[Congressional Record Volume 161, Number 37 (Wednesday, March 4, 2015)]
[Extensions of Remarks]
[Pages E309-E310]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  INTRODUCTION OF THE HUMAN TRAFFICKING FRAUD ENFORCEMENT ACT OF 2015

                                 ______
                                 

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                        Wednesday, March 4, 2015

  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I am pleased to 
introduce bipartisan legislation with my colleague Rep. Ted Poe.
  In March of 1931 the infamous gangster, Al Capone, was indicted for 
tax fraud. Today the IRS Criminal Investigations division continues to 
play a vital role in proving criminal activity and fraud, and I believe 
they can play an even stronger role in cracking down on human 
trafficking and prostitution.
  This bill is meant to enhance the Internal Revenue Service's ability 
to crack down on sex trafficking by authorizing $4 million to establish 
an office within the IRS to prosecute sex traffickers for violations of 
tax laws. The office would focus on the willful failure of traffickers 
to file returns, supply information, or pay tax where the taxpayer is 
an ``aggravated'' non-filer. In addition, the office would coordinate 
closely with existing task forces focused on sex trafficking offenders 
in the Department of Justice.
  The bill also amends the Internal Revenue Code to increase criminal 
monetary and other penalties for attempts to: evade or defeat tax, 
willful failure to file a tax return, supply information, or pay tax, 
aggravated failure to file tax returns, fraud and false statements, and 
underpayment or overpayment of tax due to fraud. This offense will 
carry a maximum sentence of 10 years and a maximum fine of $50,000.00.
  The Human Trafficking Fraud Enforcement Act of 2015 also establishes 
a new felony offense for an aggravated failure to file to include 
failure to file with respect to income or payments derived from 
activity which is criminal under Federal or State law. This will target 
conduct committed by those involved in the promotion of commercial sex 
acts--pimps and traffickers--and not conduct of exploited persons in 
prostitution.
  Last, this bill directly benefits those that are victimized by the 
traffickers by revising current IRS Whistleblower provisions so that 
women and girls who choose to participate in the investigation will be 
eligible to participate in the whistleblower program and may ultimately 
be granted up to 15% of any fines levied against the trafficker.
  While important strides have been made to address trafficking, we 
must still use every tool possible to take down the traffickers. I urge 
my colleagues to cosponsor this important legislation.

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