119-HR-6495 Journalist Public Summary

Headline Summary

A bipartisan bill to make the IRS spell out exactly what it plans to ask third parties (like banks or employers) and give taxpayers at least 45 days to provide it themselves first, with exceptions for collections and urgent cases.

What It Does

In plain English: before the IRS goes to someone else for your records, it would generally have to tell you exactly what information it wants and give you a fair window—no less than 45 days—to send it yourself. If you need more time and have a reasonable reason, the IRS could grant an extension.

• Requires notice to identify each specific item the IRS intends to seek from others, when that information hasn’t already been requested from the taxpayer and could reasonably be provided by the taxpayer.
• Guarantees a minimum 45‑day response period (longer if the taxpayer shows reasonable cause) before third‑party contact.
• Creates exceptions: the specificity/45‑day requirement wouldn’t apply when gathering info to collect an assessed tax debt, or when the Treasury Secretary decides the information is necessary even if the taxpayer could provide it.
• Takes effect for notices sent 12 months after the bill becomes law.

Why It Matters

• Privacy and fairness: It gives taxpayers a clearer chance to address the IRS directly before their banks, employers, or clients are contacted.
• Transparency: The IRS would have to specify the exact records it wants, reducing broad or open‑ended information requests.
• Administrative trade‑off: Adding notice and waiting periods could slow some exams, though the bill preserves flexibility for time‑sensitive collections or when information is otherwise necessary.

Who’s For It

• Sponsors: Rep. W. Steube (R‑FL) and Rep. Jimmy Panetta (D‑CA) introduced it, signaling bipartisan interest in taxpayer notice and privacy.
• Likely supporters: taxpayer rights and privacy advocates; some small‑business groups and professional tax preparers who favor clearer, narrower IRS requests.

Who’s Against It

• Potential critics: those worried the added steps could slow audits or make it harder to uncover under‑reporting that taxpayers are unwilling or unable to document.
• Enforcement perspective: privacy safeguards may add paperwork and delays for the IRS, though the bill includes exceptions for collections and necessary information.

What’s Next

As of December 6, 2025, H.R. 6495 has been introduced and referred to the House Ways and Means Committee. Next steps typically include committee review and possible markup, a House vote, and then consideration in the Senate.