H.R. 3832 — what changed

changed This Act may be cited as the “Stolen Identify Identity Refund Fraud Prevention Act of 2015”.2016”.

added The Secretary of the Treasury, or the Secretary’s delegate, shall establish and maintain an office at the Internal Revenue Service and procedures to ensure that any taxpayer whose return has been delayed or otherwise adversely affected due to the theft of the taxpayer’s identity has a centralized point of contact throughout the processing of his or her case. The office shall coordinate with other offices within the Internal Revenue Service to resolve the taxpayer’s case as quickly as possible.

removed “(c) Returns relating to employee wage information and forms 1099–MISC—Returns and statements made under sections 6051 and 6052, and any payments required to be reported on Form 1099–MISC with respect to nonemployee compensation, shall be filed on or before February 15 of the year following the calendar year to which such returns relate.”

added “7529. Notification of suspected identity theft

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

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

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

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

added “(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.”

removed The Secretary of the Treasury, or the Secretary’s delegate, shall establish and maintain an office at the Internal Revenue Service and procedures to ensure that any taxpayer whose return has been delayed or otherwise adversely affected due to the theft of the taxpayer’s identity has a centralized point of contact throughout the processing of his or her case. The office shall coordinate with other offices within the Internal Revenue Service to resolve the taxpayer’s case as quickly as possible.

added The Secretary of the Treasury (or the Secretary’s delegate) shall submit a feasibility study to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate describing a program under which a person who has filed an identity theft affidavit with the Secretary may elect to prevent the processing of any Federal tax return submitted in an electronic format by that taxpayer or a person purporting to be that taxpayer. The study shall be submitted within 180 days after the date of the enactment of this Act and should also include a recommendation on whether to implement such a program.

removed “7529. Notification of suspected identity theft

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

removed “(1) as soon as practicable and without jeopardizing an investigation relating to tax administration, notify the taxpayer, and

removed “(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.”

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

changed Not later than 180 days after the date of the enactment of this Act, the The Secretary of the Treasury, or and the Secretary’s delegate, shall implement a program under which a taxpayer who has filed an identity theft affidavit with use the Secretary may elect to prevent information available under the processing Do Not Pay Initiative established under section 5 of any Federal tax return submitted in an electronic format by the taxpayer or a person purporting Improper Payments Elimination and Recovery Improvement Act of 2012 (31 U.S.C. 3321 note) to be the taxpayer.help prevent identity theft refund fraud.

removed “(a) In general—Any person”

removed “(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.”

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

removed “(3) Administration of Federal tax laws relating to fraud—The Secretary of the Treasury shall have access to the information in the National Directory of New Hires for the sole purpose of identifying and preventing fraudulent tax return filings and claims for refund under the Internal Revenue Code of 1986.”

removed Section 2004 of the Internal Revenue Service Restructuring and Reform Act of 1998 (26 U.S.C. 6012 note) is repealed.

removed Not later than September 30, 2018, and biannually thereafter through September 30, 2026, 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—