Overview

Title

To amend the Internal Revenue Code of 1986 to allow the disclosure of certain business tax return information to the Bureau of Economic Analysis and the Bureau of Labor Statistics for certain statistical purposes.

ELI5 AI

H.R. 10546 is a plan to let some parts of companies' tax forms be shared with government agencies that study the economy and job numbers, but it must be done in a way that nobody knows whose tax forms they are.

Summary AI

H. R. 10546 proposes changes to the Internal Revenue Code of 1986 to allow certain business tax return information to be shared with the Bureau of Economic Analysis and the Bureau of Labor Statistics. This sharing is intended for statistical use, helping these agencies in their work on national economic accounts and related statistical activities. The bill specifies that the information must be anonymized, meaning it can't be traced back to specific taxpayers, except under certain conditions. The changes will come into effect once the bill is enacted.

Published

2024-12-20
Congress: 118
Session: 2
Chamber: HOUSE
Status: Introduced in House
Date: 2024-12-20
Package ID: BILLS-118hr10546ih

Bill Statistics

Size

Sections:
1
Words:
938
Pages:
5
Sentences:
13

Language

Nouns: 305
Verbs: 56
Adjectives: 51
Adverbs: 6
Numbers: 40
Entities: 57

Complexity

Average Token Length:
4.33
Average Sentence Length:
72.15
Token Entropy:
4.85
Readability (ARI):
38.38

AnalysisAI

Summary of the Bill

H. R. 10546 is a proposed piece of legislation intending to amend the Internal Revenue Code of 1986. The main objective of this bill is to allow specific business tax return information to be disclosed to the Bureau of Economic Analysis (BEA) and the Bureau of Labor Statistics (BLS). This disclosure would be utilized for statistical purposes, aiding in the structuring of censuses and the formulation of national economic accounts, as well as conducting related statistical activities.

The bill outlines the types of information that can be shared, which include business identification details, financial statements, and workforce data from various tax forms. It also establishes rules to ensure that taxpayer data remains anonymous and specifies scenarios where further disclosure may legally occur.

Significant Issues

Privacy Concerns

One of the foremost issues associated with this bill is the potential risk to taxpayer privacy. The extensive sharing of sensitive business tax return information with the BEA and BLS lacks explicit and robust safeguards and criteria necessary to ensure privacy is maintained. The bill needs clarification on the limitations and conditions under which this information can be used, raising significant privacy concerns.

Complexity and Clarity

The bill employs complex legal terminology and references to various tax forms and sections of the Internal Revenue Code. This complexity could hinder understanding for those not well-versed in tax law. Simplification or clarification would make the bill's intentions more accessible to a wider audience.

Financial Impact

No detailed explanation has been provided regarding the potential costs associated with implementing these amendments. Understanding the financial impact, including administrative expenses, is essential for evaluating the necessity and efficiency of the proposed changes.

Use of Data

A critical concern is the lack of clear guidelines or criteria on how the shared information will strictly be used for statistical purposes. Without explicit directives, there is a risk of misuse or misinterpretation of the data.

Ambiguity in Collaboration

There is ambiguity, particularly in subsection (c), about who would receive the shared information and under what conditions it can be further disclosed. This lack of specificity poses a risk of misuse or unauthorized data sharing.

Impact on the Public

Broadly, the bill aims to enhance governmental statistical capabilities, which could improve economic planning and policy-making. By providing the BEA and BLS with more data, it seeks to refine their analytical competence, potentially benefiting the public through more informed governmental decisions.

Impact on Specific Stakeholders

Businesses: The businesses whose data would be disclosed might feel uneasy about sharing sensitive information, fearing potential privacy violations or misuse.

Government Agencies: The BEA and BLS could benefit significantly by gaining access to richer datasets, enhancing their ability to provide comprehensive economic analyses.

Taxpayers: Individuals, especially those in sole proprietorships, could experience concerns regarding how their information is handled and whether their privacy is adequately protected.

Legal and Privacy Advocates: This group might express concern over the lack of safeguards and push for more defined protections to ensure taxpayer data is not compromised.

In conclusion, while H. R. 10546 seeks to bolster economic analysis through improved data sharing, several issues need addressing to balance the benefits with privacy and clarity concerns. Ensuring robust safeguards and cost evaluations will be crucial for gaining widespread support and trust from all stakeholders involved.

Financial Assessment

The bill H. R. 10546 proposes certain amendments to the Internal Revenue Code of 1986, facilitating the sharing of business tax return information with two federal agencies: the Bureau of Economic Analysis and the Bureau of Labor Statistics. However, it is important to note that this bill does not specify any direct spending, appropriations, or detailed financial allocations. Instead, it focuses on the procedural and regulatory aspects of sharing this information for statistical purposes.

Financial Context and Concerns

Although there are no explicit appropriations or specific financial amounts stated in the bill, there are implicit financial considerations related to its implementation. For instance, the process of sharing this information between agencies could involve operational costs, including administrative expenses and the creation of new infrastructural mechanisms to ensure the data is anonymized and safeguarded. However, the bill text lacks any mention of potential costs or a cost analysis associated with implementing these amendments. This absence of detailed financial planning may lead to uncertainties about the financial impact and efficiency of these proposed changes, as noted in the issues raised.

Relation to Privacy and Safeguarding Concerns

The bill highlights the need for careful handling of tax data, emphasizing that the data should be used in an anonymized form to protect taxpayer privacy. However, without clearly defined safeguards and limitations, as pointed out in the issues, there are significant privacy concerns regarding how these financial data are to be handled. The financial implications of failing to adequately secure taxpayer information could be considerable, affecting public trust and potentially leading to legal ramifications should sensitive data be mishandled.

Use of Anonymized Data

Section 1(c) of the bill refers to the use of data in a way that maintains the anonymity of taxpayers, which implicitly suggests potential costs related to developing and maintaining secure data-handling processes. However, without explicit financial allocations or guidelines, it is unclear how these processes will be funded or audited to ensure compliance. The potential misuse or misinterpretation of data, as highlighted, could lead to both financial and reputational costs for the agencies involved.

Conclusion

In summary, while H. R. 10546 does not specify direct financial appropriations or allocations, the underlying financial implications revolve around the costs of implementation, data protection measures, and the safeguarding of taxpayer privacy. These implicitly financial aspects underscore the need for transparency regarding potential costs and a detailed plan to secure the data being shared. Addressing these concerns would provide clarity and ensure that the bill’s objectives are met without unintended financial or privacy-related consequences.

Issues

  • The extensive sharing of potentially sensitive return information with the Bureau of Economic Analysis and the Bureau of Labor Statistics, without clearly defined safeguards and limitations, raises significant privacy concerns. Specific criteria for safeguarding taxpayer privacy should be audited, as seen in Sections 1(a) and 1(b).

  • The use of complex legal terminology, such as references to 'Forms' and various sections within the Internal Revenue Code, may be overly dense for those unfamiliar with tax law, and could benefit from simplification for clarity, as discussed in Section 1.

  • The absence of detailed explanations regarding the potential costs of implementing these amendments introduces uncertainty about their financial impact and efficiency. A cost analysis should be included to evaluate these amendments adequately, particularly noted in Section 1.

  • The lack of explicit criteria or guidelines on how the disclosed information will be used strictly for statistical purposes could lead to misuse or misinterpretation of data. This concern is highlighted in Sections 1(b) and 1(c).

  • Subsection (c) discusses collaboration between recipients of information for statistical uses without clearly defining the recipients and the specific conditions that apply, leading to potential ambiguity and misuse.

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Disclosure of certain business return information for statistical purposes Read Opens in new tab

Summary AI

The section outlines amendments to the Internal Revenue Code, allowing the Bureau of Economic Analysis and the Bureau of Labor Statistics access to certain business tax return information for statistical purposes. It specifies the types of data that can be shared and ensures that the information is kept anonymous, except where further disclosure is legally permitted.

Money References

  • SECTION 1.Disclosure of certain business return information for statistical purposes. (a) Expansion of return information disclosed to Bureau of Economic Analysis.—Section 6103(j)(1)(B) of the Internal Revenue Code of 1986 is amended to read as follows: “(B) such return information reflected on returns of corporations and returns of partnerships, and such return information directly relating to the activity of a sole proprietorship with gross receipts of more than $250,000 for the taxable year of such return reflected on returns of individuals, to officers and employees of the Bureau of Economic Analysis,”. (b) Disclosure of return information to Bureau of Labor Statistics.—Section 6103(j) of such Code is amended by adding at the end the following new paragraph: “(7) DEPARTMENT OF LABOR.— “(A) IN GENERAL.—Upon request in writing by the Secretary of Labor, the Secretary shall furnish to officers and employees of the Bureau of Labor Statistics such return information described in subparagraph (B) as the Secretary may prescribe by regulation for the purpose of, but only to the extent necessary in, the structuring of censuses and national economic accounts and conducting related statistical activities authorized by law.