Taxpayer Notification and Privacy Act
What changed between versions
The requirement for the IRS to identify each specific item of information before contacting third parties now only applies when the information is related to determining tax liability. Previously it applied more broadly to any case where the information had not been previously requested and could reasonably be provided by the taxpayer.
The exception allowing the IRS to skip the specificity requirement was simplified from two grounds (tax collection, or Secretary determination of necessity) to a single ground: the Secretary determines the information is necessary. This gives the Secretary broader discretion but removes the explicit tax-collection carve-out.
The exception no longer waives the 45-day taxpayer response period. The introduced version excused both the specificity requirement and the related 45-day waiting period; the engrossed version only excuses the specificity requirement, meaning taxpayers retain their right to a 45-day response window even when the Secretary invokes the necessity exception.
The effective date provision was corrected from 'this subsection' to 'this section,' fixing a drafting error in the reference to which part of the bill the 12-month delay applies to.
