How S 490 changes current law

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill introduces prohibitions against unauthorized access to the central payment systems of the Bureau of the Fiscal Service, establishes enforcement mechanisms, and amends the Internal Revenue Code regarding confidentiality and civil damages for unauthorized disclosures.

• Section 6103 of the Internal Revenue Code of 1986

  "(q) Prohibition on Disclosure to Certain Employees.-- Notwithstanding any other provision of this section, no return or return information shall be disclosed by means of access to any public money receipt or payment system of the Department of the Treasury (including any payment system of the Bureau of the Fiscal Service (or any successor thereof)) to any individual described in subparagraph (B) or (C) of section 2(a)(1) of the Protecting Americans' Privacy Act of 2025."

  This provision prohibits certain employees from accessing or disclosing taxpayer return information.

• Section 7431 of the Internal Revenue Code of 1986

  If any → Except as provided in paragraph (3), if any

  This change clarifies that the civil damages provision for unauthorized inspections or disclosures applies unless exempted by specific conditions.

• Section 7431 of the Internal Revenue Code of 1986

  Inspection or disclosure by certain employees.--If any individual described in subparagraph (B) or (C) of section 2(a)(1) of the Protecting Americans' Privacy Act of 2025 knowingly, or by reason of negligence, inspects or discloses any return or return information with respect to a taxpayer in violation of section 6103(q), such taxpayer may bring a civil action for damages against such person in a district court of the United States. In any action brought under this paragraph, subsection (c)(1)(A) shall be applied by substituting '$250,000' for '$1,000'.

  This addition allows taxpayers to seek civil damages against certain employees who improperly inspect or disclose their tax return information.