113 S676 IS: Identity Theft and Tax Fraud Prevention Act of 2013
U.S. Senate
2013-04-09
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.
(a)This Act may be cited
as the Identity Theft and Tax Fraud
Prevention Act of 2013
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title,
etc.
TITLE I—Protecting victims of tax-related identity
theft
Sec. 101. Expedited refunds for identity theft
victims.
Sec. 102. Single point of contact for identity theft
victims.
Sec. 103. Enhancements to IRS PIN Program.
Sec. 104. Electronic filing opt out.
TITLE II—Shutting down abusive identity theft and tax fraud
schemes
Sec. 201. Restrictions on ability to use prepaid cards for tax
fraud.
Sec. 202. Limitation on multiple tax refunds to the same
account.
TITLE III—Adding critical new protections to safeguard social
security numbers
Sec. 301. Restriction on access to the death master
file.
Sec. 302. Prohibiting the display of Social Security account
numbers on newly issued Medicare identification cards and communications
provided to Medicare beneficiaries.
Sec. 303. Prohibition of the display, sale, or purchase of
Social Security numbers.
Sec. 304. Criminal penalties for the misuse of a Social
Security number.
Sec. 305. Civil actions and civil penalties.
TITLE IV—Strengthening laws and improving enforcement against
tax-related identity theft
Sec. 401. Criminal penalty for using a false identity in
connection with tax fraud.
Sec. 402. Increased penalty for improper disclosure or use of
information by preparers of returns.
Sec. 403. Authority to transfer Internal Revenue Service
appropriations to use for tax fraud enforcement.
Sec. 404. Local law enforcement liaison.
TITLE V—Accelerating transition to a real-time tax system that
protects taxpayers and reduces fraud
Sec. 501. Improvement in access to information in the National
Directory of New Hires for tax administration purposes.
Sec. 502. Plan of action for transitioning to a real-time tax
system.
<enum>I</enum><header>Protecting
victims of tax-related identity theft</header>
<section id="ide7f6dfeaec6f4a99803af76385abd34b"><enum>101.</enum><header>Expedited
refunds for identity theft victims</header><text display-inline="no-display-inline">Not later than 180 days after the date of
enactment of this Act, the Secretary of the Treasury, or the Secretary’s
delegate, shall establish a plan of action to reduce the administrative time
required to process and resolve cases of identity theft in connection with tax
returns, including the issuance of refunds to legitimate taxpayers, to no more
than 90 days, on average.</text>
</section><section id="idddcf463c5dc24a67805ff5b9fc57dc77"><enum>102.</enum><header>Single point
of contact for identity theft victims</header><text display-inline="no-display-inline">Not later than 180 days after the date of
enactment of this Act, the Secretary of the Treasury, or the Secretary’s
delegate, shall establish new procedures to ensure that any taxpayer whose
return has been delayed or otherwise adversely affected due to identity theft
has a single point of contact at the Internal Revenue Service throughout the
processing of his or her case. The single point of contact shall track the case
of the taxpayer from start to finish and coordinate with other specialized
units to resolve case issues as quickly as possible.</text>
</section><section id="id56867ea9e8c84ac2aeec03256ae8c7a5"><enum>103.</enum><header>Enhancements
to IRS PIN Program</header>
<subsection id="id7986236E6C414526B57F0B6B7E124C64"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary of the
Treasury, or the Secretary’s delegate, shall issue a personal identification
number to identity theft victims as soon as practicable after their true
identity has been established and verified.</text>
</subsection><subsection id="id120B896F29874614849582088049B8FE"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 360 days after the date of
enactment of this Act, the Secretary of the Treasury shall submit to Congress a
report analyzing the effectiveness of the program described in subsection (a)
in reducing tax fraud.</text>
</subsection></section><section id="idebf63d7839d745cca1add44bc87ab83a"><enum>104.</enum><header>Electronic
filing opt out</header><text display-inline="no-display-inline">Not later than
180 days after the date of enactment of this Act, the Secretary of the
Treasury, or the Secretary’s delegate, shall implement 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 a person purporting to be such a person.</text>
</section><enum>II</enum><header>Shutting down
abusive identity theft and tax fraud schemes</header>
<section id="id213BA7CA640C409A81BACAB293CCB090"><enum>201.</enum><header>Restrictions
on ability to use prepaid cards for tax fraud</header>
<subsection id="idB9500FC52EF44BD7B3A500C7EFD41831"><enum>(a)</enum><header>Accounts with
elevated risk of identity theft</header>
<paragraph id="id97071F41C8FF4A9AAF3476C9C8774998"><enum>(1)</enum><header>In
general</header><text>Not later than 360 days after the date of the enactment
this Act, the Federal primary financial regulatory agencies, in consultation
with the Secretary of the Treasury, shall jointly prescribe regulations
requiring newly issued deposit or transaction account numbers, as the case may
be, to be distinguishable between verified accounts and at-risk
accounts.</text>
</paragraph><paragraph id="idF4E573CC612748319C0DC9F0C008798B"><enum>(2)</enum><header>Definitions</header><text>As
used in this section—</text>
<subparagraph id="id3C417D757CF44E35AC81BAE8C17ED1FE"><enum>(A)</enum><text>the term
<quote>at-risk account</quote> means any deposit account or transaction
account, including accounts associated with a prepaid access arrangement, that
is not a verified account;</text>
</subparagraph><subparagraph id="id6AEF3B13F5124AD8B0FAFB6F8D483371"><enum>(B)</enum><text>the term
<quote>primary financial regulatory agency</quote> has the same meaning as in
section 2(12) of the Dodd-Frank Wall Street Reform and Consumer Protection Act
(<external-xref legal-doc="usc" parsable-cite="usc/12/5301">12 U.S.C. 5301(12)</external-xref>); and</text>
</subparagraph><subparagraph id="idE78648CFFEDA444DA3DA6A9065041038"><enum>(C)</enum><text>the term
<quote>verified account</quote> means any deposit account or transaction
account in which the identity of the account holder and any prepaid access
customer associated with the account is verified by—</text>
<clause id="idA0D580297E19440DB370C17E913E363E"><enum>(i)</enum><text>customer
identification procedures that comply with <external-xref legal-doc="usc" parsable-cite="usc/31/5318">section 5318(l)</external-xref> of title 31, United
States Code; and</text>
</clause><clause id="id7502100458CD446FB36E13810BBC9A61"><enum>(ii)</enum><text>direct review of
an original, unexpired government-issued form of identification bearing a
photograph or similar safeguard, such as a driver’s license or passport.</text>
</clause></subparagraph></paragraph></subsection><subsection id="id041A6829D21048E89D502C2A88EC0BE1"><enum>(b)</enum><header>GAO audit of
debit card issuers To ensure compliance with customer identification
requirements</header>
<paragraph id="idDA17573DCFFA4F9CB4271983A7AE9A8B"><enum>(1)</enum><header>Review and
evaluation</header><text>The Comptroller General of the United States shall
review and evaluate the effectiveness of the current Customer Identification
Program rules implementing the customer identification program requirements
under <external-xref legal-doc="usc" parsable-cite="usc/31/5318">section 5318(l)</external-xref> of title 31, United States Code, as such rules apply to
the prepaid card industry.</text>
</paragraph><paragraph id="id36B19ED29BD24787AA73BDA05A85F332"><enum>(2)</enum><header>Required
considerations</header><text>The review and evaluation required under paragraph
(1) shall—</text>
<subparagraph id="id786C288B0AC54ABB88A5750EC9CEE885"><enum>(A)</enum><text>consider whether
weaknesses in current customer identification programs are contributing to
identity theft and financial loss, particularly with respect to tax fraud;
and</text>
</subparagraph><subparagraph id="id0E0641DADF7C4FCFA23A916E7B4224CE"><enum>(B)</enum><text>review
whether—</text>
<clause id="idA0AB4E1E9EF34D26B537526F6A6A3F63"><enum>(i)</enum><text>current
risk-based standards for customer identification are the best means to prevent
criminal use of prepaid cards and provide sufficient guidance and certainty to
the sellers and providers of prepaid access;</text>
</clause><clause id="id6C6A41D4B7E44FEFBDA9A2601AE2A3AD"><enum>(ii)</enum><text>current
exclusions from customer identification requirements, such as exclusions for
government benefit programs, are appropriate; and</text>
</clause><clause id="idD6316E30F1A54AB9AD43B97CC67C8DB9"><enum>(iii)</enum><text>Federal
regulatory agencies exercise adequate oversight and supervision of customer
identification practices of the prepaid card industry.</text>
</clause></subparagraph></paragraph><paragraph id="idAEF5EDAB14A442E8BCBE141A1FF89C8A"><enum>(3)</enum><header>Report to
Congress</header><text>Not later than 360 days after the date of the enactment
this Act, the Comptroller General of the United States shall submit to Congress
a report—</text>
<subparagraph id="id06B519E17C4D4941823F2B2E8238344C"><enum>(A)</enum><text>on the findings
of the review and evaluation required under paragraph (1); and</text>
</subparagraph><subparagraph id="id356DFF04D960464088C922E16B4BE1F5"><enum>(B)</enum><text>containing any
recommendations or proposals for legislative or administrative action to
improve the customer identification practices of the prepaid card
industry.</text>
</subparagraph></paragraph></subsection></section><section id="id16E0A737D0594BD6A3EA5F45F680C1B9"><enum>202.</enum><header>Limitation on
multiple tax refunds to the same account</header>
<subsection id="id7F6A3EA3354E48D694926EE3B6116DD0"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 180
days after the date of enactment of this Act, the Secretary of the Treasury, or
the Secretary's delegate, shall issue regulations that restrict the delivery or
deposit of multiple tax refunds from the same tax year to the same individual
account or mailing address.</text>
</subsection><subsection id="id6A6CDD5B2C00481E8904101B27DA5A51"><enum>(b)</enum><header>Exception</header><text display-inline="yes-display-inline">The regulation promulgated under subsection
(a) shall provide that the restrictions shall not apply in cases and situations
where the Secretary determines there is not a likelihood of tax fraud.</text>
</subsection></section><enum>III</enum><header>Adding critical
new protections to safeguard social security numbers</header>
<section id="id23781CB5D4314E0CA33E597E63B55C63"><enum>301.</enum><header>Restriction on
access to the death master file</header>
<subsection id="idF97896F99BE74AFCBC3E73FAAE64A83E"><enum>(a)</enum><header>In
general</header><text>Not later than 90 days after the date of the enactment of
this Act, the Commissioner of the Social Security Administration shall vest all
responsibilities for the release of Social Security death records to
non-governmental persons or entities with the Secretary of Commerce through a
memorandum of understanding.</text>
</subsection><subsection id="idEF277AE08CD54048A0672BF9625F4993"><enum>(b)</enum><header>Prohibition</header><text>The
Secretary of Commerce shall not disclose information contained in Social
Security death records to any non-governmental person or entity with respect to
any individual who has died at any time during the calendar year in which the
request for disclosure is made or the succeeding 2 calendar years unless such
person is certified under the program established under subsection (c).</text>
</subsection><subsection id="idEBD68079C66047778661C1BC2142A4F0"><enum>(c)</enum><header>Certification
program</header>
<paragraph id="idCC1E9253DB234A9D90A42C5300F958F7"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary of
Commerce shall establish a program—</text>
<subparagraph id="idFB2E8D62604845298757F3D5651EA7DB"><enum>(A)</enum><text display-inline="yes-display-inline">to certify persons who are eligible to
access the information described in subsection (b) contained on the Death
Master File, and</text>
</subparagraph><subparagraph id="id28A3B7B1F0B749D49E8AA44D533F7799"><enum>(B)</enum><text display-inline="yes-display-inline">to perform periodic and unscheduled audits
of certified persons to determine the compliance by such certified persons with
the requirements of the program.</text>
</subparagraph></paragraph><paragraph id="id28EFF8D033C741C1A3D0B2D02913FCAA"><enum>(2)</enum><header>Certification</header><text display-inline="yes-display-inline">A person shall not be certified nor remain
certified under the program established under paragraph (1) unless—</text>
<subparagraph id="id8407B99ABBA84E94BAC0A02DC3569E7F"><enum>(A)</enum><text display-inline="yes-display-inline">the Secretary of Commerce determines that
access to the information described in subsection (b) is appropriate
because—</text>
<clause id="id12794F91EDD34B69BEB3D28F388BAE54"><enum>(i)</enum><text display-inline="yes-display-inline">such person has a legitimate interest in
preventing fraud or unauthorized financial transactions,</text>
</clause><clause id="id0A60E42018EC407192B5DBB2A7754DD1"><enum>(ii)</enum><text display-inline="yes-display-inline">such access will facilitate compliance by
such person with an applicable law, regulation, court order, or fiduciary
duty,</text>
</clause><clause id="id8EB8C76B3BDB43CFAE85AB0E0E691513"><enum>(iii)</enum><text>such access
will facilitate timely and proper administration by such person of an insurance
policy or benefit program, or</text>
</clause><clause commented="no" id="id9A4DBAAC37A1486FB8B09E88A5783B69"><enum>(iv)</enum><text>such person is
subject to disclosure requirements under section 502 of the Gramm-Leach-Bliley
Act (<external-xref legal-doc="usc" parsable-cite="usc/15/6802">15 U.S.C. 6802</external-xref>), section 620 of the Fair Credit Reporting Act (15 U.S.C.
1681r), or any other Federal statute that the Secretary determines, following
notice and comment rulemaking, provides sufficient protection against improper
disclosure of information described in subsection (b), and</text>
</clause></subparagraph><subparagraph id="id302E7E72755D40D79B274D07F95757C2"><enum>(B)</enum><text display-inline="yes-display-inline">the Secretary of Commerce verifies that
such person has facilities and procedures in place to safeguard such
information, and experience in maintaining the confidentiality, security, and
appropriate use of such information.</text>
</subparagraph></paragraph><paragraph id="id3E9079E0246943EAA0C4BB44C6054CE6"><enum>(3)</enum><header>Fees</header><text display-inline="yes-display-inline">The Secretary of Commerce shall establish
under <external-xref legal-doc="usc" parsable-cite="usc/31/9701">section 9701</external-xref> of title 31, United States Code, for the charge of fees
sufficient to cover all costs associated with evaluating applications for
certification and auditing, inspecting, and monitoring certified persons under
the program.</text>
</paragraph></subsection><subsection id="id531A05FDA9B744DDAF241767D471894E"><enum>(d)</enum><header>Imposition of
penalty</header>
<paragraph id="idB308202F94E94923881A705D35F051CC"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (2), any person who is certified
under the program established under subsection (c), who receives information
described in subsection (b), and who during the period of time described in
subsection (b)—</text>
<subparagraph id="id49215753017A44059CC5285E7528A8CD"><enum>(A)</enum><text>discloses such
information to any other person, or</text>
</subparagraph><subparagraph id="id985E9F811E8648E7BD80841E1D699C0C"><enum>(B)</enum><text>uses any such
information to commit, or aid or abet, any criminal offense,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">shall pay a
penalty of $5,000 for each such disclosure or use, but the total amount imposed
under this subsection on such a person for any calendar year shall not exceed
$500,000.</continuation-text></paragraph><paragraph commented="no" id="id9537ACC9F1A7495B8A946678A70A4594"><enum>(2)</enum><header>Exception</header><text>A
person who—</text>
<subparagraph commented="no" id="id5587AA76F8EA4B7E8D020BCAD020CECC"><enum>(A)</enum><text>is certified
under the program established under subsection (c),</text>
</subparagraph><subparagraph commented="no" id="id87F1A7488D29467988F4429FAC65BE8A"><enum>(B)</enum><text>upon request by
another person, verifies that an individual is or is not deceased pursuant to
information contained on the Death Master File, and</text>
</subparagraph><subparagraph commented="no" id="id221CE48A054C4B10A603D7408F3F398A"><enum>(C)</enum><text>does not disclose
any additional information described in subsection (b),</text>
</subparagraph><continuation-text continuation-text-level="paragraph">shall not be
subject to a penalty pursuant to paragraph (1).</continuation-text></paragraph></subsection><subsection id="id8F85107B7D934788A4185D09F37006E8"><enum>(e)</enum><header>Exemption from
Freedom of Information Act requirement with respect to certain records of
deceased individuals</header>
<paragraph id="idD43EC660B0B04C79985991ABB9C2AD8A"><enum>(1)</enum><header>In
general</header><text>Subsequent to the date on which the Secretary of Commerce
establishes the program described in subsection (c)(1), the Social Security
Administration shall not be compelled to disclose any information described in
subsection (b) to any non-governmental person or entity who is not certified
under such program.</text>
</paragraph><paragraph id="idBD1B2677CF494EE88837BB76C81DBC3B"><enum>(2)</enum><header>Treatment of
information</header><text>For purposes of <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552</external-xref> of title 5, United States
Code, this section shall be considered a statute described in subsection
(b)(3)(B) of such section 552.</text>
</paragraph></subsection></section><section id="id4BC194CAC34D4FA2BD97F008A43F38BF"><enum>302.</enum><header>Prohibiting
the display of Social Security account numbers on newly issued Medicare
identification cards and communications provided to Medicare
beneficiaries</header>
<subsection id="IDa385fc72d009413f8355c2695e9b0010"><enum>(a)</enum><header>In
general</header><text>Not later than 2 years after the date of the enactment of
this Act, the Secretary of Health and Human Services, in consultation with the
Commissioner of Social Security, shall establish and begin to implement
procedures to eliminate the unnecessary collection, use, and display of Social
Security account numbers of Medicare beneficiaries.</text>
</subsection><subsection id="ID5a799ac718fa48828956606ac0d71ea8"><enum>(b)</enum><header>Newly issued
medicare cards and communications provided to beneficiaries</header>
<paragraph id="idFEF925ABFB9A49138A85A3A030490556"><enum>(1)</enum><header>Newly issued
cards</header>
<subparagraph id="id3587B9731ECC422E98F8049390AE7336"><enum>(A)</enum><header>In
general</header><text>Not later than 4 years after the date of enactment of
this Act, the Secretary of Health and Human Services, in consultation with the
Commissioner of Social Security, shall ensure that each newly issued Medicare
identification card meets the requirements described in subparagraph
(B).</text>
</subparagraph><subparagraph id="id809B7F21CCEC4D3E91CFE26070768ACA"><enum>(B)</enum><header>Requirements</header>
<clause id="id848D05E116394DF19575F8167373E9A0"><enum>(i)</enum><header>In
general</header><text>Subject to clauses (ii) and (iii), the requirements
described in this subparagraph are, with respect to a Medicare identification
card, that the card does not display or electronically store (in an unencrypted
format) a Medicare beneficiary’s Social Security account number.</text>
</clause><clause id="id5032C759A8494AC5A224CD48F4832222"><enum>(ii)</enum><header>Exception</header><text>The
Secretary may waive the requirements under clause (i) in the case where the
health insurance claim number of a beneficiary is the Social Security number of
the beneficiary, the beneficiary's spouse, or another individual.</text>
</clause><clause id="ID8bb27596ee8d455982b9807e004e4f9d"><enum>(iii)</enum><header>Use of
partial account number</header><text>The Secretary of Health and Human
Services, in consultation with the Commissioner of Social Security, may provide
for the use of a partial Social Security account number on a Medicare
identification card if the Secretary determines that such use does not allow an
unacceptable risk of fraudulent use.</text>
</clause></subparagraph></paragraph><paragraph id="id1B445E99659B48B594A912DB839B525F"><enum>(2)</enum><header>Communications
provided to beneficiaries</header><text>Not later than 4 years after the date
of enactment of this Act, the Secretary of Health and Human Services shall
prohibit the display of a Medicare beneficiary’s Social Security account number
on written or electronic communication provided to the beneficiary unless the
Secretary, in consultation with the Commissioner of Social Security, determines
that inclusion of Social Security account numbers on such communications is
essential for the operation of the Medicare program.</text>
</paragraph></subsection><subsection id="idD36C7784DE97480DA555426A40AB632B"><enum>(c)</enum><header>Medicare
beneficiary defined</header><text>In this section, the term <term>Medicare
beneficiary</term> means an individual entitled to, or enrolled for, benefits
under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c et
seq.) or enrolled for benefits under part B of such title (42 U.S.C. 1395j et
seq.).</text>
</subsection><subsection id="H681EEE47D16846BE8225AF41DBF3203"><enum>(d)</enum><header>Conforming
amendments</header>
<paragraph id="idE2B4143D73714E7496B15F626BC55126"><enum>(1)</enum><header>Reference in
the Social Security Act</header><text>Section 205(c)(2)(C) of the Social
Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/405">42 U.S.C. 405(c)(2)(C)</external-xref>) is amended—</text>
<subparagraph id="id8C6FFC588C0F4796979D89B4AF9F2C08"><enum>(A)</enum><text>by moving clause
(x), as added by section 1414(a)(2) of the Patient Protection and Affordable
Care Act (<external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref>), 6 ems to the left;</text>
</subparagraph><subparagraph id="id057F1A6ADF894E829EB1400979EDB18B"><enum>(B)</enum><text>by redesignating
clause (x), as added by section 2(a)(1) of the Social Security Number
Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/42/1305">42 U.S.C. 1305</external-xref> note), as clause (xii); and</text>
</subparagraph><subparagraph id="id9896E285B5504104860C08CE1DD4E933"><enum>(C)</enum><text>by adding after
clause (xii), as redesignated by subparagraph (B), the following new
clause:</text>
<quoted-block id="HD673FF97D42A4A49B77724B498240085" style="OLC">
<clause id="H7A131A0B07A2430000B1BA231022D8F2" indent="up3"><enum>(xiii)</enum><text display-inline="yes-display-inline">Subject to section 302 of the
<short-title>Identity Theft and Tax Fraud Prevention Act
of 2013</short-title>, social security account numbers shall not be displayed
on Medicare identification cards or on communications provided to Medicare
beneficiaries.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="idAEF1C48D822541E5948E1DE2B380E7B1"><enum>(2)</enum><header>Access to
information</header><text>Section 205(r) of the Social Security Act (42 U.S.C.
405(r)) is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id2065483BC80C4277A8869A0EA6DD894E" style="OLC">
<paragraph id="ID7e95d3510c5941e6be9cf8496bc09bad" indent="up1"><enum>(10)</enum><text>To prevent and identify fraudulent
activity, the Commissioner shall upon the request of the Attorney General or
upon the request of the Secretary of Health and Human Services enter into a
reimbursable agreement with the Attorney General or the Secretary to provide
information collected under paragraph (1) if—</text>
<subparagraph id="id97FDACCDFE074C999D6E8782C6FF0EC1"><enum>(A)</enum><text>the requirements of subparagraphs (A)
and (B) of paragraph (3) are met; and</text>
</subparagraph><subparagraph id="id76209C8326144498B19D09E8060B322D"><enum>(B)</enum><text>such agreement includes appropriate
provisions to protect the confidentiality of information provided by the
Commissioner under such
agreement.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID4ad158bc787a4d32997c714151796b32"><enum>(e)</enum><header>Pilot
program</header>
<paragraph id="id9D8D729D90A04747A2CB8CBDE956250D"><enum>(1)</enum><header>Establishment</header><text>The
Secretary shall establish a pilot program utilizing smart card technology to
evaluate—</text>
<subparagraph id="ID28e966e9eb464ef7b78199e896efdf86"><enum>(A)</enum><text>the applicability
of smart card technology to the Medicare program under title XVIII of the
Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395">42 U.S.C. 1395 et seq.</external-xref>), including the applicability of
such technology to Medicare beneficiaries or Medicare providers; and</text>
</subparagraph><subparagraph id="ID3f2857fecf7f4b62b2ffb5dd0d0f2d91"><enum>(B)</enum><text>whether such
cards would be effective in preventing fraud under the Medicare program.</text>
</subparagraph></paragraph><paragraph id="ID3b5e33bb81924b3a86fc5d2d1e8d4d30"><enum>(2)</enum><header>Implementation</header>
<subparagraph id="IDb07560c3053942bdab55de9c0efec761"><enum>(A)</enum><header>Initial
implementation</header><text>The Secretary shall implement the pilot program
under this subsection not later than 1 year after the date of enactment of this
Act.</text>
</subparagraph><subparagraph id="IDc487eed633034e7faec09a22cdf2112b"><enum>(B)</enum><header>Scope and
duration</header><text>The Secretary shall conduct the pilot program—</text>
<clause id="id390F6511652A4446ADC63B022B62A275"><enum>(i)</enum><text>in
not less than 2 States; and</text>
</clause><clause id="idC91C567BC3B2493992C0057EDFF780E6"><enum>(ii)</enum><text>for a period of
not less than 180 days or more than 2 years.</text>
</clause></subparagraph></paragraph><paragraph id="ID3d2bfee6c98245bd9ab53a748aeaebc7"><enum>(3)</enum><header>Report</header><text>Not
later than 12 months after the completion of the pilot program under this
subsection, the Secretary shall submit to the appropriate committees of
Congress and make available to the public a report that includes the
following:</text>
<subparagraph id="ID9e2df53a71b4415a9a7da83ea3ce4b6d"><enum>(A)</enum><text>A summary of the
pilot program and findings, including—</text>
<clause id="IDa0bd80407e38436099fbfe966f4ff483"><enum>(i)</enum><text>the
costs or savings to the Medicare program as a result of the implementation of
the pilot program;</text>
</clause><clause id="ID65bb1dd1ab97420aac8beaf37eef2a0f"><enum>(ii)</enum><text>whether the use
of smart card technology resulted in improvements in the quality of care
provided to Medicare beneficiaries under the pilot program; and</text>
</clause><clause id="IDbfe318b1447444df9c84d53bd29a52bc"><enum>(iii)</enum><text>whether such
technology was useful in preventing or detecting fraud, waste, and abuse in the
Medicare program.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID9c1a67d491c943f39237ce33818ebbe0"><enum>(B)</enum><text>Recommendations
regarding whether the use of smart card technology should be expanded under the
Medicare program.</text>
</subparagraph></paragraph><paragraph id="ID223a2a1fbc2c4b15badaf23c9924493c"><enum>(4)</enum><header>Definitions</header><text>In
this subsection:</text>
<subparagraph id="id6A7206A9D16941579C03528D726C7F63"><enum>(A)</enum><header>Medicare
provider</header><text>The term <term>Medicare provider</term> includes a
provider of services (as defined in section 1861(u) of the Social Security Act
(<external-xref legal-doc="usc" parsable-cite="usc/42/1395x">42 U.S.C. 1395x(u)</external-xref>)) and a supplier (as defined in section 1861(d) of such Act
(<external-xref legal-doc="usc" parsable-cite="usc/42/1395x">42 U.S.C. 1395x(d)</external-xref>)).</text>
</subparagraph><subparagraph id="id107646EB5A744857A95D4DF9DEEDF558"><enum>(B)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Health and Human
Services.</text>
</subparagraph><subparagraph id="idA2232E6D03B74CB8ACD93FA02ED236A1"><enum>(C)</enum><header>Smart
card</header><text>The term <term>smart card</term> means identification used
by a Medicare beneficiary or a Medicare provider that includes anti-fraud
attributes. Such a card—</text>
<clause id="ID9e6c07d5b24a457bb0639e89a944d308"><enum>(i)</enum><text>may
rely on existing commercial data transfer networks or on a network of
proprietary card readers or databases; and</text>
</clause><clause id="ID1584f2371ea0493aa1c7f02adc0f4313"><enum>(ii)</enum><text>may
include—</text>
<subclause id="IDbaac3ceba4b845c5967b6db057858a4b"><enum>(I)</enum><text>cards using
technology adapted from the financial services industry;</text>
</subclause><subclause id="IDb3ae76e7000b4ace8eaad715419e32c9"><enum>(II)</enum><text>cards containing
individual biometric identification, provided that such identification is
encrypted and not contained in any central database;</text>
</subclause><subclause id="ID7fffc755d93948f6bd23715630c148c3"><enum>(III)</enum><text>cards adapting
technology and processes utilized in the TRICARE program under chapter 55 of
title 10, United States Code, or by the Veterans’ Administration; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idA0EB64DEEA754298BCEF0A71E0AD59A7"><enum>(IV)</enum><text>such other
technology as the Secretary determines appropriate.</text>
</subclause></clause></subparagraph></paragraph></subsection></section><section id="ID7CC536A46D7547E8A1F7B8E1B93E4C8B"><enum>303.</enum><header>Prohibition of
the display, sale, or purchase of Social Security numbers</header>
<subsection id="ID1CD9C99FCC0844F1B426B822FAEB97F8"><enum>(a)</enum><header>Prohibition</header>
<paragraph id="ID9717757093A74B6C911F618D44DAA9CA"><enum>(1)</enum><header>In
general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/18/47">Chapter 47</external-xref> of title 18, United States Code, is amended by
inserting after section 1028A the following:</text>
<quoted-block id="ID591479B9727E4CF6B953FFAA9C6462D4" style="USC">
<section id="IDCC7E0D10B26247918C5FA6A720804D4F"><enum>1028B.</enum><header>Prohibition
of the display, sale, or purchase of Social Security numbers</header>
<subsection id="ID9ED4AB70B1B349C4AC344CB800CB00B2"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="IDF2DF866CD106497F9595566EB73C1278"><enum>(1)</enum><header>Display</header><text>The
term <term>display</term> means to intentionally communicate or otherwise make
available (on the Internet or in any other manner) to the general public an
individual’s Social Security number.</text>
</paragraph><paragraph id="ID926483225E2C4C68B705FCDB8F24E033"><enum>(2)</enum><header>Person</header><text>The
term <term>person</term> means any individual, partnership, corporation, trust,
estate, cooperative, association, or any other entity.</text>
</paragraph><paragraph id="ID5E76A0F01EDD4A6FBEC99959C042AC00"><enum>(3)</enum><header>Purchase</header><text>The
term <term>purchase</term> means providing directly or indirectly, anything of
value in exchange for a Social Security number.</text>
</paragraph><paragraph id="ID7A8A599D0A474627BB3F50FB3BED2971"><enum>(4)</enum><header>Sale</header><text>The
term <term>sale</term> means obtaining, directly or indirectly, anything of
value in exchange for a Social Security number.</text>
</paragraph><paragraph id="ID27021B9E5860447699FCA07F88A1BA3E"><enum>(5)</enum><header>State</header><text>The
term <term>State</term> means any State of the United States, the District of
Columbia, Puerto Rico, the Northern Mariana Islands, the United States Virgin
Islands, Guam, American Samoa, and any territory or possession of the United
States.</text>
</paragraph></subsection><subsection id="ID5961988157C64DE4B03CD375572E2FB0"><enum>(b)</enum><header>Limitation on
display</header><text>No person may display any individual’s Social Security
number to the general public without the affirmatively expressed consent of the
individual.</text>
</subsection><subsection id="IDF15E5BFCD5134D88B0044301EB1FEB46"><enum>(c)</enum><header>Limitation on
sale or purchase</header><text>Except as otherwise provided in this section, no
person may sell or purchase any individual’s Social Security number without the
affirmatively expressed consent of the individual.</text>
</subsection><subsection id="ID1F67184F45BF44AA965DA3E71DFB8F82"><enum>(d)</enum><header>Prerequisites
for consent</header><text>In order for consent to exist under subsection (b) or
(c), the person displaying or seeking to display, selling or attempting to
sell, or purchasing or attempting to purchase, an individual’s Social Security
number shall—</text>
<paragraph id="ID2D6516162E714D079C5181FCF1673B01"><enum>(1)</enum><text>inform the
individual of the general purpose for which the number will be used, the types
of persons to whom the number may be available, and the scope of transactions
permitted by the consent; and</text>
</paragraph><paragraph id="ID717516B5978E42E1998FC96D1BA7D52B"><enum>(2)</enum><text>obtain the
affirmatively expressed consent (electronically or in writing) of the
individual.</text>
</paragraph></subsection><subsection id="IDF76649776BB24F1EBE072DDBC39900AB"><enum>(e)</enum><header>Exceptions</header><text>Nothing
in this section shall be construed to prohibit or limit the display, sale, or
purchase of a Social Security number—</text>
<paragraph id="ID96CF0E99736942C40039FBF5CE61505B"><enum>(1)</enum><text>required,
authorized, or excepted under any Federal law;</text>
</paragraph><paragraph id="ID4F0E77F52B7248EDB2688DDF9BB3C39C"><enum>(2)</enum><text>for a public
health purpose, including the protection of the health or safety of an
individual in an emergency situation;</text>
</paragraph><paragraph id="IDD06EEF56A3EC43D5B94691581ECEECE1"><enum>(3)</enum><text>for a national
security purpose;</text>
</paragraph><paragraph id="IDAC2362D647B0485D96A3AF00CE72286E"><enum>(4)</enum><text>for a law
enforcement purpose, including the investigation of fraud and the enforcement
of a child support obligation;</text>
</paragraph><paragraph id="ID56EFC3FE4E14402DA42B96EDF7FB6565"><enum>(5)</enum><text>if the display,
sale, or purchase of the number is for a use occurring as a result of an
interaction between businesses, governments, or business and government
(regardless of which entity initiates the interaction), including, but not
limited to—</text>
<subparagraph id="ID7E2DB1687A7F4875B8A31649759D76CD"><enum>(A)</enum><text>the prevention of
fraud (including fraud in protecting an employee’s right to employment
benefits);</text>
</subparagraph><subparagraph id="ID6853AE208C0A4074B1E01B0066CFB934"><enum>(B)</enum><text>the facilitation
of credit checks or the facilitation of background checks of employees,
prospective employees, or volunteers;</text>
</subparagraph><subparagraph id="IDB4DB36EB61F24DAB8D29F7605746F147"><enum>(C)</enum><text>the retrieval of
other information from other businesses, commercial enterprises, government
entities, or private nonprofit organizations; or</text>
</subparagraph><subparagraph id="IDFD5D4B1EE40443A2BC81F6AAF439C159"><enum>(D)</enum><text>when the
transmission of the number is incidental to, and in the course of, the sale,
lease, franchising, or merger of all, or a portion of, a business;</text>
</subparagraph></paragraph><paragraph id="ID253D5077DE0D487A00F4BA3E33F938FF"><enum>(6)</enum><text>if the transfer
of such a number is part of a data matching program involving a Federal, State,
or local agency; or</text>
</paragraph><paragraph id="IDAD80E6C07EFF47438BFBF6B3FFEE1134"><enum>(7)</enum><text>if such number is
required to be submitted as part of the process for applying for any type of
Federal, State, or local government benefit or program;</text>
</paragraph><continuation-text continuation-text-level="subsection">except
that, nothing in this subsection shall be construed as permitting a
professional or commercial user to display or sell a Social Security number to
the general public.</continuation-text></subsection><subsection id="ID214DF1F302C74C0089861B32524D12F2"><enum>(f)</enum><header>Limitation</header><text>Nothing
in this section shall prohibit or limit the display, sale, or purchase of
Social Security numbers as permitted under title V of the Gramm-Leach-Bliley
Act, or for the purpose of affiliate sharing as permitted under the
<act-name parsable-cite="FCRA">Fair Credit Reporting Act</act-name>, except
that no entity regulated under such Acts may make Social Security numbers
available to the general public, as may be determined by the appropriate
regulators under such Acts. For purposes of this subsection, the general public
shall not include affiliates or unaffiliated third-party business entities as
may be defined by the appropriate
regulators.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID706F4EFE63F445A48E00BD63A0746DAE"><enum>(2)</enum><header>Conforming
amendment</header><text>The chapter analysis for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/18/47">chapter 47</external-xref> of title 18, United
States Code, is amended by inserting after the item relating to section 1028
the following:</text>
<quoted-block id="ID3E00B4764553469193B9A4E11C883C00" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">1028B. Prohibition of the display, sale,
or purchase of Social Security
numbers.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID747FEC2509024944BE634643591F112D"><enum>(b)</enum><header>Study;
report</header>
<paragraph id="IDB372B6B60CD94F77B7D5AA00D282531E"><enum>(1)</enum><header>In
general</header><text>The Attorney General shall conduct a study and prepare a
report on all of the uses of Social Security numbers permitted, required,
authorized, or excepted under any Federal law. The report shall include a
detailed description of the uses allowed as of the date of enactment of this
Act, the impact of such uses on privacy and data security, and shall evaluate
whether such uses should be continued or discontinued by appropriate
legislative action.</text>
</paragraph><paragraph id="ID6C33538842404AC5920047B3F37D8007"><enum>(2)</enum><header>Report</header><text>Not
later than 1 year after the date of enactment of this Act, the Attorney General
shall report to Congress findings under this subsection. The report shall
include such recommendations for legislation based on criteria the Attorney
General determines to be appropriate.</text>
</paragraph></subsection><subsection id="IDDEA0009C1984452CA000EC1B0127008C"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
date that is 30 days after the date on which the final regulations promulgated
under section 5 are published in the Federal Register.</text>
</subsection></section><section id="ID809003DC49BE480AB15715CE8D30F24E"><enum>304.</enum><header>Criminal
penalties for the misuse of a Social Security number</header>
<subsection id="ID97C018133E0D45C6A0A5065F1CF90951"><enum>(a)</enum><header>Prohibition of
wrongful use as personal identification number</header><text>No person may
obtain any individual’s Social Security number for purposes of locating or
identifying an individual with the intent to physically injure, harm, or use
the identity of the individual for any illegal purpose.</text>
</subsection><subsection id="ID924796296AED4EFE9BE7236DB12079E5"><enum>(b)</enum><header>Criminal
sanctions</header><text>Section 208(a) of the <act-name parsable-cite="SSA">Social Security Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/408">42 U.S.C. 408(a)</external-xref>) is
amended—</text>
<paragraph id="ID18139DEB81EA482DAB6E6EF4CF56BADB"><enum>(1)</enum><text>in paragraph (8),
by inserting <quote>or</quote> after the semicolon; and</text>
</paragraph><paragraph id="ID2909483A667E4073BBB568B9C76311E4"><enum>(2)</enum><text>by inserting
after paragraph (8) the following:</text>
<quoted-block id="IDAD4127FF684C4F918F22A37F835E7B81">
<paragraph id="IDCA93DA5D7C564FA79D81ADDB17AB4C80"><enum>(9)</enum><text>except as
provided in subsections (e) and (f) of <external-xref legal-doc="usc" parsable-cite="usc/18/1028B">section 1028B</external-xref> of title 18, United States
Code, knowingly and willfully displays, sells, or purchases (as those terms are
defined in <external-xref legal-doc="usc" parsable-cite="usc/18/1028B">section 1028B(a)</external-xref> of title 18, United States Code) any individual’s
Social Security account number without having met the prerequisites for consent
under <external-xref legal-doc="usc" parsable-cite="usc/18/1028B">section 1028B(d)</external-xref> of title 18, United States Code; or</text>
</paragraph><paragraph id="ID92F11E06EC4541548E735138116C98BF"><enum>(10)</enum><text>obtains any
individual’s Social Security number for the purpose of locating or identifying
the individual with the intent to injure or to harm that individual, or to use
the identity of that individual for an illegal
purpose;</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="IDC8E2704C7FBA48B08F3FB5C66513656F"><enum>305.</enum><header>Civil actions
and civil penalties</header>
<subsection id="IDC38B162283E8477DAD105300F3CDC3AF"><enum>(a)</enum><header>Civil action in
State courts</header>
<paragraph id="IDE4FA2FC69C944A4E8C8621061567B552"><enum>(1)</enum><header>In
general</header><text>Any individual aggrieved by an act of any person in
violation of this Act or any amendments made by this Act may, if otherwise
permitted by the laws or rules of the court of a State, bring in an appropriate
court of that State—</text>
<subparagraph id="ID8BE063925CA4468392298F4C660041FE"><enum>(A)</enum><text>an action to
enjoin such violation;</text>
</subparagraph><subparagraph id="IDF82D6B4E23B742C08B4FF51BE2EAC411"><enum>(B)</enum><text>an action to
recover for actual monetary loss from such a violation, or to receive up to
$500 in damages for each such violation, whichever is greater; or</text>
</subparagraph><subparagraph id="ID7841D3EDECB445A385CE5289D0898170"><enum>(C)</enum><text>both such
actions.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">It shall be
an affirmative defense in any action brought under this paragraph that the
defendant has established and implemented, with due care, reasonable practices
and procedures to effectively prevent violations of the regulations prescribed
under this Act. If the court finds that the defendant willfully or knowingly
violated the regulations prescribed under this subsection, the court may, in
its discretion, increase the amount of the award to an amount equal to not more
than 3 times the amount available under subparagraph (B).</continuation-text></paragraph><paragraph id="ID5F9632C87E56420D87ABC9066402CB1F"><enum>(2)</enum><header>Statute of
limitations</header><text>An action may be commenced under this subsection not
later than the earlier of—</text>
<subparagraph id="ID17C1B4C12E9840DA9D15C79E16136342"><enum>(A)</enum><text>5 years after the
date on which the alleged violation occurred; or</text>
</subparagraph><subparagraph id="IDA1B8D2E5D4694FF68EED4123D1F1DAE2"><enum>(B)</enum><text>3 years after the
date on which the alleged violation was or should have been reasonably
discovered by the aggrieved individual.</text>
</subparagraph></paragraph><paragraph id="ID15BE314D4E3B4CCFB53BDC71EEECBD22"><enum>(3)</enum><header>Nonexclusive
remedy</header><text>The remedy provided under this subsection shall be in
addition to any other remedies available to the individual.</text>
</paragraph></subsection><subsection id="IDF31662059EF64319868D0011F4F9F41D"><enum>(b)</enum><header>Civil
penalties</header>
<paragraph id="ID854B926E2C2749EA83FDD0EBCD2EF5E2"><enum>(1)</enum><header>In
general</header><text>Any person who the Attorney General determines has
violated any section of this Act or of any amendments made by this Act shall be
subject, in addition to any other penalties that may be prescribed by
law—</text>
<subparagraph id="ID4CB3B6D95A654A95A1CBE300AFE1F428"><enum>(A)</enum><text>to a civil
penalty of not more than $5,000 for each such violation; and</text>
</subparagraph><subparagraph id="IDEED4AECBC8684E0FA25BAC749DE846B3"><enum>(B)</enum><text>to a civil
penalty of not more than $50,000, if the violations have occurred with such
frequency as to constitute a general business practice.</text>
</subparagraph></paragraph><paragraph id="ID99042C1895EA461B9B1B871DD816A100"><enum>(2)</enum><header>Determination
of violations</header><text>Any willful violation committed contemporaneously
with respect to the Social Security numbers of 2 or more individuals by means
of mail, telecommunication, or otherwise, shall be treated as a separate
violation with respect to each such individual.</text>
</paragraph><paragraph id="ID9E8AB967EFA5476EA12CFF707DE78EB0"><enum>(3)</enum><header>Enforcement
procedures</header><text>The provisions of section 1128A of the
<act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.
1320a–7a), other than subsections (a), (b), (f), (h), (i), (j), (m), and (n)
and the first sentence of subsection (c) of such section, and the provisions of
subsections (d) and (e) of section 205 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/405">42 U.S.C. 405</external-xref>) shall apply
to a civil penalty action under this subsection in the same manner as such
provisions apply to a penalty or proceeding under section 1128A(a) of such Act
(42 U.S.C. 1320a–7a(a)), except that, for purposes of this paragraph, any
reference in section 1128A of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1320a-7a">42 U.S.C. 1320a–7a</external-xref>) to the Secretary
shall be deemed to be a reference to the Attorney General.</text>
</paragraph></subsection></section><enum>IV</enum><header>Strengthening
laws and improving enforcement against tax-related identity theft</header>
<section id="id7C8BFFAE82EB4FCCAB7EDE4E5D3672C2"><enum>401.</enum><header>Criminal
penalty for using a false identity in connection with tax fraud</header>
<subsection id="id9C52109E00C8433785145C2FA97E8CDF"><enum>(a)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7206">Section 7206</external-xref> of the Internal Revenue Code of 1986 is
amended—</text>
<paragraph id="idBD000F1222E449858281DC988EDB3831"><enum>(1)</enum><text>by striking
<quote>Any person</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idE1FA38C26D97499CBFAECD9D39C28E7E" style="OLC">
<subsection id="idE8F912D38A904503A097A4812A1AB72A"><enum>(a)</enum><header>In
general</header><text>Any person</text>
</subsection><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id6B9F5F6A9AFE41AE9BD065365691FF23"><enum>(2)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id8C3FC2A22D184770BED7FE1793362E23" style="OLC">
<subsection id="id0CEB571AEA6B489785725B1445D8975B"><enum>(b)</enum><header>Use of false
identity</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id7F14A8FA5F6940778D50C9EAEB63B71D"><enum>(b)</enum><header>Aggravated
identity theft</header><text><external-xref legal-doc="usc" parsable-cite="usc/18/1028A">Section 1028A(c)</external-xref> of title 18, United States Code,
is amended by striking <quote>or</quote> at the end of paragraph (10), by
striking the period at the end of paragraph (11) and inserting <quote>;
or</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idE035E9FD23D24664BFABD3E100E2EADC" style="OLC">
<paragraph id="id5BE59F5E00E049AA84B2B70DCA214D22"><enum>(12)</enum><text>section 7206(b)
of the Internal Revenue Code of 1986 (relating to use of false identity in
connection with tax
fraud).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id4D860EF428AA4BC5B1840B63A32AA859"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to offenses
committed after the date of the enactment of this Act.</text>
</subsection></section><section id="idC040140CEDC342A693123B84CCA39703"><enum>402.</enum><header>Increased
penalty for improper disclosure or use of information by preparers of
returns</header>
<subsection id="id3A9C519DCE8447CF90E6CA6C69250AF3"><enum>(a)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6713">Section 6713(a)</external-xref> of the Internal Revenue Code of 1986 is
amended—</text>
<paragraph id="id6CD3F87C99874CC29F79E9770D4327EC"><enum>(1)</enum><text>by striking
<quote>$250</quote> and inserting <quote>$1,000</quote>, and</text>
</paragraph><paragraph id="idF8DDFCC33BC04262A8036280F2F8E526"><enum>(2)</enum><text>by striking
<quote>$10,000</quote> and inserting <quote>$50,000</quote>.</text>
</paragraph></subsection><subsection commented="no" id="idAF0CFB8F9E89461F96DF0B5CAE0834FE"><enum>(b)</enum><header>Criminal
penalty</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7216">Section 7216(a)</external-xref> of the Internal Revenue Code of 1986 is
amended by striking <quote>$1,000</quote> and inserting
<quote>$100,000</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id2609AA7801D54802AEB2E7D40AECD2B1"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
disclosures or uses after the date of the enactment of this Act.</text>
</subsection></section><section commented="no" id="idFEDCC114D1164A42BB323838E309D4DE"><enum>403.</enum><header>Authority to
transfer Internal Revenue Service appropriations to use for tax fraud
enforcement</header><text display-inline="no-display-inline">For any fiscal
year, the Commissioner of Internal Revenue may transfer not more than
$10,000,000 to the <quote>Enforcement</quote> account of the Internal Revenue
Service from amounts appropriated to other Internal Revenue Service accounts.
Any amounts so transferred shall be used solely for the purposes of preventing
and resolving potential cases of tax fraud.</text>
</section><section id="ide1fdf6af42b24ee8bf6a2ac6432a4d3a"><enum>404.</enum><header>Local law
enforcement liaison</header>
<subsection id="id12af2e2e5398488cbb62be08ec9774b9"><enum>(a)</enum><header>Establishment</header><text>The
Commissioner of Internal Revenue shall establish within the Criminal
Investigation Division of the Internal Revenue Service the position of Local
Law Enforcement Liaison.</text>
</subsection><subsection id="id52add26c4295487593df3f4a275f2538"><enum>(b)</enum><header>Duties</header><text>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 and other tax fraud matters, having duties that shall
include—</text>
<paragraph id="id5ea1a214dbea437085edd8be306d2848"><enum>(1)</enum><text>receiving
information from State and local law enforcement authorities;</text>
</paragraph><paragraph id="id41c33857266e42839fb81d4acd7a5e92"><enum>(2)</enum><text>responding to
inquiries from State and local law enforcement authorities;</text>
</paragraph><paragraph id="id50e51a3b177e422aafdda9f0ade66530"><enum>(3)</enum><text>administering
authorized information-sharing initiatives with State or local law enforcement
authorities and reviewing the performance of such initiatives;</text>
</paragraph><paragraph id="id403ca3b320a8417cab6dacc73580ebf7"><enum>(4)</enum><text>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</text>
</paragraph><paragraph id="idacba8a22f5ba40debdaecd1aa28510bf"><enum>(5)</enum><text>any other duties
as delegated by the Commissioner of Internal Revenue.</text>
</paragraph></subsection></section><enum>V</enum><header>Accelerating
transition to a real-time tax system that protects taxpayers and reduces
fraud</header>
<section id="id9E2A6E05E4D74A68B245DEF2B615A842"><enum>501.</enum><header>Improvement in
access to information in the National Directory of New Hires for tax
administration purposes</header>
<subsection commented="no" display-inline="no-display-inline" id="idBB99F90E9867480A9F429E9122B13D00"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (3) of section 453(i) of the
<act-name parsable-cite="SSA">Social Security Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/653">42 U.S.C. 653(i)</external-xref>)
is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id98A51F652B8848E0802329065A0DFEB4" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id3D2822A463634119AAAF701B13E0D9D0"><enum>(3)</enum><header display-inline="yes-display-inline">Administration of Federal tax
laws</header><text display-inline="yes-display-inline">The Secretary of the
Treasury shall have access to the information in the National Directory of New
Hires for purposes of administering the Internal Revenue Code of
1986.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idDCDAF1E343994AD59A6611099E21AFB7"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall take effect on the date of the enactment of this Act.</text>
</subsection></section><section id="idc1952975f0ba445c957cde0f32290422"><enum>502.</enum><header>Plan of action
for transitioning to a real-time tax system</header><text display-inline="no-display-inline">Not later than 270 days after the date of
enactment of this Act, the Secretary of the Treasury, or the Secretary's
delegate, shall submit to Congress a report analyzing and outlining options and
potential timelines for moving toward a tax system that reduces burdens on
taxpayers and decreases tax fraud through real-time information
matching.</text>
</section>