• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Digital News Updates
  • Home
  • News
  • Politics
  • Business

Daines Taxpayer Privacy Provision Clears Senate Finance Committee

August 6, 2026

A bipartisan provision championed by Sen. Steve Daines to sharply increase penalties for unauthorized disclosure of taxpayer information cleared the Senate Finance Committee as part of a broader tax administration package, moving one step closer to becoming law.

The Daines-Cortez Masto provision passed as part of the Taxpayer Assistance and Service Act, which the Finance Committee approved 26-1. The broader bill also modernizes IRS digital filing, cracks down on scammers targeting tax professionals and protects taxpayers from penalties caused by IRS processing delays.

“Unauthorized disclosure of taxpayer information is a serious crime that demands a more serious punishment,” Daines said. “With passage of our bill today out of the Senate Finance Committee, we are one step closer to deterring this serious offense and breach of privacy.”

Daines introduced the underlying bill with Sen. Catherine Cortez Masto (D-Nev.) in June, citing growing reliance by the IRS on outside contractors as a key driver of data breach risk. Finance Committee Chairman Mike Crapo specifically recognized Daines for championing the provision, calling it a practical, taxpayer-focused reform that enhances accountability.

Under the provision, the existing criminal penalty for unauthorized disclosure of tax returns would rise from a maximum fine of $5,000 and up to five years in prison to a maximum fine of $250,000 and up to seven years in prison. The bill would also create a new felony offense for IRS contractors who willfully fail to enforce required data safeguards, with a maximum penalty of either a $500,000 fine or 25% of the total amount obligated under all IRS contracts held by the contractor in the first fiscal year when the contractor was given access to the relevant return information — whichever is greater. Civil damages for unauthorized disclosure would also increase, from a minimum of $1,000 per act to $5,000 per act.

The legislation now heads to the full Senate for consideration.

By: Montana Newsroom wire

Filed Under: Featured, Home Featured, Politics

Related Articles:

  • Treasury Unveils 2026 Financial Literacy Strategy Focused on Youth, Investing and Fraud
  • Democrat holds narrow lead in Minnesota U.S. Senate race
  • Stocks Gain for the Week as AI Rally Offsets Rising Bond Yields
  • Tony Romo, CBS Sports Part Ways After Nine Seasons
  • Trump Proclaims Sept. 27 Gold Star Mother’s and Family’s Day
  • Billings Counselor Ordered to Pay Nearly $48,000 in Medicaid Fraud Case

Primary Sidebar

— Advertisement —

Digital News Updates Logo

Recent News Posts

  • Treasury Completes Automatic Enrollment for Trump Accounts
  • Report: Taxpayers lose $500B annually to fraud as states resist oversight
  • Montana-Based DeliverFund Expands Human Trafficking Intelligence Partnerships
  • Longtime MDT Official Larry Flynn Named Department Director

Recent Politics Posts

  • Democrat holds narrow lead in Minnesota U.S. Senate race
  • Minot Attorney Christene Reierson Appointed to North Central Judicial District
  • Ten Foreign Nationals Indicted in Minnesota Voter Fraud Cases
  • Flint Targets Forstag’s Immigration Record at Whitefish Rally

Recent Business Posts

  • Gianforte, Chamber Announce Tech-Focused Economic Summit
  • Amazon Pledges $1 Billion to Data Center Communities Amid Growing Backlash
  • Fed Governor Says AI Is Driving a New Era for FRED Economic Data
  • Stocks Finish Mixed Week as Weak Jobs Report Eases Rate Fears

Copyright © 2026 Digital News Updates, All Rights Reserved.