[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2498 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2498

 To amend the Internal Revenue Code of 1986 to prohibit the disclosure 
  of tax return information by tax return preparers to third parties.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 4, 2006

  Mr. Thomas (for himself, Mr. Schumer, and Mr. Enzi) 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 prohibit the disclosure 
  of tax return information by tax return preparers to third parties.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PROHIBITION OF TAX PREPARERS DISCLOSING TAX RETURN 
              INFORMATION.

    (a) In General.--Paragraph (3) of section 7216(b) of the Internal 
Revenue Code of 1986 (relating to regulations) is amended to read as 
follows:
            ``(3) Regulations.--
                    ``(A) In general.--Subsection (a) shall not apply 
                to a disclosure or use of information which is 
                permitted by regulations prescribed by the Secretary 
                under this section.
                    ``(B) Peer reviews.--The regulations under this 
                section shall permit (subject to such conditions as 
                such regulations shall provide) the disclosure or use 
                of information for quality or peer reviews.
                    ``(C) Disclosure to third parties.--
                            ``(i) In general.--The regulations under 
                        this section shall not permit the disclosure or 
                        use of information for purposes of facilitating 
                        the solicitation of the taxpayer's use of any 
                        services provided or facilities furnished by a 
                        person unless--
                                    ``(I) such person is a person 
                                described in subsection (a) or a person 
                                who is a member of the same affiliated 
                                group (within the meaning of section 
                                1504) as such person, and
                                    ``(II) the taxpayer has granted 
                                consent to such disclosure or use.
                            ``(ii) Solicitation of consent.--The 
                        regulations under this section shall not permit 
                        any person described in clause (i)(I) to 
                        request the consent of a taxpayer to disclose 
                        or use information for any purpose other than a 
                        purpose described in clause (i).''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.
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