,i #aacth ,,congress #b;d ,session ,h4 ,r4 #dgjh ,,in ,,the ,,house ,,of ,,representatives ,may #ba1 #bjad ,mrs4 ,carolyn ,b4 ,maloney of ,new ,york 7for herself and ,mr4 ,poe of ,texas7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on the ,judiciary1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to provide for the establishment of an office within the ,internal ,revenue ,service to focus on violations of the internal revenue laws by persons who are under investigation for conduct relating to the promotion of commercial sex acts and trafficking in persons crimes1 and to increase the criminal monetary penalty limitations for the underpayment or overpayment of tax due to fraud4 #a4 ,short title ,this ,act may be cited as the ,human ,trafficking ,fraud ,enforcement ,act of #bjad4 #b4 ,office for tax law enforcement relating to human trafficking and promotion of commercial sex acts 7a7 ,establishment ,the ,secretary of the ,treasury shall establish an office within the ,internal ,revenue ,service to investigate and prosecute violations of the internal revenue laws by persons that appear to be engaged in conduct in violation of any of the provisions specified in subsection 7b74 7b7 ,certain criminal provisions relating to human trafficking and promotion of commercial sex acts ,the provisions of law referenced in this subsection are as follows3 7#a7 ,the following provisions of title #ah1 ,united ,states ,code3 7,a7 ,section #acea4 7,b7 ,section #aehi4 7,c7 ,section #aeij4 7,d7 ,section #aeia7;a74 7,e7 ,section #aieb4 7,f7 ,section #bdba4 7,g7 ,section #bdbb4 7,h7 ,subsection 7a71 7d71 or 7e7 of section #bdbc4 7#b7 ,section #acbh of title #h1 ,united ,states ,code4 7#c7 ,the laws of any ,state or territory that prohibit the promotion of prostitution or of any commercial sex act 7as such term is defined in section #aeia7;e77#c7 of title #ah1 ,united ,states ,code74 7c7 ,cooperation with ,department of ,justice ,to the extent possible1 the office established under subsection 7a7 shall cooperate with the ,child ,exploitation and ,obscenity ,section of the ,department of ,justice and the ,innocence ,lost ,national ,initiative of the ,federal ,bureau of ,investigation4 7d7 ,report ,not later than #a year after the date of the enactment of this ,act1 the ,secretary of the ,treasury shall report to the ,committee on ,ways and ,means of the ,house of ,representatives and the ,committee on ,finance of the ,senate on the enforcement activities of the office established under subsection 7a7 and shall include any recommendations for statutory changes to assist in future prosecutions pursuant to this section4 7e7 ,applicability of whistleblower awards to victims of human trafficking ,for purposes of making an award under paragraph 7#a7 or 7#b7 of section #gfbc7;b7 of the ,internal ,revenue ,code of #aihf with respect to information provided by victims of any person convicted of violating any of the provisions specified in subsection 7b71 the determination of whether such person is described in such paragraph shall be made without regard to paragraph 7#c7 of section #gfbc7;b7 of such ,code4 7f7 ,authorization of appropriations 7#a7 ,in general ,there is authorized to be appropriated not more than #d1jjj1jjj for fiscal year #bjae to carry out subsection 7a74 7#b7 ,additional funding for administration of office ,unless specifically appropriated otherwise1 there is authorized to be appropriated and is appropriated to the office established under subsection 7a7 for fiscal years #bjae and #bjaf for the administration of such office an amount equal to the sum of-- 7,a7 the amount of any tax under chapter #a of the ,internal ,revenue ,code of #aihf 7including any interest7 collected during such fiscal years as the result of the actions of such office1 plus 7,b7 the amount of any civil or criminal monetary penalties imposed under such ,code relating to such tax and so collected4 ,amounts not expended under the preceding sentence shall be transferred to and deposited in the ,crime ,victims ,fund in the ,treasury 7#db ,u4,s4,c4 #ajfja74 #c4 ,increase in criminal monetary penalties 7a7 ,attempt ,to evade or defeat tax ,section #gbja of the ,internal ,revenue ,code of #aihf 7relating to attempt to evade or defeat tax7 is amended-- 7#a7 by striking ,any person and inserting the following3 7a7 ,in general ,any person 1 and 7#b7 by adding at the end the following new subsection3 7b7 ,attempt ,to evade or defeat tax attributable to human trafficking and commercial sex acts 7#a7 ,in general ,in the case of any attempt to evade or defeat any tax attributable to income derived from an act described in paragraph 7#b71 subsection 7a7 shall be applied-- 7,a7 by substituting #ejj1jjj 7#a1jjj1jjj for #ajj1jjj 7#ejj1jjj1 and 7,b7 by substituting #aj years for #e years4 7#b7 ,human trafficking and commercial sex acts ,for purposes of paragraph 7#a71 an act described in this paragraph is any act which is a violation of any of the provisions specified in section #b7;b7 of the ,human ,trafficking ,fraud ,enforcement ,act of #bjad4 4 7b7 ,willful failure ,to file return1 supply information1 or pay tax 7#a7 ,general increase in monetary penalty ,section #gbjc of the ,internal ,revenue ,code of #aihf 7relating to willful failure to file return1 supply information1 or pay tax7 is amended by striking #be1jjj and inserting #ej1jjj4 7#b7 ,increase in penalties for failure to file with respect to tax attributable to human trafficking and commercial sex acts 7,a7 ,in general ,section #gbjc of the ,internal ,revenue ,code of #aihf 7relating to willful failure to file return1 supply information1 or pay tax71 as amended by paragraph 7#a71 is amended by striking ,any person in the first sentence and inserting the following3 7a7 ,in general ,any person 1 and 7,b7 by adding at the end the following new subsection3 7b7 ,failure ,to file with respect to tax attributable to human trafficking and commercial sex acts ,in the case of any failure with respect to any tax attributable to income derived from an act described in paragraph 7#b7 of section #gbja7;b71 the first sentence of subsection 7a7 shall be applied by substituting-- 7#a7 felony for misdemeanor1 7#b7 #ejj1jjj 7#a1jjj1jjj for #ej1jjj 7#ajj1jjj1 and 7#c7 #aj years for #a year4 4 7#c7 ,conforming amendment ,the third sentence of section #gbjc7;a7 of the ,internal ,revenue ,code of #aihf 7as amended by paragraph 7#a77 is amended by striking this section and inserting this subsection4 7c7 ,fraud and false statements ,section #gbjf of the ,internal ,revenue ,code of #aihf 7relating to fraud and false statements7 is amended-- 7#a7 by striking ,any person and inserting the following3 7a7 ,in general ,any person 1 and 7#b7 by adding at the end the following new subsection3 7b7 ,fraud and false statements with respect to tax attributable to human trafficking and commercial sex acts ,in the case of any violation of subsection 7a7 relating to any tax attributable to income derived from an act described in paragraph 7#b7 of section #gbja7;b71 subsection 7a7 shall be applied-- 7#a7 by substituting #ejj1jjj 7#a1jjj1jjj for #ajj1jjj 7#ejj1jjj1 and 7#b7 by substituting #e years for #c years4 4 7d7 ,penalties may be applied in addition to other penalties ,section #gbjd of the ,internal ,revenue ,code of #aihf 7relating to fraudulent statement or failure to make statement to employees7 is amended by striking the penalty provided in section #ffgd and inserting the penalties provided in sections #ffgd1 #gbja1 and #gbjc4 7e7 ,increase in monetary limitation for underpayment or overpayment of tax due to fraud ,section #gbjf of the ,internal ,revenue ,code of #aihf 7relating to fraud and false statements71 as amended by subsection 7c71 is amended by adding at the end the following new subsection3 7c7 ,increase in monetary limitation for underpayment or overpayment of tax due to fraud ,if any portion of any underpayment 7as defined in section #fffd7;a77 or overpayment 7as defined in section #fdja7;a77 of tax required to be shown on a return is attributable to fraudulent action described in subsection 7a71 the applicable dollar amount under subsection 7a7 shall in no event be less than an amount equal to such portion4 ,a rule similar to the rule under section #fffc7;b7 shall apply for purposes of determining the portion so attributable4 4 7f7 ,moneys available ,to assist victims of crime ,there are hereby appropriated to the ,crime ,victims ,fund 7#db ,u4,s4,c4 #ajfja7 amounts equivalent to the increase in receipts to the ,treasury by reason of the amendments made by this section4 ,such amounts shall be available for victim assistance grants under the ,victims of ,crime ,act of #aihd1 including crisis intervention1 emergency shelter and transportation1 counseling1 and criminal justice advocacy to victims of crime4 7g7 ,effective date ,the amendments made by this section shall apply to actions1 and failures to act1 occurring after the date of the enactment of this ,act4