“(a) In general.—In the case of a contractor of the Internal Revenue Service that willfully fails to implement or enforce any applicable requirement under section 6103 (or regulations prescribed thereunder) to protect the confidentiality of returns or return information, if such failure results in the unauthorized disclosure of returns or return information, such contractor shall be guilty of a felony and, upon conviction thereof, shall be fined the greater of—

“(1) $500,000, or

“(2) an amount equal to 25 percent of the total amount obligated under all contracts with the Internal Revenue Service during the first fiscal year in which such contractor was provided access to any returns or return information related to the unauthorized disclosure.

“(b) Definitions.—For purposes of this section, the term ‘contractor of the Internal Revenue Service’ means any person described in section 6103(n) (including any officer or employee of such person) in connection with a written contract with the Internal Revenue Service.”.

“(1) inspection or disclosure of a taxpayer’s return or return information in violation of—

“(A) paragraph (1) or (2) of section 7213(a),

“(B) section 7213A(a), or

“(C) subparagraph (B) of section 1030(a)(2) of title 18, United States Code, or

“(2) failure to protect the confidentiality of returns or return information which results in the unauthorized disclosure of the taxpayer’s return or return information in violation of section 7213B(a),

“(a) In general.—In the case of a contractor of the Internal Revenue Service that willfully fails to implement or enforce any applicable requirement under section 6103 (or regulations prescribed thereunder) to protect the confidentiality of returns or return information, if such failure results in the unauthorized disclosure of returns or return information, such contractor shall be guilty of a felony and, upon conviction thereof, shall be fined the greater of—

“(1) $500,000, or

“(2) an amount equal to 25 percent of the total amount obligated under all contracts with the Internal Revenue Service during the first fiscal year in which such contractor was provided access to any returns or return information related to the unauthorized disclosure.

“(b) Definitions.—For purposes of this section, the term ‘contractor of the Internal Revenue Service’ means any person described in section 6103(n) (including any officer or employee of such person) in connection with a written contract with the Internal Revenue Service.”.

“(1) inspection or disclosure of a taxpayer’s return or return information in violation of—

“(A) paragraph (1) or (2) of section 7213(a),

“(B) section 7213A(a), or

“(C) subparagraph (B) of section 1030(a)(2) of title 18, United States Code, or

“(2) failure to protect the confidentiality of returns or return information which results in the unauthorized disclosure of the taxpayer’s return or return information in violation of section 7213B(a),