← Back to Bills
S. 4752Senate119th Congress (2025-2027)In Committee

A bill to amend the Internal Revenue Code of 1986 to increase criminal and civil penalties for unauthorized disclosure of taxpayer information, and for other purposes.

Sponsored by Steve DainesSen. Steve Daines (R-MT)
Introduced June 11, 2026

AI-Generated Summary

Updated June 23, 2026 at 6:22 AM UTC

This bill tightens the rules protecting taxpayer privacy by sharply increasing both criminal and civil penalties for anyone who improperly accesses or shares tax return information. It also holds IRS contractors accountable, making willful failures to protect data a felony with hefty fines. The changes apply to any disclosures that occur after the bill becomes law.

Key Provisions

  • Criminal penalties for unauthorized disclosure of taxpayer information are increased from $5,000 and up to 5 years in prison to $250,000 and up to 7 years in prison.
  • A new felony offense is created for IRS contractors who willfully fail to follow confidentiality safeguards and cause an unauthorized disclosure; the penalty is the greater of $500,000 or 25% of the contractor’s total IRS contract value for that fiscal year.
  • Civil damages for violations are raised from $1,000 to $5,000 per incident.
  • The law adds the new Section 7213B to the tax code, updates cross‑references, and requires the IRS to notify taxpayers promptly when their return information is improperly inspected or disclosed.

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

June 11, 2026

View full timeline
SenateIntro Referral

Introduced in Senate

June 11, 2026

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

June 11, 2026

Bill Text

Latest available legislative text

Reading Mode
Latest
Raw Text PDF XML
Introduced in SenateIssued June 11, 2026

II

119th CONGRESS

2d Session

S. 4752

IN THE SENATE OF THE UNITED STATES

June 11, 2026

Mr. Daines (for himself and Ms. Cortez Masto) 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 increase criminal and civil penalties for unauthorized disclosure of taxpayer information, and for other purposes.

1.

Modifications to penalties for unauthorized disclosures of taxpayer information

(a)

Criminal penalties

(1)

In general

Paragraphs (1), (2), (3), (4), and (5) of section 7213(a) of the Internal Revenue Code of 1986 are each amended by striking $5,000, or imprisonment of not more than 5 years each place it appears and inserting $250,000, or imprisonment of not more than 7 years.

(2)

Failure of contractors to maintain safeguards

(A)

In general

Part I of subchapter A of chapter 75 of subtitle F of the Internal Revenue Code of 1986 is amended by inserting after section 7213A the following new section:

7213B.

Failure of IRS contractors to maintain safeguards

(a)

In general

In the case of a contractor of the Internal Revenue Service that willfully fails to implement or enforce any applicable requirement under section 6103 (or regulations prescribed thereunder) to protect the confidentiality of returns or return information, if such failure results in the unauthorized disclosure of returns or return information, such contractor shall be guilty of a felony and, upon conviction thereof, shall be fined the greater of—

(1)

$500,000, or

(2)

an amount equal to 25 percent of the total amount obligated under all contracts with the Internal Revenue Service during the first fiscal year in which such contractor was provided access to any returns or return information related to the unauthorized disclosure.

(b)

Definitions

For purposes of this section, the term contractor of the Internal Revenue Service means any person described in section 6103(n) (including any officer or employee of such person) in connection with a written contract with the Internal Revenue Service.

.

(B)

Clerical amendment

The table of sections for part I of subchapter A of chapter 75 of subtitle F of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 7213A the following new item:

Sec. 7213B. Failure of IRS contractors to maintain safeguards.

.

(C)

Conforming amendments

(i)

Section 6103(e)(11) of such Code is amended by inserting 7213B, after 7213A,.

(ii)

Section 6105(d) of such Code is amended by inserting 7213B, after 7213A,.

(iii)

Section 7431(e) of such Code is amended by striking the first sentence and inserting the following:

If any person is criminal charged by indictment or information with—

(1)

inspection or disclosure of a taxpayer's return or return information in violation of—

(A)

paragraph (1) or (2) of section 7213(a),

(B)

section 7213A(a), or

(C)

subparagraph (B) of section 1030(a)(2) of title 18, United States Code, or

(2)

failure to protect the confidentiality of returns or return information which results in the unauthorized disclosure of the taxpayer's return or return information in violation of section 7213B(a),

the Secretary shall notify such taxpayer as soon as practicable of such inspection or disclosure.

.

(iv)

Section 7513(c) of such Code is amended by striking section 7213 and inserting sections 7213 and 7213B.

(b)

Civil damages

Section 7431(c)(1)(A) of the Internal Revenue Code of 1986 is amended by striking $1,000 and inserting $5,000.

(c)

Effective date

The amendments made by this section shall apply to disclosures or inspections made after the date of the enactment of this Act.