Washington, D.C. - U.S. Representatives Chris Van Hollen (D-MD) and Rob Simmons (R-CT) today introduced legislation to address increased concern about personal information privacy and near-daily reports of widespread identity theft. The "Taxpayer Protection Act of 2005" would prevent the sensitive and personal information of taxpayers from being disclosed to anyone besides the Internal Revenue Service (IRS).
This bipartisan measure comes on the heels of a provision included in a large tax bill passed last fall that would allow the IRS to contract out some tax collection responsibilities. This provision opens the door to taxpayer intimidation and abuse – practices that have been outlawed by Congress. The Simmons-Van Hollen bill would bar such privatization of tax collection.
“We must repeal this onerous provision,” said Van Hollen. “We must protect American taxpayers from intimidation and abuse, and we must ensure that personal financial records are protected and remain private. Giving unaccountable private contractors unfettered access to Americans’ personal financial data poses a risk that we just cannot afford.”
Simmons said, "When taxpayers file their returns this week, they should have the piece of mind that their assets and identity will only be viewed by those properly trained and accountable at the IRS. With 26 million Americans finding themselves victims of identity theft over the past 15 years, furnishing more taxpayer data to dubious third-parties will only increase the risk of wrongful disclosure of such data."
The National Treasury Employees Union (NTEU), which represents thousands of federal employees, endorsed the "Taxpayer Protection Act." "Rob Simmons and Chris Van Hollen are to be commended for working across party lines for the good of taxpayers and the professionals who serve them," NTEU President Colleen Kelly said. "Taxpayer privacy and identity theft are issues that affect every American, regardless of political affiliation."
The House had already expressed its will that this provision not become law when it approved by voice vote an amendment to the fiscal year 2005 Treasury Appropriations bill that prevented the expenditure of any federal funds for private collection of federal taxes. Unfortunately, the Treasury Appropriations bill never became law, and the House-passed amendment was stripped out of the omnibus spending bill in the conference.