This bill aims to strengthen the protection of taxpayer information by substantially increasing penalties for unauthorized disclosures. It raises the maximum criminal fine for individuals from $5,000 to $250,000 and extends imprisonment terms from 5 to 7 years for various unauthorized disclosure offenses. A significant new provision establishes a felony offense for Internal Revenue Service (IRS) contractors who willfully fail to implement or enforce safeguards, resulting in unauthorized disclosure of taxpayer data. For these contractors, the criminal fine would be the greater of $500,000 or 25 percent of their total contract obligations with the IRS during the relevant period. Furthermore, the bill increases the minimum amount of civil damages that can be awarded to a taxpayer for unauthorized disclosure from $1,000 to $5,000 . These changes are designed to enhance accountability and deter the misuse or negligent handling of sensitive taxpayer information.