Stolen Identity Refund Fraud Prevention Act of 2016

Bill: 114-hr-3832
Sponsor: full_name: Rep. Renacci, James B. [R-OH-16]
Introduced: 2015-10-26
Policy area: Taxation
Subjects: Computer security and identity theft

Congressional oversight

Criminal investigation, prosecution, interrogation

Department of the Treasury

Executive agency funding and structure

Fraud offenses and financial crimes

Government studies and investigations

Internal Revenue Service (IRS)

Tax administration and collection, taxpayers

Wages and earnings
Latest action: action_date: 2016-05-17
text: Received in the Senate and Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2015-10-26
action_desc: Introduced in House
text: <p><strong>Stolen Identify [<i>sic</i>] Refund Fraud Prevention Act of 2015</strong></p> <p>This bill amends the Internal Revenue Code to: (1) require returns relating to employee wage statements, payment of wages in the form of group-term life insurance, and any payments required to be reported on Form 1099-MISC with respect to non-employee compensation to be filed on or before February 15 of the year following the calendar year to which such returns relate; (2) require the Department of the Treasury to notify a taxpayer of an unauthorized use of the identity of such taxpayer and any criminal charges relating to such unauthorized use; (3) require a taxpayer identifying number on W-2 forms instead of a Social Security number; and (4) impose a criminal penalty on any person who willfully misappropriates another person's taxpayer identity.</p> <p>The Internal Revenue Service (IRS) shall: (1) ensure that taxpayers who have been adversely affected by identity theft have a centralized point of contact at the IRS, (2) implement a program to allow a taxpayer who has filed an identity theft affidavit to elect to prevent the processing of any tax return submitted in an electronic format by the taxpayer or a person purporting to be the taxpayer, and (3) report biannually to congressional tax committees on taxpayer identity theft and tax refund fraud and actions taken to combat it. </p> <p>The bill amends the Social Security Act to allow the IRS access to information in the National Directory of New Hires for the sole purpose of identifying and preventing fraudulent tax return filings and claims for tax refunds. </p>

action_date: 2016-05-13
action_desc: Reported to House amended, Part I
text: <p><b>Stolen Identity Refund Fraud Prevention Act of 2016 </b></p> <p>This bill amends the Internal Revenue Code to require the Department of the Treasury and the Internal Revenue Service to take several actions to prevent and respond to tax-related identity theft and tax fraud. </p> <p>(Sec. 2) The Department of the Treasury must establish and maintain an office at the Internal Revenue Service (IRS) and procedures to ensure that any taxpayer whose return has been delayed or otherwise adversely affected due to identity theft has a centralized point of contact throughout the processing of the case. The office must coordinate with other IRS offices to resolve the case as quickly as possible.</p> <p>(Sec. 3) If the IRS determines that there was an unauthorized use of a taxpayer's identity, it must notify the taxpayer as soon as practicable without jeopardizing any investigation related to tax administration. The notice must include: (1) instructions for filing a police report, and (2) forms to allow law enforcement officials to access the taxpayer's personal information. The IRS must also notify the taxpayer as soon as practicable if criminal charges are brought against any person with respect to the unauthorized use of the identity. </p> <p>(Sec. 4) The IRS must submit to Congress a feasibility study regarding a program under which a person who has filed an identity theft affidavit with the IRS 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 taxpayer. </p> <p>(Sec. 5) The bill establishes criminal penalties for using a false identity in connection with tax fraud by including the offense within the felony of aggravated identity theft. </p> <p>(Sec. 6) To help prevent identity theft tax refund fraud, the IRS must use information available from the Do Not Pay Initiative established by the Improper Payments Elimination and Recovery Improvement Act of 2012. </p> <p>(Sec. 7) The IRS must report to Congress biannually on fraud involving the use of a misappropriated taxpayer identity to claim tax refunds and IRS detection, prevention, and enforcement activities undertaken with respect to the fraud. The report must provide an update on the implementation of this bill and identify the need for any further legislation to protect taxpayer identities.</p> <p>The first biannual report must include: (1) an assessment of the agency's progress on identity theft outreach and education, and (2) the results of a feasibility study on the costs and benefits of enhancing its taxpayer authentication approach to the electronic tax return filing process. </p> <p>(Sec. 8) The IRS must establish and report to Congress on an information sharing and analysis center to centralize, standardize, and enhance data compilation and analysis to facilitate sharing actionable data and information with respect to identity theft. </p> <p>(Sec. 9) The IRS must establish within the Criminal Investigation Division of the IRS the position of Local Law Enforcement Liaison to interact with state and local law enforcement authorities to: </p> <ul> <li> receive information,</li> <li> respond to inquiries,</li> <li> administer and review the performance of information-sharing initiatives,</li> <li> ensure any information provided through the initiatives is used only for the prosecution of identity theft-related crimes and not re-disclosed to third parties, and</li> <li> carry out other duties relating to tax-related identity theft prevention. </li> </ul> <p>(Sec. 10) The Inspector General for Tax Administration must 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 of the IRS. </p> <p>(Sec. 11) The IRS must provide the following information to taxpayers who are on hold during a taxpayer service telephone call: (1) basic information about common identity theft tax scams, (2) directions on where to report such activities, and (3) tips on how to protect against identity theft tax scams. </p>

action_date: 2016-05-16
action_desc: Passed House amended
text: <p><b>Stolen Identity Refund Fraud Prevention Act of 2016 </b></p> <p>This bill amends the Internal Revenue Code to require the Department of the Treasury and the Internal Revenue Service to take several actions to prevent and respond to tax-related identity theft and tax fraud. </p> <p>(Sec. 2) The Department of the Treasury must establish and maintain an office at the Internal Revenue Service (IRS) and procedures to ensure that any taxpayer whose return has been delayed or otherwise adversely affected due to identity theft has a centralized point of contact throughout the processing of the case. The office must coordinate with other IRS offices to resolve the case as quickly as possible.</p> <p>(Sec. 3) If the IRS determines that there was an unauthorized use of a taxpayer's identity, it must notify the taxpayer as soon as practicable without jeopardizing any investigation related to tax administration. The notice must include: (1) instructions for filing a police report, and (2) forms to allow law enforcement officials to access the taxpayer's personal information. The IRS must also notify the taxpayer as soon as practicable if criminal charges are brought against any person with respect to the unauthorized use of the identity. </p> <p>(Sec. 4) The IRS must submit to Congress a feasibility study regarding a program under which a person who has filed an identity theft affidavit with the IRS 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 taxpayer. </p> <p>(Sec. 5) To help prevent identity theft tax refund fraud, the IRS must use information available from the Do Not Pay Initiative established by the Improper Payments Elimination and Recovery Improvement Act of 2012. </p> <p>(Sec. 6) The IRS must report to Congress biannually on fraud involving the use of a misappropriated taxpayer identity to claim tax refunds and IRS detection, prevention, and enforcement activities undertaken with respect to the fraud. The report must provide an update on the implementation of this bill and identify the need for any further legislation to protect taxpayer identities.</p> <p>The first biannual report must include: (1) an assessment of the agency's progress on identity theft outreach and education, and (2) the results of a feasibility study on the costs and benefits of enhancing its taxpayer authentication approach to the electronic tax return filing process. </p> <p>(Sec. 7) The IRS must establish and report to Congress on an information sharing and analysis center to centralize, standardize, and enhance data compilation and analysis to facilitate sharing actionable data and information with respect to identity theft. </p> <p>(Sec. 8) The IRS must establish within the Criminal Investigation Division of the IRS the position of Local Law Enforcement Liaison to interact with state and local law enforcement authorities to: </p> <ul> <li> receive information,</li> <li> respond to inquiries, </li> <li> administer and review the performance of information-sharing initiatives,</li> <li> ensure any information provided through the initiatives is used only for the prosecution of identity theft-related crimes and not re-disclosed to third parties, and</li> <li> carry out other duties relating to tax-related identity theft prevention. </li> </ul> <p>(Sec. 9) The Inspector General for Tax Administration must 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 of the IRS. </p> <p>(Sec. 10) The IRS must provide the following information to taxpayers who are on hold during a taxpayer service telephone call: (1) basic information about common identity theft tax scams, (2) directions on where to report such activities, and (3) tips on how to protect against identity theft tax scams. </p> <p>(Sec. 11) No additional funds are authorized to carry out the requirements of this bill. </p>

tv_txt: I 114th CONGRESS 1st Session H. R. 3832 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 Committee on Ways and Means , and in addition to the Committee on the Judiciary , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Internal Revenue Code of 1986 to prevent tax-related identity theft and tax fraud, and for other purposes.

1. Short title This Act may be cited as the Stolen Identify Refund Fraud Prevention Act of 2015 . 2. Modification of due dates for certain information filing returns (a) Accelerated filing of forms W–2 and W–3 (1) In general Section 6071 of the Internal Revenue Code of 1986 is amended by redesignating subsection (c) as subsection (d), and by inserting after subsection (b) the following new subsection: (c) Returns relating to employee wage information and forms 1099–MISC Returns and statements made under sections 6051 and 6052, and any payments required to be reported on Form 1099–MISC with respect to nonemployee compensation, shall be filed on or before February 15 of the year following the calendar year to which such returns relate. . (2) Conforming amendment Subsection (b) of section 6071 of such Code is amended by striking subparts B and C of part III of this subchapter and inserting subpart B of part III of this subchapter (other than returns filed on Form 1099–MISC with respect to nonemployee compensation) . (3) Effective date The amendments made by this subsection shall apply to returns and statements relating to calendar years beginning after the date of the enactment of this Act. (b) Study and recommendations regarding administrative implementation Not later than January 1, 2018, the Secretary of the Treasury shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate— (1) a recommendation of whether the due dates for filing Forms W–2 and W–3 with the Internal Revenue Service and the Social Security Administration should be further accelerated in order to prevent tax refund fraud, (2) recommendations for processes— (A) to match the information reported on Forms W–2 and Forms 1099–MISC for the effective processing of returns and accurate determination of refunds, and (B) to correct errors on such documents, and (3) any other recommendations the Secretary may have for accelerating information reporting, including the identification of any other forms that should be due on an accelerated schedule, in order to prevent tax refund fraud. 3. Centralized point of contact for identity theft victims The Secretary of the Treasury, or the Secretary’s delegate, shall establish and maintain an office at the Internal Revenue Service and procedures to ensure that any taxpayer whose return has been delayed or otherwise adversely affected due to the theft of the taxpayer’s identity has a centralized 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 taxpayer’s case as quickly as possible. 4. 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: 7529. Notification of suspected identity theft If the Secretary determines that there was an unauthorized use of the identity of any taxpayer, the Secretary shall— (1) as soon as practicable and without jeopardizing an investigation relating to tax administration, notify the taxpayer, and (2) if any person is criminally charged by indictment or information relating to such unauthorized 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. 5. Extension of IRS authority to require truncated Social Security numbers on Form W–2 (a) In general Paragraph (2) of section 6051(a) of the Internal Revenue Code of 1986 is amended by striking his social security number and inserting an identifying number for the employee . (b) Effective date The amendment made by this section shall take effect on the date of the enactment of this Act. 6. Electronic filing opt out Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury, or the Secretary’s delegate, shall implement a program under which a taxpayer who has filed an identity theft affidavit with the Secretary may elect to prevent the processing of any Federal tax return submitted in an electronic format by the taxpayer or a person purporting to be the taxpayer. 7. Criminal penalty for using a false identity in connection with tax fraud (a) In general Section 7206 of the Internal Revenue Code of 1986 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 subsection: (b) Use of false identity Any person who willfully misappropriates another person's taxpayer identity (as defined in section 6103(b)(6)) for the purpose of making any list, return, account, statement, or other document submitted to the Secretary under the provisions of this title shall be guilty of a felony and, upon conviction thereof, shall be fined not more than $250,000 ($500,000 in the case of a corporation) or imprisoned not more than 5 years, or both, together with the costs of prosecution. . (b) 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 connection with tax fraud). . (c) Effective date The amendments made by this section shall apply to offenses committed after the date of the enactment of this Act. 8. Improvement in access to information in the National Directory of New Hires (a) In general Paragraph (3) of section 453(i) of the Social Security Act ( 42 U.S.C. 653(i) ) is amended to read as follows: (3) Administration of Federal tax laws relating to fraud The Secretary of the Treasury shall have access to the information in the National Directory of New Hires for the sole purpose of identifying and preventing fraudulent tax return filings and claims for refund under the Internal Revenue Code of 1986. . (b) Effective date The amendment made by this section shall take effect on the date of the enactment of this Act. 9. Repeal of provision regarding certain tax compliance procedures and reports Section 2004 of the Internal Revenue Service Restructuring and Reform Act of 1998 ( 26 U.S.C. 6012 note) is repealed. 10. Report on refund fraud Not later than September 30, 2018, and biannually thereafter through September 30, 2026, 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; (2) providing an update on Internal Revenue Service efforts and results associated with limiting multiple refunds to the same financial account and physical address, with appropriate exceptions; and (3) discussing Internal Revenue Service efforts associated with other avenues for addressing identity theft refund fraud. In addition, each report shall provide an update on the implementation of this Act, analyze other ways to accelerate information matching, and identify the need for any further legislation to protect taxpayer resources and information, including preventing tax refund fraud related to the Internal Revenue Service’s e-Services tools and electronic filing identification numbers.

tv_txt: IIB 114th CONGRESS 2d Session H. R. 3832 IN THE SENATE OF THE UNITED STATES May 17, 2016 Received; read twice and referred to the Committee on Finance AN ACT To amend the Internal Revenue Code of 1986 to prevent tax-related identity theft and tax fraud, and for other purposes.

1. Short title This Act may be cited as the Stolen Identity Refund Fraud Prevention Act of 2016 . 2. Centralized point of contact for identity theft victims The Secretary of the Treasury, or the Secretary’s delegate, shall establish and maintain an office at the Internal Revenue Service and procedures to ensure that any taxpayer whose return has been delayed or otherwise adversely affected due to the theft of the taxpayer’s identity has a centralized 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 taxpayer’s case as quickly as possible. 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: 7529. Notification of suspected identity theft If the Secretary determines that there was an unauthorized use of the identity of any taxpayer, the Secretary shall— (1) as soon as practicable and without jeopardizing an investigation relating to tax administration, notify the taxpayer and include with that notice— (A) instructions to the taxpayer about filing 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 indictment or information relating to such unauthorized 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. 4. Report on electronic filing opt out The Secretary of the Treasury (or the Secretary’s delegate) 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 affidavit 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 taxpayer. 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 program. 5. Use of information in Do Not Pay Initiative in prevention of identity theft refund fraud The Secretary of the Treasury, and the Secretary’s delegate, 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. 6. 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; (2) information on both the average and maximum 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 delegate) 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. 7. Information sharing and analysis center (a) In general The Secretary (or the Secretary’s delegate) shall establish an information sharing and analysis center to centralize, standardize, and enhance data compilation and analysis to facilitate sharing actionable data and information with respect to identity theft. (b) Report Not later than 1 year after establishment 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 Representatives 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. 8. 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; (3) administering authorized information-sharing 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 identity theft prevention as are delegated by the Commissioner of Internal Revenue. 9. 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 Communications 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 include— (1) a description of the nature and form of such scams; (2) an estimate of the number of taxpayers contacted pursuant to, and the number of taxpayers who have been victims of, such scams; (3) an estimate of the amount of wrongful payments 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. 10. Providing identity theft prevention information while on hold with Internal Revenue Service The Secretary of the Treasury, or the Secretary’s delegate, 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. 11. No additional funds authorized No additional funds are authorized to carry out the requirements of this Act and the amendments made by this Act. Such requirements shall be carried out using amounts otherwise authorized.

Passed the House of Representatives May 16, 2016. Karen L. Haas, Clerk

tv_txt: I 114th CONGRESS 2d Session H. R. 3832 IN THE HOUSE OF REPRESENTATIVES AN ACT To amend the Internal Revenue Code of 1986 to prevent tax-related identity theft and tax fraud, and for other purposes.

1. Short title This Act may be cited as the Stolen Identity Refund Fraud Prevention Act of 2016 . 2. Centralized point of contact for identity theft victims The Secretary of the Treasury, or the Secretary’s delegate, shall establish and maintain an office at the Internal Revenue Service and procedures to ensure that any taxpayer whose return has been delayed or otherwise adversely affected due to the theft of the taxpayer’s identity has a centralized 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 taxpayer’s case as quickly as possible. 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: 7529. Notification of suspected identity theft If the Secretary determines that there was an unauthorized use of the identity of any taxpayer, the Secretary shall— (1) as soon as practicable and without jeopardizing an investigation relating to tax administration, notify the taxpayer and include with that notice— (A) instructions to the taxpayer about filing 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 indictment or information relating to such unauthorized 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. 4. Report on electronic filing opt out The Secretary of the Treasury (or the Secretary’s delegate) 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 affidavit 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 taxpayer. 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 program. 5. Use of information in Do Not Pay Initiative in prevention of identity theft refund fraud The Secretary of the Treasury, and the Secretary’s delegate, 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. 6. 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; (2) information on both the average and maximum 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 delegate) 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. 7. Information sharing and analysis center (a) In general The Secretary (or the Secretary’s delegate) shall establish an information sharing and analysis center to centralize, standardize, and enhance data compilation and analysis to facilitate sharing actionable data and information with respect to identity theft. (b) Report Not later than 1 year after establishment 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 Representatives 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. 8. 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; (3) administering authorized information-sharing 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 identity theft prevention as are delegated by the Commissioner of Internal Revenue. 9. 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 Communications 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 include— (1) a description of the nature and form of such scams; (2) an estimate of the number of taxpayers contacted pursuant to, and the number of taxpayers who have been victims of, such scams; (3) an estimate of the amount of wrongful payments 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. 10. Providing identity theft prevention information while on hold with Internal Revenue Service The Secretary of the Treasury, or the Secretary’s delegate, 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. 11. No additional funds authorized No additional funds are authorized to carry out the requirements of this Act and the amendments made by this Act. Such requirements shall be carried out using amounts otherwise authorized.

Passed the House of Representatives May 16, 2016. Karen L. Haas, Clerk.

tv_txt: IB Union Calendar No. 440 114th CONGRESS 2d Session H. R. 3832 [Report No. 114–567, Part I] 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 Committee on Ways and Means , and in addition to the Committee on the Judiciary , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction 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 Florida , 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 A BILL To amend the Internal Revenue Code of 1986 to prevent tax-related identity theft and tax fraud, and for other purposes.

1. Short title This Act may be cited as the Stolen Identity Refund Fraud Prevention Act of 2016 . 2. Centralized point of contact for identity theft victims The Secretary of the Treasury, or the Secretary’s delegate, shall establish and maintain an office at the Internal Revenue Service and procedures to ensure that any taxpayer whose return has been delayed or otherwise adversely affected due to the theft of the taxpayer’s identity has a centralized 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 taxpayer’s case as quickly as possible. 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: 7529. Notification of suspected identity theft If the Secretary determines that there was an unauthorized use of the identity of any taxpayer, the Secretary shall— (1) as soon as practicable and without jeopardizing an investigation relating to tax administration, notify the taxpayer and include with that notice— (A) instructions to the taxpayer about filing 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 indictment or information relating to such unauthorized 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. 4. Report on electronic filing opt out The Secretary of the Treasury (or the Secretary’s delegate) 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 affidavit 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 taxpayer. 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 program. 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 connection 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. 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 delegate, 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. 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; (2) information on both the average and maximum 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 delegate) 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. 8. Information sharing and analysis center (a) In general The Secretary (or the Secretary’s delegate) shall establish an information sharing and analysis center to centralize, standardize, and enhance data compilation and analysis to facilitate sharing actionable data and information with respect to identity theft. (b) Report Not later than 1 year after establishment 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 Representatives 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. 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; (3) administering authorized information-sharing 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 identity theft prevention as are delegated by the Commissioner of Internal Revenue. 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 Communications 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 include— (1) a description of the nature and form of such scams; (2) an estimate of the number of taxpayers contacted pursuant to, and the number of taxpayers who have been victims of, such scams; (3) an estimate of the amount of wrongful payments 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. 11. Providing identity theft prevention information while on hold with Internal Revenue Service The Secretary of the Treasury, or the Secretary’s delegate, 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.

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