Annual Reporting to Congress

Treasury is required to report annually to the Congress on the number of designated summonses issued during the preceding 12 months.

Effective for 1997.

IRS Misconduct

Unauthorized Enticement of Information Disclosure

Provides for a civil penalty against the United States if an officer or employee of the IRS compromises the determination of or collection of tax liability of the taxpayer's representative in exchange for information concerning the taxpayer.

The amount recoverable is limited to $500,000 or the sum of:

• actual economic damages sustained by the taxpayer, and 
• the costs of the action.

Effective for actions taken after the date of enactment.

Annual Report to Congress

IRS is required to report annually to Congress on misconduct.

The report must identify by Region and function the nature of the misconduct or complaint and include:

• number of employees reprimanded, terminated or prosecuted;
• instances dismissed because of a finding that proper procedures were followed; and 
• those initiated but not yet resolved.

The first report is due by June 1, 1997.