USE OF INTERNAL REVENUE SERVICE AND SOCIAL SECURITY ADMINISTRATION DATA FOR INCOME VERIFICATION.

SEC. 8051. USE OF INTERNAL REVENUE SERVICE AND SOCIAL SECURITY ADMINISTRATION DATA FOR INCOME VERIFICATION. (a) Disclosure of Tax Information.—(1) Subparagraph (D) of section 6103(1)(7) of the Internal Revenue Code of 1986 (relating to disclosure of return information to Federal, State, and local agencies administering certain programs) is amended— (A) by striking out “and” at the end of clause (vi); (B) by striking out the period at the end of clause (vii) and inserting in lieu thereof “; and”; and (C) by adding at the end the following: “(viii)(I) any needs-based pension provided under chapter 15 of title 38, United States Code, or under any other law administered by the Secretary of Veterans Affairs; “(II) parents’ dependency and indemnity compensation provided under section 415 of title 38, United States Code; “(III) health-care services furnished under section 610(a)(1)(I), 61()(a)(2), 610(b), and 612(a)(2)(B) of such title; and “(IV) compensation paid under chapter 11 of title 38, United States Code, at the 100 percent rate based solely on unemployability and without regard to the fact that the disability or disabilities are not rated as 100 percent disabling under the rating schedule. Only return information from returns with respect to net earnings from self-employment and wages may be disclosed under this paragraph for use with respect to any program described in clause (viii)(IV). Clause (viii) shall not apply after September 30, 1992.” 104 STAT. 1388–350 (2) The heading of paragraph (7) of section 6103(1) of such Code is amended by striking out “or the food stamp act of 1977” and inserting in lieu thereof “, the food stamp act of 1977, or title 38, united states code”. (b) Use of Income Information for Needs-Based Programs.—(1) Chapter 53 of title 38, United States Code, is amended by adding at the end the following new section: “§ 3117. Use of income information from other agencies: notice and verification “(a) The Secretary shall notify each applicant for a benefit or service described in subsection (c) of this section that income information furnished by the applicant to the Secretary may be compared with information obtained by the Secretary from the Secretary of Health and Human Services or the Secretary of the Treasury under section 6103(1)(7 )(D)(viii) of the Internal Revenue Code of 1986. The Secretary shall periodically transmit to recipients of such benefits and services additional notifications of such matters. “(b) The Secretary may not, by reason of information obtained from the Secretary of Health and Human Services or the Secretary of the Treasury under section 6103(l)(7)(D)(viii) of the Internal Revenue Code of 1986, terminate, deny, suspend, or reduce any benefit or service described in subsection (c) of this section until the Secretary takes appropriate steps to verify independently information relating to the following: “(1) The amount of the asset or income involved. “(2) Whether such individual actually has (or had) access to such asset or income for the individual’s own use. “(3) The period or periods when the individual actually had such asset or income. “(c) The benefits and services described in this subsection are the following: “(1) Needs-based pension benefits provided under chapter 15 of this title or under any other law administered by the Secretary. “(2) Parents’ dependency and indemnity compensation provided under section 415 of this title. “(3) Health-care services furnished under sections 6KKa)(l)(I), 61()(a)(2), 610(b), and 612(a)(2)(B) of this title. “(4) Compensation paid under chapter 11 of this title at the 100 percent rate based solely on unemployability and without regard to the fact that the disability or disabilities are not rated as 100 percent disabling under the rating schedule. “(d) In the case of compensation described in subsection (c)(4) of this section, the Secretary may independently verify or otherwise act upon wage or self-employment information referred to in subsection (b) of this section only if the Secretary finds that the amount and duration of the earnings reported in that information clearly indicate that the individual may no longer be qualified for a rating of total disability. “(e) The Secretary shall inform the individual of the findings made by the Secretary on the basis of verified information under subsection (b) of this section, and shall give the individual an opportunity to contest such findings, in the same manner as applies to other information and findings relating to eligibility for the benefit or service involved. 104 STAT. 1388–351 “(f) The Secretary shall pay the expenses of carrying out this section from amounts available to the Department for the payment of compensation and pension. “(g) The authority of the Secretary to obtain information from the Secretary of the Treasury or the Secretary of Health and Human Services under section 6103(l)(7)(D)(viii) of the Internal Revenue Code of 1986 expires on September 30, 1992.”. (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: “3117. Use of income information from other agencies: notice and verification.”. (c) Notice to Current Beneficiaries.—(1) The Secretary of Veterans Affairs shall notify individuals who (as of the date of the enactment of this Act) are applicants for or recipients of the benefits described in subsection (c) (other than paragraph (3)) of section 3117 of title 38, United States Code (as added by subsection (b)), that income information furnished to the Secretary by such applicants and recipients may be compared with information obtained by the Secretary from the Secretary of Health and Human Services or the Secretary of the Treasury under clause (viii) of section 6103Q)(7)(D) of the Internal Revenue Code of 1986 (as added by subsection (a)). (2) Notification under paragraph (1) shall be made not later than 90 days after the date of the enactment of this Act. (3) The Secretary of Veterans Affairs may not obtain information from the Secretary of Health and Human Services or the Secretary of the Treasury under section 6103(1)(7)(D)(viii) of the Internal Revenue Code of 1986 (as added by subsection (a)) until notification under paragraph (1) is made. (d) GAO Study.—The Comptroller General of the United States shall conduct a study of the effectiveness of the amendments made by this section and shall submit a report on such study to the Committees on Veterans’ Affairs and Ways and Means of the House of Representatives and the Committees on Veterans’ Affairs and Finance of the Senate not later than January 1, 1992.