[Congressional Record (Bound Edition), Volume 157 (2011), Part 5]
[Extensions of Remarks]
[Page 6249]
[From the U.S. Government Publishing Office, www.gpo.gov]




    INTRODUCTION OF THE SOCIAL SECURITY IDENTITY DEFENSE ACT OF 2011

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                          HON. THOMAS E. PETRI

                              of wisconsin

                    in the house of representatives

                        Thursday, April 14, 2011

  Mr. PETRI. Mr. Speaker, today, along with Rep. Joe Donnelly of 
Indiana, I am introducing the Social Security Identity Defense Act of 
2011, 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. After a routine review of 
his credit report, this constituent found accounts opened by another 
person that had used his Social Security number. This discovery raised 
many concerns, not the least of which 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 was aware 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 to themselves. While the IRS remained silent, 
additional frauds were committed, resulting in the credit accounts 
opened using my constituent's personal information. 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.
  This policy makes no sense and actually puts the IRS on the wrong 
side in the fight against identity theft. Our legislation aims to 
correct this problem by changing the privacy statutes to direct the IRS 
to inform a taxpayer when it learns through its normal course of 
business that a Social Security number assigned to that taxpayer has 
been used fraudulently by another worker.
  In May 2006, President George W. Bush signed an executive order 
establishing the Identity Theft Task Force made up of the U.S. Attorney 
General, the Chairman of the Federal Trade Commission, several heads of 
cabinet-level departments, and various other officers of the U.S. 
Government. The Task Force was directed to implement a policy 
``effectively to deter, prevent, detect, investigate, proceed against, 
and prosecute unlawful use by persons of the identifying information of 
other persons.'' Elaborating on this policy goal, the Executive Order 
went on to specify actions to increase safeguards that Federal 
departments and agencies could implement to better secure government-
held personal data.
  In responding to the President's charge, the Task Force issued a 
strategic plan, including numerous specific recommendations focused on 
improvements in four key areas. Keeping sensitive consumer data out of 
the hands of identity thieves; increasing the obstacles to the 
fraudulent use of any personal data obtained by an identity thief; 
assistance for victims of identity theft; and deterring this crime by 
aggressive prosecution and punishment of identity thieves.
  Combating identity theft is an important and difficult job. I believe 
that the Task Force has made a commendable contribution to this effort 
and that implementation of its recommendations by public and private 
entities will help in fighting this crime. As the report itself notes, 
``Only an approach that encompasses effective prevention, public 
awareness and education, victim assistance, and law enforcement 
measures, and fully engages federal, state, and local authorities will 
be successful in protecting citizens and private entities from the 
crime.''
  The recommendations included in this strategic plan, however, do not 
include improved efforts by the IRS in assisting honest taxpayers in 
fighting identity theft. For this reason, the Social Security Identity 
Defense Act picks up where this strategic plan left off and provides 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 and Rep. Donnelly in 
this effort by cosponsoring the Social Security Defense Act.

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