Friday, AUGUST 8, 2025 |
In Washington, D.C., in a bipartisan bill, U.S. Senator John Barrasso of Wyoming is joining with Democrat Reverend Raphael Warnock of Georgia in the Taxpayer Notification and Privacy Act.
The bipartisan legislation gives additional protection to taxpayers by providing more transparency from the Internal Revenue Service (IRS).
As the law stands now, the IRS must notify taxpayers before contacting third parties – such as banks or employers – when investigating whether or not a person owes taxes. The IRS, however, is not required to disclose to taxpayers what specific information they are seeking.
The Barrasso-Warnock legislation would require the IRS to disclose exactly what information it is seeking from third parties. It also gives taxpayers 45 days to provide that information directly to the IRS themselves.
“Wyoming taxpayers shouldn’t have to worry about the Internal Revenue Service (IRS) soliciting personal financial information behind their backs,” Senator Barrasso said in a statement. Wyoming’s senior senator added that taxpayers deserve to have the option to provide this sensitive information to the IRS directly”
Senator Barrasso said the bipartisan bill would safeguard the reputation of taxpayers and small business owners across the country and it would force the IRS to be transparent.
Senator Warnock said he was proud to partner with Barrasso in providing taxpayers with tools to protect themselves from the IRS.
The Taxpayer and privacy Act:
- Requires the IRS to tell taxpayers what information it plans to request from third parties and identify which parties it intends to contact.
- Provides taxpayers an opportunity to supply the requested information directly from their own records, protecting taxpayers’ reputation and eliminating the need for many third-party contacts entirely.
In Wyoming, many people rely on community banks and credit unions. When the IRS uses these local financial institutions as contacts, it can damage relationships within communities.
