IB 
Union Calendar No. 440 
114TH CONGRESS 
2D SESSION 
H. R. 3832 
[Report No. 114–567, Part I] 
To amend the Internal Revenue Code of 1986 to prevent tax-related identity 
theft and tax fraud, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 26, 2015 
Mr. RENACCI (for himself, Mr. LEWIS, Mr. ROSKAM, Mr. BUCHANAN, and Mr. 
REICHERT) introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on the Ju-
diciary, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
MAY 13, 2016 
Additional sponsors: Mr. MARCHANT, Mr. MCDERMOTT, Mr. RIBBLE, Mr. 
KILMER, Miss RICE of New York, Mr. BUCSHON, Ms. FRANKEL of Flor-
ida, Mrs. COMSTOCK, Mr. KELLY of Pennsylvania, Mr. MEEHAN, Mr. 
MEADOWS, Mr. TIBERI, Mr. HANNA, Mr. JOYCE, Mr. HOLDING, Mr. 
REED, Mr. BARLETTA, Mr. CARNEY, Mr. QUIGLEY, Mr. DIAZ-BALART, 
Mr. COSTELLO of Pennsylvania, and Mr. HECK of Nevada 
MAY 13, 2016 
Reported from the Committee on Ways and Means with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
MAY 13, 2016 
The Committee on the Judiciary discharged; committed to the Committee of 
the Whole House on the State of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on October 26, 2015] 
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A BILL 
To amend the Internal Revenue Code of 1986 to prevent 
tax-related identity theft and tax fraud, and for other 
purposes. 
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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 ‘‘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 dele-
gate, shall establish and maintain an office at the Internal 
Revenue Service and procedures to ensure that any tax-
payer whose return has been delayed or otherwise adversely 
affected due to the theft of the taxpayer’s identity has a cen-
tralized point of contact throughout the processing of his 
or her case. The office shall coordinate with other offices 
within the Internal Revenue Service to resolve the tax-
payer’s case as quickly as possible. 
SEC. 3. TAXPAYER NOTIFICATION OF SUSPECTED IDENTITY 
THEFT. 
(a) IN GENERAL.—Chapter 77 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following 
new section: 
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‘‘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 jeopard-
izing an investigation relating to tax administration, 
notify the taxpayer and include with that notice— 
‘‘(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. 
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SEC. 4. REPORT ON ELECTRONIC FILING OPT OUT. 
The Secretary of the Treasury (or the Secretary’s dele-
gate) 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 program 
under which a person who has filed an identity theft affi-
davit with the Secretary may elect to prevent the processing 
of any Federal tax return submitted in an electronic format 
by that taxpayer or a person purporting to be that tax-
payer. 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 pro-
gram. 
SEC. 5. CRIMINAL PENALTY FOR USING A FALSE IDENTITY 
IN CONNECTION WITH TAX FRAUD. 
(a) 
AGGRAVATED
IDENTITY
THEFT.—Section 
1028A(c) of title 18, United States Code, is amended by 
striking ‘‘or’’ at the end of paragraph (10), by striking the 
period at the end of paragraph (11) and inserting ‘‘; or’’, 
and by adding at the end the following new paragraph: 
‘‘(12) section 7206(b) of the Internal Revenue 
Code of 1986 (relating to use of false identity in con-
nection with tax fraud).’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to offenses committed after the date of 
the enactment of this Act. 
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SEC. 6. USE OF INFORMATION IN DO NOT PAY INITIATIVE 
IN PREVENTION OF IDENTITY THEFT REFUND 
FRAUD. 
The Secretary of the Treasury, and the Secretary’s del-
egate, shall use the information available under the Do Not 
Pay Initiative established under section 5 of the Improper 
Payments Elimination and Recovery Improvement Act of 
2012 (31 U.S.C. 3321 note) to help prevent identity theft 
refund fraud. 
SEC. 7. 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 Internal Revenue Code of 1986 
during the preceding completed 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; 
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(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 dele-
gate) 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 
(2) the results of a feasibility study on the costs 
and benefits to enhancing its taxpayer authentication 
approach to the electronic tax return filing process. 
SEC. 8. 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 
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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 report 
to the Committee on Ways and Means of the House of Rep-
resentatives and Committee on Finance of the Senate on 
the information sharing and analysis center described 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. 9. LOCAL LAW ENFORCEMENT LIAISON. 
(a) ESTABLISHMENT.—The Commissioner of Internal 
Revenue shall establish within the Criminal Investigation 
Division of the Internal Revenue Service the position of 
Local Law Enforcement Liaison. 
(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-related 
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; 
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(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 iden-
tity theft prevention as are delegated by the Commis-
sioner of Internal Revenue. 
SEC. 10. 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 Commu-
nications Commission and the Federal Trade Commission, 
shall submit a report to Congress regarding identity theft 
phone scams under which individuals attempt to obtain 
personal information over the phone from taxpayers by 
falsely claiming to be calling from or on behalf the Internal 
Revenue Service. 
(b) CONTENTS OF REPORT.—Such report shall in-
clude— 
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(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. 11. PROVIDING IDENTITY THEFT PREVENTION INFOR-
MATION WHILE ON HOLD WITH INTERNAL 
REVENUE SERVICE. 
The Secretary of the Treasury, or the Secretary’s dele-
gate, 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: 
(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. 
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Union Calendar No. 440 
114TH CONGRESS 
2D SESSION 
H. R. 3832 
[Report No. 114–567, Part I] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
prevent tax-related identity theft and tax fraud, 
and for other purposes. 
MAY 13, 2016 
Reported from the Committee on Ways and Means with 
an amendment 
MAY 13, 2016 
The Committee on the Judiciary discharged; committed 
to the Committee of the Whole House on the State of 
the Union and ordered to be printed 
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