[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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