[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3832 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 440
114th CONGRESS
  2d Session
                                H. R. 3832

                      [Report No. 114-567, Part I]

   To amend the Internal Revenue Code of 1986 to prevent tax-related 
         identity theft and tax fraud, and for other purposes.


_______________________________________________________________________


                    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.


 


    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 ``Stolen Identity Refund Fraud 
Prevention Act of 2016''.

SEC. 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.

SEC. 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:

``SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.
                                                 Union Calendar No. 440

114th CONGRESS

  2d Session

                               H. R. 3832

                      [Report No. 114-567, Part I]

_______________________________________________________________________

                                 A BILL

   To amend the Internal Revenue Code of 1986 to prevent tax-related 
         identity theft and tax fraud, and for other purposes.

_______________________________________________________________________

                              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