I 

110TH CONGRESS 

1ST SESSION H. R. 1860 

To amend the Internal Revenue Code of 1986 to provide a 100 percent 

deduction for expenses related to identity theft. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 16, 2007 

Mrs. MCCARTHY of New York introduced the following bill; which was 

referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

a 100 percent deduction for expenses related to identity 

theft. 

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 ‘‘Identity Theft Relief 

5 Act of 2007’’. 

6 SEC. 2. DEDUCTION FOR EXPENSES RELATED TO IDENTITY 

7 THEFT. 

8 (a) IN GENERAL.—Part VII of subchapter B of chap9 ter 1 of the Internal Revenue Code of 1986 (relating to 

10 additional itemized deductions) is amended by redesigVerDate Aug 31 2005 06:46 Apr 17, 2007 Jkt 059196 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1860.IH H1860

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1 nating section 224 as section 225 and by inserting after 

2 section 223 the following new section: 

3 ‘‘SEC. 224. EXPENSES RELATED TO IDENTITY THEFT. 

4 ‘‘(a) IN GENERAL.—In the case of an individual, 

5 there shall be allowed as a deduction all the ordinary and 

6 necessary expenses paid or incurred during the taxable 

7 year, not compensated for by insurance or otherwise, in 

8 connection with a qualified identity theft. 

9 ‘‘(b) QUALIFIED IDENTITY THEFT.—For purposes of 

10 this section— 

11 ‘‘(1) QUALIFIED IDENTITY THEFT.—In the case 

12 of an individual, the term ‘qualified identity theft’ 

13 means a fraud committed or attempted using the 

14 identifying information of such individual without 

15 authority. 

16 ‘‘(2) IDENTIFYING INFORMATION.—The term 

17 ‘identifying information’ means any name or number 

18 that may be used, alone or in conjunction with any 

19 other information, to identify such individual, includ20 ing— 

21 ‘‘(A) a name, social security number, date 

22 of birth, official State or government issued 

23 driver’s license or identification number, alien 

24 registration number, government passport numVerDate Aug 31 2005 06:46 Apr 17, 2007 Jkt 059196 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1860.IH H1860

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1 ber, or employer or taxpayer identification num2 ber, 

3 ‘‘(B) unique biometric data, such as finger4 print, voice print, retina or iris image, or other 

5 unique physical representation, 

6 ‘‘(C) unique electronic identification num7 ber, address, or routing code, 

8 ‘‘(D) telecommunication identifying infor9 mation or access device (as defined in section 

10 1029(e) of title 18, United States Code), 

11 ‘‘(E) a bank, savings association, credit 

12 union, or investment account number, 

13 ‘‘(F) a credit card or debit card account 

14 number, 

15 ‘‘(G) a password, access code, or security 

16 code relating to— 

17 ‘‘(i) a bank, savings association, credit 

18 union, or investment account number, or 

19 ‘‘(ii) a credit card or debit card ac20 count number, or 

21 ‘‘(H) any other unique identifying informa22 tion.’’. 

23 (b) DEDUCTION ALLOWED IN COMPUTING AD24 JUSTED GROSS INCOME.—Subsection (a) of section 62 of 


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1 such Code is amended by inserting before the last sentence 

2 the following new paragraph: 

3 ‘‘(22) EXPENSES RELATED TO IDENTITY

4 THEFT.—The deduction allowed by section 224.’’. 

5 (c) CLERICAL AMENDMENT.—The table of sections 

6 for part VII of subchapter B of chapter 1 of such Code 

7 is amended by redesignating the item relating to section 

8 224 as an item relating to section 225 and inserting before 

9 such item the following new item: 

‘‘Sec. 224. Expenses related to identity theft.’’. 

10 (d) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to taxable years beginning after 

12 December 31, 2006. 

Æ 


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