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H.R.3482 - Tax Crimes and Identity Theft Prevention Act
To prevent identity theft and tax crimes.
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Ms. CASTOR of Florida introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink
SECTION 1. SHORT TITLE.
SEC. 2. EXPEDITED RESOLUTION FROM INTERNAL REVENUE SERVICE FOR IDENTITY THEFT VICTIMS.
Not later than 90 days after an individual notifies the Secretary of the Treasury that such individual’s identity has been misused by another person in connection with the internal revenue laws, the Secretary shall, to the extent practicable, determine the extent to which the taxpayer’s return and return information were affected by such misuse and shall take such actions as are necessary to correct such affected return or return information with respect to such misuse.CommentsClose CommentsPermalink
SEC. 3. DISCLOSURE OF RETURN AND RETURN INFORMATION IN FEDERAL AND STATE PROSECUTION RELATING TO IDENTITY FRAUD.
‘(A) IN GENERAL- In the case of an investigation pertaining to the misuse of the identity of another person for purposes of filing a false or fraudulent return of tax, upon receipt of a written request which meets the requirements of subparagraph (C), the Secretary may disclose return information to officers and employees of any Federal law enforcement agency, or any officers and employees of any State or local law enforcement agency, who are personally and directly engaged in the investigation of any crimes implicated in such misuse, but only if any such law enforcement agency is part of a team with the Internal Revenue Service in such investigation.CommentsClose CommentsPermalink
‘(B) LIMITATION ON USE OF INFORMATION- Information disclosed under this subparagraph shall be solely for the use of such officers and employees to whom such information is disclosed in such investigation.CommentsClose CommentsPermalink
SEC. 4. CRIMINAL PENALTY FOR USING A FALSE IDENTITY IN CONNECTION WITH TAX FRAUD.
‘(c) Misappropriation of Identity- Any person who knowingly or willfully misappropriates another person’s tax identification number in connection with any list, return, account, statement, or other document submitted to the Secretary shall be fined not less than $25,000 ($200,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.’.CommentsClose CommentsPermalink
SEC. 5. INCREASED PENALTY FOR IMPROPER DISCLOSURE OR USE OF INFORMATION BY PREPARERS OF RETURNS.
SEC. 6. PIN SYSTEM FOR PREVENTION OF IDENTITY THEFT TAX FRAUD.
(a) In General- Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary’s delegate) shall implement an identify theft tax fraud prevention program under which--CommentsClose CommentsPermalink
(2) the Secretary will provide additional identity verification safeguards for the processing of any Federal tax return filed by a person described in paragraph (1) in cases where a unique personal identification number is not included on the return.CommentsClose CommentsPermalink
SEC. 7. AUTHORITY TO TRANSFER INTERNAL REVENUE SERVICE APPROPRIATIONS TO USE FOR TAX FRAUD ENFORCEMENT.
For any fiscal year, the Commissioner of Internal Revenue may transfer not more than $10,000,000 to the ‘Enforcement’ account of the Internal Revenue Service from amounts appropriated to other Internal Revenue Service accounts. Any amounts so transferred shall be used solely for the purposes of preventing and resolving potential cases of tax fraud.CommentsClose CommentsPermalink
SEC. 8. LOCAL LAW ENFORCEMENT LIAISON.
(a) Establishment- The Commissioner of Internal Revenue shall establish within the Criminal Investigation Division of the Internal Revenue Service the position of Local Law Enforcement Liaison.CommentsClose CommentsPermalink
SEC. 9. REPORT ON TAX FRAUD.
‘(4) ANNUAL REPORT ON TAX FRAUD- The Commissioner shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives an annual report detailing--CommentsClose CommentsPermalink
SEC. 10. STUDY ON THE USE OF PREPAID DEBIT CARDS AND COMMERCIAL TAX PREPARATION SOFTWARE IN TAX FRAUD.
(a) In General- The Comptroller General shall conduct a study to examine the role of prepaid debit cards and commercial tax preparation software in facilitating fraudulent tax returns through identity theft.CommentsClose CommentsPermalink
(b) Report- Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report with the results of the study conducted under subsection (a), together with any recommendations.CommentsClose CommentsPermalink
SEC. 11. RESTRICTION ON ACCESS TO THE DEATH MASTER FILE.
(a) In General- The Secretary of Commerce shall not disclose information contained on the Death Master File to any person with respect to any individual who has died at any time during the calendar year in which the request for disclosure is made or the succeeding calendar year unless such person is certified under the program established under subsection (b).CommentsClose CommentsPermalink
(1) IN GENERAL- The Secretary of Commerce shall establish a program to certify persons who are eligible to access the information described in subsection (a) contained on the Death Master File.CommentsClose CommentsPermalink
(2) CERTIFICATION- A person shall not be certified under the program established under paragraph (1) unless the Secretary determines that such person has a legitimate fraud prevention interest in accessing the information described in subsection (a).CommentsClose CommentsPermalink
(c) Imposition of Penalty- Any person who is certified under the program established under subsection (b), who receives information described in subsection (a), and who during the period of time described in subsection (a)--CommentsClose CommentsPermalink
shall pay a penalty of $1,000 for each such disclosure or use, but the total amount imposed under this subsection on such a person for any calendar year shall not exceed $50,000.CommentsClose CommentsPermalink
(1) IN GENERAL- The Social Security Administration shall not be compelled to disclose to any person who is not certified under the program established under section 9(b) the information described in section 9(a).CommentsClose CommentsPermalink
(2) TREATMENT OF INFORMATION- For purposes of
SEC. 12. EXTENSION OF AUTHORITY TO DISCLOSE CERTAIN RETURN INFORMATION TO PRISON OFFICIALS.
(b) Report From Federal Bureau of Prisons- Not later than 6 months after the date of the enactment of this Act, the head of the Federal Bureau of Prisons shall submit to Congress a detailed plan on how it will use the information provided from the Secretary of Treasury under section 6103(k)(10) of the Internal Revenue Code of 1986 to reduce prison tax fraud.CommentsClose CommentsPermalink
(c) Sense of Senate Regarding State Prison Authorities- It is the sense of the Senate that the heads of State agencies charged with the administration of prisons should --CommentsClose CommentsPermalink
(1) develop plans for using the information provided by the Secretary of Treasury under section 6103(k)(10) of the Internal Revenue Code of 1986 to reduce prison tax fraud, andCommentsClose CommentsPermalink
SEC. 13. TREASURY REPORT ON INFORMATION SHARING BARRIERS WITH RESPECT TO IDENTITY THEFT.
(1) IN GENERAL- The Secretary of the Treasury (or the Secretary’s delegate) shall review whether current Federal tax laws and regulations related to the confidentiality and disclosure of return information prevent the effective enforcement of local, State, and Federal identity theft statutes. The review shall consider whether greater information sharing between the Internal Revenue Service and State and local law enforcement authorities would improve the enforcement of criminal laws at all levels of government.CommentsClose CommentsPermalink
(b) Report- Not later than 180 days after the date of enactment of this Act, the Secretary shall submit a report with the results of the review conducted under subsection (a), along with any legislative recommendations, to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives.CommentsClose CommentsPermalink
SEC. 14. GRANTS TO INVESTIGATE AND PROSECUTE STATE AND LOCAL TAX CRIMES.
(a) Grant Program Authorized- The Attorney General is authorized to award grants to State and local law enforcement agencies to assist such agencies in the investigation and prosecution of tax crimes.CommentsClose CommentsPermalink
(b) Authorization of Appropriations- For each fiscal year, there are authorized to be appropriated to carry out this section, from amounts made available in each such fiscal year to carry out the Edward Byrne Memorial Justice Assistance Grants program under part E of title I of the Omnibus Crime Control and Safe Streets Act of 1968 (
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