act:

• Requires the IRS to tell taxpayers what information it plans to request from third parties and identify which parties it intends to contact.
• Provides taxpayers an opportunity to supply the requested information directly from their own records, protecting taxpayers’ reputation and eliminating the need for many third-party contacts entirely.

In Wyoming, many people rely on community banks and credit unions. When the IRS uses these local financial institutions as contacts, it can damage relationships within tight-knit communities.

The commonsense legislation also benefits Wyoming’s 70,000 small businesses, which depend on strong relationships with local banks, suppliers, and customers that can be jeopardized by unexpected third-party contacts.

Full text of the legislation can be found here.

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