[Congressional Record Volume 159, Number 29 (Thursday, February 28, 2013)]
[Extensions of Remarks]
[Page E224]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    INTRODUCTION OF THE SOCIAL SECURITY IDENTITY DEFENSE ACT OF 2013

                                 ______
                                 

                          HON. THOMAS E. PETRI

                              of wisconsin

                    in the house of representatives

                      Thursday, February 28, 2013

  Mr. PETRI. Mr. Speaker, today I am introducing the Social Security 
Identity Defense Act of 2013, legislation to enhance the ability of the 
Internal Revenue Service to fight identity theft when that agency 
becomes aware of the fraudulent use of a taxpayer's personal 
information.
  This legislation is a direct response to the experience of 
constituents of mine in Princeton, Wisconsin. During a routine review 
of his credit report, my constituent found accounts opened by another 
person using his Social Security number. This discovery raised many 
concerns, not the least of which was that this person's income might be 
reported to the IRS under his Social Security number. Upon contacting 
the IRS, he was told that the IRS knew of the situation and that they 
had known about it for some time.
  Not surprisingly, this answer was not altogether comforting. The IRS 
knew that someone else had been using his Social Security number, but 
kept that information under lock and key. While the IRS remained 
silent, additional frauds were committed, resulting in the further 
misuse of my constituent's personal information by another person to 
establish a fraudulent credit history. When he raised this issue with 
the IRS, he was astounded by the agency's answer. Privacy statutes 
prevent the IRS from discussing the return information of one taxpayer 
with anyone else. In the view of the IRS, the fraudulent use of my 
constituent's Social Security number was the personal return 
information of another taxpayer, and this fraud could not be disclosed 
to the rightful owner of that personal identifier, even if this 
disclosure would help prevent additional frauds.
  This policy makes no sense and actually puts the IRS on the wrong 
side in the fight against identity theft. My legislation aims to 
correct this problem by changing the privacy statutes to direct the IRS 
to inform a taxpayer when the agency learns through its normal course 
of business that a Social Security number assigned to that taxpayer has 
been used fraudulently by another worker.
  Both Congress and our administrative departments and agencies, 
including the IRS, have made progress in combating identity theft, but 
more needs to be done. For this reason, the Social Security Identity 
Defense Act would provide an additional vital tool for our government 
to deploy.
  Under this legislation, the IRS would be required to share any 
information in its possession about the fraudulent use of a taxpayer's 
personal information with that information's rightful owner. The agency 
also would be directed to transmit information that may be evidence of 
an identity theft to the FBI so that the Bureau can make this material 
available to state and local law enforcement agencies upon their 
request. Finally, the Social Security Identity Defense Act calls for 
the IRS to direct employers not to include a Social Security number on 
a W-2 form when that agency is aware that the employee is making 
fraudulent use of that number.
  These are important steps forward. They will empower both citizens 
and law enforcement agencies in their efforts to combat identity theft, 
and they will limit the use of personal identifiers in the commission 
of future crimes. I urge my colleagues to join me in this effort by 
cosponsoring the Social Security Defense Act.

                          ____________________