DE HB217

Extends confidentiality obligations for tax returns and information to include subcontractors of the Department of Finance, in addition to current employees and independent contractors.

Requires all prospective and current employees, contractors, and subcontractors with access to federal tax information to undergo background checks, with current personnel checked at least once every ten years, to comply with Internal Revenue Code Section 6103(p)(4) and IRS Publication 1075.

Background checks must include state criminal history from the State Bureau of Identification and federal criminal history from the Federal Bureau of Investigation, with the State Bureau of Identification serving as the intermediary to forward results to the Department.

Authorizes the Director of Revenue to require or permit electronic filing of tax returns and magnetic media filing, and to assess penalties up to $50 for taxpayers who fail to file returns in the prescribed manner without reasonable cause.

Allows the Department to establish its own standards for screening background check results and grants the Director broad discretion to abate penalties during the transition to mandatory electronic filing.