To amend the Internal Revenue Code of 1986 to permit the Secretary of the Treasury to disclose certain prisoner return information to the Federal Bureau of Prisons, and for other purposes.

SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Inmate Tax Fraud Prevention Act of 
2008''.
SEC. 2. DISCLOSURE OF PRISONER RETURN INFORMATION TO FEDERAL BUREAU OF 
PRISONS.
    (a) In General.--Subsection (k) of section 6103 of the Internal 
Revenue Code of 1986 (relating to disclosure of certain return and 
return information for tax administration purposes) is amended by 
adding at the end the following new paragraph:
        ``(10) Disclosure of certain return information of prisoners to 
    federal bureau of prisons.--
            ``(A) In general.--Under such procedures as the Secretary 
        may prescribe, the Secretary may disclose to the head of the 
        Federal Bureau of Prisons any return information with respect 
        to individuals incarcerated in Federal prison whom the 
        Secretary has determined may have filed or facilitated the 
        filing of a false return to the extent that the Secretary 
        determines that such disclosure is necessary to permit 
        effective Federal tax administration.
            ``(B) Restriction on redisclosure.--Notwithstanding 
        subsection (n), the head of the Federal Bureau of Prisons may 
        not disclose any information obtained under subparagraph (A) to 
        any person other than an officer or employee of such Bureau.
            ``(C) Restriction on use of disclosed information.--Return 
        information received under this paragraph shall be used only 
        for purposes of and to the extent necessary in taking 
        administrative action to prevent the filing of false and 
        fraudulent returns, including administrative actions to address 
        possible violations of administrative rules and regulations of 
        the prison facility.
            ``(D) Termination.--No disclosure may be made under this 
        paragraph after December 31, 2011.''.
    (b) Recordkeeping.--Paragraph (4) of section 6103(p) of such Code 
is amended by striking ``(k)(8)'' both places it appears and inserting 
``(k)(8) or (10)''.
    (c) Evaluation by Treasury Inspector General for Tax 
Administration.--Paragraph (3) of section 7803(d) of such Code is 
amended by striking ``and'' at the end of subparagraph (A), by striking 
the period at the end of subparagraph (B) and inserting ``; and'', and 
by adding at the end the following new subparagraph:
            ``(C) not later than December 31, 2010, submit a written 
        report to Congress on the implementation of section 
        6103(k)(10).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to disclosures made after December 31, 2008.
    (e) Annual Reports.--The Secretary of the Treasury shall annually 
submit to Congress and make publicly available a report on the filing 
of false and fraudulent returns by individuals incarcerated in Federal 
and State prisons. Such report shall include statistics on the number 
of false and fraudulent returns associated with each Federal and State 
prison.
SEC. 3. RESTORATION OF CERTAIN JUDICIAL SURVIVORS' ANNUITIES.
    (a) In General.--Section 376 of title 28, United States Code, is 
amended by adding at the end the following:
    ``(x) In the case of a widow or widower whose annuity under clause 
(i) or (ii) of subsection (h)(1) is terminated because of remarriage 
before attaining 55 years of age, the annuity shall be restored at the 
same rate commencing on the day the remarriage is dissolved by death, 
divorce, or annulment, if--
        ``(1) the widow or widower elects to receive this annuity 
    instead of any other survivor annuity to which such widow or 
    widower may be entitled, under this chapter or under another 
    retirement system for Government employees, by reason of the 
    remarriage; and
        ``(2) any payment made to such widow or widower under 
    subsection (o) or (p) on termination of the annuity is returned to 
    the Judicial Survivors' Annuities Fund.''.
    (b) Conforming Amendment.--Section 376(h)(2) of title 28, United 
States Code, is amended by striking the period at the end and inserting 
``, subject to subsection (x).''.
    (c) Effective Date.--
        (1) In general.--This section and the amendments made by this 
    section shall take effect on the first day of the first month 
    beginning at least 30 days after the date of the enactment of this 
    Act and shall apply in the case of a remarriage which is dissolved 
    by death, divorce, or annulment on or after such first day.
        (2) Limited retroactive effect.--
            (A) In general.--In the case of a remarriage which is 
        dissolved by death, divorce, or annulment within the 4-year 
        period ending on the day before the effective date of this 
        section, the amendments made by this section shall apply only 
        if the widow or widower satisfies the requirements of 
        paragraphs (1) and (2) of section 376(x) of title 28, United 
        States Code (as amended by this section) before--
                (i) the end of the 1-year period beginning on the 
            effective date of this section; or
                (ii) such later date as Director of the Administrative 
            Office of the United States Courts may by regulation 
            prescribe.
            (B) Restoration.--If the requirements of paragraph (1) are 
        satisfied, the survivor annuity shall be restored, commencing 
        on the date the remarriage was dissolved by death, annulment, 
        or divorce, at the rate which was in effect when the annuity 
        was terminated.
            (C) Lump-sum payment.--Any amounts becoming payable to the 
        widow or widower under this subsection for the period beginning 
        on the date on which the annuity was terminated and ending on 
        the date on which periodic annuity payments resume shall be 
        payable in a lump-sum payment.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Summary: Inmate Tax Fraud Prevention Act of 2008 - Amends the Internal Revenue Code to authorize the Secretary of the Treasury to disclose to the head of the Federal Bureau of Prisons tax return information of prisoners whom the Secretary has determined may have filed or facilitated the filing of a false tax return. Prohibits the head of the Federal Bureau of Prisons from disclosing any prisoner tax return information to any person other than an officer or employee of such Bureau. Restricts the use of such tax return information to preventing the filing of false and fraudulent tax returns. Terminates such disclosure authority after December 31, 2011. Imposes recordkeeping and reporting requirements on the Bureau with respect to disclosures of prisoner tax return information. Requires the Secretary to submit an annual report to Congress on the filing of false and fraudulent tax returns by federal and state prisoners and to make such reports available to the public. Requires the Treasury Inspector General for Tax Administration to submit a written report to Congress by December 31, 2010, on the implementation of the authority to disclose prisoner tax return information. Amends the federal judicial code with respect to certain widows and widowers whose judicial survivors' annuities are terminated on account of remarriage before age 55. Requires restoration of such benefits, at the same rate, upon the dissolution of the remarriage by death, divorce, or annulment, if specified requirements are met.