When the IRS wants to contact a third party — like your bank or employer — to get information about your taxes, it has to notify you first. But currently, that notice doesn't have to say what specific information the IRS is looking for. This bill would require the IRS to tell you exactly what it plans to ask about and give you at least 45 days to provide that information yourself before going to the third party. It adds a layer of privacy protection for taxpayers while still letting the IRS gather what it needs.
Congressional Summary
Taxpayer Notification and Privacy ActThis bill expands the Internal Revenue Service (IRS) notice requirements for contacting a third party (e.g., employer or bank) for information related to a taxpayer’s federal tax liability and the rights of the taxpayer in such situation. (Conditions and exceptions apply.)Currently, the IRS must notify a taxpayer at least 45 days in advance of a time period during which the IRS intends to contact a third party for information related to the taxpayer’s tax liability but is not required to specify what information is being sought.The bill requires the IRS to specify in a notice to a taxpayer each item of information sought from a third party when (1) the IRS has not previously requested such information from the taxpayer, and (2) the taxpayer can reasonably provide such information. This requirement does not apply if the IRS determines such third-party information is necessary.Further, under the bill, a taxpayer is allowed no less than 45 days (or more if requested by the taxpayer and deemed reasonable) to respond before the IRS contacts such third party.
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Reported to House
- Action Date
- 2026-01-07
- Date Added
- 2026-04-06