arrow_back Back to App

Income Verification Simplified: Banks Verify, Not Taxpayers.

New rules shift the responsibility for income verification from taxpayers to financial institutions. This aims to streamline financial application processes, such as loan applications, by allowing direct access to certain business and individual tax data, while ensuring taxpayer privacy.
Key points
Financial institutions are now responsible for taxpayer identity verification during income checks, simplifying the process for citizens.
Allows financial institutions direct access to selected business and individual tax data, with taxpayer consent, for income and creditworthiness verification.
Ensures taxpayers are not required to access IRS systems for identity verification or electronic consent.
Expands the scope of business tax information available for disclosure, potentially speeding up financial processes for businesses.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 118_HR_3335
Sponsor: Rep. McHenry, Patrick T. [R-NC-10]
Process start date: 2023-05-15
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

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 118_HR_3335.

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 2023-05-15.

What are the main provisions?

Key points include:

  • Financial institutions are now responsible for taxpayer identity verification during income checks, simplifying the process for citizens.
  • Allows financial institutions direct access to selected business and individual tax data, with taxpayer consent, for income and creditworthiness verification.
  • Ensures taxpayers are not required to access IRS systems for identity verification or electronic consent.
  • Expands the scope of business tax information available for disclosure, potentially speeding up financial processes for businesses.
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 2025-12-25.

CATEGORIES

Taxes Economy