[Congressional Record (Bound Edition), Volume 146 (2000), Part 5]
[Extensions of Remarks]
[Page 6429]
[From the U.S. Government Publishing Office, www.gpo.gov]



                      TAXPAYER BILL OF RIGHTS 2000

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                               speech of

                          HON. XAVIER BECERRA

                             of california

                    in the house of representatives

                        Tuesday, April 11, 2000

  Mr. BECERRA. Mr. Speaker, today I support H.R. 4163, the ``Taxpayer 
Bill of Rights 2000.'' Last month when the House Ways and Means 
Committee considered this bill, I raised concerns about the apparent 
lack of oversight of State taxing authorities that use Federal tax 
return information.
  This bill recognizes breaches of taxpayer confidentiality at the 
State level and contains a provision to require that States conduct on-
site reviews of all contractors receiving Federal tax return 
information. However, this bill does not address instances in which 
state agencies may have inappropriately disclosed Federal tax 
information. In a recent study on taxpayer confidentiality, the Joint 
Committee on Taxation found that ``[A]lmost all of the surveyed State 
taxing authorities reported some discrepancy of one type or another [in 
their efforts to safeguard tax return information].''
  I have personally heard stories from taxpayers about how my state's 
taxing authority, the California Franchise Tax Board (FTB), has misused 
and inappropriately disclosed Federal tax information. Some examples 
include making IRS tax returns public without the consent of the 
taxpayer and using the threat of disclosure as a tool to try to force 
taxpayers into concessions. I have even been told that the State's 
training materials encourage misuse of penalties and other types of 
inappropriate behavior.
  In my current position on the House Ways and Means Committee, I plan 
to do my utmost to ensure that States like my State of California are 
fully accountable for the privacy of its citizens. I hope to work with 
other Members of Congress to improve H.R. 4163 by requiring more 
safeguards and oversight of State taxing authorities' use of Federal 
tax information.

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