I 
109TH CONGRESS 
2D SESSION 
H. R. 6107 
To authorize appropriations for the purpose of establishing an office within 
the Internal Revenue Service to focus on violations of the internal rev-
enue laws by persons who are under investigation for conduct relating 
to commercial sex acts, to establish a Whistleblower Office within the 
Internal Revenue Service, and to increase the criminal monetary penalty 
limitations for the underpayment or overpayment of tax due to fraud. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 19, 2006 
Mrs. MALONEY (for herself, Ms. WOOLSEY, and Mr. NADLER) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To authorize appropriations for the purpose of establishing 
an office within the Internal Revenue Service to focus 
on violations of the internal revenue laws by persons 
who are under investigation for conduct relating to com-
mercial sex acts, to establish a Whistleblower Office with-
in the Internal Revenue Service, and to increase the 
criminal monetary penalty limitations for the under-
payment or overpayment of tax due to fraud. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. AUTHORIZATION OF APPROPRIATIONS FOR 
TAX 
LAW 
ENFORCEMENT 
RELATING 
TO 
HUMAN SEX TRAFFICKING. 
(a) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There is authorized to be 
appropriated $2,000,000 for fiscal year 2007 for the 
purpose of establishing an office within the Internal 
Revenue Service to focus on violations of the inter-
nal revenue laws by persons who are under inves-
tigation by any office of Federal, State, or local law 
enforcement for knowingly recruiting, enticing, har-
boring, transporting, or providing by any means a 
person, knowing that— 
(A) force, fraud, or coercion will be used to 
cause the person to engage in a commercial sex 
act, or 
(B) the person has not attained the age of 
18 years and will be caused to engage in a com-
mercial sex act. 
(2) DEFINITIONS.—For purposes of paragraph 
(1), the terms ‘‘commercial sex act’’ and ‘‘coercion’’ 
shall have the meaning given such terms by section 
1591(c) of title 18, United States Code. 
(3) AVAILABILITY.—Any amounts appropriated 
pursuant to the authority of paragraph (1) shall re-
main available for fiscal year 2008. 
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(b) ADDITIONAL FUNDING FOR OPERATIONS OF OF-
FICE.—Unless specifically appropriated otherwise, there is 
authorized to be appropriated and is appropriated to the 
office established under subsection (a)(1) for fiscal years 
2007 and 2008 for the administration of such office an 
amount equal to the amount of any tax under chapter 1 
of the Internal Revenue Code of 1986 (including any inter-
est) collected during such fiscal years as the result of the 
actions of such office, plus any civil or criminal monetary 
penalties imposed under such Code relating to such tax 
and so collected. 
(c) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Secretary of the Treasury 
shall report to the Committee of Ways and Means of the 
House of Representatives and the Committee on Finance 
of the Senate on the enforcement activities of the office 
established under subsection (a)(1) and shall include any 
recommendations for statutory changes to assist in future 
prosecutions under this section. 
(d) APPLICABILITY OF WHISTLEBLOWER AWARDS TO 
VICTIMS OF HUMAN SEX TRAFFICKING.—For purposes of 
making an award under paragraph (1) or (2) of section 
7623(b) of the Internal Revenue Code of 1986 with re-
spect to information provided by any person caused to en-
gage in a commercial sex act (within the meaning of sec-
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tion 1591(c)(1) of title 18, United States Code), the deter-
mination whether such person is described in such para-
graph shall be made without regard to paragraph (3) of 
such section 7623(b). 
SEC. 2. WHISTLEBLOWER REFORMS. 
(a) IN GENERAL.—Section 7623 (relating to ex-
penses of detection of underpayments and fraud, etc.) is 
amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
‘‘(a) IN GENERAL.—The Secretary’’, 
(2) by striking ‘‘and’’ at the end of paragraph 
(1) and inserting ‘‘or’’, 
(3) by striking ‘‘(other than interest)’’, and 
(4) by adding at the end the following new sub-
sections: 
‘‘(b) AWARDS TO WHISTLEBLOWERS.— 
‘‘(1) IN GENERAL.—If the Secretary proceeds 
with any administrative or judicial action described 
in paragraph (5) based on information brought to 
the Secretary’s attention by an individual, the Sec-
retary shall, as determined by the Whistleblower Of-
fice and subject to paragraph (2), pay such indi-
vidual as an award at least 15 percent but not more 
than 30 percent of the collected proceeds (including 
penalties, interest, additions to tax, and additional 
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amounts) resulting from the action (including any 
related actions) or from any settlement in response 
to such action. The Whistleblower Office shall deter-
mine the amount of such award on the basis of the 
extent to which the individual substantially contrib-
uted to such action. 
‘‘(2) AWARD IN CASE OF LESS SUBSTANTIAL 
CONTRIBUTION.— 
‘‘(A) IN GENERAL.—If the Whistleblower 
Office determines that the action described in 
paragraph (1) is based principally on disclo-
sures of specific allegations (other than infor-
mation provided by the individual described in 
paragraph (1)) resulting from a judicial or ad-
ministrative hearing, from a governmental re-
port, hearing, audit, or investigation, or from 
the news media, the Whistleblower Office may 
award such sums as it considers appropriate, 
but in no case more than 10 percent of the col-
lected proceeds (including penalties, interest, 
additions to tax, and additional amounts) re-
sulting from the action (including any related 
actions) or from any settlement in response to 
such action, taking into account the significance 
of the individual’s information and the role of 
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