HI HB969

Prohibits unauthorized wilful inspection of tax returns, return information, and taxpayer-identifying information received by the Department of Taxation.

Establishes criminal penalties of up to $1,000 per return/taxpayer and/or up to one year imprisonment for violations.

Provides that Department of Taxation employees who wilfully conduct unauthorized inspections may be dismissed.

Allows the Department to terminate contracts with and prohibit future contracting with any person, contractor, or their officers/directors/employees who violate the inspection restrictions.

Defines "unauthorized inspection" as examination of returns or return information without official business purpose or when not required to perform assigned duties, including inspection of friends', relatives', or one's own records.