[Congressional Record Volume 143, Number 40 (Tuesday, April 8, 1997)]
[Senate]
[Page S2844]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. COVERDELL (for himself, Mr. Inhofe, Mr. Hutchinson, Mr. 
        Hagel, and Mr. Shelby):
  S. 521. A bill to amend the Internal Revenue Code of 1986 to impose 
civil and criminal penalties for the unauthorized access of tax returns 
and tax return information by Federal employees and other persons, and 
for other purposes; to the Committee on Finance.


             the coverdell TAXPAYER PRIVACY PROTECTION ACT

  Mr. COVERDELL. Mr. President, today I rise to offer legislation that 
will end one of the most pernicious offenses forced upon honest 
taxpayers. I am talking about file snooping. Others may call it 
browsing or scanning. Whatever the name, it is just plain wrong, and it 
ought to be stopped. That is why today I am introducing the Taxpayer 
Privacy Protection Act.
  Too often, the Internal Revenue Service acts as a bully, enforcing 
the Tax Code through fear and intimidation. Even worse, legal loopholes 
have allowed certain IRS employees to violate the privacy of innocent 
citizens without punishment. Some of the most troubling abuses 
committed by employees of the IRS against innocent Americans include 
the practices of file snooping.
  Recently in the Wall Street Journal, we learned of the case of Mr. 
Richard W. Czubinski of Boston, MA. He is a member of the Ku Klux Klan 
who used his IRS job to search the tax returns of political opponents 
and people he suspected of being Government informers. He was 
prosecuted and convicted by a jury, but his conviction was overturned 
in the Federal Court of Appeals. In making its decision, the appellate 
panel found Mr. Czubinski's browsing to be reprehensible, but also 
found no crime had been committed because prosecutors could not prove 
he had used the information or disclosed it.
  In addition, a few years back, I was shocked to learn that in my home 
city of Atlanta, nearly 370 employees of the local IRS office were 
caught accessing the tax returns and return information of friends, 
neighbors, and celebrities without proper authorization.
  Mr. President, the Taxpayer Privacy Protection Act would make it a 
crime to engage in file snooping, punishable by a fine of up to $1,000 
and/or 1 year imprisonment. Further, a convicted offender would have to 
reimburse all costs of prosecution and face dismissal.
  My legislation also requires notification of taxpayers who suffer 
this abuse. Unfortunately, what should seem to be a simple matter of 
decency must be required of the IRS. In response to suggestions 
taxpayers be notified when their privacy has been invaded by file 
snoopers, IRS Commissioner Margaret Richardson stated, ``I'm not sure 
there would be serious value to that in terms of protecting the 
taxpayers' rights.'' With all respect, such sentiment is typical of a 
Washington status quo mentality that is out-of-touch with the rest of 
America.
  Finally, my proposal would provide taxpayers who have been victims of 
file snooping with the option of seeking civil action. Quite simply, it 
is the decent thing to do.
  Taxpayer privacy is one of the most sacred trusts we place in the 
IRS. Unfortunately, this agency has not lived up to this trust. With 
passage of the Taxpayer Privacy Protection Act, honest, hardworking 
taxpayers can be assured their full privacy will be protected every 
April 15. They deserve no less.
                                 ______