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Title IV — Strengthening laws and improving enforcement against tax-related identity theft

S. 676 · 113th Congress · Apr 9, 2013 · Lineage

IV Strengthening laws and improving enforcement against tax-related identity theft

Sec. 401 Criminal penalty for using a false identity in connection with tax fraud

(a)
In general— Section 7206 of the Internal Revenue Code of 1986 is amended—
(1)
by striking “Any person” and inserting the following:

“(a) In general—Any person”

(2)
by adding at the end the following new subsection:

“(b) Use of false identity—Any person who willfully misappropriates another person's taxpayer identity (as defined in section 6103(b)(6)) for the purpose of making any list, return, account, statement, or other document submitted to the Secretary under the provisions of this title shall be guilty of a felony and, upon conviction thereof, shall be fined not more than $250,000 ($500,000 in the case of a corporation) or imprisoned not more than 5 years, or both, together with the costs of prosecution.”

(b)
Aggravated identity theft— Section 1028A(c) of title 18, United States Code, is amended by striking “or” at the end of paragraph (10), by striking the period at the end of paragraph (11) and inserting “; or”, and by adding at the end the following new paragraph:

“(12) section 7206(b) of the Internal Revenue Code of 1986 (relating to use of false identity in connection with tax fraud).”

(c)
Effective date— The amendments made by this section shall apply to offenses committed after the date of the enactment of this Act.

Sec. 402 Increased penalty for improper disclosure or use of information by preparers of returns

(a)
In general— Section 6713(a) of the Internal Revenue Code of 1986 is amended—
(1)
by striking “$250” and inserting “$1,000”, and
(2)
by striking “$10,000” and inserting “$50,000”.
(b)
Criminal penalty— Section 7216(a) of the Internal Revenue Code of 1986 is amended by striking “$1,000” and inserting “$100,000”.
(c)
Effective date— The amendments made by this section shall apply to disclosures or uses after the date of the enactment of this Act.

Sec. 403 Authority to transfer Internal Revenue Service appropriations to use for tax fraud enforcement

For any fiscal year, the Commissioner of Internal Revenue may transfer not more than $10,000,000 to the “Enforcement” account of the Internal Revenue Service from amounts appropriated to other Internal Revenue Service accounts. Any amounts so transferred shall be used solely for the purposes of preventing and resolving potential cases of tax fraud.

Sec. 404 Local law enforcement liaison

(a)
Establishment— The Commissioner of Internal Revenue shall establish within the Criminal Investigation Division of the Internal Revenue Service the position of Local Law Enforcement Liaison.
(b)
Duties— The Local Law Enforcement Liaison shall serve as the primary source of contact for State and local law enforcement authorities with respect to tax-related identity theft and other tax fraud matters, having duties that shall include—
(1)
receiving information from State and local law enforcement authorities;
(2)
responding to inquiries from State and local law enforcement authorities;
(3)
administering authorized information-sharing initiatives with State or local law enforcement authorities and reviewing the performance of such initiatives;
(4)
ensuring any information provided through authorized information-sharing initiatives with State or local law enforcement authorities is used only for the prosecution of identity theft-related crimes and not re-disclosed to third parties; and
(5)
any other duties as delegated by the Commissioner of Internal Revenue.