IB 

Union Calendar No. 440 

114TH CONGRESS 

2D SESSION H. R. 3832 

[Report No. 114–567, Part I] 

To amend the Internal Revenue Code of 1986 to prevent tax-related identity 

theft and tax fraud, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 26, 2015 

Mr. RENACCI (for himself, Mr. LEWIS, Mr. ROSKAM, Mr. BUCHANAN, and Mr. 

REICHERT) 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 concerned 

MAY 13, 2016 

Additional sponsors: Mr. MARCHANT, Mr. MCDERMOTT, Mr. RIBBLE, Mr. 

KILMER, Miss RICE of New York, Mr. BUCSHON, Ms. FRANKEL of Florida, Mrs. COMSTOCK, Mr. KELLY of Pennsylvania, Mr. MEEHAN, Mr. 

MEADOWS, Mr. TIBERI, Mr. HANNA, Mr. JOYCE, Mr. HOLDING, Mr. 

REED, Mr. BARLETTA, Mr. CARNEY, Mr. QUIGLEY, Mr. DIAZ-BALART, 

Mr. COSTELLO of Pennsylvania, and Mr. HECK of Nevada 

MAY 13, 2016 

Reported from the Committee on Ways and Means with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

MAY 13, 2016 

The Committee on the Judiciary discharged; committed to the Committee of 

the Whole House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on October 26, 2015] 

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A BILL 

To amend the Internal Revenue Code of 1986 to prevent 

tax-related identity theft and tax fraud, and for other 

purposes. 

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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Stolen Identity Refund 

5 Fraud Prevention Act of 2016’’. 

6 SEC. 2. CENTRALIZED POINT OF CONTACT FOR IDENTITY 

7 THEFT VICTIMS. 

8 The Secretary of the Treasury, or the Secretary’s dele9 gate, shall establish and maintain an office at the Internal 

10 Revenue Service and procedures to ensure that any tax11 payer whose return has been delayed or otherwise adversely 

12 affected due to the theft of the taxpayer’s identity has a cen13 tralized point of contact throughout the processing of his 

14 or her case. The office shall coordinate with other offices 

15 within the Internal Revenue Service to resolve the tax16 payer’s case as quickly as possible. 

17 SEC. 3. TAXPAYER NOTIFICATION OF SUSPECTED IDENTITY 

18 THEFT. 

19 (a) IN GENERAL.—Chapter 77 of the Internal Revenue 

20 Code of 1986 is amended by adding at the end the following 

21 new section: 

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1 ‘‘SEC. 7529. NOTIFICATION OF SUSPECTED IDENTITY 

2 THEFT. 

3 ‘‘If the Secretary determines that there was an unau4 thorized use of the identity of any taxpayer, the Secretary 

5 shall— 

6 ‘‘(1) as soon as practicable and without jeopard7 izing an investigation relating to tax administration, 

8 notify the taxpayer and include with that notice— 

9 ‘‘(A) instructions to the taxpayer about fil10 ing a police report, and 

11 ‘‘(B) the forms the taxpayer must submit to 

12 allow investigating law enforcement officials to 

13 access the taxpayer’s personal information, and 

14 ‘‘(2) if any person is criminally charged by in15 dictment or information relating to such unauthor16 ized use, notify such taxpayer as soon as practicable 

17 of such charge.’’. 

18 (b) CLERICAL AMENDMENT.—The table of sections for 

19 chapter 77 of such Code is amended by adding at the end 

20 the following new item: 

‘‘Sec. 7529. Notification of suspected identity theft.’’. 

21 (c) EFFECTIVE DATE.—The amendments made by this 

22 section shall apply to determinations made after the date 

23 of the enactment of this Act. 

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1 SEC. 4. REPORT ON ELECTRONIC FILING OPT OUT. 

2 The Secretary of the Treasury (or the Secretary’s dele3 gate) shall submit a feasibility study to the Committee on 

4 Ways and Means of the House of Representatives and the 

5 Committee on Finance of the Senate describing a program 

6 under which a person who has filed an identity theft affi7 davit with the Secretary may elect to prevent the processing 

8 of any Federal tax return submitted in an electronic format 

9 by that taxpayer or a person purporting to be that tax10 payer. The study shall be submitted within 180 days after 

11 the date of the enactment of this Act and should also include 

12 a recommendation on whether to implement such a pro13 gram. 

14 SEC. 5. CRIMINAL PENALTY FOR USING A FALSE IDENTITY 

15 IN CONNECTION WITH TAX FRAUD. 

16 (a) AGGRAVATED IDENTITY THEFT.—Section 

17 1028A(c) of title 18, United States Code, is amended by 

18 striking ‘‘or’’ at the end of paragraph (10), by striking the 

19 period at the end of paragraph (11) and inserting ‘‘; or’’, 

20 and by adding at the end the following new paragraph: 

21 ‘‘(12) section 7206(b) of the Internal Revenue 

22 Code of 1986 (relating to use of false identity in con23 nection with tax fraud).’’. 

24 (b) EFFECTIVE DATE.—The amendments made by this 

25 section shall apply to offenses committed after the date of 

26 the enactment of this Act. 

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1 SEC. 6. USE OF INFORMATION IN DO NOT PAY INITIATIVE 

2 IN PREVENTION OF IDENTITY THEFT REFUND 

3 FRAUD. 

4 The Secretary of the Treasury, and the Secretary’s del5 egate, shall use the information available under the Do Not 

6 Pay Initiative established under section 5 of the Improper 

7 Payments Elimination and Recovery Improvement Act of 

8 2012 (31 U.S.C. 3321 note) to help prevent identity theft 

9 refund fraud. 

10 SEC. 7. REPORT ON IDENTITY THEFT REFUND FRAUD. 

11 (a) IN GENERAL.—Not later than September 30, 2018, 

12 and biannually thereafter through September 30, 2023, the 

13 Secretary of the Treasury (or the Secretary’s delegate) shall 

14 report to the Committee on Ways and Means of the House 

15 of Representatives and the Committee on Finance of the 

16 Senate on the extent and nature of fraud involving the use 

17 of a misappropriated taxpayer identity with respect to 

18 claims for refund under the Internal Revenue Code of 1986 

19 during the preceding completed income tax filing season, 

20 and the detection, prevention, and enforcement activities 

21 undertaken by the Internal Revenue Service with respect 

22 to such fraud, including— 

23 (1) detailing efforts to combat identity theft 

24 fraud, including an update on the victims’ assistance 

25 unit; 

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1 (2) information on both the average and max2 imum amounts of time that elapsed before the cases 

3 of victims of such fraud were resolved; and 

4 (3) discussing Internal Revenue Service efforts 

5 associated with other avenues for addressing identity 

6 theft refund fraud. 

7 (b) ADDITIONAL REQUIREMENTS.—In addition, each 

8 report shall provide an update on the implementation of 

9 this Act and identify the need for any further legislation 

10 to protect taxpayer identities. 

11 (c) PROGRESS ON OUTREACH AND EDUCATION.—In 

12 the first biannual report on identity theft refund fraud 

13 under subsection (a), the Secretary (or the Secretary’s dele14 gate) shall include— 

15 (1) an assessment of the agency’s progress on 

16 identity theft outreach and education to the private 

17 sector, State agencies, and external organizations; and 

18 (2) the results of a feasibility study on the costs 

19 and benefits to enhancing its taxpayer authentication 

20 approach to the electronic tax return filing process. 

21 SEC. 8. INFORMATION SHARING AND ANALYSIS CENTER. 

22 (a) IN GENERAL.—The Secretary (or the Secretary’s 

23 delegate) shall establish an information sharing and anal24 ysis center to centralize, standardize, and enhance data 

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1 compilation and analysis to facilitate sharing actionable 

2 data and information with respect to identity theft. 

3 (b) REPORT.—Not later than 1 year after establish4 ment of the information sharing and analysis center, the 

5 Secretary (or the Secretary’s delegate) shall submit a report 

6 to the Committee on Ways and Means of the House of Rep7 resentatives and Committee on Finance of the Senate on 

8 the information sharing and analysis center described in 

9 subsection (a). The report shall include the data that was 

10 shared, the use of such data, and the results of the data 

11 sharing and analysis center in combating identity theft. 

12 SEC. 9. LOCAL LAW ENFORCEMENT LIAISON. 

13 (a) ESTABLISHMENT.—The Commissioner of Internal 

14 Revenue shall establish within the Criminal Investigation 

15 Division of the Internal Revenue Service the position of 

16 Local Law Enforcement Liaison. 

17 (b) DUTIES.—The Local Law Enforcement Liaison 

18 shall serve as the primary source of contact for State and 

19 local law enforcement authorities with respect to tax-related 

20 identity theft, having duties that shall include— 

21 (1) receiving information from State and local 

22 law enforcement authorities; 

23 (2) responding to inquiries from State and local 

24 law enforcement authorities; 

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1 (3) administering authorized information-shar2 ing initiatives with State or local law enforcement 

3 authorities and reviewing the performance of such 

4 initiatives; 

5 (4) ensuring any information provided through 

6 authorized information-sharing initiatives with State 

7 or local law enforcement authorities is used only for 

8 the prosecution of identity theft-related crimes and 

9 not re-disclosed to third parties; and 

10 (5) such other duties relating to tax-related iden11 tity theft prevention as are delegated by the Commis12 sioner of Internal Revenue. 

13 SEC. 10. IRS PHONE SCAM REPORT. 

14 (a) IN GENERAL.—Not later than 1 year after the date 

15 of the enactment of this Act, the Inspector General for Tax 

16 Administration, in consultation with the Federal Commu17 nications Commission and the Federal Trade Commission, 

18 shall submit a report to Congress regarding identity theft 

19 phone scams under which individuals attempt to obtain 

20 personal information over the phone from taxpayers by 

21 falsely claiming to be calling from or on behalf the Internal 

22 Revenue Service. 

23 (b) CONTENTS OF REPORT.—Such report shall in24 clude— 

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1 (1) a description of the nature and form of such 

2 scams; 

3 (2) an estimate of the number of taxpayers con4 tacted pursuant to, and the number of taxpayers who 

5 have been victims of, such scams; 

6 (3) an estimate of the amount of wrongful pay7 ments obtained from such scams; and 

8 (4) details of potential solutions to combat and 

9 prevent such scams, including best practices from the 

10 private sector and technological solutions. 

11 SEC. 11. PROVIDING IDENTITY THEFT PREVENTION INFOR12 MATION WHILE ON HOLD WITH INTERNAL 

13 REVENUE SERVICE. 

14 The Secretary of the Treasury, or the Secretary’s dele15 gate, shall ensure that if a taxpayer is on hold with the 

16 Internal Revenue Service on a taxpayer service telephone 

17 call the following information is provided: 

18 (1) Basic information about common identity 

19 theft tax scams. 

20 (2) Directions on where to report such activity. 

21 (3) Tips on how to protect against identity theft 

22 tax scams. 

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Union Calendar No. 440 

114TH CONGRESS 

2D SESSION H. R. 3832 

[Report No. 114–567, Part I] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

and for other purposes. prevent tax-related identity theft and tax fraud, 

MAY 13, 2016 

Reported from the Committee on Ways and Means with 

M

an amendment 

AY 13, 2016 

The Committee on the Judiciary discharged; committed 

the Union and ordered to be printed to the Committee of the Whole House on the State of 

mstockstill on DSK3G9T082PROD with BILLS