[Congressional Record Volume 143, Number 44 (Tuesday, April 15, 1997)]
[Senate]
[Page S3226]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

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                  THE TAXPAYER PRIVACY PROTECTION ACT

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                COVERDELL (AND OTHERS) AMENDMENT NO. 45

  Mr. LOTT (for Mr. Coverdell, for himself, Mr. Glenn, Mr. Roth, Mr. 
Moynihan, Mr. Mack, Mr. Kerry, Mr. Kohl, and Mr. D'Amato) proposed an 
amendment to the bill (S. 522) 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; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Taxpayer Browsing Protection 
     Act''.

     SEC. 2. PENALTY FOR UNAUTHORIZED INSPECTION OF TAX RETURNS OR 
                   TAX RETURN INFORMATION.

       (a) In General.--Part I of subchapter A of chapter 75 of 
     the Internal Revenue Code of 1986 (relating to crimes, other 
     offenses, and forfeitures) is amended by adding after section 
     7213 the following new section:

     ``SEC. 7213A. UNAUTHORIZED INSPECTION OF RETURNS OR RETURN 
                   INFORMATION.

       ``(a) Prohibitions.--
       ``(1) Federal employees and other persons.--It shall be 
     unlawful for--
       ``(A) any officer or employee of the United States, or
       ``(B) any person described in section 6103(n) or an officer 
     or employee of any such person,

     willfully to inspect, except as authorized in this title, any 
     return or return information.
       ``(2) State and other employees.--It shall be unlawful for 
     any person (not described in paragraph (1)) willfully to 
     inspect, except as authorized in this title, any return or 
     return information acquired by such person or another person 
     under a provision of section 6103 referred to in section 
     7213(a)(2).
       ``(b) Penalty.--
       ``(1) In general.--Any violation of subsection (a) shall be 
     punishable upon conviction by a fine in any amount not 
     exceeding $1,000, or imprisonment of not more than 1 year, or 
     both, together with the costs of prosecution.
       ``(2) Federal officers or employees.--An officer or 
     employee of the United States who is convicted of any 
     violation of subsection (a) shall, in addition to any other 
     punishment, be dismissed from office or discharged from 
     employment.
       ``(c) Definitions.--For purposes of this section, the terms 
     `inspect', `return', and `return information' have the 
     respective meanings given such terms by section 6103(b).''
       (b) Technical Amendments.--
       (1) Paragraph (2) of section 7213(a) of such Code is 
     amended by inserting ``(5),'' after ``(m)(2), (4),''.
       (2) The table of sections for part I of subchapter A of 
     chapter 75 of such Code is amended by inserting after the 
     item relating to section 7213 the following new item:

``Sec. 7213A. Unauthorized inspection of returns or return 
              information.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to violations occurring on and after the date of 
     the enactment of this Act.

     SEC. 3. CIVIL DAMAGES FOR UNAUTHORIZED INSPECTION OF RETURNS 
                   AND RETURN INFORMATION; NOTIFICATION OF 
                   UNLAWFUL INSPECTION OR DISCLOSURE.

       (a) Civil Damages for Unauthorized Inspection.--Subsection 
     (a) of section 7431 of the Internal Revenue Code of 1986 is 
     amended--
       (1) by striking ``Disclosure'' in the headings for 
     paragraphs (1) and (2) and inserting ``Inspection or 
     disclosure'', and
       (2) by striking ``discloses'' in paragraphs (1) and (2) and 
     inserting ``inspects or discloses''.
       (b) Notification of Unlawful Inspection or Disclosure.--
     Section 7431 of such Code is amended by redesignating 
     subsections (e) and (f) as subsections (f) and (g), 
     respectively, and by inserting after subsection (d) the 
     following new subsection:
       ``(e) Notification of Unlawful Inspection and Disclosure.--
     If any person is criminally charged by indictment or 
     information with inspection or disclosure of a taxpayer's 
     return or return information in violation of--
       ``(1) paragraph (1) or (2) of section 7213(a),
       ``(2) section 7213A(a), or
       ``(3) subparagraph (B) of section 1030(a)(2) of title 18, 
     United States Code, the Secretary shall notify such taxpayers 
     as soon as practicable of such inspection or disclosure.''
       (c) No Damages for Inspection Requested By Taxpayer.--
     Subsection (b) of section 7431 of such Code is amended to 
     read as follows:
       ``(b) Exceptions.--No liability shall arise under this 
     section with respect to any inspection or disclosure--
       ``(1) which results from a good faith, but erroneous, 
     interpretation of section 6103, or
       ``(2) which is requested by the taxpayer.''
       (d) Conforming Amendments.--
       (1) Subsections (c)(1)(A), (c)(1)(B)(i), and (d) of section 
     7431 of such Code as each amended by inserting ``inspection 
     or'' before ``disclosure''.
       (2) Clause (ii) of section 7431(c)(1)(B) of such Code is 
     amended by striking ``willful disclosure or a disclosure'' 
     and inserting ``willful inspection or disclosure or an 
     inspection or disclosure.''
       (3) Subsection (f) of section 7431 of such Code, as 
     redesignated by subsection (b), is amended to read as 
     follows:
       ``(f) Definitions.--For purposes of this section, the terms 
     `inspect', `inspection', `return', and `return information' 
     have the respective meaning given such terms by section 
     6103(b).''
       (4) The section heading for section 7431 of such Code is 
     amended by inserting ``INSPECTION OR'' before ``DISCLOSURE''.
       (5) The table of sections for subchapter B of chapter 76 of 
     such Code is amended by inserting ``inspection or'' before 
     ``disclosure'' in the item relating to section 7431.
       (6) Paragraph (2) of section 7431(g) of such Code, as 
     redesignated by subsection (b), is amended by striking ``any 
     use'' and inserting'' any inspection or use''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to inspections and disclosures occurring on and 
     after the date of the enactment of this Act.

     SEC. 4.

       (a) In General.--Section 1306(c)(1) of the National Food 
     Insurance Act of 1968 (42 U.S.C. 4013(c)(1)) is amended by 
     striking ``30'' and inserting ``15''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall be construed to have taken effect on January 1, 1997, 
     and shall expire June 30, 1997.

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