IIB 
114TH CONGRESS 
2D SESSION 
H. R. 3832 
IN THE SENATE OF THE UNITED STATES 
MAY 17, 2016 
Received; read twice and referred to the Committee on Finance 
AN ACT 
To amend the Internal Revenue Code of 1986 to prevent 
tax-related identity theft and tax fraud, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Stolen Identity Refund 
Fraud Prevention Act of 2016’’. 
SEC. 2. CENTRALIZED POINT OF CONTACT FOR IDENTITY 
THEFT VICTIMS. 
The Secretary of the Treasury, or the Secretary’s del-
egate, shall establish and maintain an office at the Inter-
nal Revenue Service and procedures to ensure that any 
taxpayer whose return has been delayed or otherwise ad-
versely affected due to the theft of the taxpayer’s identity 
has a centralized point of contact throughout the proc-
essing of his or her case. The office shall coordinate with 
other offices within the Internal Revenue Service to resolve 
the taxpayer’s case as quickly as possible. 
SEC. 3. TAXPAYER NOTIFICATION OF SUSPECTED IDENTITY 
THEFT. 
(a) IN GENERAL.—Chapter 77 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new section: 
‘‘SEC. 
7529. 
NOTIFICATION 
OF 
SUSPECTED 
IDENTITY 
THEFT. 
‘‘If the Secretary determines that there was an unau-
thorized use of the identity of any taxpayer, the Secretary 
shall— 
‘‘(1) as soon as practicable and without jeop-
ardizing an investigation relating to tax administra-
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tion, notify the taxpayer and include with that no-
tice— 
‘‘(A) instructions to the taxpayer about fil-
ing a police report; and 
‘‘(B) the forms the taxpayer must submit 
to allow investigating law enforcement officials 
to access the taxpayer’s personal information; 
and 
‘‘(2) if any person is criminally charged by in-
dictment or information relating to such unauthor-
ized use, notify such taxpayer as soon as practicable 
of such charge.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 77 of such Code is amended by adding at the 
end the following new item: 
‘‘Sec. 7529. Notification of suspected identity theft.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to determinations made after the 
date of the enactment of this Act. 
SEC. 4. REPORT ON ELECTRONIC FILING OPT OUT. 
The Secretary of the Treasury (or the Secretary’s 
delegate) shall submit a feasibility study to the Committee 
on Ways and Means of the House of Representatives and 
the Committee on Finance of the Senate describing a pro-
gram under which a person who has filed an identity theft 
affidavit with the Secretary may elect to prevent the proc-
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essing of any Federal tax return submitted in an electronic 
format by that taxpayer or a person purporting to be that 
taxpayer. The study shall be submitted within 180 days 
after the date of the enactment of this Act and should 
also include a recommendation on whether to implement 
such a program. 
SEC. 5. USE OF INFORMATION IN DO NOT PAY INITIATIVE 
IN PREVENTION OF IDENTITY THEFT RE-
FUND FRAUD. 
The Secretary of the Treasury, and the Secretary’s 
delegate, shall use the information available under the Do 
Not Pay Initiative established under section 5 of the Im-
proper Payments Elimination and Recovery Improvement 
Act of 2012 (31 U.S.C. 3321 note) to help prevent identity 
theft refund fraud. 
SEC. 6. REPORT ON IDENTITY THEFT REFUND FRAUD. 
(a) IN GENERAL.—Not later than September 30, 
2018, and biannually thereafter through September 30, 
2023, the Secretary of the Treasury (or the Secretary’s 
delegate) shall report to the Committee on Ways and 
Means of the House of Representatives and the Committee 
on Finance of the Senate on the extent and nature of 
fraud involving the use of a misappropriated taxpayer 
identity with respect to claims for refund under the Inter-
nal Revenue Code of 1986 during the preceding completed 
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income tax filing season, and the detection, prevention, 
and enforcement activities undertaken by the Internal 
Revenue Service with respect to such fraud, including— 
(1) detailing efforts to combat identity theft 
fraud, including an update on the victims’ assistance 
unit; 
(2) information on both the average and max-
imum amounts of time that elapsed before the cases 
of victims of such fraud were resolved; and 
(3) discussing Internal Revenue Service efforts 
associated with other avenues for addressing identity 
theft refund fraud. 
(b) ADDITIONAL REQUIREMENTS.—In addition, each 
report shall provide an update on the implementation of 
this Act and identify the need for any further legislation 
to protect taxpayer identities. 
(c) PROGRESS ON OUTREACH AND EDUCATION.—In 
the first biannual report on identity theft refund fraud 
under subsection (a), the Secretary (or the Secretary’s del-
egate) shall include— 
(1) an assessment of the agency’s progress on 
identity theft outreach and education to the private 
sector, State agencies, and external organizations; 
and 
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(2) the results of a feasibility study on the costs 
and benefits to enhancing its taxpayer authentica-
tion approach to the electronic tax return filing 
process. 
SEC. 7. INFORMATION SHARING AND ANALYSIS CENTER. 
(a) IN GENERAL.—The Secretary (or the Secretary’s 
delegate) shall establish an information sharing and anal-
ysis center to centralize, standardize, and enhance data 
compilation and analysis to facilitate sharing actionable 
data and information with respect to identity theft. 
(b) REPORT.—Not later than 1 year after establish-
ment of the information sharing and analysis center, the 
Secretary (or the Secretary’s delegate) shall submit a re-
port to the Committee on Ways and Means of the House 
of Representatives and Committee on Finance of the Sen-
ate on the information sharing and analysis center de-
scribed in subsection (a). The report shall include the data 
that was shared, the use of such data, and the results of 
the data sharing and analysis center in combating identity 
theft. 
SEC. 8. LOCAL LAW ENFORCEMENT LIAISON. 
(a) ESTABLISHMENT.—The Commissioner of Inter-
nal Revenue shall establish within the Criminal Investiga-
tion Division of the Internal Revenue Service the position 
of Local Law Enforcement Liaison. 
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(b) DUTIES.—The Local Law Enforcement Liaison 
shall serve as the primary source of contact for State and 
local law enforcement authorities with respect to tax-re-
lated identity theft, having duties that shall include— 
(1) receiving information from State and local 
law enforcement authorities; 
(2) responding to inquiries from State and local 
law enforcement authorities; 
(3) administering authorized information-shar-
ing initiatives with State or local law enforcement 
authorities and reviewing the performance of such 
initiatives; 
(4) ensuring any information provided through 
authorized information-sharing initiatives with State 
or local law enforcement authorities is used only for 
the prosecution of identity theft-related crimes and 
not re-disclosed to third parties; and 
(5) such other duties relating to tax-related 
identity theft prevention as are delegated by the 
Commissioner of Internal Revenue. 
SEC. 9. IRS PHONE SCAM REPORT. 
(a) IN GENERAL.—Not later than 1 year after the 
date of the enactment of this Act, the Inspector General 
for Tax Administration, in consultation with the Federal 
Communications Commission and the Federal Trade Com-
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mission, shall submit a report to Congress regarding iden-
tity theft phone scams under which individuals attempt 
to obtain personal information over the phone from tax-
payers by falsely claiming to be calling from or on behalf 
the Internal Revenue Service. 
(b) CONTENTS OF REPORT.—Such report shall in-
clude— 
(1) a description of the nature and form of such 
scams; 
(2) an estimate of the number of taxpayers con-
tacted pursuant to, and the number of taxpayers 
who have been victims of, such scams; 
(3) an estimate of the amount of wrongful pay-
ments obtained from such scams; and 
(4) details of potential solutions to combat and 
prevent such scams, including best practices from 
the private sector and technological solutions. 
SEC. 10. PROVIDING IDENTITY THEFT PREVENTION INFOR-
MATION WHILE ON HOLD WITH INTERNAL 
REVENUE SERVICE. 
The Secretary of the Treasury, or the Secretary’s del-
egate, shall ensure that if a taxpayer is on hold with the 
Internal Revenue Service on a taxpayer service telephone 
call the following information is provided: 
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(1) Basic information about common identity 
theft tax scams. 
(2) Directions on where to report such activity. 
(3) Tips on how to protect against identity 
theft tax scams. 
SEC. 11. NO ADDITIONAL FUNDS AUTHORIZED. 
No additional funds are authorized to carry out the 
requirements of this Act and the amendments made by 
this Act. Such requirements shall be carried out using 
amounts otherwise authorized. 
Passed the House of Representatives May 16, 2016. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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