Section 1 Implementation of security measures in electronic tax return filing process to prevent tax refund fraud
In general— After the completion of the one-year pilot program under subsection (b) and taking into account the recommendations submitted with respect to such program, the Secretary of the Treasury shall implement security measures in the electronic tax return filing process designed to prevent tax refund fraud involving electronic identity theft.
Pilot program—
In general— The Secretary of the Treasury shall establish and carry out a one-year pilot program to implement security measures in the electronic tax return filing process in select counties across the United States where tax refund fraud involving electronic identity theft is most prevalent. Such measures shall include the use of security questions which allow for electronic matching of the answers to such questions to establish the identity of the taxpayer before the electronic filing of a tax return by such taxpayer.
Recommendations— After the completion of the one-year pilot program under paragraph (1), the Secretary of the Treasury shall submit recommendations to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on how to expand the process nationwide.