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New U.S. law to protect taxpayer data

The U.S. House of Representatives has approved the Taxpayer Data Protection Act, aimed at enhancing penalties for the unauthorized disclosure of tax information. This legislation follows the leak of sensitive taxpayer data by IRS contractor Charles Littlejohn, who was sentenced to five years in prison for leaking information about the tax returns of high-profile individuals, including former President Donald Trump. House Ways and Means Committee Chairman Jason Smith stated: “When Americans file their tax returns, they expect their personal data and tax information are confidential.” The new law increases penalties significantly, allowing fines up to £250,000 and imprisonment for up to 10 years for violations, with each affected taxpayer counting as a separate offence.

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