Taxpayer Protection Act of 2007 - Amends Internal Revenue Code provisions relating to tax administration and taxpayer protections.
(Sec. 2) Allows married couples who file a joint tax return to elect to conduct their business activities as a qualified joint venture without being treated as a partnership. Defines "qualified joint venture" as a trade or business entity in which the only members are a husband and wife who materially participate in such venture. Allows participating spouses to conduct their individual business activities as sole proprietors and divides their items of income and expense in accordance with their respective interests in such venture.
(Sec. 3) Requires the Secretary of the Treasury to notify a taxpayer of: (1) any unauthorized use of such taxpayer's identity (suspected identity theft) which the Secretary uncovers during an investigation of false statements or tax returns; and (2) any criminal charges brought against an individual who is using the identity of such taxpayer.
(Sec. 4) Extends from nine months to two years the period in which the Internal Revenue Service (IRS) may return property that has been wrongfully levied and for bringing a civil action for wrongful levy.
(Sec. 5) Allows taxpayers to recontribute to their individual retirement accounts (IRAs), without penalty or limitation, amounts that were wrongfully levied by the IRS. Requires the IRS to pay interest on IRA amounts that were wrongfully seized.
(Sec. 6) Allows the IRS to use any means of mass communication (e.g., the Internet) to publish unclaimed refund amounts.
(Sec. 7) Prohibits the Secretary from allowing the payment of taxpayer refunds to any refund anticipation loan business whose business practices are predatory.
(Sec. 8) Expands the prohibitions against the misuse of Department of the Treasury names and symbols to the use of such names and symbols on an Internet domain address.
(Sec. 9) Requires the Secretary to notify in writing certain taxpayers who may be eligible for the earned income credit of their eligibility for such credit.
(Sec. 10) Sets forth an alternative procedure for furnishing a non-foreign affidavit in connection with the sale of a U.S. real property interest (USRPI) and the exemption from withholding of tax requirements. Allow a transferor of a USRPI to furnish a non-foreign affidavit to a qualified substitute (i.e., a person responsible for closing the transaction involving a USRPI or the transferee's agent). Denies an exemption from withholding of tax requirements if the qualified substitute or a transferee has actual knowledge that the non-foreign affidavit is false.
(Sec. 11) Authorizes the Secretary to disclose to the head of the Federal Bureau of Prisons any return information of a federal inmate whom the Secretary has determined may have filed or facilitated the filing of a false tax return. Terminates the authority of the Secretary to make such disclosures after December 31, 2010. Requires the Inspector General for Tax Administration of the Department of the Treasury to report to Congress on the implementation of such disclosure authority.
(Sec. 12) Increases the penalty for tendering a bad check or money order for payment of taxes.