This bill has advanced since we wrote our summary.
Current stage on Congress.gov: Referred in Senate.
Right now, when the IRS wants to get information about your taxes from someone else — like your bank, employer, or business partners — it has to give you advance notice, but the notice doesn't have to spell out exactly what it's after. This bill would change that. The IRS would have to identify each specific piece of information it plans to request from third parties, and give you at least 45 days to provide it yourself before reaching out to others. The Treasury Secretary can waive the specificity requirement if the information is deemed necessary. The changes take effect one year after the bill becomes law.
Civil Liberties
- Taxpayer notice rights — IRS must identify each specific item sought from third parties
- Taxpayer response window — At least 45 days to provide information before third-party contact
- Notice specificity requirement — Waived when Secretary determines the information is necessary
Transparency & Accountability
- IRS disclosure to taxpayers — Specific items of information sought must be itemized in third-party contact notices
Congressional Summary
This 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
- Received in the Senate and Read twice and referred to the Committee on Finance.
- Action Date
- 2026-04-28
- Date Added
- 2026-04-06
- Source
- Congress.gov →
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