[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1737 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 1737

    To amend the Internal Revenue Code of 1986 to provide a uniform 
application of the confidentiality privilege to taxpayer communications 
                with federally authorized practitioners.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 10, 1998

    Mr. Mack (for himself, Mr. Kerrey, Mr. Nickles, Mr. Conrad, Mr. 
   Grassley, Ms. Moseley-Braun, Mr. Breaux, Mr. Lott, Mr. Craig, Mr. 
 Coverdell, Mr. McConnell, Mr. Thurmond, Mr. Murkowski, Mr. Bond, Mr. 
   Lugar, Mr. Ashcroft, Mr. DeWine, and Mr. Abraham) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to provide a uniform 
application of the confidentiality privilege to taxpayer communications 
                with federally authorized practitioners.

    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 Confidentiality Act of 
1998''.

SEC. 2. UNIFORM APPLICATION OF CONFIDENTIALITY PRIVILEGE TO TAXPAYER 
              COMMUNICATIONS WITH FEDERALLY AUTHORIZED PRACTITIONERS.

    (a) In General.--Chapter 77 of the Internal Revenue Code of 1986 
(relating to miscellaneous provisions) is amended by adding at the end 
the following new section:

``SEC. 7525. UNIFORM APPLICATION OF CONFIDENTIALITY PRIVILEGE TO 
              TAXPAYER COMMUNICATIONS WITH FEDERALLY AUTHORIZED 
              PRACTITIONERS.

    ``(a) General Rule.--With respect to tax advice, the same common 
law protections of confidentiality which apply to a communication 
between a taxpayer and an attorney shall also apply to a communication 
between a taxpayer and any federally authorized tax practitioner if the 
communication would be considered a privileged communication if it were 
between a taxpayer and an attorney.
    ``(b) Limitations.--Subsection (a) may only be asserted in--
            ``(1) noncriminal tax matters before the Internal Revenue 
        Service, and
            ``(2) noncriminal proceedings in Federal courts with 
        respect to such matters.
    ``(c) Federally Authorized Tax Practitioner.--For purposes of this 
section, the term `federally authorized tax practitioner' means any 
individual who is authorized under Federal law to practice before the 
Internal Revenue Service if such practice is subject to Federal 
regulation under section 330 of title 31, United States Code.''
    (b) Conforming Amendment.--The table of sections for such chapter 
77 is amended by adding at the end the following new item:

                              ``Sec. 7525. Uniform application of 
                                        confidentiality privilege to 
                                        taxpayer communications with 
                                        federally authorized 
                                        practitioners.''
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this Act.
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