S. 2629 – Taxpayer Notification and Privacy Act of 2025

AI-Generated Summary

Updated November 23, 2025 at 11:01 PM UTC

The Taxpayer Notification and Privacy Act of 2025 changes the tax code so that the IRS must notify a taxpayer before it asks a third party for information. The notice must list the exact pieces of data the IRS wants, and the taxpayer gets at least 45 days – with possible extensions – to provide that information themselves before the IRS contacts the third party. The rule applies to all future IRS third‑party requests, starting a year after the law is passed, and includes an exception if the Treasury Secretary decides the third‑party data is essential.

Key Provisions

Requires the IRS to identify each specific item of information it intends to obtain from a third party and to tell the taxpayer what that is
Gives the taxpayer a minimum 45‑day period (extendable with cause) to respond or supply the information before the IRS contacts the third party
Allows the Treasury Secretary to waive the notice requirement when the information is deemed necessary despite the taxpayer’s ability to provide it
Effective 12 months after enactment for all notices under the relevant code section

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (text: CR S5000)

Finance Committee

July 31, 2025

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SenateIntro Referral

Introduced in Senate

July 31, 2025

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text: CR S5000)

Finance Committee

July 31, 2025

Floor Debate

4 members

What members said about S. 2629 on the floor

2 Republicans2 Democrats

Sen. Alex PadillaD-CA · Jul 31, 2025

Mr. President, I rise today to introduce the bipartisan Forest Legacy Management Flexibility Act, which would give States the option to designate accredited nonprofit land trusts to hold conservation…

Mr. President, I rise today to introduce the bipartisan Forest Legacy Management Flexibility Act, which would give States the option to designate accredited nonprofit land trusts to hold conservation easements purchased with Federal funding from the U.S. Forest Service's Forest Legacy Program.

As my colleagues may know, the Forest Legacy Program is a conservation program administered by the U.S. Forest Service, in partnership with State agencies, that encourages the protection of privately owned forestlands through conservation easements or land purchases.

Protection of private forests through FLP maintains a multitude of public benefits, including opportunities to hunt, fish, and camp; clean and abundant drinking water; habitats for fish and wildlife; and timber, fuel wood, and other forest products. Since its creation in 1990, FLP has conserved over 3 million acres of forestland and expanded across the country to 53 States and territories.

Current law requires that Federal or State governments hold conservation easements purchased under the Forest Legacy Program. This bill would amend this existing law to ensure that States have the option to designate accredited nonprofit land trusts to hold conservation easements purchased with Federal funding from the U.S. Forest Service's Forest Legacy Program.

I would like to thank Senator Sheehy for working with me on this crucial piece of legislation. I also want to extend my appreciation to Representatives Garamendi and Calvert for leading the House version of this bill.

Mr. President, I rise to speak in support of the Transportation Emergency Relief Extension Act, which I introduced today.

When disasters strike, entire communities are left to pick up the pieces. Families lose their homes, businesses are destroyed, and essential infrastructure is severely damaged. In the wake of natural disasters like the California wildfires in January or the severe flooding that devastated Texas just a month ago, many States turn to the Federal Highway Administration's Emergency Relief Program to rebuild highways, roads, and bridges.

This program is essential, but as it currently stands, its regulations include rigid deadlines that do not reflect realities on the ground. Under current law, the Department of Transportation can claw this money back if the state has not initiated the funded projects by the end of the second fiscal year following the disaster.

While this requirement was designed to encourage prompt action, in practice it often punishes States for circumstances beyond their control, even when they strive to initiate their projects in a timely manner.

These include ongoing supply chain disruptions that have driven up the cost of materials and caused long lead times for equipment and lengthy regulatory steps such as environmental reviews and other permitting challenges. The delays caused by these hurdles are not due to the lack of effort by States; they are simply the reality of rebuilding critical, large-scale infrastructure.

While States can request 1-year extensions of these funds, those extensions are not guaranteed. Additionally, the lengthy DOT review process adds another layer of uncertainty that complicates States' efforts to plan and execute long-term recovery projects.

The bipartisan, bicameral Transportation Emergency Relief Extension Act would give States additional time to use the emergency relief funds they have been allocated, ensuring they do not lose out on critical funding because of factors they cannot control.

This extension is not about delaying progress: it is about giving States the flexibility they need to complete these projects responsibly, efficiently, and without the looming threat of losing Federal support just as they get underway.

When a community is struck by disaster, recovery is long and challenging. This commonsense legislation will help the Federal Government strengthen our role as a partner in that recovery. I want to thank Senator Cornyn for coleading this bill with me, and I hope our colleagues will join us to ensure that all our communities have the support they need to rebuild strong, resilient infrastructure when they need it most.

Sen. John ThuneR-SD · Jul 31, 2025

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Sen. Richard J. DurbinD-IL · Jul 31, 2025

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Sen. John BarrassoR-WY · Jul 31, 2025

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Sen. John BarrassoR-WY · Jul 31, 2025

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

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Introduced in SenateIssued July 31, 2025

II

119th CONGRESS

1st Session

S. 2629

IN THE SENATE OF THE UNITED STATES

July 31, 2025

Mr. Barrasso (for himself and Mr. Warnock) 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 provide for specific taxpayer notice when information is sought from third parties.

1.

Short title

This Act may be cited as the Taxpayer Notification and Privacy Act of 2025.

2.

Specificity of third-party contact notices

(a)

In general

Paragraph (1) of section 7602(c) of the Internal Revenue Code of 1986 is amended—

(1)

by striking and at the end of subparagraph (A),

(2)

by redesignating subparagraph (B) as subparagraph (C),

(3)

by inserting after subparagraph (A) the following new subparagraph:

(B)

in any case in which the information sought to be obtained from such other persons could reasonably be provided by the taxpayer, identifies each specific item of information intended to be sought from such persons, and

, and

(4)

by amending subparagraph (C), as redesignated by paragraph (2), to read as follows:

(C)

except as otherwise provided by the Secretary, provides the taxpayer with reasonable opportunity and a period of not less than 45 days (or more, if the taxpayer requests additional time and shows reasonable cause) to respond, including by providing the information described in subparagraph (B), before contact is made with such other persons.

.

(b)

Exception

Section 7602(c)(3) of the Internal Revenue Code of 1986 is amended—

(1)

by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively, and by moving such clauses 2 ems to the right,

(2)

by striking Exceptions.—This subsection and inserting “Exceptions.—

(A)

In general

This subsection

, and

(3)

by adding at the end the following new subparagraph:

(B)

Exception for information specificity

If the Secretary determines that the information sought from a person other than the taxpayer is necessary notwithstanding whether the taxpayer could independently provide such information, subparagraph (B) of paragraph (1) shall not apply.

.

(c)

Effective date

The amendments made by this section shall apply to notices provided under section 7602(c) of the Internal Revenue Code of 1986 after the date that is 12 months after the date of the enactment of this Act.