House Kicks Tax Record Disclosure Amendment Into Touch

by Mike Godfrey, Tax-News.com, Washington

08 December 2004

A controversial measure contained in a government funding bill which would have allowed lawmakers access to private taxpayer records has finally been kicked into touch after a unanimous vote in the House of Representatives.

The removal of the offending clause cleared the way for the House to approve the $380 billion domestic spending bill in a 381-0 vote on Monday.

The controversy began when Democrat lawmakers spotted the one line amendment, which was inserted at the request of Rep. Ernest Istook, (R - Oklahoma), chairman of the House Appropriations subcommittee with responsibility for the IRS budget, shortly before the initial vote on the 3,000 page bill was due.

The hastily inserted measure was meant to give members of the House and Senate Appropriation Committees better access to IRS offices, so that the way money was being spent by the agency could be better understood.

However, the amendment, drafted by IRS officials, failed to include penalty provisions for improper disclosure of taxpayer information, and served merely to provoke a fierce reaction from both Democrats and Republican legislators, who were concerned that the measure represented a gross violation of taxpayer privacy.

"Our citizens expect and deserve a government that respects their privacy and does not discriminate against them on the basis of their political beliefs," noted House Minority Leader Nancy Pelosi during a House debate, summing up the views of lawmakers across both parties.

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