[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2239 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2239

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 10, 2014

 Mr. Johnson of Wisconsin (for himself and Mr. Warner) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Identity Defense Act 
of 2014''.

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

    (a) In General.--Subsection (l) of section 6103 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(23) Disclosure of return information in certain cases of 
        identity theft.--
                    ``(A) In general.--If the Secretary determines that 
                there is a substantial likelihood that there has been a 
                fraudulent use of a social security account number on a 
                statement described in section 6051--
                            ``(i) the Secretary shall disclose to the 
                        individual who was validly assigned such social 
                        security account number--
                                    ``(I) that the Secretary has reason 
                                to believe that the social security 
                                account number assigned to such 
                                individual has been fraudulently used 
                                in the employment context,
                                    ``(II) that the Secretary has made 
                                the disclosure described in clause (ii) 
                                to the Director of the Federal Bureau 
                                of Investigation with respect to such 
                                fraudulent use, and
                                    ``(III) such other information 
                                (other than return information) as the 
                                Secretary determines, in consultation 
                                with Federal Trade Commission, would be 
                                helpful and appropriate to provide to a 
                                victim of identity theft, and
                            ``(ii) the Secretary shall disclose to the 
                        Director of the Federal Bureau of 
                        Investigation--
                                    ``(I) such social security account 
                                number,
                                    ``(II) that the Secretary has 
                                reason to believe that such social 
                                security account number has been 
                                fraudulently used in the employment 
                                context, and
                                    ``(III) the taxpayer identity 
                                information of the individual who was 
                                assigned such social security account 
                                number, the individual believed to have 
                                fraudulently used such social security 
                                account number, and the employer who 
                                made the statement described in section 
                                6051 which included such social 
                                security account number.
                    ``(B) Restriction on disclosure to law 
                enforcement.--
                            ``(i) Disclosure to other law enforcement 
                        officials.--The Director of the Federal Bureau 
                        of Investigation may disclose information 
                        received under subparagraph (A)(ii) to 
                        appropriate Federal, State, and local law 
                        enforcement officials.
                            ``(ii) Restriction on use of disclosed 
                        information.--Return information disclosed 
                        under subparagraph (A)(ii) may be used by 
                        Federal, State, and local law enforcement 
                        officials only for purposes of carrying out 
                        criminal investigations or prosecutions.
                            ``(iii) Memorandum of understanding.--For 
                        purposes of this paragraph, any return 
                        information disclosed under subparagraph 
                        (A)(ii) may not be provided to any State or 
                        local law enforcement official until such 
                        official has entered into a memorandum of 
                        understanding with the Secretary that includes 
                        the following terms and conditions:
                                    ``(I) Confidentiality of returns 
                                and return information and prohibitions 
                                on disclosure described in subsection 
                                (a)(3).
                                    ``(II) Safeguards, restrictions on 
                                access, and recordkeeping requirements 
                                described in subsection (p)(4).
                                    ``(III) Application of penalties 
                                for unauthorized disclosure of returns 
                                and return information under section 
                                7213(a)(2).
                                    ``(IV) Any additional terms and 
                                conditions deemed appropriate by the 
                                Secretary.''.
    (b) Prevention of Use of W-2 Statements To Carry Out Identity 
Theft.--Section 6051 of such Code is amended by adding at the end the 
following new subsection:
    ``(g) Prevention of Identity Theft.--Except as otherwise provided 
by the Secretary, if an employer is notified by the Secretary with 
respect to any employee that the Secretary has reason to believe that 
the social security account number included on the statement described 
in subsection (a) with respect to such employee is not the social 
security account number of such employee, such employer--
            ``(1) shall cease to include such social security account 
        number on statements provided to the employee under subsection 
        (a), but
            ``(2) shall continue to include such social security 
        account number on duplicates of such statements provided to the 
        Secretary under subsection (d).''.
    (c) Conforming Amendments Related to Disclosure.--
            (1) Confidentiality.--Paragraph (3) of section 6103(a) of 
        such Code is amended by striking ``or (21)'' and inserting 
        ``(21), or (23)''.
            (2) Procedures and recordkeeping related to disclosures.--
        Paragraph (4) of section 6103(p) of such Code is amended by 
        striking ``or (20)'' each place it appears and inserting 
        ``(20), or (23)''.
            (3) Unauthorized disclosure or inspection.--Paragraph (2) 
        of section 7213(a) of such Code is amended by striking ``or 
        (21)'' and inserting ``(21), or (23)''.
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