I 
113TH CONGRESS 
1ST SESSION 
H. R. 295 
To amend the Internal Revenue Code of 1986 to prevent identity theft 
and tax fraud, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 15, 2013 
Mr. NUGENT introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to prevent 
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, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Protect and Save Act 
of 2013’’. 
VerDate Mar 15 2010 
20:16 Jan 18, 2013
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H295.IH
H295
sroberts on DSK5SPTVN1PROD with
SEC. 2. AUTHORITY TO DISCLOSE RETURN AND RETURN IN-
FORMATION IN FEDERAL AND STATE PROS-
ECUTION LAW ENFORCEMENT. 
(a) IN GENERAL.—Subsection (k) of section 6103 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(11) DISCLOSURE
OF
CERTAIN
RETURN
IN-
FORMATION IN CONNECTION WITH IDENTITY THEFT 
AND FRAUDULENT RETURNS.— 
‘‘(A) IN GENERAL.—In the case of an in-
vestigation pertaining to the misuse of the iden-
tity of another person for purposes of filing a 
false or fraudulent return of tax, upon receipt 
of a written request which meets the require-
ments of subparagraph (C), the Secretary may 
disclose return information to officers and em-
ployees of any Federal law enforcement agency, 
or any officers and employees of any State or 
local law enforcement agency, who are person-
ally and directly engaged in the investigation of 
any crimes implicated in such misuse, but only 
if any such law enforcement agency is part of 
a team with the Internal Revenue Service in 
such investigation. 
‘‘(B) LIMITATION
ON
USE
OF
INFORMA-
TION.—Information disclosed under this sub-
VerDate Mar 15 2010 
20:16 Jan 18, 2013
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H295.IH
H295
sroberts on DSK5SPTVN1PROD with
paragraph shall be solely for the use of such of-
ficers and employees to whom such information 
is disclosed in such investigation. 
‘‘(C) REQUIREMENTS.—A request meets 
the requirements of this clause if— 
‘‘(i) the request is made by the head 
of the agency (or his delegate) involved in 
such investigation, and 
‘‘(ii) the request sets forth the specific 
reason why such disclosure may be rel-
evant to the investigation. 
‘‘(D) NOTIFICATION.—The Secretary shall 
determine whether or not to grant the disclo-
sure request described in subparagraph (A) and 
notify the petitioning law enforcement agency 
within 30 days of receiving the request. This 
determination shall be expedited in instances 
where the crimes of murder, murder for hire, or 
arson are involved as certified by the requesting 
agency’s head.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (2) of section 6103(a) of such 
Code is amended by inserting ‘‘or (k)(11)’’ after 
‘‘subsection (i)(7)(A)’’. 
VerDate Mar 15 2010 
20:16 Jan 18, 2013
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H295.IH
H295
sroberts on DSK5SPTVN1PROD with
(2) Paragraph (4) of section 6103(p) of such 
Code is amended— 
(A) in the matter preceding subparagraph 
(A) by inserting ‘‘or (11)’’ after ‘‘(k)(10)’’, and 
(B) in subparagraph (F)(ii) by striking ‘‘or 
(10)’’ and inserting ‘‘(10) or (11)’’. 
(3) Paragraph (2) of section 7213(a) of such 
Code is amended by inserting ‘‘(k)(11),’’ after 
‘‘(7)(A)(ii),’’. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to disclosures made after the 
date of the enactment of this Act. 
(d) RULE OF CONSTRUCTION.—Nothing in section 
6103 of the Internal Revenue Code of 1986 may be con-
strued to prohibit Federal law enforcement officials from 
coordinating with State and local law enforcement agen-
cies already investigating related crimes. 
SEC. 3. LOCAL LAW ENFORCEMENT LIAISON. 
Section 7803 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new sub-
section: 
‘‘(e) LOCAL LAW ENFORCEMENT LIAISON.— 
‘‘(1) ESTABLISHMENT.—The Commissioner of 
Internal Revenue shall establish within the Criminal 
VerDate Mar 15 2010 
20:16 Jan 18, 2013
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H295.IH
H295
sroberts on DSK5SPTVN1PROD with
Investigation Division of the Internal Revenue Serv-
ice the position of Local Law Enforcement Liaison. 
‘‘(2) DUTIES.—The Local Law Enforcement 
Liaison shall— 
‘‘(A) coordinate the investigation of tax 
fraud with State and local law enforcement 
agencies, 
‘‘(B) communicate the status of tax fraud 
cases involving identity theft, and 
‘‘(C) carry out such other duties as dele-
gated by the Commissioner of Internal Rev-
enue.’’. 
SEC. 4. PIN SYSTEM FOR PREVENTION OF IDENTITY THEFT 
TAX FRAUD. 
(a) IN GENERAL.—Not later than 1 year after the 
date of the enactment of this Act, the Secretary of the 
Treasury (or the Secretary’s delegate) shall implement an 
identify theft tax fraud prevention program under which— 
(1) a person who has filed an identity theft affi-
davit with the Secretary may elect— 
(A) to be provided with a unique personal 
identification number to be included on any 
Federal tax return filed by such person, or 
(B) to prevent the processing of any Fed-
eral tax return submitted in an electronic for-
VerDate Mar 15 2010 
20:16 Jan 18, 2013
Jkt 029200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H295.IH
H295
sroberts on DSK5SPTVN1PROD with
mat by a person purporting to be such person, 
and 
(2) the Secretary will provide additional identity 
verification safeguards for the processing of any 
Federal tax return filed by a person described in 
paragraph (1) in cases where a unique personal 
identification number is not included on the return. 
SEC. 5. STUDY ON THE USE OF PREPAID DEBIT CARDS AND 
COMMERCIAL TAX PREPARATION SOFTWARE 
IN TAX FRAUD. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a study to examine the role 
of prepaid debit cards and commercial tax preparation 
software in facilitating fraudulent tax returns through 
identity theft. 
(b) REPORT.—Not later than 6 months after the date 
of the enactment of this Act, the Comptroller General shall 
submit to the Committee on Finance of the Senate and 
the Committee on Ways and Means of the House of Rep-
resentatives a report with the results of the study con-
ducted under subsection (a), together with any rec-
ommendations. 
SEC. 6. STUDY ON THE USE OF E-FILING IN TAX FRAUD. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a study to examine the role 
VerDate Mar 15 2010 
20:16 Jan 18, 2013
Jkt 029200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H295.IH
H295
sroberts on DSK5SPTVN1PROD with
filing tax returns electronically (e-filing) and electronic tax 
returns play in either facilitating or preventing fraudulent 
tax returns through identity theft. 
(b) REPORT.—Not later than 6 months after the date 
of the enactment of this Act, the Comptroller General shall 
submit to the Committee on Finance of the Senate and 
the Committee on Ways and Means of the House of Rep-
resentatives a report with the results of the study con-
ducted under subsection (a), together with any rec-
ommendations. 
SEC. 7. RESTRICTION ON ACCESS TO THE DEATH MASTER 
FILE. 
(a) IN GENERAL.—The Secretary of Commerce shall 
not disclose information contained on the Death Master 
File to any person with respect to any individual who has 
died at any time during the previous two calendar years 
in which the request for disclosure is made or the suc-
ceeding calendar year unless such person is certified under 
the program established under subsection (b). 
(b) CERTIFICATION PROGRAM.— 
(1) IN GENERAL.—The Secretary of Commerce 
shall establish a program to certify persons who are 
eligible to access the information described in sub-
section (a) contained on the Death Master File. 
VerDate Mar 15 2010 
20:16 Jan 18, 2013
Jkt 029200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H295.IH
H295
sroberts on DSK5SPTVN1PROD with
(2) CERTIFICATION.—A person shall not be cer-
tified under the program established under para-
graph (1) unless the Secretary determines that such 
person has a legitimate fraud prevention interest in 
accessing the information described in subsection 
(a). 
(c) IMPOSITION OF PENALTY.—Any person who is 
certified under the program established under subsection 
(b), who receives information described in subsection (a), 
and who during the period of time described in subsection 
(a)— 
(1) discloses such information to any other per-
son, or 
(2) uses any such information for any purpose 
other than to detect or prevent fraud, 
shall pay a penalty of $1,000 for each such disclosure or 
use, but the total amount imposed under this subsection 
on such a person for any calendar year shall not exceed 
$50,000. 
(d) EXEMPTION FROM FREEDOM OF INFORMATION 
ACT
REQUIREMENT
WITH
RESPECT
TO
CERTAIN 
RECORDS OF DECEASED INDIVIDUALS.— 
(1) IN GENERAL.—The Social Security Admin-
istration shall not be compelled to disclose to any 
person who is not certified under the program estab-
VerDate Mar 15 2010 
20:16 Jan 18, 2013
Jkt 029200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H295.IH
H295
sroberts on DSK5SPTVN1PROD with
lished under subsection (b) the information de-
scribed in subsection (a). 
(2) TREATMENT OF INFORMATION.—For pur-
poses of section 552 of title 5, United States Code, 
this section shall be considered a statute described 
in subsection (b)(3)(B) of such section 552. 
SEC. 8. EXTENSION OF AUTHORITY TO DISCLOSE CERTAIN 
RETURN INFORMATION TO PRISON OFFI-
CIALS. 
(a) IN GENERAL.—Section 6103(k)(10) of the Inter-
nal Revenue Code of 1986 is amended by striking sub-
paragraph (D). 
(b) REPORT FROM FEDERAL BUREAU
OF PRIS-
ONS.—Not later than 6 months after the date of the enact-
ment of this Act, the head of the Federal Bureau of Pris-
ons shall submit to Congress a detailed plan on how it 
will use the information provided from the Secretary of 
the Treasury under section 6103(k)(10) of the Internal 
Revenue Code of 1986 to reduce prison tax fraud. 
(c) SENSE OF HOUSE REGARDING STATE PRISON 
AUTHORITIES.—It is the sense of the House that the 
heads of State agencies charged with the administration 
of prisons should— 
(1) develop plans for using the information pro-
vided by the Secretary of the Treasury under section 
VerDate Mar 15 2010 
20:16 Jan 18, 2013
Jkt 029200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H295.IH
H295
sroberts on DSK5SPTVN1PROD with