[Congressional Record Volume 170, Number 144 (Tuesday, September 17, 2024)]
[House]
[Pages H5254-H5255]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TAXPAYER DATA PROTECTION ACT
Mr. SMITH of Missouri. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 8292) to amend the Internal Revenue Code of 1986 to
increase penalties for unauthorized disclosure of taxpayer information,
as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 8292
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 ``Taxpayer Data Protection
Act''.
SEC. 2. INCREASE IN PENALTIES FOR UNAUTHORIZED DISCLOSURES OF
TAXPAYER INFORMATION.
(a) In General.--Paragraphs (1), (2), (3), (4), and (5) of
section 7213(a) of the Internal Revenue Code of 1986 are each
amended by striking ``$5,000, or imprisonment of not more
than 5 years'' and inserting ``$250,000, or imprisonment of
not more than 10 years''.
(b) Disclosures of Return Information of Multiple Taxpayers
Treated as Multiple Violations.--Section 7213(a) of such Code
is amended by adding at the end the following new paragraph:
``(6) Disclosures of return information of multiple
taxpayers treated as multiple violations.--For purposes of
paragraphs (1), (2), (3), (4), and (5), a separate violation
occurs with respect to each taxpayer whose return or return
information is disclosed in violation of any such
paragraph.''.
(c) Effective Date.--The amendments made by this section
shall apply to disclosures made after the date of the
enactment of this Act.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Missouri (Mr. Smith) and the gentlewoman from California (Ms. Sanchez)
each will control 20 minutes.
The Chair recognizes the gentleman from Missouri.
General Leave
Mr. SMITH of Missouri. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days in which to revise and extend their
remarks and include extraneous material on the bill under
consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Missouri?
There was no objection.
{time} 1515
Mr. SMITH of Missouri. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise to speak in favor of the Taxpayer Data Protection
Act. When Americans file their taxes, they expect their personal data
and tax information are confidential.
Between 2017 and 2021, Charles Littlejohn, who worked as a contractor
for the IRS, stole taxpayer information, and he stole a lot of it. He
gave it to The New York Times and ProPublica, who published articles
containing that confidential tax information about President Trump and
other notable figures. Mr. Littlejohn then destroyed evidence and
obstructed law enforcement investigations.
Despite his efforts to cover up his crimes, Mr. Littlejohn admitted
that he was ``aware of the potential consequences'' and, in fact, made
his decision ``with the full knowledge that [he] would likely end up in
a courtroom.''
Current law failed to deter Mr. Littlejohn from stealing and leaking
private and sensitive taxpayer information. Moreover, the Department of
Justice only charged Mr. Littlejohn with a single count of unauthorized
disclosure of private tax information.
Given this lackluster charge, Republicans wrote the judge urging the
court to sentence Mr. Littlejohn to the maximum sentence for the crimes
he committed, particularly given the number of taxpayers impacted by
his actions.
Mr. Littlejohn ultimately received the maximum sentence available,
but the court was limited to the single count that the Department of
Justice brought charges on.
[[Page H5255]]
This bipartisan bill ensures that the punishment fits the crime.
Current law states that any violation shall be a felony punishable by a
fine in any amount not to exceed $5,000 or imprisonment of not more
than 5 years or both.
This bill increases the maximum penalty for the unauthorized
disclosure of returns and return information to include a fine of up to
$250,000 or imprisonment of not more than 10 years or both. It also
ensures that prosecutors can consider each taxpayer impacted by a
disclosure to support a separate and distinct violation of the law.
Increasing the punishment for this crime will result in better
deterrence for potential criminals and fewer crimes of this sort being
committed.
I urge all my colleagues to support this legislation and send a very
clear message that Congress will not tolerate the theft and leak of
taxpayer information.
Mr. Speaker, I reserve the balance of my time.
Ms. SANCHEZ. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 8292, the Taxpayer Data
Protection Act. I am proud to vote for this bill that will enhance
criminal penalties for the unlawful disclosure of taxpayer information.
Under Section 6103 of the tax code, tax returns and return
information are confidential and may only be disclosed by the Internal
Revenue Service and its employees, agents, or contractors if an
exception applies.
Any unauthorized disclosure of tax information is a felony punishable
by a maximum fine of $5,000 or imprisonment up to 5 years or both.
This bill significantly increases the maximum penalty to $250,000 and
imprisonment of up to 10 years. It also makes clear that each taxpayer
disclosed is treated as a separate violation subject to the maximum
penalty.
This bill responds to one of the largest leaks of taxpayer
information in the history of the IRS. While working at the IRS, a
former contractor, Charles Littlejohn, unlawfully accessed and stole
confidential tax information of the former President and thousands of
wealthy taxpayers and disclosed it to two news organizations, including
ProPublica. These news organizations then published a series of
articles using the confidential tax information they were provided.
Earlier this year, Mr. Littlejohn was sentenced to 5 years in Federal
prison for unlawfully accessing and disclosing tax information, which
is the maximum sentence under current law.
This bill would have provided the judge with the discretion to
increase the sentence, given the massive leak of information.
As required by law, the IRS has notified nearly 70,000 taxpayers who
were impacted by this unauthorized disclosure. We must do all that we
can to prevent this from happening again. This bill will provide
taxpayers additional confidence in the IRS that their information is
safe and protected.
Mr. Speaker, I urge my colleagues to vote ``yes'' on this bill, and I
reserve the balance of my time.
Mr. SMITH of Missouri. Mr. Speaker, I yield such time as he may
consume to the gentleman from Indiana (Mr. Yakym).
Mr. YAKYM. Mr. Speaker, I thank the gentleman from Missouri and the
chairman for his time as well as his leadership on this bill.
I rise in strong support of the Taxpayer Data Protection Act, which
will increase penalties for the unauthorized disclosure of personal
information.
Americans want certain things kept private. For example, the secret
ballot protects the sanctity of the voting booth. HIPAA keeps medical
history between you and your doctor. Section 6103 is supposed to
safeguard the sensitive information of our tax returns.
Beginning in 2017, an IRS contractor illegally downloaded tax returns
for thousands of Americans and began sharing them with reporters. When
the investigators caught on, he tried to destroy the evidence of his
crime. Yet the Biden-Harris administration let off the perpetrator of
this egregious breach of trust with only a single count of unauthorized
disclosure.
We cannot let partisan actors with delusions of white knighthood
think they can get away with sacrificing institutional trust in
furtherance of their personal political vendettas.
I thank Chairman Smith for keeping the spotlight on this case, and I
urge my colleagues to support the bill.
Ms. SANCHEZ. Mr. Speaker, I yield myself the balance of my time for
closing.
Taxpayers must have full confidence that the IRS will safeguard their
data. As Members of Congress, we must strengthen our laws to ensure
that every American's tax information is protected.
This bill increases the maximum penalty for unauthorized disclosure
and will serve as a big deterrent for folks who may think about
breaking the law.
Mr. Speaker, I urge my colleagues to vote ``yes'' in support of this
bill, and I yield back the balance of my time.
Mr. SMITH of Missouri. Mr. Speaker, I yield myself the balance of my
time.
Every taxpayer deserves to have their data protected from theft and
illegal disclosure. Our voluntary tax filing system depends on trust, a
trust that was betrayed by a criminal with political motives who
calculated that the crime would be worth the current punishment.
Simply put, he knew the crime he was committing, he knew the
likelihood he would end up in prison for just a few months or years,
and he decided the risks were clearly worth his reward.
We have an opportunity to deter similar actions from happening again
in the future by making the punishment match the crime.
Mr. Speaker, I urge my colleagues to join me in voting for the
Taxpayer Data Protection Act, and I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Bucshon). The question is on the motion
offered by the gentleman from Missouri (Mr. Smith) that the House
suspend the rules and pass the bill, H.R. 8292, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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