A bill to amend the Internal Revenue Code of 1986 to increase criminal and civil penalties for unauthorized disclosure of taxpayer information, and for other purposes.
Sponsored By: Senator Daines, Steve [R-MT]
Introduced
Summary
This bill would sharply increase penalties for unauthorized disclosure of taxpayer information. It would raise criminal fines and prison terms for unlawful disclosures, create a new felony for IRS contractors who fail to safeguard returns, and raise civil damages for victims.
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- Taxpayers and households: People whose returns are disclosed could recover larger damages when harmed. Civil damages rise from $1,000 to $5,000, and taxpayers must be notified if someone is criminally charged in connection with their return.
- IRS contractors and vendors: Contractors who willfully fail to enforce confidentiality rules would face a new felony and large financial penalties. The penalty would be the greater of $500,000 or 25 percent of the contractor's total obligated IRS contract amount in the first fiscal year with access.
- Individuals who unlawfully disclose returns: Criminal penalties for unauthorized inspection or disclosure would increase substantially. Maximum fines rise to $250,000 and prison terms to up to 7 years.
The bill's changes apply to disclosures or inspections made after enactment.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Stronger penalties and protections for taxpayers
This bill would raise criminal penalties for people who unlawfully view or share tax returns to fines up to $250,000 and up to 7 years in prison. It would raise civil damages for unlawful inspection or disclosure from $1,000 to $5,000 per violation. It would require the IRS to notify a taxpayer as soon as practicable if certain criminal charges are filed about improper access or disclosure. It would also make IRS contractors who willfully fail to protect return information guilty of a felony and, on conviction, liable for the greater of $500,000 or 25% of their first-year IRS contract obligations. These changes would apply to disclosures or inspections made after the date of enactment.
Sponsors & CoSponsors
Sponsor
Daines, Steve [R-MT]
MT • R
Cosponsors
Sen. Cortez Masto, Catherine [D-NV]
NV • D
Sponsored 6/11/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov