[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5725 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 5725

 To amend the Internal Revenue Code of 1986 to require website-based, 
     real-time responses to requests to verify taxpayer income for 
                     legitimate business purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 11, 2016

 Mr. McHenry introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to require website-based, 
     real-time responses to requests to verify taxpayer income for 
                     legitimate business purposes.

    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 ``IRS Data Verification Modernization 
Act of 2016''.

SEC. 2. DISCLOSURE OF TAXPAYER INFORMATION FOR THIRD-PARTY INCOME 
              VERIFICATION.

    (a) In General.--Section 6103(c) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``The Secretary may'' and inserting the 
        following:
            ``(1) In general.--The Secretary shall'', and
            (2) by adding at the end the following new paragraph:
            ``(2) Disclosure for income verification.--With respect to 
        any program established by the Secretary to disclose returns 
        and return information to an entity engaged in the process of 
        confirming the income of a taxpayer for a legitimate business 
        purpose, or a designee of any such entity, the Secretary shall 
        ensure the following:
                    ``(A) The disclosure process is conducted entirely 
                through fully automated and electronic means accessible 
                through the Internet.
                    ``(B) The disclosure process is able to be 
                completed in as close to real-time as is practicable.
            ``(3) Security requirements for recipients.--The recipients 
        authorized to receive returns or return information on behalf 
        of taxpayers shall maintain adequate security to protect the 
        information being disclosed.''.
    (b) Efficient Use of Agency Resources.--In establishing the program 
to electronically automate income verification disclosures under 
section 6103(c)(2) of the Internal Revenue Code of 1986, as added by 
this section, the Secretary shall, to the extent practicable, make use 
of resources in operation or in development at the Internal Revenue 
Service, including databases, application programming interfaces, and 
other computerized systems, programs, and resources.
    (c) Report.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary of the Treasury shall submit a 
written report to Congress on any progress made on the implementation 
of section 6103(c)(2) of the Internal Revenue Code of 1986, as added by 
this section.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to disclosures made after the date that is one year 
after the date of the enactment of this Act.
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