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Income Verification Simplified: Banks Verify, Not Taxpayers

New rules shift the responsibility for taxpayer identity verification in the IRS's electronic income verification system from the individual taxpayer to financial institutions. This aims to streamline loan and credit application processes, making them faster and less burdensome for citizens seeking financing.
Key points
Financial institutions, not individual taxpayers, will be responsible for verifying identity when using the IRS income verification system.
Taxpayers will not be required to access IRS IT systems for identity verification or to provide electronic consent for income disclosure.
The law intends to simplify and expedite loan and credit application processes by placing the verification burden on financial institutions.
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Additional Information
Print number: 117_HR_9589
Sponsor: Rep. McHenry, Patrick T. [R-NC-10]
Process start date: 2022-12-15
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To ensure the successful development of the electronic Income Verification Express Service of the Internal Revenue Service by amending the Taxpayer First Act to clarify that taxpayer identity verification is the responsibility of users of the system rather than the taxpayer, and for other purposes.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_9589.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2022-12-15.

What are the main provisions?

Key points include:

  • Financial institutions, not individual taxpayers, will be responsible for verifying identity when using the IRS income verification system.
  • Taxpayers will not be required to access IRS IT systems for identity verification or to provide electronic consent for income disclosure.
  • The law intends to simplify and expedite loan and credit application processes by placing the verification burden on financial institutions.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. McHenry, Patrick T. [R-NC-10].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Taxes Economy