[Congressional Record Volume 162, Number 77 (Monday, May 16, 2016)]
[House]
[Pages H2392-H2395]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STOLEN IDENTITY REFUND FRAUD PREVENTION ACT OF 2016
Mr. RENACCI. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3832) to amend the Internal Revenue Code of 1986 to prevent
tax-related identity theft and tax fraud, and for other purposes, as
amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 3832
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stolen Identity Refund Fraud
Prevention Act of 2016''.
SEC. 2. CENTRALIZED POINT OF CONTACT FOR IDENTITY THEFT
VICTIMS.
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.
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:
``SEC. 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--
``(A) instructions to the taxpayer about filing a police
report, and
``(B) the forms the taxpayer must submit to allow
investigating law enforcement officials to access the
taxpayer's personal 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:
``Sec. 7529. Notification of suspected identity theft.''.
(c) Effective Date.--The amendments made by this section
shall apply to determinations made after the date of the
enactment of this Act.
SEC. 4. REPORT ON ELECTRONIC FILING OPT OUT.
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.
SEC. 5. USE OF INFORMATION IN DO NOT PAY INITIATIVE IN
PREVENTION OF IDENTITY THEFT REFUND FRAUD.
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. 6. REPORT ON IDENTITY THEFT REFUND FRAUD.
(a) 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) detailing efforts to combat identity theft fraud,
including an update on the victims' assistance unit;
(2) information on both the average and maximum amounts of
time that elapsed before the cases of victims of such fraud
were resolved; and
(3) discussing Internal Revenue Service efforts associated
with other avenues for addressing identity theft refund
fraud.
(b) 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) 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) an assessment of the agency's progress on identity
theft outreach and education to the private sector, State
agencies, and external organizations; and
(2) 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. 7. INFORMATION SHARING AND ANALYSIS CENTER.
(a) In General.--The Secretary (or the Secretary's
delegate) 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.
(b) Report.--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 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.
SEC. 8. 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, 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) 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) 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.
(b) Contents of Report.--Such report shall include--
(1) a description of the nature and form of such scams;
(2) an estimate of the number of taxpayers contacted
pursuant to, and the number of taxpayers who have been
victims of, such scams;
(3) an estimate of the amount of wrongful payments obtained
from such scams; and
(4) details of potential solutions to combat and prevent
such scams, including best practices from the private sector
and technological solutions.
SEC. 10. PROVIDING IDENTITY THEFT PREVENTION INFORMATION
WHILE ON HOLD WITH INTERNAL REVENUE SERVICE.
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:
(1) Basic information about common identity theft tax
scams.
(2) Directions on where to report such activity.
(3) Tips on how to protect against identity theft tax
scams.
SEC. 11. NO ADDITIONAL FUNDS AUTHORIZED.
No additional funds are authorized to carry out the
requirements of this Act and the amendments made by this Act.
Such requirements shall be carried out using amounts
otherwise authorized.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Ohio (Mr. Renacci) and the gentleman from New Jersey (Mr. Pascrell)
each will control 20 minutes.
The Chair recognizes the gentleman from Ohio.
General Leave
Mr. RENACCI. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within
[[Page H2393]]
which to revise and extend their remarks and to include extraneous
material on H.R. 3832, currently under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Ohio?
There was no objection.
Mr. RENACCI. Mr. Speaker, I yield myself such time as I may consume.
I rise to urge approval of H.R. 3832, the Stolen Identity Refund
Fraud Prevention Act of 2016.
I introduced this bipartisan legislation with my friend and
colleague, Mr. Lewis, to combat tax-related identity theft. On a
personal note, it has been an honor to work with Mr. Lewis. He paid me
a great compliment when he said I ``rained passion and truth'' on the
important issue of identity theft. Truthfully, since Congressman Lewis
was first elected, he has been a legislator who has brought great
passion and truth to every endeavor of his storied career. I truly
thank him for working with me on this legislation.
Tax-related identity theft is an evolving criminal activity that
targets innocent taxpayers nationwide and robs the Treasury of billions
of dollars each year. I was grateful for the opportunity last month to
testify before the Committee on Ways and Means about my experience with
tax-related ID theft. Last year, my personal information was stolen,
and someone used that information to electronically file a fraudulent
tax return for my wife and me. That return, which included a fraudulent
W-2 from the House of Representatives, claimed a significant refund,
with the proceeds directed to a bank account outside the U.S. So when
it comes to ID theft, I truly understand the impact that it has on
taxpayers in northeast Ohio and across the country.
I am committed to cracking down on the growing threat, and this
bipartisan bill is an important first step forward. I was pleased that
two core components from this bill were included in the PATH Act that
passed last December. The remaining components of this bill will help
further shield taxpayer dollars from thieves and reduce the hardships
that are caused by this criminal activity. They include establishing a
centralized point of contact at the IRS for ID theft victims. This will
make it easier for victims to resolve their ID theft tax cases and
ensure a unit at the IRS is held accountable for handling a taxpayer's
case from start to finish.
Another one would improve the taxpayer notification of suspected ID
theft. When the IRS determines there has been the unauthorized use of a
taxpayer's identity, the IRS would be required--as soon as practicable
and without jeopardizing an investigation--to notify the taxpayer and
give instructions to the taxpayer about filing a police report.
The last one I will mention would require the IRS to submit a study
on the feasibility of establishing a program for ID theft victims to be
able to opt out of electronic filing. This provision would require the
IRS to report back to Congress within 180 days on this issue.
I also thank my friend, Mr. Pascrell, for his work on this issue and
for his amendments that were incorporated into the bill during this
markup last month.
Mr. Speaker, tax-related identity theft is one of the most pressing
challenges that we face in the world of tax administration. This
complex and evolving threat requires cooperation from Congress, the
IRS, State revenue agencies, and industry stakeholders. While I am
aware that not every tax-related ID theft problem is best served with a
congressional solution, this legislation is an important first step in
fighting ID theft and in better protecting victims.
I urge all Members to support this bipartisan legislation.
Mr. Speaker, I reserve the balance of my time.
House of Representatives,
Committee on the Judiciary,
Washington, DC, May 13, 2016.
Hon. Kevin Brady,
Chairman, Committee on Ways & Means,
Washington, DC.
Dear Chairman Brady: I am writing with respect to H.R.
3832, the ``Stolen Identity Refund Fraud Prevention Act,''
which was referred to the Committee on Ways and Means and in
addition to the Committee on the Judiciary. As a result of
your having consulted with us on provisions in H.R. 3832 that
fall within the Rule X jurisdiction of the Committee on the
Judiciary, I agree to discharge our committee from further
consideration of this bill so that it may proceed
expeditiously to the House floor for consideration.
The Judiciary Committee takes this action with our mutual
understanding that by foregoing consideration of H.R. 3832 at
this time, we do not waive any jurisdiction over subject
matter contained in this or similar legislation, and that our
committee will be appropriately consulted and involved as
this bill or similar legislation moves forward so that we may
address any remaining issues in our jurisdiction. Our
committee also reserves the right to seek appointment of an
appropriate number of conferees to any House-Senate
conference involving this or similar legislation, and asks
that you support any such request.
I would appreciate a response to this letter confirming
this understanding with respect to H.R. 3832, and would ask
that a copy of our exchange of letters on this matter be
included in the Congressional Record during Floor
consideration of H.R. 3832.
Sincerely,
Bob Goodlatte,
Chairman.
____
House of Representatives,
Committee on Ways and Means,
Washington, DC, May 16, 2016.
Hon. Bob Goodlatte,
Chairman, Committee on the Judiciary,
Washington, DC.
Dear Chairman Goodlatte: Thank you for your letter
regarding H.R. 3832, the ``Stolen Identity Refund Fraud
Prevention Act of 2016.'' As you noted, the Committee on the
Judiciary was granted an additional referral of the bill.
I am most appreciative of your decision to waive formal
consideration of H.R. 3832 so that it may proceed
expeditiously to the House floor. I acknowledge that although
you waived formal consideration of the bill, the Committee on
the Judiciary is in no way waiving its jurisdiction over the
subject matter contained in those provisions of the bill that
fall within your Rule X jurisdiction. I would support your
effort to seek appointment of an appropriate number of
conferees on any House-Senate conference involving this
legislation.
I will include a copy of our letters in the Congressional
Record during consideration of this legislation on the House
floor.
Sincerely,
Kevin Brady,
Chairman.
Mr. PASCRELL. Mr. Speaker, I yield myself such time as I may consume.
I commend my friend from Ohio (Mr. Renacci) for his work on this
bill. As he knows, I have been interested in this issue of tax fraud
and identity theft for some time.
I am pleased that the bill we are marking up today, H.R. 3832,
includes many provisions included in the bill that I put forth, H.R.
3981, the Identity Theft and Tax Fraud Prevention Act. These provisions
include having a central point of contact for a victim of identity
theft and taxpayer notification of suspected identity theft. In
addition, two of my amendments were included in the bill.
The first would create a local law enforcement liaison within the
Criminal Investigation Division of the IRS. Our police and law
enforcement officers are out every day, keeping our communities safe
and tracking down criminals. Too often, coordinating their efforts with
the IRS when it comes to identity theft is not as easy as it should be.
My amendment helps law enforcement officers do their jobs by creating
a local law enforcement liaison at the IRS. This position will be
tasked with sharing information and responding to local law enforcement
when they have information or inquiries about identity theft cases. It
is common sense, and it will make it easier for police officers to go
to a single place at the IRS when they want to work a case.
The second amendment included in this bill deals with the IRS phone
scam, and this is growing by the day. Imagine sitting at home when you
receive a call from a threatening voice on the other end of the line
that claims to be the IRS. For too many Americans, this experience is
all too familiar. These criminals may ask unsuspecting citizens for
their personal information, for their Social Security numbers, or even
for bank account information--that has been done; it is very common--
and will threaten them with arrest or other penalties if the listeners
don't comply. These phone scams have become increasingly aggressive and
harmful to taxpayers.
My amendment addresses this problem in practical ways. First, it
requires the Treasury Inspector General for Tax Administration to issue
a report that identifies potential technological solutions to the phone
scam.
[[Page H2394]]
Second, it would have the IRS provide information to callers who may
be put on hold, when calling in, regarding common identity theft tax
scams and how to avoid them.
We need to do all we can to make sure taxpayers are informed and
armed against these scams. Identity theft and tax fraud is a growing
problem in the United States of America. As technology changes and as
criminal syndicates target American citizens' tax returns, we have an
obligation to address the issue.
This bill does not go quite as far as I would have liked, and I urge
my colleagues to take a look at H.R. 3981. I am also proud to be a
cosponsor of Congressman John Lewis' bill, the Taxpayer Protection Act
of 2016, which takes additional steps to increase funding for taxpayer
services and to end the use of private debt collectors.
This bill is a step in the right direction. I congratulate its
sponsor as it is a good example of how we can work together across the
aisle and find commonsense solutions for the American people. I hope
this is a harbinger of things to come. Who knows?
I reserve the balance of my time.
Mr. RENACCI. Mr. Speaker, I yield 2 minutes to the gentleman from
Pennsylvania (Mr. Kelly).
Mr. KELLY of Pennsylvania. Mr. Speaker, I strongly support H.R. 3832.
Mr. Renacci and I are very good friends, as I am with Mr. Lewis, and it
is good to see Mr. Pascrell here today.
The gentleman is right in that it is nice to see us working together
to do something about people. This is about people. This is policy that
concerns people, and it works in the right direction. I don't think
there is anything quite as unnerving as finding out that somebody has
stolen your identity. I think Shakespeare sums it up right in Othello
by putting it really succinctly when he says: ``But he that filches
from me my good name, robs me of that which not enriches him, and makes
me poor indeed.''
{time} 1615
Now, Pennsylvania is sixth in population but second when it comes to
fraud, tax fraud. This is incredible that this could happen.
As we sit here today--and as Mr. Pascrell so clearly pointed out, and
Mr. Renacci--this is about protecting people from people who wish to do
them harm. They not only wish to take their tax returns, but it robs
them of their identity. There is nothing that could be more chilling
than losing your identity.
As we look at how this goes forward--and I think that this phone
fraud is the one that is particularly interesting. When the IRS calls
on you, it is not on the phone. It is in writing. And I tell
constituents all the time, I also have received those calls saying
that: Hey, you know what? You need to get in touch with us right now.
We can handle this over the phone with you.
I said: Fine. You know what? Leave your name and number, and I will
get back to you because I am really busy right now.
That is followed by a very quick click.
There is so much going on in our world today. We are so vulnerable at
every single turn. We put so much information out there on ourselves.
This is a piece of legislation that protects people. It protects not
only their returns, but protects their identity.
So I am glad that Mr. Renacci has done this with Mr. Lewis and my
good friend Mr. Pascrell. We stand here today with the same purpose,
and that is to protect the people who sent us here to represent them.
It is the least we can do.
Mr. PASCRELL. Mr. Speaker, I yield myself such time as I may consume.
I just want to quickly say that what is really happening out there is
that many seniors are being preyed upon. When you get a threatening
phone call, you don't know what to think. And when you are up there in
age, as some of us are, Mr. Kelly, you don't know what to expect, and
you don't know who to turn to.
So this is very important, what Mr. Renacci is putting forth right
now. I just want everyone to understand that. It has good bipartisan
support, and I hope that we can move this very, very quickly.
I reserve the balance of my time.
Mr. RENACCI. Mr. Speaker, I yield 2 minutes to the gentleman from New
York (Mr. Reed).
Mr. REED. Mr. Speaker, I thank the gentleman from Ohio for yielding.
I rise today, Mr. Speaker, to join my colleagues on both sides of the
aisle--Mr. Pascrell, Mr. Lewis, Mr. Renacci, and Mr. Kelly--in a common
refrain. What Mr. Renacci, Mr. Lewis, and Mr. Pascrell have identified
here is something we have been working on in the committee for quite
some time, and that is to make sure that we have a tax administration
and a Tax Code that respects the privacy of individuals.
When that privacy is violated--I cannot speak like my colleague from
Pennsylvania and quote Shakespeare, as I am a simple country lawyer
from western New York--simply, what we need to do is to stand on the
side of our taxpayers. When tax fraud occurs, real people suffer as a
result of it.
What Mr. Renacci and all of us have come together here to support are
simple, commonsense reforms that are going to help people out like
Terry. Terry is from Hornell in my district. He reached out to us, Mr.
Speaker, about 1\1/2\ years to 2 years ago. He, too, was the victim of
identity fraud and identity theft.
When he went to file his return, he found out that he would not be
getting that refund because someone had already stolen that money from
the U.S. Government. Terry relied on that money, Mr. Speaker. He needed
that money. After many phone calls, after many efforts from our office,
we were able to work it out and get that taken care of for Terry.
Terry is representative of millions of Americans who have found
themselves in this situation, just like Mr. Renacci did. So I applaud
Mr. Renacci for developing these commonsense reforms that are going to
give a point of contact at the IRS, that are going to make sure when
people engage in identity theft in the tax arena that there are real
penalties and consequences to that behavior.
I strongly support this legislation, Mr. Speaker, and I urge my
colleagues, just as has been demonstrated here today, to come together
as we care deeply about the American taxpayer and stand for them as the
victims of this crime.
Mr. PASCRELL. Mr. Speaker, I yield back the balance of my time.
Mr. RENACCI. Mr. Speaker, I yield myself such time as I may consume.
I again want to thank my colleague, Mr. Lewis, for his work with me
and this legislation. I also truly want to thank Mr. Pascrell. As he
said, I hope it is a sign of things to come, where we can work together
on important issues that face the American people.
I urge all Members to support H.R. 3832, the Stolen Identity Refund
Fraud Prevention Act of 2016.
I yield back the balance of my time.
Mr. SCOTT of Virginia. Mr. Speaker, I rise in opposition to H.R.
3832, the Stolen Identity Refund Fraud Prevention Act of 2016, as
amended. While I support the legislation's underlying goal of deterring
and preventing tax-related identity theft and tax fraud, I strongly
oppose the bill's expansion of mandatory minimum sentencing.
Section 5 of the bill would expand the mandatory minimums found in
Title 18 Section 1028A of the United States Code. This section of Title
18 imposes a mandatory minimum sentence of two years for ``aggravated
identity theft.'' Under section 5 of this bill, a violation of section
7206(b) of the Internal Revenue Code would require a judge to impose a
two year mandatory minimum regardless of the circumstances of the case.
While a two year sentence may be appropriate for most individuals
convicted under this bill, it should be left to the discretion of the
sentencing judge to determine the exact sentence based on all the
relevant facts and circumstances.
Research and evidence in the past few decades has demonstrated that
mandatory minimums are ineffective deterrents, waste the taxpayers'
money, force judges to impose irrational sentences, and discriminate
against minorities, particularly with regards to drug offenses.
Unfortunately, there are too many mandatory minimums in the federal
code.
Mr. Speaker, if we expect to do anything about that problem, the
first step has to be to stop passing new ones. The mandatory minimums
in the code today did not get there all at once--they got there one at
a time, each one part of a larger bill, which on balance might have
been a good idea. Therefore, the only way to stop passing new mandatory
minimums is to stop passing bills that contain mandatory minimums.
Therefore, I urge my colleagues to vote No on H.R. 3832.
[[Page H2395]]
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Ohio (Mr. Renacci) that the House suspend the rules and
pass the bill, H.R. 3832, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________