CLAMP Act

Summary: Closing Loopholes Against Money-Laundering Practices Act or the CLAMP Act  This bill amends the Internal Revenue Code to require U.S. entities to obtain and have an employer identification number (EIN) assigned by the Internal Revenue Service (IRS).  The bill defines a &quot;U.S. entity&quot; as any business entity created or organized in the United States or under the laws of the United States or of a U.S. state, possession, or territory. The term excludes tax-exempt organizations.  The bill establishes: (1) civil penalties for the failure to have an EIN or provide required information, and (2) a criminal penalty for the willful failure to obtain an EIN.  The IRS may disclose to federal law enforcement officials taxpayer identify information, including an EIN and information from an application for an EIN, for use in investigations and prosecutions of specified offenses related to money laundering and supporting or financing terrorism. Prior to disclosing the information, the IRS must determine that the disclosure would not seriously impair federal tax administration and consider whether the information requested: (1) is being sought exclusively for use in a federal criminal investigation or proceeding pertaining to the specified offense, (2) is or may be relevant to a matter relating to the offense, and (3) cannot be reasonably obtained from any other source. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Closing Loopholes Against Money-
Laundering Practices Act'' or the ``CLAMP Act''.

SEC. 2. REQUIREMENT OF EIN FOR UNITED STATES ENTITIES.

    (a) In General.--Section 6109 of the Internal Revenue Code of 1986 
is amended by inserting after subsection (d) the following new 
subsection:
    ``(e) Requirement of EIN for United States Entities.--
            ``(1) In general.--Except as otherwise determined by the 
        Secretary, every United States entity shall obtain and have an 
        employer identification number assigned by the Secretary.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) United states entity.--Except as may be 
                provided by regulations, the term `United States 
                entity' means any business entity created or organized 
                in the United States or under the law of the United 
                States or of a State, possession, or territory of the 
                United States.
                    ``(B) Exception.--The term `United States entity' 
                does not include any organization which is exempt from 
                taxation under section 501(a).
                    ``(C) United states.--The term `United States' 
                includes the States, the District of Columbia, and the 
                possessions and territories of the United States.
            ``(3) Time and manner of application.--The Secretary shall 
        set forth the time and manner for a United States entity that 
        does not have an employer identification number to obtain such 
        a number.''.
    (b) Civil Penalty.--
            (1) In general.--Part I of subchapter B of chapter 68 of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following new section:

``SEC. 6720D. PENALTY FOR FAILURES RELATING TO EMPLOYER IDENTIFICATION 
              NUMBERS.

    ``(a) Failure To Have an Identifying Number.--
            ``(1) In general.--Any United States entity (as defined in 
        section 6109(e)(2)(A)) that fails to obtain an employer 
        identification number in accordance with section 6109(e)(1) 
        shall pay a penalty of $10,000.
            ``(2) Joint and several liability.--Notwithstanding section 
        6671(a), if a United States entity does not pay a penalty 
        assessed under paragraph (1) within 60 days after the date of 
        the notice and demand for payment, any person who is treated as 
        a responsible party with respect to such entity at any time 
        during the period beginning on the date the entity was required 
        to obtain such number and ending on the date that is 60 days 
        after the date of the notice and demand for payment shall be 
        jointly and severally liable with the entity for such penalty.
    ``(b) Failure To Provide Required Information.--
            ``(1) In general.--Any person who fails to provide 
        information required by the Secretary under section 6109(c) 
        (including updating previously submitted information as the 
        Secretary may require by regulations) shall pay a penalty of 
        $100 for each such failure.
            ``(2) Intentional failures.--In the case of a failure that 
        the Secretary determines to be intentional, paragraph (1) shall 
        be applied by substituting `$1,000' for `$100'. For purposes of 
        the preceding sentence, a pattern of failing to provide or 
        update information shall be treated as intentional failure.
            ``(3) Joint and several liability.--Notwithstanding section 
        6671(a), if any United States entity (as defined in section 
        6109(e)(2)(A)) does not pay a penalty assessed under paragraph 
        (1) within 60 days after the date of the notice and demand for 
        payment, any person who at any time during the period beginning 
        on the date the entity was required to provide the information 
        under paragraph (1) and ending on the date that is 60 days 
        after the date of the notice and demand for payment is treated 
        as a responsible party with respect to such entity shall be 
        jointly and severally liable with such entity for such penalty.
            ``(4) Coordination with subsection (a).--No penalty shall 
        be imposed under this subsection for any taxable year with 
        respect to which a penalty is imposed under subsection (a) on 
        the same entity.
    ``(c) Reasonable Cause.--No penalty shall apply under subsection 
(a) or (b) if it is shown that the failure to satisfy the requirements 
of section 6109(e) or 6109(c), as the case may be, is due to reasonable 
cause and not due to willful neglect.''.
            (2) Clerical amendment.--The table of sections for part I 
        of subchapter B of chapter 68 of the Internal Revenue Code of 
        1986 is amended by adding at the end the following new item:

``Sec. 6720D. Penalty for failures relating to employer identification 
                            numbers.''.
    (c) Criminal Penalty.--
            (1) In general.--Part I of subchapter A of chapter 75 of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following new section:

``SEC. 7218. WILLFUL FAILURE TO OBTAIN AN EMPLOYER IDENTIFICATION 
              NUMBER.

    ``Any person who willfully attempts in any manner to evade or 
defeat the employer identification number requirement of section 
6109(e) or any regulations thereunder for the purpose of hiding the 
existence of an entity or the identity of its responsible party shall, 
in addition to any other penalties provided by law, be guilty of a 
felony and, upon conviction thereof, shall be fined not more than 
$100,000 ($500,000 in the case of a corporation), or imprisoned not 
more than 5 years, or both, together with the costs of prosecution.''.
            (2) Clerical amendment.--The table of sections for part I 
        of subchapter A of chapter 75 of the Internal Revenue Code of 
        1986 is amended by adding at the end the following new item:

``Sec. 7218. Willful failure to obtain an employer identification 
                            number.''.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by subsection (a) shall apply to United States 
        entities (as defined in section 6109(e)(2)(A) of the Internal 
        Revenue Code of 1986) formed on or after the date that is 180 
        days after the date of the enactment of this Act.
            (2) Application to existing united states entities.--With 
        respect to United States entities (as so defined) in existence 
        on the day before the date specified in paragraph (1), the 
        amendment made by subsection (a) shall take effect on the date 
        that is 3 years after the date of the enactment of this Act.
            (3) Issuance of identifying numbers with respect to 
        existing entities.--Not later than the date that is 3 years 
        after the date of the enactment of this Act, the Secretary of 
        the Treasury shall provide a method for all United States 
        entities (as so defined) to whom paragraph (1) does not apply 
        to obtain an identifying number under section 6109(e) of such 
        Code, and shall assign such an identifying number to each such 
        entity.
            (4) Penalties.--With respect to a United States entity (as 
        so defined), the amendments made by subsections (b) and (c) 
        shall apply to failures after the date described in paragraph 
        (1) or (2), whichever is applicable.

SEC. 3. DISCLOSURE OF RESPONSIBLE PARTY IDENTITY FOR USE IN ANTI-MONEY 
              LAUNDERING AND COUNTERTERRORISM INVESTIGATIONS AND 
              PROSECUTIONS.

    (a) In General.--Subsection (i) of section 6103 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(9) Disclosure upon request of responsible party identity 
        for use in anti-money laundering and counterterrorism 
        investigations and prosecutions.--
                    ``(A) In general.--Except as provided in paragraph 
                (6), after taking into consideration the factors 
                described in subparagraph (B), the Secretary may 
                disclose, upon written request, to the individuals 
                described in subparagraph (C) taxpayer identity 
                information consisting of--
                            ``(i) the name and employer identification 
                        number of the specific entity to whom the 
                        request relates,
                            ``(ii) the name and identifying number, and 
                        any available contact information, of the 
                        responsible party and any third-party designee 
                        reflected on the entity's application for an 
                        employer identification number, and
                            ``(iii) any trade name, other addresses, 
                        entity type, or principal activity of the 
                        business reflected on such application,
                but only to the extent such information was included on 
                the entity's application for an employer identification 
                number pursuant to the requirements of section 6109(e) 
                or any predecessor provision or program, and to the 
                extent the Secretary determines such disclosure would 
                not seriously impair Federal tax administration.
                    ``(B) Factors for consideration.--The factors 
                described in this subparagraph are whether the 
                information requested in such written request--
                            ``(i) is being sought exclusively for use 
                        in a Federal criminal investigation or 
                        proceeding pertaining to offenses described in 
                        clause (i) or (ii) of subparagraph (C),
                            ``(ii) is or may be relevant to a matter 
                        relating to such an offense, and
                            ``(iii) cannot be reasonably obtained, 
                        taking into account all relevant circumstances, 
                        from any other source.
                    ``(C) Individuals described.--For purposes of 
                subparagraph (A), the individuals described in this 
                paragraph are officers and employees of any Federal law 
                enforcement agency who are personally and directly 
                engaged in the investigation, response, or analysis, or 
                in any judicial, administrative, or grand jury 
                proceedings, pertaining to offenses under--
                            ``(i) section 1956, 1957, 1960, 2339A, 
                        2339B, or 2339C of title 18, United States 
                        Code, or
                            ``(ii) subchapter II of chapter 53 of title 
                        31, United States Code.''.
    (b) Conforming Amendments.--
            (1) Paragraph (6) of section 6103 (i) of the Internal 
        Revenue Code of 1986 is amended by striking ``or (8)'' and 
        inserting ``(8), or (9)''.
            (2) Paragraph (4) of section 6103(p) of such Code is 
        amended--
                    (A) by striking ``(5), or (7)'' and inserting 
                ``(5), (7), or (9)'', and
                    (B) by striking ``(5) or (7)'' and inserting ``(5), 
                (7), or (9)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to disclosures made after the date of the enactment of this Act.