U.S. Senators John Barrasso (R-Wyo.) and Reverend Raphael Warnock (D-Ga.), both serving on the Senate Finance Committee, have introduced the Taxpayer Notification and Privacy Act. The bipartisan bill aims to increase transparency at the Internal Revenue Service (IRS) by requiring more detailed notifications to taxpayers when their information is sought from third parties.
Under current law, the IRS must inform taxpayers before reaching out to entities such as banks or employers during tax investigations. However, there is no requirement for the agency to specify what information it is seeking. The proposed legislation would mandate that the IRS disclose exactly what information it intends to obtain from third parties and provide taxpayers with a 45-day window to supply this information directly.
Senator Barrasso said, “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. 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.”
Senator Warnock stated, “I’m always focused on securing stronger consumer protections for Georgians. 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 highlights concerns in Wyoming, where many residents use community banks and credit unions. When these institutions are contacted by federal authorities like the IRS, it can impact trust within local communities. Additionally, Wyoming’s approximately 70,000 small businesses depend on strong relationships with financial institutions and suppliers—ties that could be strained by unexpected third-party inquiries.
Full text of the legislation is available for review online.
