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Chairman Smith Opening Statement – Floor Debate on the Taxpayer Data Protection Act

September 17, 2024

As prepared for delivery.

“I rise to speak in favor of the Taxpayer Data Protection Act.

“When Americans file their tax returns, they expect their personal data and tax information are confidential. But between 2017 and 2021, Charles Littlejohn, who worked as a contractor for the IRS, stole taxpayer information, and he stole a lot of it. He gave it to The New York Times and ProPublica, who published articles containing that confidential tax information about President Trump and other notable figures. Mr. Littlejohn then destroyed evidence and obstructed law enforcement investigations.

“Despite his efforts to cover up his crimes, Mr. Littlejohn admitted that he was, ‘aware of the potential consequences’ and, in fact, made his decision, ‘with full knowledge that [he] would end up in a courtroom.’

“Current law failed to deter Mr. Littlejohn from stealing and leaking private and sensitive taxpayer information. Moreover, the Department of Justice only charged Mr. Littlejohn with a single count of unauthorized disclosure of private tax information. 

“Given this lackluster charge, Republicans wrote the judge urging the court to sentence Mr. Littlejohn to the maximum sentence for the crimes he committed, particularly given the number of taxpayers impacted by his actions. 

“Mr. Littlejohn ultimately received the maximum sentence available, but the court was limited to the single count the DOJ brought charges on.

“This bipartisan bill ensures that the punishment fits the crime. Current law states that any violation shall be a felony punishable by a fine in any amount not to exceed $5,000, or imprisonment of not more than 5 years, or both. This bill increases the maximum penalty for the unauthorized disclosure of returns and return information to include a fine of up to $250,000, or imprisonment of not more than 10 years, or both.

“It also ensures that prosecutors can consider each taxpayer impacted by a disclosure to support a separate and distinct violation of the law.

“Increasing the punishment for this crime will result in better deterrence for potential criminals, and fewer crimes of this sort being committed.

“I urge all my colleagues to support this legislation and send a clear message that Congress will not tolerate the theft and leak of taxpayer information.”