S. 1958Senate115th Congress (2017-2019)In Committee

IRS Data Verification Modernization Act of 2017

AI-Generated Summary

Updated April 15, 2026 at 6:31 PM UTC

The IRS Data Verification Modernization Act of 2017 would change the tax code so that the Treasury must provide an online, near‑real‑time system for releasing a taxpayer’s return information when a third party needs to verify income for a legitimate business reason. The law creates a streamlined, automated process and allows the Treasury to charge fees to cover the cost of building and running the system. It mainly affects taxpayers whose data could be shared and businesses or lenders that request income verification.

Key Provisions

The Treasury (or its delegate) must set up an automated, internet‑based system to provide qualified disclosures of tax return information in as close to real‑time as possible.
A “qualified disclosure” is defined as a request under section 6103(c) where the requester promises to follow the confidentiality rules in section 6103(p)(4).
The Treasury may assess and collect user fees from requesters to recover the costs of creating and maintaining the verification system, with those fees deposited to fund the program.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

October 16, 2017

View full timeline

SenateIntro Referral

Introduced in Senate

October 16, 2017

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

October 16, 2017

Bill Text

Latest available legislative text

Reading Mode

Raw Text PDF XML

Introduced in SenateIssued October 16, 2017

115th CONGRESS

1st Session

S. 1958

IN THE SENATE OF THE UNITED STATES

October 16, 2017

Mr. Booker (for himself and Mr. Crapo) introduced the following bill; which was read twice and referred to the Committee on Finance

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).