US Codex
Bill
Notes

H.R. 3832 — what changed

Stolen Identity Refund Fraud Prevention Act of 2016

From Reported in House to Engrossed in House. 8 sections amended between Reported in House and Engrossed in House.

Sec. 3 Taxpayer notification of suspected identity theft

(a)
In general— Chapter 77 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

“7529. Notification of suspected identity theft

“If the Secretary determines that there was an unauthorized use of the identity of any taxpayer, the Secretary shall—

“(1) as soon as practicable and without jeopardizing an investigation relating to tax administration, notify the taxpayer and include with that notice—

changed “(A) instructions to the taxpayer about filing a police report, report; and

changed “(B) the forms the taxpayer must submit to allow investigating law enforcement officials to access the taxpayer’s personal information, information; and

“(2) if any person is criminally charged by indictment or information relating to such unauthorized use, notify such taxpayer as soon as practicable of such charge.”

(b)
Clerical amendment— The table of sections for chapter 77 of such Code is amended by adding at the end the following new item:
(c)
Effective date— The amendments made by this section shall apply to determinations made after the date of the enactment of this Act.

Sec. 5 Use of information in Do Not Pay Initiative in prevention of identity theft refund fraud

added The Secretary of the Treasury, and the Secretary’s delegate, shall use the information available under the Do Not Pay Initiative established under section 5 of the Improper Payments Elimination and Recovery Improvement Act of 2012 (31 U.S.C. 3321 note) to help prevent identity theft refund fraud.

(a)
removed 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:

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

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

Sec. 6 Report on identity theft refund fraud

(a)
added In general— Not later than September 30, 2018, and biannually thereafter through September 30, 2023, the Secretary of the Treasury (or the Secretary’s delegate) shall report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on the extent and nature of fraud involving the use of a misappropriated taxpayer identity with respect to claims for refund under the Internal Revenue Code of 1986 during the preceding completed income tax filing season, and the detection, prevention, and enforcement activities undertaken by the Internal Revenue Service with respect to such fraud, including—
(1)
added detailing efforts to combat identity theft fraud, including an update on the victims’ assistance unit;
(2)
added information on both the average and maximum amounts of time that elapsed before the cases of victims of such fraud were resolved; and
(3)
added discussing Internal Revenue Service efforts associated with other avenues for addressing identity theft refund fraud.
(b)
added Additional requirements— In addition, each report shall provide an update on the implementation of this Act and identify the need for any further legislation to protect taxpayer identities.
(c)
added Progress on outreach and education— In the first biannual report on identity theft refund fraud under subsection (a), the Secretary (or the Secretary’s delegate) shall include—
(1)
added an assessment of the agency’s progress on identity theft outreach and education to the private sector, State agencies, and external organizations; and
(2)
added the results of a feasibility study on the costs and benefits to enhancing its taxpayer authentication approach to the electronic tax return filing process.

removed The Secretary of the Treasury, and the Secretary’s delegate, shall use the information available under the Do Not Pay Initiative established under section 5 of the Improper Payments Elimination and Recovery Improvement Act of 2012 (31 U.S.C. 3321 note) to help prevent identity theft refund fraud.

Sec. 7 Information sharing and analysis center

(a)
changed In general— Not later than September 30, 2018, and biannually thereafter through September 30, 2023, the The Secretary of the Treasury (or the Secretary’s delegate) shall report to the Committee on Ways establish an information sharing and Means of the House of Representatives analysis center to centralize, standardize, and the Committee on Finance of the Senate on the extent enhance data compilation and nature of fraud involving the use of a misappropriated taxpayer identity with respect analysis to claims for refund under the Internal Revenue Code of 1986 during the preceding completed income tax filing season, and the detection, prevention, facilitate sharing actionable data and enforcement activities undertaken by the Internal Revenue Service information with respect to such fraud, including—identity theft.
(1)
removed detailing efforts to combat identity theft fraud, including an update on the victims’ assistance unit;
(2)
removed information on both the average and maximum amounts of time that elapsed before the cases of victims of such fraud were resolved; and
(3)
removed discussing Internal Revenue Service efforts associated with other avenues for addressing identity theft refund fraud.
(b)
changed Additional requirements—Report— In addition, each report Not later than 1 year after establishment of the information sharing and analysis center, the Secretary (or the Secretary’s delegate) shall provide an update submit a report to the Committee on Ways and Means of the implementation House of this Act Representatives and identify Committee on Finance of the need for any further legislation to protect taxpayer identities.Senate on the information sharing and analysis center described in subsection (a). The report shall include the data that was shared, the use of such data, and the results of the data sharing and analysis center in combating identity theft.
(c)
removed Progress on outreach and education— In the first biannual report on identity theft refund fraud under subsection (a), the Secretary (or the Secretary’s delegate) shall include—
(1)
removed an assessment of the agency’s progress on identity theft outreach and education to the private sector, State agencies, and external organizations; and
(2)
removed the results of a feasibility study on the costs and benefits to enhancing its taxpayer authentication approach to the electronic tax return filing process.

Sec. 8 Local law enforcement liaison

(a)
changed In general—Establishment— The Secretary (or the Secretary’s delegate) Commissioner of Internal Revenue shall establish an information sharing and analysis center to centralize, standardize, and enhance data compilation and analysis to facilitate sharing actionable data and information with respect to identity theft.within the Criminal Investigation Division of the Internal Revenue Service the position of Local Law Enforcement Liaison.
(b)
changed Report—Duties— Not later than 1 year after establishment of the information sharing and analysis center, the Secretary (or the Secretary’s delegate) shall submit a report to the Committee on Ways and Means of the House of Representatives and Committee on Finance of the Senate on the information sharing and analysis center described in subsection (a). The report Local Law Enforcement Liaison shall include the data that was shared, the use of such data, and serve as the results primary source of the data sharing contact for State and analysis center in combating local law enforcement authorities with respect to tax-related identity theft.theft, having duties that shall include—
(1)
added receiving information from State and local law enforcement authorities;
(2)
added responding to inquiries from State and local law enforcement authorities;
(3)
added administering authorized information-sharing initiatives with State or local law enforcement authorities and reviewing the performance of such initiatives;
(4)
added 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)
added such other duties relating to tax-related identity theft prevention as are delegated by the Commissioner of Internal Revenue.

Sec. 9 IRS phone scam report

(a)
changed Establishment—In general— The Commissioner Not later than 1 year after the date of Internal Revenue shall establish within the Criminal Investigation Division enactment of this Act, the Inspector General for Tax Administration, in consultation with the Federal Communications Commission and the Federal Trade Commission, shall submit a report to Congress regarding identity theft phone scams under which individuals attempt to obtain personal information over the phone from taxpayers by falsely claiming to be calling from or on behalf the Internal Revenue Service the position of Local Law Enforcement Liaison.Service.
(b)
changed Duties—Contents of report— 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, having duties that Such report shall include—
(1)
changed receiving information from State a description of the nature and local law enforcement authorities;form of such scams;
(2)
changed responding to inquiries from State an estimate of the number of taxpayers contacted pursuant to, and local law enforcement authorities;the number of taxpayers who have been victims of, such scams;
(3)
changed administering authorized information-sharing initiatives with State or local law enforcement authorities and reviewing an estimate of the performance amount of wrongful payments obtained from such initiatives;scams; and
(4)
changed ensuring any information provided through authorized information-sharing initiatives with State or local law enforcement authorities is used only for the prosecution details of identity theft-related crimes and not re-disclosed potential solutions to third parties; andcombat and prevent such scams, including best practices from the private sector and technological solutions.
(5)
removed such other duties relating to tax-related identity theft prevention as are delegated by the Commissioner of Internal Revenue.

Sec. 10 Providing identity theft prevention information while on hold with Internal Revenue Service

added The Secretary of the Treasury, or the Secretary’s delegate, shall ensure that if a taxpayer is on hold with the Internal Revenue Service on a taxpayer service telephone call the following information is provided:

(a)
removed In general— Not later than 1 year after the date of the enactment of this Act, the Inspector General for Tax Administration, in consultation with the Federal Communications Commission and the Federal Trade Commission, shall submit a report to Congress regarding identity theft phone scams under which individuals attempt to obtain personal information over the phone from taxpayers by falsely claiming to be calling from or on behalf the Internal Revenue Service.
(1)
changed Contents of report— Such report shall include—Basic information about common identity theft tax scams.
(2)
added Directions on where to report such activity.
(3)
added Tips on how to protect against identity theft tax scams.
(1)
removed a description of the nature and form of such scams;
(2)
removed an estimate of the number of taxpayers contacted pursuant to, and the number of taxpayers who have been victims of, such scams;
(3)
removed an estimate of the amount of wrongful payments obtained from such scams; and
(4)
removed details of potential solutions to combat and prevent such scams, including best practices from the private sector and technological solutions.

Sec. 11 No additional funds authorized

changed The Secretary of No additional funds are authorized to carry out the Treasury, or requirements of this Act and the Secretary’s delegate, amendments made by this Act. Such requirements shall ensure that if a taxpayer is on hold with the Internal Revenue Service on a taxpayer service telephone call the following information is provided:be carried out using amounts otherwise authorized.

(1)
removed Basic information about common identity theft tax scams.
(2)
removed Directions on where to report such activity.
(3)
removed Tips on how to protect against identity theft tax scams.