110 HR 3424 IH: To authorize appropriations for the purpose of
U.S. House of Representatives
2007-08-03
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.Authorization of
appropriations for tax law enforcement relating to human sex
trafficking
(a)Authorization of
appropriations
(1)There is authorized
to be appropriated $4,000,000 for fiscal year 2008 for the purpose of
establishing an office within the Internal Revenue Service to investigate and
prosecute violations of the internal revenue laws by persons that appear to be
engaged in conduct in violation of section 1591(a), section 2421, section 2422,
subsection (a), (d), or (e) of section 2423, or section 1952 of title 18,
United States Code, or the laws of any State or territory that prohibit the
promotion of prostitution or any commercial sex act (as such term is defined in
section 1591(c)(1) of title 18, United States Code).
(2)Any
amounts appropriated pursuant to the authority of paragraph (1) shall remain
available for fiscal year 2009.
(b)Additional
funding for operations of officeUnless specifically appropriated
otherwise, there is authorized to be appropriated and is appropriated to the
office established under subsection (a)(1) for fiscal years 2008 and 2009 for
the administration of such office an amount equal to the amount of any tax
under chapter 1 of the Internal Revenue Code of 1986 (including any interest)
collected during such fiscal years as the result of the actions of such office,
plus any civil or criminal monetary penalties imposed under such Code relating
to such tax and so collected.
(c)Not
later than 1 year after the date of the enactment of this Act, the Secretary of
the Treasury shall report to the Committee of Ways and Means of the House of
Representatives and the Committee on Finance of the Senate on the enforcement
activities of the office established under subsection (a)(1) and shall include
any recommendations for statutory changes to assist in future prosecutions
under this section.
(d)Applicability of
whistleblower awards to victims of human sex traffickingFor purposes of making an award under
paragraph (1) or (2) of section 7623(b) of the Internal Revenue Code of 1986
with respect to information provided by victims of any person convicted of
violating section 1591(a), section 2421, section 2422, subsection (a), (d), or
(e) of section 2423, or section 1952 of title 18, United States Code, or the
laws of any State or territory that prohibit the promotion of prostitution or
any commercial sex act (as such term is defined in section 1591(c)(1) of title
18, United States Code), the determination of whether such person is described
in such paragraph shall be made without regard to paragraph (3) of section
7623(b) of such Code.
2.Increase in criminal
monetary penalty limitation for the underpayment or overpayment of tax due to
fraud
(a)
(1)Attempt to evade
or defeat taxSection 7201 (relating to attempt to evade or
defeat tax) is amended—
(A)by striking
$100,000 ($500,000
and inserting $500,000
($1,000,000
, and
(B)by striking
5 years
and inserting 10 years
.
(2)Willful failure
to file return, supply information, or pay tax
(A)Section 7203 (relating to willful failure to file return,
supply information, or pay tax) is amended—
(i)in the first
sentence—
(I)by striking
Any person
and inserting the following:
(a)Any person
,
and
(II)by striking
$25,000
and inserting $50,000
,
(ii)in the third
sentence, by striking section
and inserting
subsection
, and
(iii)by adding at the
end the following new subsection:
(b)Aggravated
failure to file
(1)In the case of any failure described in paragraph (2),
the first sentence of subsection (a) shall be applied by substituting—
(A)felony
for misdemeanor
,
(B)$500,000
($1,000,000
for $50,000 ($100,000
, and
(C)10
years
for 1 year
.
(2)A failure described in this paragraph is—
(A)a failure to make
a return described in subsection (a) for a period of 3 or more consecutive
taxable years if the aggregate tax liability for such period is not less than
$100,000, or
(B)a failure to make
a return if the tax liability giving rise to the requirement to make such
return is attributable to an activity which is a felony under any State or
Federal
law.
.
(B)Penalty may be
applied in addition to other penaltiesSection 7204 (relating to
fraudulent statement or failure to make statement to employees) is amended by
striking the penalty provided in section 6674
and inserting
the penalties provided in sections 6674 and 7203
.
(3)Fraud and false
statementsSection 7206 (relating to fraud and false statements)
is amended—
(A)by striking
$100,000 ($500,000
and inserting $500,000
($1,000,000
, and
(B)by striking
3 years
and inserting 5 years
.
(b)Increase in
monetary limitation for underpayment or overpayment of tax due to
fraudSection 7206 (relating to fraud and false statements), as
amended by subsection (a)(3), is amended—
(1)by striking
Any person who—
and inserting (a)
In general.—Any
person who—
, and
(2)by adding at the
end the following new subsection:
(b)Increase in
monetary limitation for underpayment or overpayment of tax due to
fraudIf any portion of any underpayment (as defined in section
6664(a)) or overpayment (as defined in section 6401(a)) of tax required to be
shown on a return is attributable to fraudulent action described in subsection
(a), the applicable dollar amount under subsection (a) shall in no event be
less than an amount equal to such portion. A rule similar to the rule under
section 6663(b) shall apply for purposes of determining the portion so
attributable.
.
(c)The amendments made by this section shall apply to actions,
and failures to act, occurring after the date of the enactment of this
Act.