Title: Social Security Identity Defense Act of 2017
Policy area: Taxation

Summary:
Social Security Identity Defense Act of 2017
This bill amends the Internal Revenue Code to require the Department of the Treasury and the Social Security Administration (SSA) to disclose certain tax return information in cases of identity theft.
If Treasury believes that there has been a fraudulent use of a Social Security number on a statement submitted regarding wages paid to employees, Treasury must disclose to the individual who was validly assigned the Social Security number: (1) that there is reason to believe that there has been a fraudulent use of such account number in an employment context, and (2) other information that Treasury determines would be helpful and appropriate to provide to a victim of identity theft.
If the SSA believes that the Social Security number included on such a statement is not the correct number for an employee, the SSA must provide a notification to the employer that includes: (1) the name of the employee and the Social Security number included on the statements, and (2) relevant information regarding the availability of the Social Security Number Verification Service.
The bill also imposes new criminal and civil penalties for tax-related identity theft and misappropriation of tax identification numbers.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1597 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 1597

 To amend the Internal Revenue Code of 1986 to permit the Secretary of 
the Treasury and the Commissioner of the Social Security Administration 
 to disclose certain return information related to identity theft, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 20, 2017

  Mr. Johnson introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to permit the Secretary of 
the Treasury and the Commissioner of the Social Security Administration 
 to disclose certain return information related to identity theft, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Identity Defense Act 
of 2017''.

SEC. 2. DISCLOSURE OF CERTAIN RETURN INFORMATION WITH RESPECT TO 
              IDENTITY THEFT.

    (a) In General.--Subsection (l) of section 6103 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(23) Disclosure of return information in certain cases of 
        identity theft.--If the Secretary has reason to believe that 
        there has been a fraudulent use of a social security account 
        number on a statement described in section 6051, the Secretary 
        shall disclose to the individual who was validly assigned such 
        social security account number--
                    ``(A) that the Secretary has reason to believe that 
                the social security account number assigned to such 
                individual has been fraudulently used in the employment 
                context, and
                    ``(B) such other information (other than return 
                information) as the Secretary determines, in 
                consultation with the Federal Trade Commission, would 
                be helpful and appropriate to provide to a victim of 
                identity theft.''.
    (b) Prevention of Identity Theft.--In the case of an employee for 
whom the Commissioner of Social Security has reason to believe that the 
social security number included on any statement described in section 
6051(a) of the Internal Revenue Code of 1986 with respect to such 
employee is not the correct social security number for such employee, 
the Commissioner shall provide notification to the employer of such 
employee which includes--
            (1) the name of the employee and the social security number 
        included on such statements; and
            (2) relevant information regarding the availability of the 
        Social Security Number Verification Service for verification of 
        social security numbers.

SEC. 3. PENALTIES FOR TAX-RELATED IDENTITY THEFT.

    (a) In General.--Section 1028A(c) of title 18, United States Code, 
is amended--
            (1) by redesignating paragraphs (8) through (11) as 
        paragraphs (10) through (13), respectively; and
            (2) by inserting after paragraph (7) the following new 
        paragraphs:
            ``(8) section 286 (relating to conspiracy to defraud the 
        government with respect to claims), section 287 (relating to 
        false, fictitious, or fraudulent claims), section 371 (relating 
        to conspiracy to commit an offense or to defraud the United 
        States), section 1001 (relating to statements or entries), 
        section 1341 (relating to frauds and swindles), section 1342 
        (relating to a fictitious name or address), section 1343 
        (relating to fraud by wire, radio, or television), or section 
        1344 (relating to bank fraud), if the felony violation is a 
        tax-related offense punishable under such section;
            ``(9) section 7206 of the Internal Revenue Code of 1986 
        (relating to fraud and false statements);''.
    (b) Penalty for Misappropriation of Taxpayer Identification 
Numbers.--
            (1) In general.--Part I of subchapter B of chapter 68 of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following new section:

``SEC. 6720D. MISAPPROPRIATION OF TAXPAYER IDENTIFICATION NUMBER.

    ``In addition to any penalty provided by law, any person who 
knowingly or willfully misappropriates another person's taxpayer 
identification number in connection with any list, return, account, 
statement, or other document submitted to the Secretary shall pay a 
penalty of $5,000.''.
            (2) Conforming amendment.--The table of sections for part I 
        of subchapter B of chapter 68 of such Code is amended by adding 
        at the end the following new item:

``Sec. 6720D. Misappropriation of taxpayer identification number.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to returns and information submitted after the date 
        of the enactment of this Act.
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