[Congressional Record (Bound Edition), Volume 163 (2017), Part 2]
[Extensions of Remarks]
[Page 2170]
[From the U.S. Government Publishing Office, www.gpo.gov]




  INTRODUCTION OF THE HUMAN TRAFFICKING FRAUD ENFORCEMENT ACT OF 2017

                                 ______
                                 

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                        Monday, February 6, 2017

  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I rise to 
reintroduce the Human Trafficking Fraud Enforcement Act of 2017 with my 
colleague Rep. Ted Poe.
  In March 1931, the infamous gangster, Al Capone, was ultimately 
indicted for tax fraud. Today the IRS Criminal Investigations division 
continues to play a vital role in proving criminal activity and fraud. 
I believe that the IRS can play a similar role in cracking down on 
criminals profiting from human trafficking and prostitution.
  This bill authorizes $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.
  The Human Trafficking Fraud Enforcement Act of 2017 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 
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 who are victimized by the 
traffickers by revising current IRS Whistleblower provisions so that 
women and girls who choose to come forward to cooperate in an 
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.
  We must use every tool possible to take down traffickers, who have 
often proven elusive to apprehend and prosecute. I urge my colleagues 
to cosponsor this important legislation.

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