Tax Return Confidentiality

TAX B B T U B I C O d F I D E l T I A L I T Y (ABCHIVED-43/24/78) AUTHOR : Zaritsky, Howard H. American Lau D i v i s i o n TBE LIBRARY OF COPGBESS COIGRESSXOBAL RESEARCH SERVICE MAJOR I S S U E S S Y S 2 E H DATE ORIGIBATED 0 5 / 0 7/22 DATE UPDATED 03/24/78 FOR ADDITIONAL IIFORMATIOP CALL 4 26-5700 0327 ISSUE D E F I N I T I O N -------------- The c o n f i d e n t i d i t y o f t h e i n d r v i d u a l income tax r e t u r n , and t h e p e r s o n a l and f i n a n c i a l i e o r n a t i o n it c o n t a i n s , i s c o n s i d e r e d by many t o be c r i t i c a l t o the v i t a l i t y o f o u r s e l f - a s s e s s m e n t s y s t e a o f t a x c o l l e c t i o n , Without p u b l i c c o n f i d e n c e in. t h e p r i v a c y 02 the t a x r e t u r n , i n f o r m a t i o n n i g h t be uithheld, preclud ing e f f i c i e n t t a x c o l l e c t i o n , Consequently, Congress h a s become concerned o v e r t a x r e t u r n c o n f i d e n t i a l i t y , w h i l e t h e h i s t o r y of t h e i s s u e o f t a x r e t u r n c o n f i d e n t i a l i t y nay be t r a c e d t o t h e C i v i l Oar Income Tax A c t of 1862 ( 1 2 S t a t . 473), when t a x r e t u r n i n f o r m a t i o n u a s p o s t e d o n c o u r t h o u s e d o o r s and p u b l i s h e d i n l o c a l n e w s p a p e r s t o p r o m o t e s u r v e i l l a n c e of o n e t a x p a y e r by a n o t h e r , t h e r e c e n t h i s t o r y of t h e c o n t r o v e r s y may b e d i r e c t l y t r a c e d t o E x e c u t i v e O r d e r s 11697 and 11709, i s s u e d by f o r m e r P r e s i d e n t B i c h a r d H, l i x o n . These o r d e r s a u t h o r i z e d t h e D e p a r t m e n t of A g r i c u l t u r e t o i n s p e c t t h e income t a x r e t u r n s of a l l f a r m e r s nfor s t a t i s t i c a l p r u p o ~ e s , ~ R e s p o n d i n g t o c o n c e r n a b o u t t h e s e o r d e r s , t u o Bouse s u b c o m a i t t e e s h e l d Department o f h e a r i n g s i n t o t h e n e e d f o r farm tax r e t u r n c o n f i d e n t i a l i t y . J u s t i c e o f f i c i a l s t e s t i f i e d t h a t t h e E x e c u t i v e o r d e r s in q u e s t i o n were p r o t o t y p e s f o r f u t u r e o r d e r s opening t h e r e t u r n s of o t h e r groups t o i n s p e c t i o n by n o n t a x F e d e r a l a g e n c i e s , Responding t o t h e s e h e a r i n g s and p r e s s a r t i c l e s , t h e P r e s i d e n t r e s c i n d e d t h e t u o o r d e r s on B a r . 2 1, 1974. However, t h e i s s u e of t a x r e t u r n c o n f i d e n t i a l i t y c o n t i n u e d t o g a i n nomentum, s p u r r e d by r e v e l a t i o n s o f t h e S e n a t e Select C o m m i t t e e on P r e s i d e n t i a l Campaign A c t i v i t i e s ( W a t e r g a t e C o a m i t t e e ) a n d t h e House J u d i c i a r y C o i a m i t t e e D s i n q u i r y i n t o p o s s i b l e i m p e a c h a e n t of t h e P r e s i d e n t . The White Bouse demanded and, i n some cases, r e c e i v e d c o n f i d e n t i a l t a x i n f o r m a t i o n f r o m t h e I n t e r n a l Revenue S e r v i c e . It had l o n g been t h e law t h a t t a x r e t u r n s were p u b l i c d o c u m e n t s , their d i s c l o s u r e r e g u l a t e d by t h e s t a t u t e ( s e c t i o n 6 1 0 3 of t h e I n t e r n a l Revenue Code), r e g u l a t i o n s of t h e D e p a r t m e n t of t h e T r e a s u r y , a n d E x e c u t i v e o r d e r s o f t h e President, The s t a t u t e p e r m i t t e d access t o t a x r e t u r n s and t a x i n f o r m a t i o n by S t a t e e x e c u t i v e o f f i c i a l s , S t a t e tax c o r ~ m i s s ~ o n s , t h e t a x - q r i t i n g committees of C o n g r e s s a n d o t h e r c o n g r e s s i o n a l b o d i e s a u t h o r i z e d by r e s o l u t i o n or E x e c u t i v e o r d e r . The r e g u l a t i o n s expanded t h e s c o p e of p e m i t t e d r e c e i p t t o i n c l u d e t h e D e p a r t m e n t of H e a l t h , Education, and Wellare; t h e S e c u r i t i e s and Exchange C o a m i s s i o n ; t h e A d v i s o r y C o m a i s s i o n o n I n t e r g o v e r n m e n t a l R e l a t i o n s ; t h e D e p a r t m e n t o f Commerce ; t h e Reneg o t i a t i o n Board; t h e F e d e r a l T r a d e Commission; t h e F e d e r a l k e s e r v e B o a r d ; the D e p a r t m e n t of t h e T r e a s u r y ; a n d t h e D e p a r t m e n t of J u s t i c e , f o r b o t h t a x and n o n t a x matters The B x e c u t i v e o r d e r s o p e n e d t a x r e t u r n s t o i n s p e c t i o n by numerous o t h e r G o v e r n m e n t a l e n t i t i e s . . The i s s u e o f t a x r e t u r n c o n f i d e n t i a l i t y s p r e a d f r o r f a r a e r s g r e t u r n s t o . a g e n e r a l i n q u i r y i n t o t h e p r i v a c y of t h e i n d i v i d u a l i n c o m e t a x r e t u r n . C o n g r e s s i o n a l c o n c e r n was m a n i f e s t e d i n a r e q u e s t t h a t t h e P r i v a c y P r o t e c t i o n S t u d y Commission, e s t a b l i s h e d a s p a r t o f t h e P r i v a c y A c t o f 1974, i n v e s t i g a t e a n d r e p o r t t o t h e C o n g r e s s o n t a x r e t u r n c o n f i d e n t i a l i t y (P .L. 93-579, sec, S(C) (2) (B) ( i i ) ) .The C o l ~ m i s s i o ni s s u e d its r e p o r t on J u n e 9 , 1976, a n d CBS- 2 IB75039 UPDATE-03/24/78 s u g g e s t e d major c h a n g e s i n t h e law, i n c l u d i n g l i a i t a t i o n s on d i s t r i b u t i o n of t a x d a t a t o t h e D e p a r t m e n t s of J u s t i c e a n d T r e a s u r y , t o t h e States a n d l o c a l g o v e r n m e n t s , a n d t o o t h e r e x e c u t i v e a g e n c i e s and t h e C o n g r e s s , as w e l l a s i n c r e a s i n g t h e p e n a l t i e s t o r wrongful d i s c l o s u r e . The C o n g r e s s took s p e c i f i c a c t i o n i n 1976, w i t h s e c t i o n 1202 of of t h e %ax B e f o r n A c t o f 197 6 (E. .L. 94-455) , T h i s s e c t i o n e n t i r e l y r e v i s e d t h e law r e s p e c t i n g t a x re t u r n c o n f i d e n t i a l i t y , l i m i t i n g t h e a v a i l a b i l i t y of re t u r n s The major p r o v i s i o n s of t h e new l a u p r o v i d e : a n d tax i n f o r m a t i o n , (1) Tax r e t u r n s a r e now c o n f i d e n t i a l r e c o r d s , open to i n s p e c t i o n p r o v i d e d by s t a t u t e , r a t h e r t h a n m p u b l i c recordsm from disclosure o n l y p r o v i d e d by l a u , as as (2) T h e a v a i l a b i l i t y o f t a x r e t u r n s o r r e t a r n i n i o r n t a t i o n is s t a t u t e , r a t h e r t h a n r e g u i a t i o n s and E x e c u t i v e o r d e r s - by governed (3) T a x r r i t l n g c o m m i t t e e s of t h e C o n g r e s s may h a v e t a x r e t u r n s a n d t a x S o n t a x committees may d a t a upon w r i t t e n r e q u e s t of t h e i r c h a i r p e r s o n s . after coamittee a c t i o n r e c e i v e t a x inkormation only i n executive s e s s i o n , r e q u e s t i n g t h e rn f o r n a t i o n , a f t e r a House o r S e n a t e r e s o l u t i o n a u t h o r i z i n g c o m m i t t e e i n s p e c t i o n o f t a x d a t a , a n d a w r i t t e n r e q u e s t by t h e c o m n i t t e e c h a i r p e r s o n . The C h i e f of S t a f f of t h e J o i n t C o m m i t t e e on T a x a t i o n may h a v e t a x d a t a upon w r i t t e n r e q u e s t , ( 4 ) The P r e s i d e n t a n d c e r t a i n Y h i t e House o f f i c e r s may h a v e t a x d a t a upon w r i t t e n r e q u e s t o f t h e P r e s i d e n t , s i g n e d by him o r h e r p e r s o n a l l y The P r e s i d e n t o r a u t h o r ~ z e do f f i c e r o r t h e h e a d of any e x e c u t i v e a g e n c y n a y The c h e c k r e q u e s t a t a x check on a n i n d i v i d u a l c o n s i d e r e d for appointment. is l i m i t e d t o w h e t h e r t h a t individual h a s f i l e d a t a x r e t u r n m t h e p a s t 3 y e a r s , w h e t h e r a n y c i v i l or c r i m i n a l f r a u d or c i v i l n e g l i g e n c e p e n a l t y uas a s s e s s e d , w h e t h e r t h e t a x p a y e r f a i l e d t o pay t a x w i t h i n 10 d a y s of demand f o r p a y a e n t , w h e t h e r t h e r e h a s been a n y c r i m i n a l t a x ~ n v e s t i g a t i o n o f t h e i n d i v i d u a l and t h e r e s u l t s o f t h e i n v e s t i g a t i o n . The t a x p a y e r is n o t i f i e d w i t h i n 3 d a y s o f t h e I n t e r n a l Revenue S e r v i c e @ sr e c e i p t o f t h e r e q u e s t f o r t a x c h e c k , and t h e r e q u e s t i n g body n u s t f i l e a q u a r t e r l y , c o n f i d e n t i a l r e p o r t with t h e J o i n t C o m m i t t e e on Taxation g i v i n g t h e reasons f o r t h e r e q u e s t , The w h i t e House d o e s n o t h a v e t o r e p o r t t o t h e J o i n t Committee on T a x a t i o n a s t o r e q u e s t s f o r i n d i v i d u a l s t h e n s e r v i n g i n t h e e x e c u t i v e b r a n c h of t h e F e d e r a l Government. (5) U n i t e d S t a t e s A t t o r n e y s a n d D e p a r t m e n t of J u s t i c e a t t o r n e y s c a n n o l o n g e r r e c e i v e tax i n k o r n a t i o n f o r t a x i n v e s t i g a t i o n s m e r e l y upon o r a l request, B e q u e s t s i r u s t now b e i n w r i t i n g and, u n l e s s t h e r e t u r n i s t h a t o f t h e i n d i v i d u a l under i n v e s t i g a t i o n , t h e r e t u r n n u s t relate t o a t r a n s a c t i o n w i t h t h e t a x p a y e r u n d e r i n v e s t i g a t i o n o r b e r e l e v a n t t o t h e r e s o l u t i o n of a n i s s u e r e l a t i n g to t h a t t a x p a y e r ' s case, (6) U n i t e d S t a t e s A t t o r n e y s a n d D e p a r t m e n t of J u s t i c e a t t o r n e y s c a n n o l o n g e r o b t a i n t a x r e t u r n s a n d d a t a f o r n o n t a x c r i i n i n a i cases a e r e l y by s h o u i n g t h e i n f m a a t i o n ' n e c e s s a r y i n t h e p e r f o r m a n c e of h i s o f f i c i a l d u t i e s m the a n d p r e s e n t i n g a w r i t t e n r e q u e s t s i g n e d by t h e U n i t e d S t a t e s A t t o r n e y , A t t o r n e y G e n e r a l , a n d t h e Deputy or A s s i s t a n t A t t o r n e y G e n e r a l . Under t h e new l a w , t h e D e p a r t m e n t of J u s t i c e a t t o r n e y or U n i t e d S t a t e s A t t o r n e y s e e k i n g t a x i n f o r m a t i o n f o r a nontax c r i a i n a l i n v e s t i g a t i o n must f i r s t o b t a i n an o r d e r t r o n a U n i t e d S t a t e s D i s t r i c t C o u r t upon a s h o u i n g t h a t t h e r e is r e a s o n a b l e c a u s e t o b e l i e v e t h a t a s p e c i f i c c r i n i n a l act h a s been c o n u t t e d , t h a t t h e r e t u r n o r t a x d a t a is p r o b a t i v e e v i d e n c e o f t h e a c t , a n d t h a t t h e CBS- 3 i n f o r m a t i o n elther c a n n o t r e a s o n a b l y b e o b t a i n e d from any o t h e r t h a t it c o n s t i t u t e s t h a t most p r o b a t i v e e v i d e n c e of t h e a c t . source or (7) No a g e n c y nay o b t a i n t a x i n f o r m a t i o n i n n o n t a x c i v i l l i t i g a t i o n u n l e s s t h e U n i t e d S t a t e s is a d e f e n d a n t i n a c o n t r a c t a c t i o n b r o u g h t a f t e r R e n e g o t i a t i o n Board d e t e r m i n a t i o n . (8) S t a t e s may r e c e i v e t a x d a t a o n l y upon u r i t t e n r e q u e s t o f the highest tar o f f i c e r , u s i n g the i n f o r m a t i o n s o l e l y f o r t a x a d m i n i s t r a t i o n , and. upon s h o w i n g of a d e q u a t e s a f e g u a r d s as t o, t h e c o n f i d e n t i a t l i t y of the F e d e r a l data State - (9) The p e n a l t y f o r wrong£ u l d i s c l o s u r e of t h e t a x d a t a by a G o v e r n m e n t a l o f f i c i a l o r o t h e r is i n c r e a s e d f r o m a misdemeanor t o a f e l o n y , and the p e n a l t y i n c r e a s e d f rorn a f i n e o f f 1,000 anci h p r i s o n r a e n t o f up t o o n e y e a r , o r b o t h , t o a f i n e of up t o $5,000 and imprisonment u p t o 5 y e a r s , o r b o t h . The n e u s t a t u t e i s e f f e c t i v e a s of J a n . 1, 1977. The D e p a r t m e n t of J u s t i c e h a s e v i d e n c e d d i s s a t i s f a c t i o n with the p r o v i s i o n s of t h e neu l a w a s t h e y r e l a t e t o the a c t i v i t i e s of t h a t a g e n c y H e a r i n g s Mere h e l d b e s o r e t h e House C o m m i t t e e o n Rays a n d Beans, S u b c o m m i t t e e on O v e r s i g h t of t h e I n t e r n a l Bevenue S e r v i c e , o n F e b 24, 1977. The A t t o r n e y General, H r . G r i f f i n B e l l , t e s t i f i e d a g a i n s t t h e o p e r a t i o n of t h e n e u restrictions, . S i n c e t h e e n a c t m e n t of t h e Tax R e f o r m ActBs n e u r e s t r i c t i o n s on t a x r e t u r n d i s c l o s u r e , t u o b i l l s h a v e b e e n i n t r o d u c e d t o c h a n g e t h e l a u on t h i s s u b j e c t i n t h e 4 5 t h Congress: H.B. 525 (Lloyd of T e n n e s e e ) , H .B, 2784 (Carney) E n t i r e l y r e v i s e s s e c t i o n 6103 of t h e I n t e r n a l Revenue Code, w i t h p a r t i c u l a r l y n o t e w o r t h y p r o v i s i o n s o p e n i n g t a x r e t u r n s t o White B o u s e i n s p e c t i o n a s n e c e s s a r y f o r t h e p e r f o r m a n c e of t h e P r e s i d e n t i a l d u t i e s a n d upon w r i t t e n r e q u e s t , w i t h o u t t h e l i m i t a t i o n c o n t a i n e d in t h e p r e s e n t l a w r e s p e c t i n g t a x c h e c k s ; n o d i s c l o s u r e t o c o n g r e s s i o n a l committees o t h e r t h a n the J o i n t Committee o n T a x a t i o n ; d i s c l o s u r e p e r m i t t e d t o t h e head of any F e d e r a l a g e n c y o n l y of s t a t i s t i c a l i n f o r m a t i o n ; n o d i s c l o s u r e of t a x i n f o r m a t i o n t o t h e D e p a r t a e n t of J u s t i c e i n n o n t a x cases; and raxinum f i n e f o r u n a u t h o r i z e d d i s c l o s u r e of t a x i n f o r m a t i o n IS made 8 10,000 a n d / o r 5 y e a r s imprisonment, u i t n a s i m i l a r p e n a l t y f o r unauthorized r e c e i p t o f t a x d a t a . B - B - 525 u a s i n t r o d u c e d o n J a n , 4 , 1977, H,B, 2784 was i n t r o d u c e d o n F e b , 1, 1977. The two m e a s u r e s were referred t o t h e House Ways a n d Heans C o m a i t t e e . HEABIBGS ------U ,So - Congress Bouse, C o m a i t t e e on A g r i c u l t u r e , S u b c o i m i t t e e on D e p a r t m e n t O p e r a t i o n s , I n s p e c t i o n ok f a r r e r s F e d e r a l incore t a x r e t u r n s by t h e U ,So D e p a r t m e n t of A g r i c u l t u r e , H e a r i n g s , 93d C o n g r e s s , 1st s e s s i o n a 12 ( a n d ) 8 9 7 5 Qashington, U.S, G o v t , P r i n t , O f f , , 1973. 9 0 p , - U ,So . Congress House, C o m m i t t e e on Government O p e r a t i o n s . E x e c u t i v e O r d e r s 11697 a n d 11709, p e r a i t i n g i n s p e c t i o n b y t h e CRS- 4 -75039 UPDATE-03/24/78 D e p a r t m e n t o f A g r i c u l t u r e of r ' a r a e r s ' income t a x r e t u r n s . Hay 9 (and) Bug. 3, 1973. H e a r i n g s , 93d C o n g r e s s , 1st s e s s i o n . 1 6 7 p. U a s h i n g t o n , U.S. Govt. P r i n t . O f f . , 1973. Consress. House, C o n l a i t t e e on t h e J u d i c i a r y . Pursuant t o H . B e s o 60 3, a r e s o l u t i o n a u t h o r i z i n g a n d d i r e c t i n g t h e C o m m i t t e e on t h e J u d i c i a r y t o i n v e s t i y ate w h e t h e r s u f f i c i e n t g r o u n d s e x i s t f o r t h e House of R e p r e s e n t a t i v e s t o e x e r c i s e i t s c o n s t ~ t u t i o n a ipower t o impeach Bichard a. Nixon, P r e s i d e n t of t h e U n i t e d S t a t e s of Baerica. H e a r i n g s , 93d C o n g r e s s , 2 d session. H a y J u n e 1974. Book V S I I - Washington, U,S Govt. P r i n t , Off 1974, 4 4 0 p. U.S. . ., U.S. Congress. bouse. C o n n i t t e e on Hays a n d a e a n s . Tax r e f o r n h e a r l n g s -- s t a t e a e n t s o f p u b l i c w i t n e s s e s o n the s u b - ~ e c t sof a d m i n i s t r a t i v e p r o v i s i o n s ( t a x r e t u r n p r e p a r e r s , d i s c l o s u r e of t a x r e t u r n ~ no rf m a t i o n , d e c l a r a t o r y j u d g e m e n t s , p r i v a t e r u l i n g l e t t e r s , c o n d o a i n i u o ~ s ), t a x s h p l i f i c a t i o n ( r o v i n g e x p e n s e s , c h i l d c u e , a l i a o n y p a y m e n t s ) a n d g e n e r a l s u b j e c t s , J u l y 11, 1975, i i a s h i n g t o n , U.S. Govt. P r i n t . Off ,, 1975, 203 p. A t head o i t i t t l e : 9 4 t h C o n g r e s s , 1st s e s s i o n , C o m a i t t e e p r i n t . U-S. Congress House, C o m m i t t e e on Ways a n d fleans, Subcommittee IPS o p e r a t i o n s and t a x p a y e r a s s i s t a n c e . on Oversight. H e a r i n g s , 9 4 t h C o n g r e s s , lst s e s s i o n . Peb. 2 7 and Apr, 24, 1975 P a s h i n g t o n , U.S. Govt. P r i n t . Off., 1975. 2 0 9 p. . . . U So Congress J o i n t Coamittee on I n t e r n a l Bevenue T a x a t i o n , C o n f i d e n t i a l i t y of t a x r e t u r n s ; s t a f f r e p o r t . Washington, 1975. 44 p. D ,S, Congress, Senate, C o a m i t t e e on Finance. Subcommittee o n A d n i n i s t r a t i o n o f t h e I n t e r n a l Revenue Code. Federal t a x r e t u r n privacy. H e a r i n g s , 9 4 t h C o n g r e s s , 2d s e s s i o i l Apr. 2 1 , 28, 1975, a n d J a n , 23, 1976, Washington, U,S, 1976. Govt. P r i n t . O f f . , US U .S U .S. . Congress, Senate. Committee o n t h e J u d i c i a r y , Subcommittee on Administrative P r a c t i c e and Procedure. IBS d i s c l o s u r e . Apr. 1 and J u l y 2 1 , B e a r i n g s , 93d C o n g r e s s , 1st s e s s i o n . 1974. k a s h i n g t o n , U,S. Govt. P r i n t , O f f ,, 1974. 294 p, . . Congress. Senate S e l e c t C o m m i t t e e o n P r e s i d e n t i a l Campaign A c t i v i t i e s o f 1972. S e n a t e R e s o l u t i o n 60. Hearings, 93d Books 20-24. R a s h i n g t o n , P ,So Govt, C o n g r e s s , 1st s e s s i o n . P r i n t . Off., 1973. 2372 p. B e a r i n g s h e l d J u l y 25; S e p t , 11-13; D e c , 4 , 1 4 18, 19, 1973; Play 2, 5, 7, 10, 13, IS, 17, 22, 28, 2 9 ; a n d J u n e 6 , 10-12, 14, 1975. - Congress S e n a t e , Committee o n F i n a n c e . Tax beforr A c t o f 1 9 7 6 ; r e p o r t on H.R, 10612. [ W a s h i n g t o n , U.S. Govt. (94th Congress. Senate. P r i n t . O f f . ] J u n e 10, 1976, 606 p. R e p o r t no 94-936) . . IB75039 CBS- 5 UPDATE-03/24/78 U,S, C o n g r e s s , iiouse, S a x B e f o r ~ lA c t o f 1976; c o n £ e r e n c e r e p o r t o n BIB, 10612, Washington, U.S. Govt. P r i n t . O f f . , S e p t , W. 1976, 646 p. ( 5 4 t h C o n g r e s s , 2ii s e s s i o n . Kouse, E e p o r t no, 1515) U -S, C o n g r e s s . J o i n t C o r a m i t t e e on T a x a t i o n . G e n e r a l e x p l a n a t i o n of t h e Tax Reform A c t of 1976, [ W a s h ~ n g t o n , U,S, Govt. P r i n t , Off, U ,So 1 1976. p. 313-345, - Congress, Senate R e p o r t on a d m i n i s t r a t i v e p r o c e d u r e s of t h e I n t e r n a l Revenue S e r v i c e t o t h e A d m i n i s t r a t i v e C o n f e r e n c e of t h e U n i t e d S t a t e s , C Y a s h i n g t o n ] O c t o b e r 1 9 7 5 - p , 832-1136, ( 9 4 t h C o n g r e s s , 1st s e s s i o n , S e n a t e , Document n o , 94-266) LhS76-17715 02/24/77 -- Fe a r i n g s were h e l d b e f o r e t h e O v e r s i g h t S u b c o r m i t t e e of t h e House C o m m i t t e e on Hays a n d B e a n s on p o s s i b l e r e v i s i o n o f t h e Tax l l e f o r a A c t p r o v i s i o n s o n t a x r e t u r n confidentiality . 01/01/77 - Effective 10/04/76 - President 09/23/76 -- 06/10/76 - The d a t e of t h e Tax keform A c t o f 1 9 7 6 r e v i s i o n in s e c t i o n 6 1 0 3 , I n t e r n a l Revenue C o d e , o n tax r e t u r n confidentiality, Ford s i g n e d t h e Tax Reform Act of 1976, H, B , ,10612, t h e Tax B e f o r n A c t of 1 9 7 6 , u a s s e n t t o t h e P r e s i d e n t f o r s i g n a t u r e a f t e r p a s s a g e by both House and S e n a t e , S e n a t e Coiamittee on F i n a n c e r e p o r t e d H O B , I06 12 w i t h its a r e n d m e n t p r o v i d i n g f o r reforms ot t h e l a u on t a x r e t u r n c o n f i d e n t i a t l i y . 06/09/76 - The 12/01/75 - B d ~ ~ i n i s t r a t i opnr o p o s a l s 10/11/74 - President 10/10/74 - Senator 09/20/74 - 07/29/74 - The P r i v a c y P r o t e c t i o n S t u d y Commission i s s u e d i t s r e p o r t o n t h e c o n f i d e n t i a l i t y of t a x r e t u r n s , on r e v i s i o n of sec, 6103 on t a x r e t u r n c o n f i d e n t i a l i t y were i n t r o d u c e d i n t h e House by Xr. S c h n e e b e l i , by r e q u e s t , a s H O B , 11090, F o r d w i t h d r e w s u p p o r t f roa T r e a s u r y - p r o p o s e d b i l l o n tax r e t u r n c o n f i d e n t i a l i t y (S 4116, 9 % C o n g r e s s , 2d s e s s i o n ) and s u p p o r t e d U e i c k e r - L i t t o n b i l l ( S , 199/H,B, 608 i n 9 4 t h C o n g r e s s ) , B e n n e t t , a t t h e r e q u e s t of t h e D e p a r t m e n t of t h e T r e a s u r y , i n t r o d u c e d S , 4 116, t h e A d m i n i s t r a t i o n @ s Tax r e t u r n c o n f i d e n t i a l i t y b i l l , P r e s i d e n t F o r d i s s u e d E x e c u t i v e O r d e r 11805, v o l u n t a r i l y U n i t i n g w h i t e House access t o t a x r e t u r n s , Bouse J u d i c i a r y Committee a p p r o v e d A r t l c l e o f Impeachment ;TI, c i t i n g a s o n e c o u n t of a b u s e of power IB75039 CRS- 6 UP DATE-43/24/18 t h e u n a u t h o r i z e d a c q u i s i t i o n of c o n f i d e n t i a l t a r inf o r a a t i o n f rorn t h e IElS . 05/14/74 - Senate W a t e r g a t e Committee h e a r i n g s d i s c u s s e d t h e o b t a i n i n g of t a x i n f o r m a t i o n by t h e U h i t e House o n t h e B e bozo and Hughes i n v e s t i g a t i o n s . 03/21/74 - President 08/03/73 -A 03/28/73 - The l i x o n i s s u e d E x e c u t i v e O r d e r 13786, r e s c i n d i n g t h e t w o p r i o r E x e c u t i v e o r d e r s t h a t had opened f a m i e r a s t a x r e t u r n s t o i n s p e c t i o n by t h e D e p a r t m e n t o f A g r i c u l t u r e s u b c o m a i t t e e of t h e House Cornnittee on Government O p e r a t i o n s f i n i s h e d h e a r i n g s on E x e c u t i v e O r d e r s 11697 and 11709, o p e n i n g f a r m e r s 8 tax r e t u r n s t o i n s p e c t i o n by t h e Department of A g r i c u l t u r e , Subcommittee on D e p a r t m e n t O p e r a t i o n s o & t h e House on A g r i c u l t u r e f i n i s h e d h e a r i n g s on E x e c u t i v e O r d e r 11697, o p e n i n g f a m e r s t a x r e t u r n s t o i n s p e c t i o n by t h e D e p a r t m e n t of A g r i c u l t u r e f o r m s t a t i s t i c a l p u r p o s e s .a Co arnittee 03/27/73 ADDITIOHAL -- - President P i x o n i s s u e d E x e c u t i v e O r d e r 11709, l i a i t i n g t h e i n s p e c t i o n s of f a r m e r s e tax r e t u r n s by t h e Department of A g r i c u l t u r e u n d e r E x e c u t i v e O r d e r 11697 t o comport w i t h p r o c e a u r a l r u l e s ser up by t h e T r e a s u r y a r t e r i s s u a n c e of t h e e a r l - i e r o r d e r . B E P E B 3CE SOORCES Provorny , F r e d r i c k B - P u b l i c i t y and i n s p e c t i o n o f F e d e r a l tcx r e t u c n s . T a x e s , v. 46, Harch 1968: 144-165. S e i t e l , P e l s o n , Tax r e t u r n s and t h e m p r i v a c y mmyth. j o u r n a l , Oct, 7 , 1974, p - 1. l e u York l a u P r i v a c y P r o t e c t i o n S t u d y Commission. Federal tax r e t u r n confidentiality. Washington, J u n e 6, 1976. U .S , . Library of Congress Congressional Research Service , L e g ~ s l a t i v eh i s t o r y o f tax r e t u r n c o n f i d e n t i a t l i y : S e c t i o n 6103 of t h e Z h t e r n a l Revenue Code of 1954 a n d its p r e d e c e s s o r s [by 1 Howard a. Z a r i t s k y . [Washington ] 1974, 235 p . d u l t i l i t h 74-2118