ance under this section shall be regularly com-
pared with a list of each prisoner in Federal 
custody at a Federal correction facility within 
that State; 
‘‘(B) establish a regular comparison of 
such list of individuals with a list of each pris-
oner in the custody of that State at a correc-
tional facility in that State; 
‘‘(C) participate in the E-Verify Program 
described in section 403 of the Illegal Immigra-
tion Reform and Immigrant Responsibility Act 
of 1996 (division C of Public Law 104–208; 8 
U.S.C. 1324a note) with respect to applicants 
for pandemic unemployment assistance; and 
‘‘(D) use the results of the comparisons 
and participation described in subparagraphs 
(A), (B), and (C) to investigate and prosecute 
fraud relating to pandemic unemployment as-
sistance under this section.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to pandemic unem-
ployment assistance paid under section 2102 of the 
CARES Act on or after the date of enactment of this Act. 
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SEC. 202. TEMPORARY ENHANCED PENALTIES FOR FRAUD 
AND IDENTITY THEFT. 
Any violation of section 1341 or 1343 of title 18, 
U.S.C., occurring in connection with an application for, 
or continuing receipt of, pandemic unemployment assist-
ance under section 2102 of the CARES Act (15 U.S.C. 
9021) during the period beginning on the date of enact-
ment of this Act and ending on December 31, 2021, shall 
be treated, for purposes of the final sentence of section 
1341 or 1343 of such title, as a violation of such section 
1341 or 1343 in relation to a presidentially declared major 
disaster or emergency. 
SEC. 203. PROTECTIONS RELATING TO TAX LIABILITY. 
(a) IN GENERAL.—Section 2118 of the CARES Act 
(15 U.S.C. 9034), as amended by section 101(a), is fur-
ther amended— 
(1) in subsection (b)(3), by striking the period 
at the end and inserting ‘‘: Provided, That up to 10 
percent of the amount made available under sub-
section (a) may be used, pursuant to a grant de-
scribed in this paragraph, for the establishment of 
the fraud hotline and claim processing procedures 
described in subsection (e).’’; and 
(2) by adding at the end the following: 
‘‘(e) PROTECTIONS RELATING TO TAX LIABILITY.— 
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‘‘(1) IN GENERAL.—As a condition of receiving 
a grant under subsection (b)(3), the Secretary of 
Labor shall require that each State or territory re-
ceiving such a grant take the following actions, at 
such times and in such manner as the Secretary of 
Labor may provide: 
‘‘(A) FRAUD HOTLINE.—Each such State 
or territory shall establish a fraud hotline de-
signed to encourage individuals who are the vic-
tims of unemployment fraud and who have re-
ceived an incorrect statement of unemployment 
compensation furnished under section 6050B of 
the Internal Revenue Code of 1986 for a cal-
endar year to report such fraud to the State or 
territory. 
‘‘(B) PROCESSING OF CLAIMS.—Each such 
State or territory shall— 
‘‘(i) maintain a database of all reports 
made as described under paragraph (1); 
‘‘(ii) investigate and make a final de-
termination with respect to each such re-
port; 
‘‘(iii) notify the Commissioner of In-
ternal Revenue— 
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‘‘(I) of each such report received 
with respect to an individual for a cal-
endar year; and 
‘‘(II) of the final determination 
made with respect to such report. 
‘‘(2) REPORT TO CONGRESS.—Not later than 
90 days after the date of enactment of this sub-
section, the Secretary of Labor, in consultation with 
the Secretary of the Treasury, shall submit a report 
to Congress certifying whether each State or terri-
tory receiving a grant under subsection (b)(3) has 
taken the actions described in paragraph (1).’’. 
(b) TIMELINESS OF TAX REFUNDS.—If the Commis-
sioner of Internal Revenue is notified by a State that an 
individual has filed a report under section 2118(e) of the 
CARES Act with respect to an incorrect statement of un-
employment compensation furnished under section 6050B 
of the Internal Revenue Code of 1986— 
(1) the Commissioner shall not delay making 
any refund with respect to a return of tax by such 
individual solely on account of a difference between 
the amount of unemployment compensation included 
on such return and furnished on such statement; 
and 
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(2) except as otherwise provided in section 6851 
or 6861 of such Code, no assessment of any portion 
of a deficiency that is attributable to such any dif-
ference may be made, 
unless such delay or assessment is based on the final de-
termination made by the State with respect to such report. 
Æ 
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