[Congressional Record (Bound Edition), Volume 153 (2007), Part 6]
[House]
[Pages 9012-9019]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              {time}  1330
                    TAXPAYER PROTECTION ACT OF 2007

  Mr. LEWIS of Georgia. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 1677) to amend the Internal Revenue Code of 1986 to 
enhance taxpayer protections and outreach, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1677

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

     SECTION 1. SHORT TITLE; ETC.

       (a) Short Title.--This Act may be cited as the ``Taxpayer 
     Protection Act of 2007''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; etc.
Sec. 2. Family business tax simplification.
Sec. 3. Taxpayer notification of suspected identity theft.
Sec. 4. Extension of time for return of property for wrongful levy.
Sec. 5. Individuals held harmless on wrongful levy, etc., on individual 
              retirement plan.
Sec. 6. Clarification of IRS unclaimed refund authority.
Sec. 7. Prohibition on IRS debt indicators for predatory refund 
              anticipation loans.
Sec. 8. Prohibition on misuse of Department of the Treasury names and 
              symbols.
Sec. 9. EITC outreach.
Sec. 10. Modification of rules pertaining to FIRPTA nonforeign 
              affidavits.
Sec. 11. Disclosure of prisoner return information to Federal Bureau of 
              Prisons.

[[Page 9013]]

Sec. 12. Increase in penalty for bad checks and money orders.

     SEC. 2. FAMILY BUSINESS TAX SIMPLIFICATION.

       (a) In General.--Section 761 (defining terms for purposes 
     of partnerships) is amended by redesignating subsection (f) 
     as subsection (g) and by inserting after subsection (e) the 
     following new subsection:
       ``(f) Qualified Joint Venture.--
       ``(1) In general.--In the case of a qualified joint venture 
     conducted by a husband and wife who file a joint return for 
     the taxable year, for purposes of this title--
       ``(A) such joint venture shall not be treated as a 
     partnership,
       ``(B) all items of income, gain, loss, deduction, and 
     credit shall be divided between the spouses in accordance 
     with their respective interests in the venture, and
       ``(C) each spouse shall take into account such spouse's 
     respective share of such items as if they were attributable 
     to a trade or business conducted by such spouse as a sole 
     proprietor.
       ``(2) Qualified joint venture.--For purposes of paragraph 
     (1), the term `qualified joint venture' means any joint 
     venture involving the conduct of a trade or business if--
       ``(A) the only members of such joint venture are a husband 
     and wife,
       ``(B) both spouses materially participate (within the 
     meaning of section 469(h) without regard to paragraph (5) 
     thereof) in such trade or business, and
       ``(C) both spouses elect the application of this 
     subsection.''.
       (b) Net Earnings From Self-Employment.--
       (1) Subsection (a) of section 1402 (defining net earnings 
     from self-employment) is amended by striking ``, and'' at the 
     end of paragraph (15) and inserting a semicolon, by striking 
     the period at the end of paragraph (16) and inserting ``; 
     and'', and by inserting after paragraph (16) the following 
     new paragraph:
       ``(17) notwithstanding the preceding provisions of this 
     subsection, each spouse's share of income or loss from a 
     qualified joint venture shall be taken into account as 
     provided in section 761(f) in determining net earnings from 
     self-employment of such spouse.''.
       (2) Subsection (a) of section 211 of the Social Security 
     Act (defining net earnings from self-employment) is amended 
     by striking ``and'' at the end of paragraph (14), by striking 
     the period at the end of paragraph (15) and inserting ``; 
     and'', and by inserting after paragraph (15) the following 
     new paragraph:
       ``(16) Notwithstanding the preceding provisions of this 
     subsection, each spouse's share of income or loss from a 
     qualified joint venture shall be taken into account as 
     provided in section 761(f) of the Internal Revenue Code of 
     1986 in determining net earnings from self-employment of such 
     spouse.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

     SEC. 3. TAXPAYER NOTIFICATION OF SUSPECTED IDENTITY THEFT.

       (a) In General.--Chapter 77 (relating to miscellaneous 
     provisions) is amended by adding at the end the following new 
     section:

     ``SEC. 7529. NOTIFICATION OF SUSPECTED IDENTITY THEFT.

       ``If, in the course of an investigation under section 7206 
     (relating to fraud and false statements) or 7207 (relating to 
     fraudulent returns, statements, or other documents), the 
     Secretary determines that there was or may have been an 
     unauthorized use of the identity of the taxpayer or 
     dependents, the Secretary shall--
       ``(1) as soon as practicable and without jeopardizing such 
     investigation, notify the taxpayer of such determination, and
       ``(2) if any person is criminally charged by indictment or 
     information under either of such sections, notify such 
     taxpayer as soon as practicable of such charge.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     77 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. EXTENSION OF TIME FOR RETURN OF PROPERTY FOR WRONGFUL 
                   LEVY.

       (a) Extension of Time for Return of Property Subject to 
     Levy.--Subsection (b) of section 6343 (relating to return of 
     property) is amended by striking ``9 months'' and inserting 
     ``2 years''.
       (b) Period of Limitation on Suits.--Subsection (c) of 
     section 6532 (relating to suits by persons other than 
     taxpayers) is amended--
       (1) in paragraph (1) by striking ``9 months'' and inserting 
     ``2 years'', and
       (2) in paragraph (2) by striking ``9-month'' and inserting 
     ``2-year''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to--
       (1) levies made after the date of the enactment of this 
     Act, and
       (2) levies made on or before such date if the 9-month 
     period has not expired under section 6343(b) of the Internal 
     Revenue Code of 1986 (without regard to this section) as of 
     such date.

     SEC. 5. INDIVIDUALS HELD HARMLESS ON WRONGFUL LEVY, ETC., ON 
                   INDIVIDUAL RETIREMENT PLAN.

       (a) In General.--Section 6343 (relating to authority to 
     release levy and return property) is amended by adding at the 
     end the following new subsection:
       ``(f) Individuals Held Harmless on Wrongful Levy, Etc. on 
     Individual Retirement Plan.--
       ``(1) In general.--If the Secretary determines that an 
     individual retirement plan has been levied upon in a case to 
     which subsection (b) or (d)(2)(A) applies, an amount equal to 
     the sum of--
       ``(A) the amount of money returned by the Secretary on 
     account of such levy, and
       ``(B) interest paid under subsection (c) on such amount of 
     money,

     may be deposited into such individual retirement plan or any 
     other individual retirement plan (other than an endowment 
     contract) to which a rollover from the plan levied upon is 
     permitted.
       ``(2) Treatment as rollover.--If amounts are deposited into 
     an individual retirement plan under paragraph (1) not later 
     than the 60th day after the date on which the individual 
     receives the amounts under paragraph (1)--
       ``(A) such deposit shall be treated as a rollover described 
     in section 408(d)(3)(A)(i),
       ``(B) to the extent the deposit includes interest paid 
     under subsection (c), such interest shall not be includible 
     in gross income, and
       ``(C) such deposit shall not be taken into account under 
     section 408(d)(3)(B).

     For purposes of subparagraph (B), an amount shall be treated 
     as interest only to the extent that the amount deposited 
     exceeds the amount of the levy.
       ``(3) Refund, etc., of income tax on levy.--If any amount 
     is includible in gross income for a taxable year by reason of 
     a levy referred to in paragraph (1) and any portion of such 
     amount is treated as a rollover under paragraph (2), any tax 
     imposed by chapter 1 on such portion shall not be assessed, 
     and if assessed shall be abated, and if collected shall be 
     credited or refunded as an overpayment made on the due date 
     for filing the return of tax for such taxable year.
       ``(4) Interest.--Notwithstanding subsection (d), interest 
     shall be allowed under subsection (c) in a case in which the 
     Secretary makes a determination described in subsection 
     (d)(2)(A) with respect to a levy upon an individual 
     retirement plan.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid under subsections (b), (c), and 
     (d)(2)(A) of section 6343 of the Internal Revenue Code of 
     1986 after the date of the enactment of this Act.

     SEC. 6. CLARIFICATION OF IRS UNCLAIMED REFUND AUTHORITY.

       Section 6103(m)(1) (relating to tax refunds) is amended by 
     inserting ``, and through any other means of mass 
     communication,'' after ``media''.

     SEC. 7. PROHIBITION ON IRS DEBT INDICATORS FOR PREDATORY 
                   REFUND ANTICIPATION LOANS.

       (a) In General.--Subsection (f) of section 6011 (relating 
     to promotion of electronic filing) is amended by adding at 
     the end the following new paragraph:
       ``(3) Prohibition on irs debt indicators for predatory 
     refund anticipation loans.--
       ``(A) In general.--In carrying out any program under this 
     subsection, the Secretary shall not provide a debt indicator 
     to any person with respect to any refund anticipation loan if 
     the Secretary determines that the business practices of such 
     person involve refund anticipation loans and related charges 
     and fees that are predatory.
       ``(B) Refund anticipation loan.--For purposes of this 
     paragraph, the term `refund anticipation loan' means a loan 
     of money or of any other thing of value to a taxpayer secured 
     by the taxpayer's anticipated receipt of a Federal tax 
     refund.
       ``(C) IRS debt indicator.--For purposes of this paragraph, 
     the term `debt indicator' means a notification provided 
     through a tax return's acknowledgment file that a refund will 
     be offset to repay debts for delinquent Federal or State 
     taxes, student loans, child support, or other Federal agency 
     debt.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to determinations after the date of the enactment 
     of this Act.

     SEC. 8. PROHIBITION ON MISUSE OF DEPARTMENT OF THE TREASURY 
                   NAMES AND SYMBOLS.

       (a) In General.--Subsection (a) of section 333 of title 31, 
     United States Code, is amended by inserting ``internet domain 
     address,'' after ``solicitation,'' both places it appears.
       (b) Penalty for Misuse by Electronic Means.--Subsections 
     (c)(2) and (d)(1) of section 333 of such Code are each 
     amended by inserting ``or any other mass communications by 
     electronic means,'' after ``telecast,''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to violations occurring after the 
     date of the enactment of this Act.

     SEC. 9. EITC OUTREACH.

       (a) In General.--Section 32 (relating to earned income) is 
     amended by adding at the end the following new subsection:
       ``(n) Notification of Potential Eligibility for Credit and 
     Refund.--

[[Page 9014]]

       ``(1) In general.--To the extent possible and on an annual 
     basis, the Secretary shall provide to each taxpayer who--
       ``(A) for any preceding taxable year for which credit or 
     refund is not precluded by section 6511, and
       ``(B) did not claim the credit under subsection (a) but may 
     be allowed such credit for any such taxable year based on 
     return or return information (as defined in section 6103(b)) 
     available to the Secretary,

     notice that such taxpayer may be eligible to claim such 
     credit and a refund for such taxable year.
       ``(2) Notice.--Notice provided under paragraph (1) shall be 
     in writing and sent to the last known address of the 
     taxpayer.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 10. MODIFICATION OF RULES PERTAINING TO FIRPTA 
                   NONFOREIGN AFFIDAVITS.

       (a) In General.--Subsection (b) of section 1445 (relating 
     to exemptions) is amended by adding at the end the following:
       ``(9) Alternative procedure for furnishing nonforeign 
     affidavit.--For purposes of paragraphs (2) and (7)--
       ``(A) In general.--Paragraph (2) shall be treated as 
     applying to a transaction if, in connection with a 
     disposition of a United States real property interest--
       ``(i) the affidavit specified in paragraph (2) is furnished 
     to a qualified substitute, and
       ``(ii) the qualified substitute furnishes a statement to 
     the transferee stating, under penalty of perjury, that the 
     qualified substitute has such affidavit in his possession.
       ``(B) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     this paragraph.''.
       (b) Qualified Substitute.--Subsection (f) of section 1445 
     (relating to definitions) is amended by adding at the end the 
     following new paragraph:
       ``(6) Qualified substitute.--The term `qualified 
     substitute' means, with respect to a disposition of a United 
     States real property interest--
       ``(A) the person (including any attorney or title company) 
     responsible for closing the transaction, other than the 
     transferor's agent, and
       ``(B) the transferee's agent.''.
       (c) Exemption Not to Apply if Knowledge or Notice That 
     Affidavit or Statement Is False.--
       (1) In general.--Paragraph (7) of section 1445(b) (relating 
     to special rules for paragraphs (2) and (3)) is amended to 
     read as follows:
       ``(7) Special rules for paragraphs (2), (3), and (9).--
     Paragraph (2), (3), or (9) (as the case may be) shall not 
     apply to any disposition--
       ``(A) if--
       ``(i) the transferee or qualified substitute has actual 
     knowledge that the affidavit referred to in such paragraph, 
     or the statement referred to in paragraph (9)(A)(ii), is 
     false, or
       ``(ii) the transferee or qualified substitute receives a 
     notice (as described in subsection (d)) from a transferor's 
     agent, transferee's agent, or qualified substitute that such 
     affidavit or statement is false, or
       ``(B) if the Secretary by regulations requires the 
     transferee or qualified substitute to furnish a copy of such 
     affidavit or statement to the Secretary and the transferee or 
     qualified substitute fails to furnish a copy of such 
     affidavit or statement to the Secretary at such time and in 
     such manner as required by such regulations.''.
       (2) Liability.--
       (A) Notice.--Paragraph (1) of section 1445(d) (relating to 
     notice of false affidavit; foreign corporations) is amended 
     to read as follows:
       ``(1) Notice of false affidavit; foreign corporations.--
     If--
       ``(A) the transferor furnishes the transferee or qualified 
     substitute an affidavit described in paragraph (2) of 
     subsection (b) or a domestic corporation furnishes the 
     transferee an affidavit described in paragraph (3) of 
     subsection (b), and
       ``(B) in the case of--
       ``(i) any transferor's agent--

       ``(I) such agent has actual knowledge that such affidavit 
     is false, or
       ``(II) in the case of an affidavit described in subsection 
     (b)(2) furnished by a corporation, such corporation is a 
     foreign corporation, or

       ``(ii) any transferee's agent or qualified substitute, such 
     agent or substitute has actual knowledge that such affidavit 
     is false,

     such agent or qualified substitute shall so notify the 
     transferee at such time and in such manner as the Secretary 
     shall require by regulations.''.
       (B) Failure to furnish notice.--Paragraph (2) of section 
     1445(d) (relating to failure to furnish notice) is amended to 
     read as follows:
       ``(2) Failure to furnish notice.--
       ``(A) In general.--If any transferor's agent, transferee's 
     agent, or qualified substitute is required by paragraph (1) 
     to furnish notice, but fails to furnish such notice at such 
     time or times and in such manner as may be required by 
     regulations, such agent or substitute shall have the same 
     duty to deduct and withhold that the transferee would have 
     had if such agent or substitute had complied with paragraph 
     (1).
       ``(B) Liability limited to amount of compensation.--An 
     agent's or substitute's liability under subparagraph (A) 
     shall be limited to the amount of compensation the agent or 
     substitute derives from the transaction.''.
       (C) Conforming amendment.--The heading for section 1445(d) 
     is amended by striking ``or Transferee's Agents'' and 
     inserting ``, Transferee's Agents, or Qualified 
     Substitutes''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to dispositions of United States real property 
     interests after the date of the enactment of this Act.

     SEC. 11. DISCLOSURE OF PRISONER RETURN INFORMATION TO FEDERAL 
                   BUREAU OF PRISONS.

       (a) In General.--Subsection (k) of section 6103 (relating 
     to disclosure of certain return and return information for 
     tax administration purposes) is amended by adding at the end 
     the following new paragraph:
       ``(10) Disclosure of certain return information of 
     prisoners to federal bureau of prisons.--
       ``(A) In general.--Under such procedures as the Secretary 
     may prescribe, the Secretary may disclose to the head of the 
     Federal Bureau of Prisons any return information with respect 
     to individuals incarcerated in Federal prison whom the 
     Secretary has determined may have filed or facilitated the 
     filing of a false return to the extent that the Secretary 
     determines that such disclosure is necessary to permit 
     effective Federal tax administration.
       ``(B) Restriction on redisclosure.--Notwithstanding 
     subsection (n), the head of the Federal Bureau of Prisons may 
     not disclose any information obtained under subparagraph (A) 
     to any person other than an officer or employee of such 
     Bureau.
       ``(C) Restriction on use of disclosed information.--Return 
     information received under this paragraph shall be used only 
     for purposes of and to the extent necessary in taking 
     administrative action to prevent the filing of false and 
     fraudulent returns, including administrative actions to 
     address possible violations of administrative rules and 
     regulations of the prison facility.
       ``(D) Annual report.--In each of the calendar years 2007 
     through 2010, the Secretary shall submit to Congress and make 
     publicly available a report on the filing of false and 
     fraudulent returns by individuals incarcerated in Federal and 
     State prisons. Such report shall include statistics on the 
     number of false and fraudulent returns associated with each 
     Federal and State prison.
       ``(E) Termination.--No disclosure may be made under this 
     paragraph after December 31, 2010.''.
       (b) Recordkeeping.--Paragraph (4) of section 6103(p) is 
     amended by striking ``(k)(8)'' both places it appears and 
     inserting ``(k)(8) or (10)''.
       (c) Evaluation by Treasury Inspector General for Tax 
     Administration.--Paragraph (3) of section 7803(d) is amended 
     by striking ``and'' at the end of subparagraph (A), by 
     striking the period at the end of subparagraph (B) and 
     inserting ``; and'', and by adding at the end the following 
     new subparagraph:
       ``(C) not later than December 31, 2009, submit a written 
     report to Congress on the implementation of section 
     6103(k)(10).''.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to disclosures 
     made after December 31, 2007.
       (2) Annual report.--Section 6103(k)(10)(D) of the Internal 
     Revenue Code of 1986 (relating to annual reports), as added 
     by this section, shall apply to reports submitted after the 
     date of the enactment of this Act.

     SEC. 12. INCREASE IN PENALTY FOR BAD CHECKS AND MONEY ORDERS.

       (a) In General.--Section 6657 (relating to bad checks) is 
     amended--
       (1) by striking ``$750'' and inserting ``$1,250'', and
       (2) by striking ``$15'' and inserting ``$25''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to checks or money orders received after the date 
     of the enactment of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Georgia (Mr. Lewis) and the gentleman from Minnesota (Mr. Ramstad) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Georgia.
  Mr. LEWIS of Georgia. Mr. Speaker, I yield myself such time as I may 
consume.
  I rise in strong support of H.R. 1677 and am pleased to be a lead co-
sponsor of this bill with Chairman Rangel.
  Today is the due date for Americans to file their tax returns. On 
this day, it is wise for the House to consider a bill to increase 
taxpayer protection and expand outreach efforts to millions of 
Americans.
  Mr. Speaker, this is an important bill; this is a timely bill. The 
Taxpayer Protection Act is a result of a hearing held by the Oversight 
Subcommittee that I chair. H.R. 1677 is an important

[[Page 9015]]

first step in standing up, really standing up for the American 
taxpayer. It is a shame that people use fraudulent tax schemes to steal 
Social Security numbers and financial information from Americans.
  This legislation protects taxpayers from misleading Web sites and 
identity theft. H.R. 1677 provides higher penalties for persons who use 
either Web site names that may be confused with the official IRS Web 
site or mass e-mails that appear to be from the IRS. This bill requires 
the IRS to notify you if your identity is stolen in a tax scam.
  You should not become more vulnerable for being a responsible 
citizen. The Taxpayer Protection Act prohibits the IRS from providing 
certain information to businesses that the IRS believes make predatory 
loans based on tax refunds. These short-term loans often charge 
interest rates sometimes above 100 percent that victimize low-income 
workers.
  H.R. 1677 will also assist with efforts to reach millions of working 
Americans who are eligible to claim the earned income tax credit. These 
taxpayers often do not take advantage of the EITC. They have a right to 
know of all benefits available to them. Under this bill, the IRS will 
expand its current outreach program to help more low-income Americans 
receive this tax credit, a credit which lifts millions of families out 
of poverty each year.
  This bipartisan legislation moves us in the right direction to make 
tax issues simpler and clearer for the average person. We must fight 
poverty, fight fraud, and provide these basic protections for all 
Americans.
  Mr. Speaker, I fully support the Taxpayer Protection Act, and I urge 
all of my colleagues on both sides of the aisle to vote ``yes'' for 
H.R. 1677.
  Mr. Speaker, I reserve the balance of my time.
  Mr. RAMSTAD. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I strongly support the Taxpayer Protection Act. This 
legislation is a package of commonsense reforms that passed the Ways 
and Means Committee by a voice vote with broad bipartisan support, and 
I want to take this opportunity to thank Chairman Rangel of the full 
Ways and Means Committee, as well as Chairman Lewis, the chairman of 
our Oversight Subcommittee, for working in a bipartisan, pragmatic and 
commonsense way on this legislation, and for working in a bipartisan 
way thus far generally in the committee. I also want to thank Ranking 
Member McCrery for his leadership.
  Mr. Speaker, true to its name, this bill will protect taxpayers and 
expand their rights. One important reform will prevent Internet domains 
from using the Treasury Department's name or symbol, which is usually 
done to trick people into giving out sensitive personal or financial 
information. Clearly, this should not be allowed and should be 
outlawed, as this bill provides. It prohibits phishing, and by that I 
mean phishing with a ``P-H,'' not the kind that Minnesota is famous 
for. We are referring here to mass e-mail communications falsely 
claiming to be from the IRS that can lead to identity theft and have 
victimized too many Americans.
  The bill also requires the IRS to notify taxpayers when there is an 
unauthorized use of the taxpayer's identity. This will help taxpayers 
take steps to clear their names quickly if and when their identity is 
stolen.
  Another commonsense provision of this bill allows the IRS to return 
funds directly to a taxpayer's retirement account if the IRS improperly 
levied fines from that account.
  One provision, Mr. Speaker, that received considerable attention in 
the committee deals with refund anticipation loans. I mentioned in the 
committee that while I certainly understand the motivation behind the 
provision and the belief that the IRS should not be a facilitator for 
predatory loans, I am concerned because the bill does not define 
``predatory''; but I trust, Mr. Speaker, that will be clarified in the 
conference.
  I also hope we are not inadvertently making this problem worse by 
denying lenders information on ``debt indicators'' so that the 
provision increases the risk that a lender will not be reimbursed by 
the taxpayer's refund. This could cause lenders to increase fees and 
interest rates even further, making taxpayers pay even more for early 
access to their refunds. While I am not opposed to the provision, this 
should be addressed in the conference.
  I strongly support another provision in the bill which would 
encourage the IRS to do more to ensure that taxpayers entitled to 
receive earned income credit refunds actually receive them.
  Mr. Speaker, as we all know, the earned income credit is one of our 
most effective antipoverty tools for working families. This provision 
certainly deserves our strong support.
  Mr. Speaker, I am also very pleased that the committee adopted my 
amendment to prevent tax fraud by prison inmates. This amendment is 
based on legislation that Chairman Lewis and I introduced in the last 
Congress in response to a hearing we held in 2005. This hearing 
revealed massive tax fraud going on within the walls of our Nation's 
prisons. In fact, the IRS testified that 15 percent of all tax fraud in 
the United States is committed by prison inmates while in prison. Tax 
fraud in any form is obviously unacceptable and illegal; but it is 
particularly outrageous and egregious when it is committed by prison 
inmates who are supposed to be paying their debt to society, not 
bilking taxpayers.
  For example, we heard testimony, Mr. Speaker, from one inmate who had 
swindled taxpayers to the tune of $3.5 million in false tax return 
claims, and this was not an isolated incident.
  While the IRS is able to detect some inmate tax fraud, far too much 
of it falls through the cracks. And, unfortunately, the IRS is 
prohibited by current law from sharing information with prison 
officials that would allow those officials to punish and stop this 
fraud.
  My amendment, and I appreciate the chairman's support of this 
amendment, my amendment would allow the IRS to disclose information to 
Federal prison officials to help them stop the tax fraud that is 
occurring right under their noses within the walls of Federal prisons. 
I hope in time this commonsense provision can also be extended to 
include State prisons.
  Mr. Speaker, it is truly fitting that in a bill entitled the Taxpayer 
Protection Act we protect honest taxpayers from such blatant, 
outrageous fraud that is being committed by some prison inmates.
  Mr. Speaker, I urge my colleagues to protect taxpayers and support 
this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LEWIS of Georgia. Mr. Speaker, I thank my friend, my colleague, 
the ranking member, for all of his help and support in bringing this 
legislation before us today.


                             General Leave

  Mr. LEWIS of Georgia. Mr. Speaker, I ask unanimous consent to give 
Members 5 legislative days to revise and extend their remarks on the 
bill, H.R. 1677.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Georgia?
  There was no objection.
  Mr. LEWIS of Georgia. Mr. Speaker, I yield 3 minutes to the gentleman 
from North Dakota (Mr. Pomeroy), a member of the committee.
  Mr. POMEROY. Mr. Speaker, I want to commend my friend, the chairman 
of the Oversight Subcommittee, the former chairman, now ranking member 
of the Oversight Subcommittee, for bringing this bipartisan bill to the 
floor.
  There are a couple of features I wish to speak to: one, we prohibit 
use of misleading Internet names. I want to show you why I think that 
is important.
  This is Departmentofthetreasury
.com. You pull it up and it looks like an official Web page of the 
Federal Government. However, the second page on this same domain name 
shows
Departmentofthetreasury.com is for sale. Basically, departmentofthe
treasury.gov is the protected government name, and dot-com is a private 
name that preys upon the public believing they are communicating with

[[Page 9016]]

the Federal Government, and they are not.
  Now, I think we ought to take some exception to the marketing 
``Departmentofthetreasury.com is for sale.'' That is a public name. It 
is owned by the American people. You can't sell something you don't 
own, and that is a name appropriately reserved reflecting the 
Department of Treasury of this country, and nobody should be allowed to 
make a plug nickel on it.
  Here is some body of information showing just how lucrative it might 
be for those who want to prey upon the public using Federal names. 
There is a domain site called IRS.com, and inconceivably to me, they 
rang the bell as some prized business concern in the American Stock 
Exchange this morning. Well, I think a business that preys upon the 
public with misleading domain names is no business you want to 
celebrate in ringing the bell of a great stock exchange.
  In fact, public reports, as reported in the New York Times today, 
show that their revenues jumped from $17.5 in 2005 to $25.6 million 
after IRS.com paid $12.9 million for that domain name. I have pulled up 
IRS.com. Some would say there is clear disclosure; this is not a public 
site. IRS.com has IRS. It has tax information, and in little tiny, 
flyspeck language it has the disclosure. It is deliberately built to 
deceive, and in fact one survey showed that 40 percent of those 
accessing the site thought it was a Federal site. And even after seeing 
it, one-third thought it was a Federal site. But they use this site to 
market information to taxpayers.
  Just to conclude, the business plan of these enterprises to get 
people to the site, they then have other services offered on the site. 
The domain holder, IRS.com, is paid for each link accessed by a member 
of the public. Some of the things sold on that site represent very low 
value: refund anticipation loans or expensive tax preparation services. 
This is a fraud on the public, and we ought to put an end to it.
  I also appreciate what we are doing, turning up the heat on these 
refund anticipation loans, or RALs. To me, they represent an 
exceedingly poor value to the American public. In fact, such a poor 
value that I can't believe people are accessing them if they knew the 
facts and knew the costs. The commissioner has identified some of the 
practices as predatory lending in testimony to the committee. I like 
giving the Treasury Department authority to deal with people engaged in 
predatory lending practices. I urge passage of the bill.

                              {time}  1345

  Mr. RAMSTAD. Mr. Speaker, I reserve the balance of my time.
  Mr. LEWIS of Georgia. Mr. Speaker, I yield 2 minutes to the gentleman 
from Pennsylvania (Mr. Carney).
  Mr. CARNEY. Mr. Speaker, I thank Mr. Lewis for his leadership on this 
very important bill that we are discussing today.
  I rise today in support of the Taxpayer Protection Act of 2007. I 
have spent the last 2 weeks in northeast and central Pennsylvania 
hearing from families in my district about matters that concern them, 
and one thing was consistent. Our middle-class families deserve a tax 
cut and tax protection.
  It is time to start protecting our taxpayers, Mr. Speaker. This 
bipartisan legislation will do just that. This legislation requires the 
IRS to notify taxpayers if there has been an unauthorized use of their 
identity. This is a serious issue, and the IRS must be actively 
contacting those individuals who may have fallen victim to identity 
theft.
  This bill protects those who would receive a tax break, also. It 
requires the IRS to notify those who would be eligible for a tax break. 
For example, it requires the IRS to conduct additional earned income 
tax credit outreach, including notifying those who are eligible about 
how to apply for it.
  The Taxpayer Protection Act supports small, family-owned businesses 
and allows for spouses of the family-owned business to pay Social 
Security and Medicare taxes as a sole proprietorship rather than as a 
partnership. This will save our small businesses money, promoting 
investment and growth in our communities.
  I came to Congress to stand up for working families, both in my 
State, Pennsylvania, and this country. This bipartisan bill protects 
taxpayers, protects families and protects individuals; and I am proud 
to support it today.
  Mr. Speaker, I just want to mention our condolences for those at 
Virginia Tech University. I think today everybody in this country is a 
Hokie.
  Mr. RAMSTAD. Mr. Speaker, I yield 2 minutes to the gentleman from 
California (Mr. Herger), a distinguished member of the Ways and Means 
Committee and ranking member of the Trade Subcommittee.
  Mr. HERGER. Mr. Speaker, in 2001 President Bush and Congress worked 
to enact the most important tax relief since Ronald Reagan in the 
1980s.
  For individuals and families, we reduced marginal tax rates on 
personal income, doubled the child tax credit, reduced the unfair 
marriage tax penalty, phased out the onerous death tax, and 
significantly lessened the impact of the alternative minimum tax. We 
also provided essential tax relief on investment income.
  Far from taxpayer protection, as this bill's title suggests, we are 
now hearing proposals from the other side that would do away with the 
tax relief of the last 6 years. Contrary to the naysayers, tax relief 
has played a critical role in revitalizing our Nation's economy.
  Over 7.5 million new jobs have been created since 2003. The national 
unemployment rate has fallen to a very low 4.4 percent. Economic growth 
has been steady and strong. Our investment markets are no longer 
bursting; they are booming.
  American families and small businesses did not just sit on the $1.1 
trillion that we returned to them. They put much of it back into our 
economy through investment and consumption. The result: Tax revenues 
are up 35 percent and deficits are much lower than CBO anticipated.
  Mr. Speaker, as we observe tax day, to truly protect taxpayers, 
Congress should talk about ways to make the tax relief we have 
permanent. Regrettably, the majority party and its budget anticipate 
the opposite.
  Mr. LEWIS of Georgia. Mr. Speaker, I yield 1 minute to the gentleman 
from California (Mr. McNerney).
  Mr. McNERNEY. Mr. Speaker, I rise today in strong support of the 
Taxpayer Protection Act of 2007.
  I would like to commend Chairman Rangel and Ranking Member McCrery 
for bringing this bill to the floor and for working to simplify our tax 
policies.
  Today's Tax Code has become so complex that it takes more than 25 
hours to complete an itemized tax return. That is about 10 hours longer 
than in 1988.
  Small business owners will also benefit significantly from this 
legislation by streamlining the process that married couples use to 
file returns.
  Our reliance on technology and the openness of the Internet is 
greater than ever, and we should improve security to defend American 
taxpayers from identity theft.
  I am pleased that provisions in the Taxpayer Protection Act increase 
on-line security for individuals and allow them to have better recourse 
in the event of a crime.
  Mr. Speaker, I urge my colleagues to support H.R. 1677.
  Mr. RAMSTAD. Mr. Speaker, I reserve the balance of my time.
  Mr. LEWIS of Georgia. Mr. Speaker, I yield 3 minutes to the gentleman 
from New York (Mr. Crowley), my colleague on the Ways and Means 
Committee.
  Mr. CROWLEY. Mr. Speaker, thank you for giving me the time.
  I also just want to express briefly the support of my constituents in 
Queens and The Bronx in New York. Their hearts and prayers are today in 
Virginia with the students and faculty and parents of Virginia Tech 
students.
  Mr. Speaker, I rise in strong support of the Taxpayer Protection Act, 
a bill that will work to protect and empower taxpayers.
  I want to specifically recognize and thank Chairman Rangel not only 
for crafting a solid, bipartisan bill, but

[[Page 9017]]

also for continuing the comity that has, this year, become the hallmark 
of our committee.
  I would also like to express my gratitude to you, as well as to 
Oversight Subcommittee Chairman Lewis and Ranking Member Ramstad for 
including important new provisions dealing with the earned income tax 
credit. The EITC has been a great benefit to my constituents, with 
almost 114,000 of them claiming this credit, bringing home to Queens 
and The Bronx $270 million. While impressive, I still have almost 
23,000 constituents in my district who are eligible, but do not seek 
this credit, thereby missing out on an estimated $54 million in 
revenue, money these people need for everyday living and money that can 
be turned back into our communities.
  During both the oversight hearing on EITC and, later, the full 
committee hearing with IRS Commissioner Everson, I highlighted the need 
for the IRS to work with those who qualify for the EITC to make the 
process of restating past returns easier. This bill does that.
  Additionally, during private and, later, under committee questioning, 
I asked Commissioner Everson about ways to outreach EITC to more 
people, including those who may not file returns.
  Again, the sponsors heard the concerns of many of us on this 
committee and crafted a bill today that also mandates the IRS undertake 
this outing by using IRS' existing resources and data to dig deeper and 
find these eligible people.
  The people who qualify and receive the earned income tax credit, the 
people I am talking about, are the working poor, again poor people who 
work, and they need our help. This bill provides them an important 
helping hand. I thank the sponsors for putting working people first in 
this legislation.
  I also want to thank many of the not-for-profit groups that are 
helping our constituents access EITC. Just yesterday, I met with the 
leadership in New York City of ACORN, and they are starting a program 
to help our mutual constituents reach out so that they can make access 
of the EITC, the earned income tax credit.
  I once again thank the sponsors of this legislation. I welcome this 
new direction in Congress and in America.
  Mr. RAMSTAD. Mr. Speaker, I continue to reserve the balance of my 
time.
  Mr. LEWIS of Georgia. Mr. Speaker, I yield 1 minute to the gentleman 
from North Carolina (Mr. Shuler).
  Mr. SHULER. I thank the gentleman for yielding.
  Mr. Speaker, before I begin, I would like to offer my thoughts and 
prayers to the family of those who died yesterday at Virginia Tech and 
all those affected by this senseless tragedy.
  Mr. Speaker, I rise today in support of this legislation, H.R. 1677, 
the Taxpayer Protection Act of 2007.
  As we mark the deadline for Federal income taxes today, this bill 
takes important steps to simplify the tax process for family-owned 
small businesses, which are the backbone of our country and our 
economy.
  Mr. Speaker, this bill will allow both spouses in a family-owned 
business to pay Social Security and Medicare taxes as a sole 
proprietorship, not as a partnership.
  Mr. Speaker, when a husband and wife owns a business together, they 
are really collecting only one paycheck. They should only have to pay 
taxes once.
  Mr. RAMSTAD. Mr. Speaker, I yield 3 minutes to the gentleman from 
Georgia (Mr. Price), a champion of the taxpayer.
  Mr. PRICE of Georgia. I appreciate the gentleman for yielding, and I 
appreciate the leadership on both sides of the aisle for this issue.
  I am heartened by the stated enthusiasm of the members of the 
majority party for the Taxpayer Protection Act. I am remarkably 
encouraged.
  Today being tax day, it is appropriate that we speak about this 
issue, and it is mostly good work. I would commend the individuals who 
worked on this. It is mostly good work, but I would suggest, Mr. 
Speaker, that real protection requires real reform, and the real 
solution to the challenges that we face as Americans, all of us in our 
tax system, is that we need fundamental reform.
  This is an appropriate bill and kind of tinkers with the margins of 
our tax system, and I think those modifications are, as I mentioned, 
appropriate and a step in the right direction; but our current system 
is extremely regressive and extremely unfair.
  So, to talk about the earned income tax credit, it's an appropriate 
thing to notify people who don't know that they are eligible for that. 
However, there are embedded taxes in everything that we purchase that 
make our system right now much more regressive than it ought be.
  There is legislation available that would, in fact, promote 
fundamental reform. It would capture all of the underground economy 
that is fully a third of our current economy, nearly $1 trillion. It 
would reward those kinds of things that we say that we want, like hard 
work and success and entrepreneurship and vision and all those 
wonderful American ideals.
  That bill is H.R. 25. It is the fair tax, the national retail sales 
tax. It would bring about true fundamental reform and would bring about 
true protection for the American taxpayer.
  So I commend the individuals who brought forward H.R. 1677, and I 
would suggest, Mr. Speaker, that this is a small step in the right 
direction. However, real reform requires real change. Fundamental 
reform to our tax system is what is needed, and I am hopeful that in 
relatively short order we will be able to embrace each other with real 
fundamental reform to our entire tax system on the floor of this House.
  Mr. LEWIS of Georgia. Madam Speaker, I yield 2 minutes to the 
gentleman from Oregon (Mr. Blumenauer), a member of the Ways and Means 
Committee.
  Mr. BLUMENAUER. Madam Speaker, I appreciate my colleague from 
Georgia, the distinguished chairman of the Oversight Committee, for 
permitting me to speak on this bill, and I commend his hard work.
  I find no small amount of irony hearing one of our friends from the 
other side of the aisle talk about how it might be time now for tax 
reform. The other side of the aisle was in charge for 12 years, and it 
is interesting that in the last 6 years, when they controlled the White 
House and Congress and had three major tax bills before us, the words 
in the Tax Code increased 1.5 million; 1.5 million extra words, 
special-interest provisions, while ignoring opportunities to simplify 
the code and to deal meaningfully with the tax tsunami that is coming 
at us, the alternative minimum tax.

                              {time}  1400

  I appreciate the hard work that the subcommittee has done, dealing 
with provisions like this that have no argument against them. These are 
things that are long overdue. I am glad we are moving forward. I 
commend the subcommittee Chair, and our Chair, Mr. Rangel, for looking 
at other provisions that would level the playing field, that would deal 
with simplification, deal with fairness, deal with some of the problems 
that lower-income citizens have in terms of trying to cope with the 
complexity, and being able to equip the Internal Revenue Service to 
make sure that we deal with hundreds of billions of dollars that is 
uncollected revenue that shifts the burden on the vast majority of 
Americans who are hard working, who report their income, who pay their 
taxes fairly and on time.
  It isn't the fault of the worker who has got the W-2 that we have 
this vast amount of uncollected income. We have the complexity. I 
appreciate what this bill represents, a true effort at bipartisan 
cooperation to establish a foundation. We can move forward to have an 
Internal Revenue Code that is fair and effective for all.
  Mr. RAMSTAD. Madam Speaker, may I just inquire as to how many 
speakers the other side may have.
  Mr. LEWIS of Georgia. That was my last speaker, Mr. Ranking Member.
  Mr. RAMSTAD. Madam Speaker, before yielding back, I too want to 
express my deepest sympathy to the entire Virginia Tech community. Like

[[Page 9018]]

every other Member of this body, my thoughts and prayers are with all 
those affected by the tragic and senseless loss of lives.
  Having no further speakers, I urge a strong ``yes'' vote for this 
taxpayer protection.
  Madam Speaker, I yield back the balance of my time.
  Mr. LEWIS of Georgia. Madam Speaker, I too, before I close this 
debate on this bill, join with my colleagues and others to mourn for 
the victims of this unspeakable, unbelievable, senseless act of 
violence at Virginia Tech. We mourn, we pray for the victims and for 
their families.
  I also want to thank my colleague, my friend, the ranking member, Mr. 
Ramstad, for all of his help in bringing this piece of legislation, as 
I stated before, before us today.
  Madam Speaker, I fully support H.R. 1677, the Taxpayer Protection Act 
of 2007. We must do more for Americans. We must protect taxpayers from 
being victims of fraudulent tax schemes, misleading Web sites and 
predatory refund loans.
  H.R. 1677 does this. It provides higher penalties for deceptive Web 
sites and mass e-mails. It requires the IRS to notify you if your 
identity is stolen in a tax scam. It reduces predatory refund loans.
  H.R. 1677 expands IRS outreach programs to millions of taxpayers 
eligible for the earned income tax credit who have not claimed it. This 
credit lifts millions of working Americans out of poverty each year.
  Madam Speaker, this is a good bill. This is an important bill. This 
is a necessary bill. On this tax day we must do more for taxpayers. I 
urge my colleagues, all of my colleagues on both sides of the aisle to 
vote ``yes'' for H.R. 1677.
  Mr. MARKEY. Madam Speaker, I rise in strong support of H.R. 1677, the 
``Taxpayer Protection Act of 2007.''
  I would like to focus my remarks on Section 8 of this bill, which 
clarifies the intent of the Congress that the existing legal 
prohibitions on the misuse of Department of the Treasury names and 
symbols also extend to misuse over the Internet. I support this 
provision, which addresses a very real problem that currently exists 
with potentially misleading commercial websites that taxpayers may 
mistakenly believe to be affiliated with the IRS.
  In February, the Subcommittee on Telecommunications and the Internet, 
which I chair, became aware of three commercial websites operating 
under domain names which may confuse the public into believing them to 
be official IRS websites: IRS.com, IRS.net and IRS.org. In response to 
this situation, I wrote to the Federal Trade Commission Chairman 
Majoras, Secretary of the Treasury Paulson, and Internal Revenue 
Service Commissioner Everson to express my concerns that consumers who 
visited these sites might provide the operators with personally 
identifiable information and tax return information, enabling the 
operators to either market or sell this information to others, or to 
sell and market all manner of products and services to these taxpayers.
  A consumer survey and study presented to the IRS and FTC in early 
January of this year by the Computer and Communications Industry 
Association suggested that a significant proportion of consumers 
misinterpreted these three non-governmental Websites as being sites 
hosted by the IRS. The survey showed, for example, that before viewing 
the website IRS.com, 47 percent of those surveyed believed the site 
represented the Internet address of the Internal Revenue Service. Even 
after viewing the site, \1/3\ of those surveyed still believed the site 
was the IRS website.
  Now, the IRS.com website bears a remarkable resemblance to the 
official IRS.gov site. Both websites have the same color blue banner at 
the very top, a grey search bar right below, and a white background 
with various links and search features covering the bulk of the page. 
Back in February, the IRS.com site even had an actual image of the U.S. 
Treasury headquarters building on the top of the page. At the time, 
there was only a fine-print disclaimer at the bottom of these sites 
stating that that it was a non-governmental site. This disclaimer was 
so far down on the webpage that few consumers were likely to view it.
  I continue to be concerned about the potential for unfair or 
deceptive trade practices associated with these commercial websites, 
and I believe that we need to do more to ensure that the public does 
not continue to be exposed to these potentially misleading or confusing 
websites. There is no relationship between a citizen and our government 
more sensitive, nor information more private, than that involving 
individual taxes and the annual voluntary compliance obligation. The 
federal government has a duty to protect taxpayers from predatory 
behaviors as they seek to meet their obligation to pay taxes.
  I am hopeful that, by clarifying the intent of the Congress that the 
existing legal prohibitions on misuse of Treasury Department and IRS 
names and symbols are and should be applied to commercial activity on 
the Internet, this bill will better protect the public from this kind 
of operation in the future.
  I urge adoption of the bill.
  Mr. EMANUEL. Madam Speaker, I rise today in support of H.R. 1677, the 
Taxpayer Protection Act of 2007. Too often, middle-class taxpayers find 
themselves confused and frustrated by the complexity of the tax code. 
Over 60 percent of taxpayers now use a paid preparer to file their tax 
return, costing them hundreds or thousands of dollars that they could 
have used for college, health care, or retirement.
  This legislation provides overdue relief for taxpayers that will 
protect them from fraud, require the IRS to do a better job of 
communicating which tax credits a taxpayer can qualify for, and hold 
tax cheats accountable for their actions. Today is Tax Day, and this 
legislation sends a message to taxpayers that help is on the way.
  Hearings held by Chairman John Lewis provided ample evidence that 
taxpayers are too often exposed to identify theft or unaware of 
potential benefits. The Taxpayer Protection Act will require the IRS to 
notify taxpayers involved in tax fraud investigations that there may 
have been an unauthorized use of their identities, will provide filers 
with a longer period of time to seek restitution from the IRS for a 
wrongful penalty, punish predatory lenders, and require the IRS to 
promote the Earned Income Tax Credit so that more Americans can take 
care of a tax benefit they have earned but have not been notified.
  Madam Speaker, Tax Day can be a difficult day for many Americans. Let 
us do our part to make common-sense reforms that put the government 
back on the side of the average taxpayer.
  I thank Mr. Rangel, the Chairman of the Ways and Means Committee, for 
his leadership on this issue, and I urge my colleagues to join me in 
voting for H.R. 1677, the Taxpayer Protection Act of 2007.
  Mr. LEVIN. Madam Speaker, I rise today in strong support of H.R. 
1677, the Taxpayer Protection Act.
  I would note that its consideration today is particularly timely as 
millions of hardworking Americans file their tax returns. Those workers 
and families deserve to know that their government is taking every step 
to protect the sensitive data contained in those returns and to enhance 
taxpayer rights.
  Identity theft is a large and growing problem in our society, and 
unfortunately, a lack of vigilance on the part of the IRS has 
contributed to that problem. One criminal who testified before the 
Senate Finance Committee last week detailed how he stole $1.1 million 
from the Treasury by using stolen identities to claim fraudulent 
refunds. While this individual is rightly serving time in prison, we 
must act to prevent such crimes in the future.
  This legislation contains a number of common sense provisions to 
accomplish just that, including a requirement that the IRS notify a 
taxpayer if it discovers that there may have been an unauthorized use 
of the taxpayer's identity during the course of a tax fraud 
investigation and the authority for the IRS to notify taxpayers on the 
Internet about unclaimed tax refunds. It also increases penalties on 
misleading websites that use government names and symbols to engage in 
the fraudulent practice known as ``phishing. ``
  I am also pleased that it enhances Earned Income Tax Credit outreach 
so that every taxpayer who is eligible for this credit realizes its 
benefits.
  Madam Speaker, I urge my colleagues to support the legislation.
  Mr. MARKEY. Madam Speaker, I rise in strong support of H.R. 1677, the 
``Taxpayer Protection Act of 2007.''
  I would like to focus my remarks on Section 8 of this bill, which 
clarifies the intent of the Congress that the existing legal 
prohibitions on the misuse of Department of Treasury names and symbols 
extend to misuse over the Internet. I support this provision, which 
addresses a very real problem that currently exists with potentially 
misleading commercial Web sites that taxpayers may mistakenly believe 
to be affiliated with the IRS.
  In February, the Subcommittee on Telecommunications and the Internet, 
which I chair, became aware of three commercial Web sites operating 
under domain names which

[[Page 9019]]

may confuse the public into believing them to be official IRS Web 
sites: IRS.com, IRS.net, and IRS.org. In response to this situation, I 
wrote to the Federal Trade Commission Chairman Majoras, Secretary of 
the Treasury Paulson, and Internal Revenue Service Commissioner Everson 
to express my concerns that consumers who visited these sites might 
provide the operators with personally identifiable information and tax 
return information, enabling the operators to either market or sell 
this information to others, or to sell and market all manner of 
products and services to these taxpayers. Since the taxpayers who 
provide personal information to these sites might be doing so under the 
misimpression that they were dealing with an official government Web 
site subject to applicable federal privacy protections, I felt there 
was a serious potential for consumer confusion, deception, and abuse.
  In fact, a consumer survey and study presented to the IRS and FTC in 
early January of this year by the Computer and Communications Industry 
Association suggested that a significant proportion of consumers 
misinterpreted these three nongovernmental Web sites as being sites 
hosted by the IRS. The survey showed, for example, that before viewing 
the Web site IRS.com, 47 percent of those surveyed believed the site 
represented the Internet address of the Internal Revenue Service. Even 
after viewing the site, one third of those surveyed still believed the 
site was the IRS Web site.
  Now, the IRS.com Web site bears a remarkable resemblance to the 
official IRS.gov site. Both Web sites have the same color blue banner 
at the very top, a grey search bar right below, and a white background 
with various links and search features covering the bulk of the page. 
Back in February, the IRS.com site even had an actual image of the U.S. 
Treasury headquarters building on the top of the page. At the time, 
there was only a fine-print disclaimer at the bottom of this site 
stating that it was a non-governmental site. This disclaimer was so far 
down on the Web page that few consumers were likely to view it.
  I asked the FTC, the Treasury, and the IRS to look into the issues 
raised by this Web site, as well as the IRS.org and IRS.net sites. The 
IRS and the Treasury Department have never formally responded to my 
inquiry. However, the IRS has issued a press statement warning 
taxpayers about these potentially misleading sites. The FTC did respond 
to my letter, but in that response merely noted that in response to the 
concerns I had raised, the operator had ``made a number of changes to 
distinguish it from the official IRS Web site, and to better highlight 
the disclaimers included on the Web site.''
  I continue to be concerned about the potential for unfair or 
deceptive trade practices associated with these commercial Web sites, 
and I believe that we need to do more to ensure that the public does 
not continue to be exposed to these potentially misleading or confusing 
Web sites. There is no relationship between a citizen and our 
government more sensitive, nor information more private, than that 
involving individual taxes and the annual voluntary compliance 
obligation. The federal government has a duty to protect taxpayers from 
predatory behaviors as they seek to meet their obligation to pay taxes. 
I am hopeful that by clarifying the intent of the Congress that the 
existing legal prohibitions on misuse of Treasury Department and IRS 
names and symbols is and should be applied to commercial activity on 
the Internet, that this bill will better protect the public from this 
kind of operation in the future.
  I urge adoption of the bill.
  Mr. REYES. Madam Speaker, I rise today in strong support of H.R. 
1677, the Taxpayer Protection Act of 2007.
  This bill accomplishes several important objectives. It cracks down 
on websites that attempt to strip unwitting consumers of sensitive 
information by imitating the IRS website. Electronic filing is on the 
rise, which is good for both consumers and the IRS, and we must make 
sure Americans feel comfortable and secure when paying their taxes 
online.
  This legislation would also require the IRS to notify a taxpayer when 
it becomes evident in the course of a tax fraud investigation that he 
or she may have been the victim of identify theft. In the past, when 
presented with evidence of such fraud, the IRS, incredulously, would 
not apprise an individual of the serious situation he or she was 
facing. This must change.
  In addition, the bill would also simplify tax filing requirements for 
businesses owned jointly by a husband and wife and make it easier for a 
married couple to file as a single proprietor of a business rather than 
as a partnership. It increases consumer protections from predatory 
providers of refund anticipation loans, gives taxpayers more time to 
recover property seized improperly by the IRS, and updates federal law 
to stop certain forms of tax fraud.
  Perhaps most importantly, this bill would strengthen our outreach to 
people entitled to cash back on their tax returns under the Earned 
Income Tax Credit (EITC). The EITC is effective because it rewards 
work. The families of Americans who work hard but don't earn a lot 
should not be forced to live in poverty. However, recent evaluations 
have shown that approximately 25 percent of hardworking households 
eligible for the EITC have not claimed it, and billions of dollars in 
targeted tax credits did not end up in the hands of the workers who 
needed them most.
  When hundreds of millions of Americans step up to invest in their 
country by paying their taxes, they must know that Congress is looking 
out for their best interests. By passing this bill, we are doing just 
that.
  I thank my colleagues and urge passing of the bill.
  Mr. CUMMINGS. Madam Speaker, today marks a date that is familiar to 
most Americans: April 17th is the deadline for filing taxes. Like most 
Americans, I too can now breathe a sigh of relief because my tax return 
has been mailed to the Internal Revenue Service, IRS.
  This year we were fortunate enough to have more time to file our 
taxes due to the normal tax day falling on the weekend and the 
Emancipation Day Holiday in the District of Columbia on Tuesday. While 
many filers will benefit from this extra time, millions of Americans 
will still ask for extensions to file due to their inability to 
understand the complicated tax regulations.
  I am committed to a tax system that is fair to all Americans and to a 
system that is ``tax-payer friendly.'' This is why I support efforts to 
simplify the tax code by closing loopholes, which will reduce the 
compliance burden. By simplifying our current code, we can increase 
compliance, and ensure our long-term fiscal stability. It is our duty 
to protect taxpayers and to provide a ``user-friendly'' government.
  For this reason, I support H.R. 1677, the Taxpayer Protection Act of 
2007. This Act requires the IRS to notify taxpayers of incidences of 
identity theft; prevents the wrongful use of one's name; permits the 
IRS to withhold information from the companies offering refund 
anticipation loans that are considered predatory; and gives taxpayers 
more time to collect money that was wrongfully held by the IRS. This 
legislation would help to protect taxpayers from unlawful acts that at 
times can be hard to detect.
  Each year millions of families expect to receive money back from the 
government. However, they deserve to be receiving more; America's 
families and workers need tax relief. It should be a priority for 
Congress to assist families with the cost of childcare and long-term 
health care, eliminate the marriage penalty, help small businesses, and 
help Americans save for higher education and retirement. We need to 
develop a refundable tax credit for workers who earn reasonably low 
incomes. This is very important to helping the American people.
  As a member of Congress it is our duty to ensure that taxpayers are 
being treated fairly and equally within our tax system. As the 110th 
Congress moves forward, I will work with my colleagues to ensure that 
this goal is achieved.
  That is why I urge my colleagues to vote in favor of H.R. 1677, the 
Taxpayer Protection Act of 2007. I want to thank Congressman Rangel and 
Congressman Lewis for introducing this vitally important legislation.
  Mr. LEWIS of Georgia. Madam Speaker, I yield back the balance of my 
time.
  The SPEAKER pro tempore (Mrs. Tauscher). The question is on the 
motion offered by the gentleman from Georgia (Mr. Lewis) that the House 
suspend the rules and pass the bill, H.R. 1677, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. LEWIS of Georgia. Madam Speaker, on that I demand the yeas and 
nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this question will 
be postponed.

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