Taxpayer Notification and Privacy Act

Summary

Amends the Internal Revenue Code to require that when the IRS plans to contact third parties for information that it has not already asked the taxpayer for and the taxpayer could reasonably provide, the IRS must tell the taxpayer exactly what items it intends to request and give the taxpayer at least 45 days (longer when a reasonable-cause extension applies) to respond or provide the information before contacting those third parties. Limited exceptions apply for collection of tax liabilities and when the Secretary determines the information is necessary despite prior requestability; the rule applies to notices issued more than 12 months after enactment.

• Requires the IRS to list each specific item of information it plans to request from third parties when that information hasn't previously been requested from the taxpayer and could reasonably be provided by the taxpayer.
• Gives taxpayers at least 45 days (plus allowable reasonable‑cause extensions) to respond or supply the information before the IRS contacts third parties.
• Includes exceptions for information sought to collect a tax liability and for cases where the Secretary determines contact is necessary despite prior requestability.
• Applies to third‑party contact notices issued more than 12 months after the law takes effect.
• Changes focus on notice content and timing; it does not change tax liability rules or add spending programs.
• Aims to protect taxpayer privacy and reduce unexpected third‑party inquiries by allowing taxpayers to address information requests first.
• Likely increases administrative work for the IRS to itemize requested information and track response periods.
• Could slow some third‑party contacts and affect enforcement timing while giving taxpayers a clearer chance to respond.