U.S. Senators John Barrasso (R-Wyo.) and Raphael Warnock (D-Ga.), both members of the Senate Finance Committee, have introduced a bipartisan bill called the Taxpayer Notification and Privacy Act. The legislation aims to increase transparency for taxpayers in their dealings with the Internal Revenue Service (IRS).
Under current law, the IRS must notify taxpayers before contacting third parties such as banks or employers during investigations about tax liabilities. However, the law does not require the IRS to inform taxpayers about what specific information it is seeking from these third parties. The proposed legislation would change this by requiring the IRS to disclose exactly what information it intends to obtain and give taxpayers 45 days to provide that information directly.
“Wyoming taxpayers shouldn’t have to worry about the Internal Revenue Service (IRS) soliciting personal financial information behind their backs. They deserve to have the option to provide this sensitive information to the IRS directly,” said Senator Barrasso. “By providing that opportunity, our bipartisan bill will safeguard the reputation of taxpayers and small business owners across the country. It will also force the IRS to be as transparent as possible when it comes to the privacy of hardworking Americans.”
“I’m always focused on securing stronger consumer protections for Georgians,” said Senator Reverend Warnock. “I’m proud to partner with Senator Barrasso to ensure the IRS is transparent with taxpayers and that my constituents have the tools to protect their reputations.”
The bill addresses concerns in Wyoming, where many residents depend on community banks and credit unions. Contacts from federal agencies like the IRS can affect relationships within close-knit communities. Additionally, Wyoming’s 70,000 small businesses rely on strong ties with local banks, suppliers, and customers—relationships that could be impacted by unexpected third-party contacts from government agencies.
The full text of the legislation is available online.
