Taxpayer Data Protection Act

This bill raises penalties for unauthorized disclosures of taxpayer information under the Internal Revenue Code. It increases fines from $5,000 to $250,000 per violation and extends potential prison terms from 5 to 10 years. Crucially, it treats each taxpayer's disclosed information as a separate violation, meaning leaks affecting multiple individuals multiply the penalties. The law directly affects IRS employees, tax professionals, and any government or private entities handling sensitive taxpayer data. It strengthens protections for personal financial information by significantly increasing consequences for breaches.