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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1323 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1323

 To amend the Internal Revenue Code of 1986 to permit the Secretary of 
the Treasury and the Commissioner of the Social Security Administration 
 to disclose certain return information related to identity theft, and 
                          for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 13, 2015

 Mr. Johnson (for himself, Mr. Warner, and Ms. Ayotte) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL

 
 To amend the Internal Revenue Code of 1986 to permit the Secretary of 
the Treasury and the Commissioner of the Social Security Administration 
 to disclose certain return information related to identity theft, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Identity Defense Act 
of 2015''.

SEC. 2. DISCLOSURE OF CERTAIN RETURN INFORMATION WITH RESPECT TO 
              IDENTITY THEFT.

    (a) In General.--Subsection (l) of section 6103 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(23) Disclosure of return information in certain cases of 
        identity theft.--
                    ``(A) In general.--If the Secretary has reason to 
                believe that there has been a fraudulent use of a 
                social security account number on a statement described 
                in section 6051--
                            ``(i) the Secretary shall disclose to the 
                        individual who was validly assigned such social 
                        security account number--
                                    ``(I) that the Secretary has reason 
                                to believe that the social security 
                                account number assigned to such 
                                individual has been fraudulently used 
                                in the employment context,
                                    ``(II) that the Secretary has made 
                                the disclosure described in clause (ii) 
                                to the Director of the Federal Bureau 
                                of Investigation and the Attorney 
                                General with respect to such fraudulent 
                                use, and
                                    ``(III) such other information 
                                (other than return information) as the 
                                Secretary determines, in consultation 
                                with Federal Trade Commission, would be 
                                helpful and appropriate to provide to a 
                                victim of identity theft, and
                            ``(ii) the Secretary shall disclose to the 
                        Director of the Federal Bureau of Investigation 
                        and the Attorney General--
                                    ``(I) such social security account 
                                number,
                                    ``(II) that the Secretary has 
                                reason to believe that such social 
                                security account number has been 
                                fraudulently used in the employment 
                                context, and
                                    ``(III) the taxpayer identity 
                                information of the individual who was 
                                assigned such social security account 
                                number, the individual believed to have 
                                fraudulently used such social security 
                                account number, and the employer who 
                                made the statement described in section 
                                6051 which included such social 
                                security account number.
                    ``(B) Restriction on disclosure to law 
                enforcement.--
                            ``(i) Disclosure to other law enforcement 
                        officials.--The Director of the Federal Bureau 
                        of Investigation and the Attorney General may 
                        disclose information received under 
                        subparagraph (A)(ii) to appropriate Federal, 
                        State, and local law enforcement officials.
                            ``(ii) Restriction on use of disclosed 
                        information.--Return information disclosed 
                        under subparagraph (A)(ii) may be used by 
                        Federal, State, and local law enforcement 
                        officials only for purposes of carrying out 
                        criminal investigations or prosecutions.
                            ``(iii) Memorandum of understanding.--For 
                        purposes of this paragraph, any return 
                        information disclosed under subparagraph 
                        (A)(ii) may not be provided to any State or 
                        local law enforcement official until such 
                        official has entered into a memorandum of 
                        understanding with the Secretary that includes 
                        the following terms and conditions:
                                    ``(I) Confidentiality of returns 
                                and return information and prohibitions 
                                on disclosure described in subsection 
                                (a)(3).
                                    ``(II) Safeguards, restrictions on 
                                access, and recordkeeping requirements 
                                described in subsection (p)(4).
                                    ``(III) Application of penalties 
                                for unauthorized disclosure of returns 
                                and return information under section 
                                7213(a)(2).
                                    ``(IV) Any additional terms and 
                                conditions deemed appropriate by the 
                                Secretary.''.
    (b) Prevention of Identity Theft.--In the case of an employee for 
whom the Commissioner of the Social Security Administration has reason 
to believe that the social security number included on any statement 
described in section 6051(a) of the Internal Revenue Code of 1986 with 
respect to such employee is not the correct social security number for 
such employee, the Commissioner shall provide notification to the 
employer for such employee which includes--
            (1) the name of the employee and the social security number 
        included on such statements; and
            (2) relevant information regarding the availability of the 
        Social Security Number Verification Service for verification of 
        social security numbers.
    (c) Conforming Amendments Related to Disclosure.--
            (1) Confidentiality.--Paragraph (3) of section 6103(a) of 
        such Code is amended by striking ``or (21)'' and inserting 
        ``(21), or (23)''.
            (2) Procedures and recordkeeping related to disclosures.--
        Paragraph (4) of section 6103(p) of such Code is amended by 
        striking ``or (20)'' each place it appears and inserting 
        ``(20), or (23)''.
            (3) Unauthorized disclosure or inspection.--Paragraph (2) 
        of section 7213(a) of such Code is amended by striking ``or 
        (21)'' and inserting ``(21), or (23)''.

SEC. 3. PENALTIES FOR TAX-RELATED IDENTITY THEFT.

    (a) In General.--Section 1028A(c) of title 18, United States Code, 
is amended--
            (1) by redesignating paragraphs (8) through (11) as 
        paragraphs (10) through (13), respectively; and
            (2) by inserting after paragraph (7) the following new 
        paragraphs:
            ``(8) section 286 (relating to conspiracy to defraud the 
        government with respect to claims), section 287 (relating to 
        false, fictitious, or fraudulent claims), section 371 (relating 
        to conspiracy to commit an offense or to defraud the United 
        States), section 1001 (relating to statements or entries), 
        section 1341 (relating to frauds and swindles), section 1342 
        (relating to a fictitious name or address), section 1343 
        (relating to fraud by wire, radio, or television), or section 
        1344 (relating to bank fraud), if the felony violation is a 
        tax-related offense punishable under such section;
            ``(9) section 7206 of the Internal Revenue Code of 1986 
        (relating to fraud and false statements);''.
    (b) Penalty for Misappropriation of Tax Identification Numbers.--
            (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. MISAPPROPRIATION OF TAX IDENTIFICATION NUMBER.

    ``In addition to any penalty provided by law, 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 pay a 
penalty of $5,000.''.
            (2) Conforming amendment.--The table of sections for part I 
        of subchapter B of chapter 68 of such Code is amended by adding 
        at the end the following new item:

``Sec. 6720D. Misappropriation of tax identification number.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to returns and information submitted after the date 
        of the enactment of this Act.
                                 <all>
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