Social Security Identity Defense Act of 2017

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. 1. Short title This Act may be cited as the Social Security Identity Defense Act of 2017 2. Disclosure of certain return information with respect to identity theft (a) In general Subsection (l) of section 6103 (23) Disclosure of return information in certain cases of identity theft 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, the Secretary shall disclose to the individual who was validly assigned such social security account number— (A) 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, and (B) such other information (other than return information) as the Secretary determines, in consultation with the Federal Trade Commission, would be helpful and appropriate to provide to a victim of identity theft. . (b) Prevention of identity theft In the case of an employee for whom the Commissioner of Social Security has reason to believe that the social security number included on any statement described in section 6051(a) (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. 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 . (b) Penalty for misappropriation of taxpayer identification numbers (1) In general Part I of subchapter B of chapter 68 6720D. Misappropriation of taxpayer identification number In addition to any penalty provided by law, any person who knowingly or willfully misappropriates another person's taxpayer 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 taxpayer 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.

Summary: Social Security Identity Defense Act of 2017 This bill amends the Internal Revenue Code to require the Department of the Treasury and the Social Security Administration (SSA) to disclose certain tax return information in cases of identity theft. If Treasury believes that there has been a fraudulent use of a Social Security number on a statement submitted regarding wages paid to employees, Treasury must disclose to the individual who was validly assigned the Social Security number: (1) that there is reason to believe that there has been a fraudulent use of such account number in an employment context, and (2) other information that Treasury determines would be helpful and appropriate to provide to a victim of identity theft. If the SSA believes that the Social Security number included on such a statement is not the correct number for an employee, the SSA must provide a notification to the employer that includes: (1) the name of the employee and the Social Security number included on the statements, and (2) relevant information regarding the availability of the Social Security Number Verification Service. The bill also imposes new criminal and civil penalties for tax-related identity theft and misappropriation of tax identification numbers.