H.R. 3860House115th Congress (2017-2019)In Committee

IRS Data Verification Modernization Act of 2017

AI-Generated Summary

Updated April 15, 2026 at 6:13 PM UTC

The IRS Data Verification Modernization Act of 2017 would require the Treasury to create an online system that provides near‑real‑time responses when a qualified third party asks to verify a taxpayer’s income for a legitimate business reason. The system would be fully automated, and the agency could charge fees to cover the costs of building and running it.

Key Provisions

The Treasury (or its delegate) must set up an internet‑based program that delivers qualified disclosures of tax returns or return information in as close to real‑time as possible.
A “qualified disclosure” is a request under section 6103(c) where the requester promises to follow the confidentiality rules in section 6103(p)(4).
The Treasury may assess a user fee on each disclosure to recover the costs of the program, including any needed technology or infrastructure.
Fees collected are to be deposited as an offsetting collection to fund the program’s activities.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

September 28, 2017

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HouseIntro Referral

Introduced in House

September 28, 2017

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

September 28, 2017

Bill Text

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Introduced in HouseIssued September 28, 2017

115th CONGRESS

1st Session

H. R. 3860

IN THE HOUSE OF REPRESENTATIVES

September 28, 2017

Mr. McHenry (for himself and Mr. Blumenauer) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to require Internet-based, real-time responses to requests to verify taxpayer income for legitimate business purposes, and for other purposes.

Short title

This Act may be cited as the IRS Data Verification Modernization Act of 2017.

Disclosure of taxpayer information for third-party income verification

(a)

In general

The Secretary of the Treasury or the Secretary’s delegate (referred to in this section as the Secretary) shall implement a program to ensure that any qualified disclosure—

(1)

is fully automated and accomplished through the Internet, and

(2)

is accomplished in as close to real-time as is practicable.

(b)

Qualified disclosure

For purposes of subsection (a), the term qualified disclosure means a disclosure under section 6103(c) of the Internal Revenue Code of 1986 of returns or return information by the Secretary to a person seeking to verify the income of a taxpayer for a legitimate business purpose who has represented to the Secretary that such person will comply with the requirements of section 6103(p)(4) of the Internal Revenue Code of 1986.

(c)

User fee

(1)

In general

The Secretary shall assess and collect a fee for disclosures described in subsection (a) at such rates as the Secretary determines are sufficient to recover the costs related to implementing the program described in subsection (a) not later than 5 years after such costs are paid or incurred. Such costs shall include the costs of any necessary infrastructure or technology.

(2)

Deposit of collections

Amounts received from fees authorized by paragraph (1) shall be deposited as an offsetting collection in, and credited to, the account through which funds are made available to carry out the activities described in subsection (a).