SEC. 3. CIVILDAMAGES FOR

UNAUTHORIZED INSPECTION OF RETURNS AND RETURN INFORMATION; NOTIFICATION OFUNLAWFULINSPECTION OR DISCLOSURE.

“(B) any person described in section 6103(n) or an officer or employee of any such person, willfully to inspect, except as authorized in this title, any return or return information.

“(1) which results from a good faith, but erroneous, interpretation of section 6103, or

“(2) which is requested by the taxpayer.”. (d) CONFORMING AMENDMENTS.—

(1) Subsections (c)(1)(A), (c)(1)(B)(i), and (d) of section 7431 of such Code are each amended by inserting “inspection or” before “disclosure”.

(2) Clause (ii) of section 7431(c)(1)(B) of such Code is amended by striking “willful disclosure or a disclosure” and inserting “willful inspection or disclosure or an inspection or disclosure”.

“(2) S TAT E A N D O T H E R

(a) CIVIL DAMAGES FOR UNAUTHORIZED IN S P E C T I O N.—Subsection (a) of section 7431 of the Internal Revenue Code of 1986 is amended— (1) by striking “D ISCLOSURE” in the headings for paragraphs (1) and (2) and inserting “IN S P E C T I O N O R D I S C L O

E M P L O Y E E S.—It shall be unlawful for any person (not described in paragraph (1)) willfully to inspect, except as authorized in this title, any return or return information acquired by such person or another person under a provision of section 6103 referred to in section 7213(a)(2).

T I O N O R DI S C L O S U R E.—Section 7431 of

SURE”, and

(2) by striking “discloses” in paragraphs (1) and (2) and inserting “inspects or discloses”. (b) NOTIFICATION OF UNLAWFUL INSPEC

(3) Subsection (f) of section 7431 of such Code, as redesignated by subsection (b), is amended to read as follows: “(f) DEFINITIONS.—For purposes of this section, the terms ‘inspect’, ‘inspection’, ‘return’, and ‘return information’have the respective meanings given such terms by section 6103(b).”.

(4) The section heading for section 7431 of such Code is amended by inserting “INSPECTION OR” before “DIS

CLOSURE”.

1997–43 I.R.B. 13 October 27, 1997

(5) The table of sections for subchapter B of chapter 76 of such Code is amended by inserting “inspection or” before “disclosure” in the item relating to section 7431.

Congressional Budget Office . . . . . .16 V. Other Matters To Be Discussed Under

Budgetary Effects . . . . . . . . . . . . . .15 B. Budget Authority and Tax

Expenditures . . . . . . . . . . . . . . . . . .15 C. Cost Estimate Prepared by the

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

(c) NO DA M A G E S F O R IN S P E C T I O N RE

(6) Paragraph (2) of section 7431(g) of such Code, as redesignated by subsection (b), is amended by striking “any use” and inserting “any inspection or use”. (e) EF F E C T I V E DAT E.—The amendments made by this section shall apply to inspections and disclosures occurring on and after the date of the enactment of this Act.

clause 5(c) . . . . . . . . . . . . . . . . . . . . .16 VI. Changes in Existing Law Made by the

the Rules of the House . . . . . . . . . . . . . .16 A. Committee Oversight Findings and

Recommendations . . . . . . . . . . . . . . .16 B. Summary of Findings and Recom mendations of the Committee on Government Reform and Oversight .16 C. Constitutional Authority Statement . .16 D. Information Relating to Unfunded

Mandates . . . . . . . . . . . . . . . . . . . . . .16 E. Applicability of House Rule XXI

Q U E S T E D B Y TA X PAY E R.—Subsection (b) of section 7431 of such Code is amended to read as follows:

“(b) EX C E P T I O N S.—No liability shall arise under this section with respect to any inspection or disclosure—

Approved August 5, 1997.

“(1) which results from a good faith, but erroneous, interpretation of section 6103, or

“(2) which is requested by the taxpayer.”. (d) CONFORMING AMENDMENTS.—

(1) Subsections (c)(1)(A), (c)(1)(B)(i), and (d) of section 7431 of such Code are each amended by inserting “inspection or” before “disclosure”.

(2) Clause (ii) of section 7431(c)(1)(B) of such Code is amended by striking “willful disclosure or a disclosure” and inserting “willful inspection or disclosure or an inspection or disclosure”.

105th HOUSE Report Congress OF REPRE- 105–51 1st Session SENTATIVES

TAXPAYER BROWSING

PROTECTION ACT

APRIL 14, 1997.—Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

M r. AR C H E R, from the Committee on Ways and Means, submitted the following

REPORT

[To accompany H.R. 1226]

[Including cost estimate of the Congres sional Budget Office]

The Committee on Ways and Means, to whom was referred the bill (H.R. 1226) to amend the Internal Revenue Code of 1986 to prevent the unauthorized inspection of tax returns or tax return information, having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass.

CONTENTS

Page

S P E C T I O N A N D DI S C L O S U R E.—If any person is criminally charged by indictment or information with inspection or disclosure of a taxpayer’s return or return information in violation of—

Bill, as Reported . . . . . . . . . . . . . . . . . .16 The amendment is as follows: At the end of the bill insert the following new section: