I 
110TH CONGRESS 
1ST SESSION H. R. 1860 
To amend the Internal Revenue Code of 1986 to provide a 100 percent 
deduction for expenses related to identity theft. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 16, 2007 
Mrs. MCCARTHY of New York 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 provide 
a 100 percent deduction for expenses related to identity 
theft. 
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 ‘‘Identity Theft Relief 
Act of 2007’’. 
SEC. 2. DEDUCTION FOR EXPENSES RELATED TO IDENTITY 
THEFT. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
additional itemized deductions) is amended by redesig-
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nating section 224 as section 225 and by inserting after 
section 223 the following new section: 
‘‘SEC. 224. EXPENSES RELATED TO IDENTITY THEFT. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a deduction all the ordinary and 
necessary expenses paid or incurred during the taxable 
year, not compensated for by insurance or otherwise, in 
connection with a qualified identity theft. 
‘‘(b) QUALIFIED IDENTITY THEFT.—For purposes of 
this section— 
‘‘(1) QUALIFIED IDENTITY THEFT.—In the case 
of an individual, the term ‘qualified identity theft’ 
means a fraud committed or attempted using the 
identifying information of such individual without 
authority. 
‘‘(2) IDENTIFYING
INFORMATION.—The term 
‘identifying information’ means any name or number 
that may be used, alone or in conjunction with any 
other information, to identify such individual, includ-
ing— 
‘‘(A) a name, social security number, date 
of birth, official State or government issued 
driver’s license or identification number, alien 
registration number, government passport num-
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ber, or employer or taxpayer identification num-
ber, 
‘‘(B) unique biometric data, such as finger-
print, voice print, retina or iris image, or other 
unique physical representation, 
‘‘(C) unique electronic identification num-
ber, address, or routing code, 
‘‘(D) telecommunication identifying infor-
mation or access device (as defined in section 
1029(e) of title 18, United States Code), 
‘‘(E) a bank, savings association, credit 
union, or investment account number, 
‘‘(F) a credit card or debit card account 
number, 
‘‘(G) a password, access code, or security 
code relating to— 
‘‘(i) a bank, savings association, credit 
union, or investment account number, or 
‘‘(ii) a credit card or debit card ac-
count number, or 
‘‘(H) any other unique identifying informa-
tion.’’. 
(b) DEDUCTION
ALLOWED
IN
COMPUTING
AD-
JUSTED GROSS INCOME.—Subsection (a) of section 62 of 
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such Code is amended by inserting before the last sentence 
the following new paragraph: 
‘‘(22) 
EXPENSES
RELATED
TO
IDENTITY 
THEFT.—The deduction allowed by section 224.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for part VII of subchapter B of chapter 1 of such Code 
is amended by redesignating the item relating to section 
224 as an item relating to section 225 and inserting before 
such item the following new item: 
‘‘Sec. 224. Expenses related to identity theft.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2006. 
Æ 
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