[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3804 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3804

  To amend the Internal Revenue Code of 1986 to provide a 100 percent 
           deduction for expenses related to identity theft.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 15, 2005

Mrs. McCarthy introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to provide a 100 percent 
           deduction for expenses related to identity theft.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Identity Theft Relief Act of 2005''.

SEC. 2. DEDUCTION FOR EXPENSES RELATED TO IDENTITY THEFT.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to additional itemized 
deductions) is amended by redesignating section 224 as section 225 and 
by inserting after section 223 the following new section:

``SEC. 224. EXPENSES RELATED TO IDENTITY THEFT.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a deduction all the ordinary and necessary expenses paid or 
incurred during the taxable year, not compensated for by insurance or 
otherwise, in connection with a qualified identity theft.
    ``(b) Qualified Identity Theft.--For purposes of this section--
            ``(1) Qualified identity theft.--In the case of an 
        individual, the term `qualified identity theft' means a fraud 
        committed or attempted using the identifying information of 
        such individual without authority.
            ``(2) Identifying information.--The term `identifying 
        information' means any name or number that may be used, alone 
        or in conjunction with any other information, to identify such 
        individual, including--
                    ``(A) a name, social security number, date of 
                birth, official State or government issued driver's 
                license or identification number, alien registration 
                number, government passport number, or employer or 
                taxpayer identification number,
                    ``(B) unique biometric data, such as fingerprint, 
                voice print, retina or iris image, or other unique 
                physical representation,
                    ``(C) unique electronic identification number, 
                address, or routing code,
                    ``(D) telecommunication identifying information or 
                access device (as defined in section 1029(e) of title 
                18, United States Code),
                    ``(E) a bank, savings association, credit union, or 
                investment account number,
                    ``(F) a credit card or debit card account number,
                    ``(G) a password, access code, or security code 
                relating to--
                            ``(i) a bank, savings association, credit 
                        union, or investment account number, or
                            ``(ii) a credit card or debit card account 
                        number, or
                    ``(H) any other unique identifying information.''.
    (b) Deduction Allowed in Computing Adjusted Gross Income.--
Subsection (a) of section 62 of such Code is amended by inserting 
before the last sentence the following new paragraph:
            ``(21) Expenses related to identity theft.--The deduction 
        allowed by section 224.''.
    (c) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by redesignating the 
item relating to section 224 as an item relating to section 225 and 
inserting before such item the following new item:

``Sec. 224. Expenses related to identity theft.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years after December 31, 2005.
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