H.R. 8463
Pre-Payment Fraud Prevention and Treasury Data Access Act
Sponsor: James Comer
3 cosponsors
Official summary
Written by the Congressional Research Service.
Pre-Payment Fraud Prevention and Treasury Data Access Act
This bill expands efforts to identify, prevent, and recover improper payments of federal funds (e.g., overpayments, underpayments, payments to ineligible recipients).
Specifically, the Department of the Treasury must establish certain requirements that agencies must meet before directing Treasury to make a payment of federal funds. These pre-payment requirements must include verification of payee information, payment details, and fund availability. Further, agencies must, to the extent practicable, verify the accuracy of payee bank account information before directing Treasury to make a payment.
The bill also expands the Do Not Pay system, which provides agencies with access to centralized data for the purpose of verifying payee eligibility, and provides statutory authority for Treasury’s role as administrator of the system. The bill requires specified data assets to be added to the system and authorizes Treasury to (1) designate additional data assets for inclusion, and (2) access certain taxpayer and Social Security information for the system. The bill specifies that information obtained through the system may only be used to prevent and recover improper payments and establishes penalties for the unlawful disclosure of such information.
The bill explicitly requires executive agencies and state and local governments administering federally funded programs to screen payees against all appropriate Do Not Pay data assets and risk tools before making an award or directing a payment.
Finally, the bill establishes post-award reporting requirements for certain first-time fund recipients under federal programs for awards of $50,000 or more.
Text of the bill
Where this section came from
Not in the first version (Introduced in House, Apr 23).
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Jun 8, 2026 · Reported in House
(a) Privacy-preserving validation of select tax information
(1) In general. Section 6103(i) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
(9) Disclosure of certain return information for use in the do not pay working system
(A) In general. Upon execution of a written intra agency agreement between the Internal Revenue Service and the office of the Department of the Treasury that operates the Do Not Pay system described in section 3354(c) of title 31, United States Code, the Secretary may disclose to any authorized individual return information described in subparagraph (C) with respect to an individual taxpayer for the applicable period described in subparagraph (D) for the limited purpose described in subparagraph (E). The Secretary may further authorize the redisclosure of such return information by an authorized person, subject to such terms, conditions, and safeguards as the Secretary determines appropriate, to other authorized persons described in subparagraph (B) solely for the limited purpose described in subparagraph (E). The Secretary shall disclose or permit the redisclosure of such return information only to the extent necessary and for the purpose of the Do Not Pay system assisting an authorized individual to identify, prevent, and recover improper payments.
(B) Authorized individual. For purposes of this paragraph, the term authorized individual means—
(i) an officer, employee, agent, or contractor of the Department of Treasury, whose official duties require access to the Do Not Pay system for the purpose of facilitating the identification, prevention, or recovery of improper payments, or
(ii) an officer, employee, or contractor of an entity authorized to access the Do Not Pay system for the purposes described in subparagraph (E).
(C) Return information. The return information that may be disclosed under this paragraph is limited to—
(i) taxpayer identity, and
(ii) any reported identity theft related to the taxpayer identification number.
(D) Applicable period. For purposes of this paragraph, the term applicable period means, with respect to any individual taxpayer, the period—
(i) consisting of the number of taxable years specified in the agreement entered under subparagraph (A), except that such period shall not be fewer than 3 taxable years, and
(ii) ending with the most recent taxable year for which the information described in subparagraph (C) is available.
(E) Limitation on use of information. Information disclosed under this subparagraph shall be solely for the use of the authorized persons to whom such information is disclosed and solely for the purpose of detecting, preventing, and recovering improper payments.
(2) Conforming amendments
(A) Section 6103(a)(3) of the Internal Revenue Code of 1986 is amended by inserting subsection (i)(9), after subsection (e)(1)(D)(iii),.
(B) Section 6103(p)(4) of such Code is amended—
(i) in the matter preceding subparagraph (A)—
(I) by striking or (7), and inserting (7), or (9),; and
(II) by striking or (7)(A)(ii), and inserting (7)(A)(ii), or (9),;
(ii) in subparagraph (F)(i), by inserting , or (9) after (i)(3)(B)(i); and
(iii) in the matter preceding subclause (I) of subparagraph (F)(ii), by striking (5) or (7), and inserting (5), (7), or (9),.
(C) Section 7213(a)(2) of such Code is amended by striking or (7)(A)(ii), and inserting (7)(A)(ii), or (9),.
(3) Effective date. The amendments made by this subsection shall apply to any disclosure made after the effective date of this Act.
(b) Access to social security information. Title II of the Social Security Act (42 U.S.C. 401 et seq.) is amended by adding at the end the following new section:
235. Disclosure of information for do not pay system
(a) The Commissioner of Social Security shall enter into an agreement with the Secretary of the Treasury (or his designee) under which—
(1) the Commissioner establishes a reliable, secure method, which compares the name and social security account number provided in an inquiry against such information maintained by the Commissioner in order to confirm (or not confirm, including the reason for the nonconfirmation) the validity of the information provided;
(2) appropriate safeguards are included to assure that the confirmation (or nonconfirmation) is used solely for the use of the authorized persons to whom such information is disclosed and solely for the purpose of using the Do No Pay system to identify, prevent, and recover improper payments, and any redisclosure shall be subject to the provisions of section 3354 of title 31, United States Code; and
(3) the Secretary shall pay the Commissioner of Social Security the full costs (including systems and administrative costs) of providing the confirmation described in paragraph (1).
(b) For purposes of this paragraph the term authorized person means—
(1) an officer, employee, contractor, or agent of the Department of Treasury, whose official duties require access to the Do Not Pay system, or
(2) an officer, employee, or contractor of another Federal agency, or a State agency that manages Federally funded State-administered programs, whose official duties require access to the Do Not Pay system.