[105th Congress Public Law 35]
[From the U.S. Government Printing Office]


<DOC>
[DOCID: f:publ35.105]


[[Page 111 STAT. 1103]]

                    TAXPAYER BROWSING PROTECTION ACT

[[Page 111 STAT. 1104]]

Public Law 105-35
105th Congress

                                 An Act


 
 To amend the Internal Revenue Code of 1986 to prevent the unauthorized 
 inspection of tax returns or tax return information. <<NOTE:  Aug. 5, 
                         1997 -  [H.R. 1226]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Taxpayer 
Browsing Protection Act.>> 

SECTION 1. SHORT TITLE. <<NOTE: 26 USC 1 note.>> 

    This Act may be cited as the ``Taxpayer Browsing Protection Act''.

SEC. 2. PENALTY FOR UNAUTHORIZED INSPECTION OF TAX RETURNS OR TAX RETURN 
            INFORMATION.

    (a) In General.--Part I of subchapter A of chapter 75 of the 
Internal Revenue Code of 1986 (relating to crimes, other offenses, and 
forfeitures) is amended by adding after section 7213 the following new 
section:

``SEC. <<NOTE: 26 USC 7213A.>> 7213A. UNAUTHORIZED INSPECTION OF RETURNS 
            OR RETURN INFORMATION.

    ``(a) Prohibitions.--
            ``(1) Federal employees and other persons.--It shall be 
        unlawful for--
                    ``(A) any officer or employee of the United States, 
                or
                    ``(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.
            ``(2) State and other employees.--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).

    ``(b) Penalty.--
            ``(1)  In general.--Any violation of subsection (a) shall be 
        punishable upon conviction by a fine in any amount not 
        exceeding $1,000, or imprisonment of not more than 1 year, or 
        both, together with the costs of prosecution.
            ``(2) Federal officers or employees.--An officer or employee 
        of the United States who is convicted of any violation of 
        subsection (a) shall, in addition to any other punishment, be 
        dismissed from office or discharged from employment.

    ``(c) Definitions.--For purposes of this section, the terms 
`inspect', `return', and `return information' have the respective 
meanings given such terms by section 6103(b).''.
    (b) Technical Amendments.--

[[Page 111 STAT. 1105]]

            (1) Paragraph (2) of section 7213(a) of such Code <<NOTE: 26 
        USC 7213.>>  is 
        amended by inserting ``(5),'' after ``(m)(2), (4),''.
            (2) The table of sections for part I of subchapter A of 
        chapter 75 of such Code 1986 is amended by inserting after the 
        item relating to section 7213 the following new item:

``Sec. 7213A. Unauthorized inspection of returns or return 
           information.''.

    (c) <<NOTE: 26 USC 7213 note.>>  Effective Date.--The amendments 
made by this section shall apply to violations occurring on and after 
the date of the enactment of this Act.

SEC. 3. CIVIL DAMAGES FOR UNAUTHORIZED INSPECTION OF RETURNS AND RETURN 
            INFORMATION; NOTIFICATION OF UNLAWFUL INSPECTION OR 
            DISCLOSURE.

    (a) Civil Damages for Unauthorized Inspection.--
Subsection (a) of section 7431 of the Internal Revenue Code of 
1986 <<NOTE: 26 USC 7431.>> is amended--
            (1) by striking ``Disclosure'' in the headings for 
        paragraphs (1) and (2) and inserting ``Inspection or 
        disclosure'', and
            (2) by striking ``discloses'' in paragraphs (1) and (2) and 
        inserting ``inspects or discloses''.

    (b) Notification of Unlawful Inspection or Disclosure.--Section 7431 
of such Code is amended by redesignating subsections (e) and (f) as 
subsections (f) and (g), respectively, and by inserting after subsection 
(d) the following new subsection:
    ``(e) Notification of Unlawful Inspection and Disclosure.--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--
            ``(1) paragraph (1) or (2) of section 7213(a),
            ``(2) section 7213A(a), or
            ``(3) subparagraph (B) of section 1030(a)(2) of title 18, 
        United States Code,

the Secretary shall notify such taxpayer as soon as practicable of such 
inspection or disclosure.''.
    (c) No Damages for Inspection Requested by Taxpayer.--Subsection (b) 
of section 7431 of such Code is amended to read as follows:
    ``(b) Exceptions.--No liability shall arise under this section with 
respect to any inspection or disclosure--
            ``(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''.
            (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).''.

[[Page 111 STAT. 1106]]

            (4) <<NOTE: 26 USC 7431.>> The section heading for section 
        7431 of such Code is amended by inserting ``inspection or'' 
        before ``disclosure''.
            (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.
            (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) <<NOTE: 26 USC 7431 note.>>  Effective Date.--The amendments 
made by this section shall apply to inspections and disclosures 
occurring on and after the date of the enactment of this Act.

    Approved August 5, 1997.

LEGISLATIVE HISTORY--H.R. 1226 (S. 522):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 105-51 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 143 (1997):
            Apr. 15, considered and passed House.
            July 23, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):
            Aug. 5, Presidential statement.

                                  <all>