‘‘(b) FAILURE TO FILE WITH RESPECT TO TAX AT-
TRIBUTABLE TO HUMAN TRAFFICKING AND COMMERCIAL 
SEX ACTS.—In the case of any failure with respect to any 
tax attributable to income derived from an act described 
in paragraph (2) of section 7201(b), the first sentence of 
subsection (a) shall be applied by substituting— 
‘‘(1) ‘felony’ for ‘misdemeanor’, 
‘‘(2) ‘$500,000 ($1,000,000’ for ‘$50,000 
($100,000’, and 
‘‘(3) ‘10 years’ for ‘1 year’.’’. 
(3) CONFORMING AMENDMENT.—The third sen-
tence of section 7203(a) of the Internal Revenue 
Code of 1986 (as amended by paragraph (1)) is 
amended by striking ‘‘this section’’ and inserting 
‘‘this subsection’’. 
(c) FRAUD AND FALSE STATEMENTS.—Section 7206 
of the Internal Revenue Code of 1986 (relating to fraud 
and false statements) 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) FRAUD AND FALSE STATEMENTS WITH RE-
SPECT TO TAX ATTRIBUTABLE TO HUMAN TRAFFICKING 
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AND COMMERCIAL SEX ACTS.—In the case of any viola-
tion of subsection (a) relating to any tax attributable to 
income derived from an act described in paragraph (2) of 
section 7201(b), subsection (a) shall be applied— 
‘‘(1) by substituting ‘$500,000 ($1,000,000’ for 
‘$100,000 ($500,000’, and 
‘‘(2) by substituting ‘5 years’ for ‘3 years’.’’. 
(d) PENALTIES MAY BE APPLIED IN ADDITION TO 
OTHER PENALTIES.—Section 7204 of the Internal Rev-
enue Code of 1986 (relating to fraudulent statement or 
failure to make statement to employees) is amended by 
striking ‘‘the penalty provided in section 6674’’ and insert-
ing ‘‘the penalties provided in sections 6674, 7201, and 
7203’’. 
(e) INCREASE IN MONETARY LIMITATION FOR UN-
DERPAYMENT
OR
OVERPAYMENT
OF
TAX
DUE
TO 
FRAUD.—Section 7206 of the Internal Revenue Code of 
1986 (relating to fraud and false statements), as amended 
by subsection (c), is amended by adding at the end the 
following new subsection: 
‘‘(c) INCREASE IN MONETARY LIMITATION FOR UN-
DERPAYMENT
OR
OVERPAYMENT
OF
TAX
DUE
TO 
FRAUD.—If any portion of any underpayment (as defined 
in section 6664(a)) or overpayment (as defined in section 
6401(a)) of tax required to be shown on a return is attrib-
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utable to fraudulent action described in subsection (a), the 
applicable dollar amount under subsection (a) shall in no 
event be less than an amount equal to such portion. A 
rule similar to the rule under section 6663(b) shall apply 
for purposes of determining the portion so attributable.’’. 
(f) MONEYS AVAILABLE TO ASSIST VICTIMS
OF 
CRIME.—There are hereby appropriated to the Crime Vic-
tims Fund (42 U.S.C. 10601) amounts equivalent to the 
increase in receipts to the Treasury by reason of the 
amendments made by this section. Such amounts shall be 
available for victim assistance grants under the Victims 
of Crime Act of 1984, including crisis intervention, emer-
gency shelter and transportation, counseling, and criminal 
justice advocacy to victims of crime. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to actions, and failures to act, oc-
curring after the date of the enactment of this Act. 
Æ 
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