SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Human Trafficking 
Fraud Enforcement Act of 2014’’. 
SEC. 2. OFFICE FOR TAX LAW ENFORCEMENT RELATING TO 
HUMAN TRAFFICKING AND PROMOTION OF 
COMMERCIAL SEX ACTS. 
(a) ESTABLISHMENT.—The Secretary of the Treas-
ury shall establish an office within the Internal Revenue 
Service to investigate and prosecute violations of the inter-
nal revenue laws by persons that appear to be engaged 
in conduct in violation of any of the provisions specified 
in subsection (b). 
(b) CERTAIN CRIMINAL PROVISIONS RELATING TO 
HUMAN TRAFFICKING AND PROMOTION OF COMMERCIAL 
SEX ACTS.—The provisions of law referenced in this sub-
section are as follows: 
(1) The following provisions of title 18, United 
States Code: 
(A) Section 1351. 
(B) Section 1589. 
(C) Section 1590. 
(D) Section 1591(a). 
(E) Section 1952. 
(F) Section 2421. 
(G) Section 2422. 
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(H) Subsection (a), (d), or (e) of section 
2423. 
(2) Section 1328 of title 8, United States Code. 
(3) The laws of any State or territory that pro-
hibit the promotion of prostitution or of any com-
mercial sex act (as such term is defined in section 
1591(e)(3) of title 18, United States Code). 
(c) COOPERATION WITH DEPARTMENT
OF JUS-
TICE.—To the extent possible, the office established under 
subsection (a) shall cooperate with the Child Exploitation 
and Obscenity Section of the Department of Justice and 
the Innocence Lost National Initiative of the Federal Bu-
reau of Investigation. 
(d) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Secretary of the Treasury 
shall report to the Committee on Ways and Means of the 
House of Representatives and the Committee on Finance 
of the Senate on the enforcement activities of the office 
established under subsection (a) and shall include any rec-
ommendations for statutory changes to assist in future 
prosecutions pursuant to this section. 
(e) APPLICABILITY OF WHISTLEBLOWER AWARDS TO 
VICTIMS
OF HUMAN TRAFFICKING.—For purposes of 
making an award under paragraph (1) or (2) of section 
7623(b) of the Internal Revenue Code of 1986 with re-
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spect to information provided by victims of any person 
convicted of violating any of the provisions specified in 
subsection (b), the determination of whether such person 
is described in such paragraph shall be made without re-
gard to paragraph (3) of section 7623(b) of such Code. 
(f) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There is authorized to be 
appropriated not more than $4,000,000 for fiscal 
year 2015 to carry out subsection (a). 
(2) ADDITIONAL
FUNDING
FOR
ADMINISTRA-
TION OF OFFICE.—Unless specifically appropriated 
otherwise, there is authorized to be appropriated and 
is appropriated to the office established under sub-
section (a) for fiscal years 2015 and 2016 for the 
administration of such office an amount equal to the 
sum of— 
(A) the amount of any tax under chapter 
1 of the Internal Revenue Code of 1986 (in-
cluding any interest) collected during such fis-
cal years as the result of the actions of such of-
fice, plus 
(B) the amount of any civil or criminal 
monetary penalties imposed under such Code 
relating to such tax and so collected. 
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Amounts not expended under the preceding sentence 
shall be transferred to and deposited in the Crime 
Victims Fund in the Treasury (42 U.S.C. 10601). 
SEC. 3. INCREASE IN CRIMINAL MONETARY PENALTIES. 
(a) ATTEMPT TO EVADE OR DEFEAT TAX.—Section 
7201 of the Internal Revenue Code of 1986 (relating to 
attempt to evade or defeat tax) is amended— 
(1) by striking ‘‘Any person’’ and inserting the 
following: 
‘‘(a) IN GENERAL.—Any person’’, and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) ATTEMPT TO EVADE OR DEFEAT TAX ATTRIB-
UTABLE TO HUMAN TRAFFICKING AND COMMERCIAL SEX 
ACTS.— 
‘‘(1) IN GENERAL.—In the case of any attempt 
to evade or defeat any tax attributable to income de-
rived from an act described in paragraph (2), sub-
section (a) shall be applied— 
‘‘(A) 
by 
substituting 
‘$500,000 
($1,000,000’ for ‘$100,000 ($500,000’, and 
‘‘(B) by substituting ‘10 years’ for ‘5 
years’. 
‘‘(2) HUMAN TRAFFICKING AND COMMERCIAL 
SEX ACTS.—For purposes of paragraph (1), an act 
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described in this paragraph is any act which is a vio-
lation of any of the provisions specified in section 
2(b) of the Human Trafficking Fraud Enforcement 
Act of 2014.’’. 
(b) WILLFUL FAILURE TO FILE RETURN, SUPPLY 
INFORMATION, OR PAY TAX.— 
(1) GENERAL
INCREASE
IN
MONETARY
PEN-
ALTY.—Section 7203 of the Internal Revenue Code 
of 1986 (relating to willful failure to file return, sup-
ply information, or pay tax) is amended by striking 
‘‘$25,000’’ and inserting ‘‘$50,000’’. 
(2) INCREASE IN PENALTIES FOR FAILURE TO 
FILE
WITH
RESPECT
TO
TAX
ATTRIBUTABLE
TO 
HUMAN
TRAFFICKING
AND
COMMERCIAL
SEX 
ACTS.— 
(A) IN GENERAL.—Section 7203 of the In-
ternal Revenue Code of 1986 (relating to willful 
failure to file return, supply information, or pay 
tax), as amended by paragraph (1), is amended 
by striking ‘‘Any person’’ in the first sentence 
and inserting the following: 
‘‘(a) IN GENERAL.—Any person’’, and 
(B) by adding at the end the following new 
subsection: 
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