[Congressional Record Volume 143, Number 40 (Tuesday, April 8, 1997)]
[Extensions of Remarks]
[Pages E598-E599]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  THE TAXPAYER BROWSING PROTECTION ACT

                                 ______
                                 

                         HON. WILLIAM J. COYNE

                            of pennsylvania

                    in the house of representatives

                         Tuesday, April 8, 1997

  Mr. COYNE. Mr. Speaker, I am pleased to cosponsor, along with my 
Democratic and Republican colleagues, a bill titled the ``Taxpayer 
Browsing Protection Act.'' As the ranking member of the Ways and Means 
Committee Oversight Subcommittee, I have worked with the IRS 
Commissioner and the other subcommittee members in support of the 
legislation being introduced today.
  Most recently, the IRS Commissioner wrote me and renewed her request 
that legislation be introduced to clarify the criminal sanctions for 
unauthorized access to or inspection of tax information, referred to as 
browsing, by IRS employees. A copy of the Commissioner's March 10, 
1997, letter follows my statement and is included in the Record.
  Importantly, this bill would prohibit unauthorized review of tax 
information, retained by the IRS in both paper and electronic form. 
Violators would be subject to significant criminal sanctions, including 
monetary fines and imprisonment, and dismissal from IRS employment.
  This legislation will significantly enhance the IRS's current zero 
tolerance policy for illegal browsing of tax information. The public 
will benefit from this legislation knowing that their tax records are 
only inspected by IRS employees who need the information as part of 
their job responsibility. Also, all the hardworking and committed IRS 
employees nationwide will benefit from this legislation knowing that a 
bad apple hired by the IRS will be quickly removed from the agency and 
punished under the law.
  I look forward to working with the members of the Committee on Ways 
and Means, on a bipartisan basis, to approve this legislation and to 
bring the bill to the House floor in a timely manner.

                                       Department of the Treasury,


                                     Internal Revenue Service,

                                   Washington, DC, March 10, 1997.
     Hon. William J. Coyne,
     Subcommittee on Oversight, Committee on Ways and Means, House 
         of Representatives, Washington, DC.
       Dear Mr. Coyne: I wanted to let you know about a case that 
     was recently decided by

[[Page E599]]

     the United States Court of Appeals for the First Circuit, 
     United States v. Czubinski, No. 96-1317, 1997 U.S. App. LEXIS 
     3077 (1st Cir. February 21, 1977) and to request your support 
     for legislation to clarify the criminal sanctions in the 
     Internal Revenue Code for the unauthorized access of 
     taxpayers' accounts by Internal Revenue Service employees.
       Since becoming Commissioner, I have repeatedly stated that 
     the IRS will not tolerate violations by employees of the 
     rules against unauthorized access. The Service's zero 
     tolerance policy prohibits any employee access to (and use 
     of) tax information, except to the extent necessary for an 
     employee to perform assigned duties.
       In the Czubinski case, the First Circuit reversed the 
     conviction of a former IRS employee for improperly accessing 
     taxpayer information in the IRS database. That person had 
     been indicted and convicted of several counts of violating 18 
     USC Sec. Sec. 1343 and 1346 (wire fraud) and 18 USC 
     Sec. 1030(a)(4) (computer fraud). In reversing the 
     conviction, the court stated that ``unauthorized browsing of 
     taxpayer files, although certainly inappropriate conduct, 
     cannot, without more, sustain [a] federal felony conviction 
     [under 18 USC Sec. Sec. 1343, 1346 and 1030(a)(4)].''
       This decision and a 1996 acquittal, by a Memphis, Tennessee 
     jury of another former IRS employee who had been indicted for 
     improper access of taxpayer accounts under 26 USC Sec. 7213 
     (Unlawful Disclosure of Tax Return Information), United 
     States v. Patterson, Cr. No. 96-20002 (W.D. Tenn. April 10, 
     1996), are very troubling and make it more difficult for the 
     Service to appropriately discipline employees who violate our 
     policy against unauthorized access.
       In the past several years, the IRS has taken a number of 
     steps to ensure that unauthorized access of taxpayer 
     information by IRS employees does not occur. For example, 
     each time an employee logs onto the taxpayer account 
     database, a statement warns of possible prosecution for 
     unauthorized use of the system. All new users receive 
     training on privacy and security of tax information before 
     they are entitled to access the Integrated Data Retrieval 
     System (IDRS). The Service has also installed automated 
     detection programs that monitor employees' actions and 
     accesses to taxpayers' accounts, identify patterns of use, 
     and alert managers to potential misuse. Employees are 
     disciplined according to a Guide for Penalty Determinations 
     that includes dismissal. In the Czubinski opinion, the court 
     noted that ``the IRS rules plainly stated that employees with 
     passwords and access codes were not permitted to access files 
     on IDRS [the database] outside of the course of their 
     official duties.''
       In addition to the internal actions, the IRS has 
     recommended and supported legislative efforts to amend the 
     Internal Revenue Code and Title 18 to clarify the criminal 
     sanctions for unauthorized computer access to taxpayer 
     information. A recent amendment to 18 USC Sec. 1030(a)(2)(B) 
     by the Economic Espionage Act of 1996, Pub. L. No. 104-294, 
     110 Stat. 3488 (1996), provides criminal misdemeanor 
     penalties for anyone who intentionally accesses a computer 
     without authorization or who exceeds authorized access and 
     thereby obtains information, including tax information, from 
     any department or agency of the United States. I have been 
     advised by counsel that had this amendment been in effect and 
     applicable to the Czubinski and Patterson cases, the 
     government very likely would not have lost those cases.
       Although the recent amendment to 18 USC Sec. 1030(a)(2)(B) 
     will hopefully serve as a significant deterrent to 
     unauthorized computer access of taxpayer information, this 
     statute only applies to unauthorized access of computer 
     records. It does not apply to unauthorized access or 
     inspection of paper tax returns and related tax information. 
     Legislation such as S. 670, introduced in the 104th Congress, 
     would achieve that result. By clarifying the criminal 
     sanctions for unauthorized access or inspection of tax 
     information in section 7213 of the Internal Revenue Code, 
     whether that information is in computer or paper format, the 
     entire confidentiality scheme respecting tax information and 
     related enforcement mechanisms would be appropriately found 
     in the Internal Revenue Code.
       An amendment to section 7213 such as was proposed in the 
     104th Congress would serve important tax administration 
     objectives. (Of course, as is currently the case under 
     section 7213 for convictions resulting from the disclosure of 
     tax information to unauthorized third parties, a conviction 
     of federal officers and employees for the unauthorized access 
     or inspection of tax information would, in addition to 
     imprisonment and fine, continue to result in dismissal from 
     office or discharge from employment.)
       We would like to work with you and your staff to assure 
     that improper access can be dealt with appropriately.
           Sincerely,
     Margaret Milner Richardson.

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