,,ii #aacth ,,congress #ast ,session ,s4 #fgf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #i1 #bjac ,mr4 ,nelson 7for himself1 ,mrs4 ,feinstein1 ,mr4 ,schumer1 and ,mr4 ,cardin7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to prevent tax-related identity theft and tax fraud4 #a4 ,short title1 etc 7a7 ,short title ,this ,act may be cited as the ,identity ,theft and ,tax ,fraud ,prevention ,act of #bjac4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title1 etc4 ,,title ,i--,protecting victims of tax-related identity theft ,sec4 #aja4 ,expedited refunds for identity theft victims4 ,sec4 #ajb4 ,single point of contact for identity theft victims4 ,sec4 #ajc4 ,enhancements to ,,irs ,,pin ,program4 ,sec4 #ajd4 ,electronic filing opt out4 ,,title ,,ii--,shutting down abusive identity theft and tax fraud schemes ,sec4 #bja4 ,restrictions on ability to use prepaid cards for tax fraud4 ,sec4 #bjb4 ,limitation on multiple tax refunds to the same account4 ,,title ,,iii--,adding critical new protections to safeguard social security numbers ,sec4 #cja4 ,restriction on access to the death master file4 ,sec4 #cjb4 ,prohibiting the display of ,social ,security account numbers on newly issued ,medicare identification cards and communications provided to ,medicare beneficiaries4 ,sec4 #cjc4 ,prohibition of the display1 sale1 or purchase of ,social ,security numbers4 ,sec4 #cjd4 ,criminal penalties for the misuse of a ,social ,security number4 ,sec4 #cje4 ,civil actions and civil penalties4 ,,title ,,iv--,strengthening laws and improving enforcement against tax-related identity theft ,sec4 #dja4 ,criminal penalty for using a false identity in connection with tax fraud4 ,sec4 #djb4 ,increased penalty for improper disclosure or use of information by preparers of returns4 ,sec4 #djc4 ,authority to transfer ,internal ,revenue ,service appropriations to use for tax fraud enforcement4 ,sec4 #djd4 ,local law enforcement liaison4 ,,title ,v--,accelerating transition to a real-time tax system that protects taxpayers and reduces fraud ,sec4 #eja4 ,improvement in access to information in the ,national ,directory of ,new ,hires for tax administration purposes4 ,sec4 #ejb4 ,plan of action for transitioning to a real-time tax system4 ,i ,protecting victims of tax-related identity theft #aja4 ,expedited refunds for identity theft victims ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary of the ,treasury1 or the ,secretary's delegate1 shall establish a plan of action to reduce the administrative time required to process and resolve cases of identity theft in connection with tax returns1 including the issuance of refunds to legitimate taxpayers1 to no more than #ij days1 on average4 #ajb4 ,single point of contact for identity theft victims ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary of the ,treasury1 or the ,secretary's delegate1 shall establish new procedures to ensure that any taxpayer whose return has been delayed or otherwise adversely affected due to identity theft has a single point of contact at the ,internal ,revenue ,service throughout the processing of his or her case4 ,the single point of contact shall track the case of the taxpayer from start to finish and coordinate with other specialized units to resolve case issues as quickly as possible4 #ajc4 ,enhancements to ,,irs ,,pin ,program 7a7 ,in general ,the ,secretary of the ,treasury1 or the ,secretary's delegate1 shall issue a personal identification number to identity theft victims as soon as practicable after their true identity has been established and verified4 7b7 ,report ,not later than #cfj days after the date of enactment of this ,act1 the ,secretary of the ,treasury shall submit to ,congress a report analyzing the effectiveness of the program described in subsection 7a7 in reducing tax fraud4 #ajd4 ,electronic filing opt out ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary of the ,treasury1 or the ,secretary's delegate1 shall implement 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 a person purporting to be such a person4 ,,ii ,shutting down abusive identity theft and tax fraud schemes #bja4 ,restrictions on ability to use prepaid cards for tax fraud 7a7 ,accounts with elevated risk of identity theft 7#a7 ,in general ,not later than #cfj days after the date of the enactment this ,act1 the ,federal primary financial regulatory agencies1 in consultation with the ,secretary of the ,treasury1 shall jointly prescribe regulations requiring newly issued deposit or transaction account numbers1 as the case may be1 to be distinguishable between verified accounts and at-risk accounts4 7#b7 ,definitions ,as used in this section-- 7,a7 the term at-risk account means any deposit account or transaction account1 including accounts associated with a prepaid access arrangement1 that is not a verified account2 7,b7 the term primary financial regulatory agency has the same meaning as in section #b7ab7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecja7ab772 and 7,c7 the term verified account means any deposit account or transaction account in which the identity of the account holder and any prepaid access customer associated with the account is verified by-- 7i7 customer identification procedures that comply with section #ecah7l7 of title #ca1 ,united ,states ,code2 and 7ii7 direct review of an original1 unexpired government-issued form of identification bearing a photograph or similar safeguard1 such as a driver's license or passport4 7b7 ,,gao audit of debit card issuers ,to ensure compliance with customer identification requirements 7#a7 ,review and evaluation ,the ,comptroller ,general of the ,united ,states shall review and evaluate the effectiveness of the current ,customer ,identification ,program rules implementing the customer identification program requirements under section #ecah7l7 of title #ca1 ,united ,states ,code1 as such rules apply to the prepaid card industry4 7#b7 ,required considerations ,the review and evaluation required under paragraph 7#a7 shall-- 7,a7 consider whether weaknesses in current customer identification programs are contributing to identity theft and financial loss1 particularly with respect to tax fraud2 and 7,b7 review whether-- 7i7 current risk-based standards for customer identification are the best means to prevent criminal use of prepaid cards and provide sufficient guidance and certainty to the sellers and providers of prepaid access2 7ii7 current exclusions from customer identification requirements1 such as exclusions for government benefit programs1 are appropriate2 and 7iii7 ,federal regulatory agencies exercise adequate oversight and supervision of customer identification practices of the prepaid card industry4 7#c7 ,report to ,congress ,not later than #cfj days after the date of the enactment this ,act1 the ,comptroller ,general of the ,united ,states shall submit to ,congress a report-- 7,a7 on the findings of the review and evaluation required under paragraph 7#a72 and 7,b7 containing any recommendations or proposals for legislative or administrative action to improve the customer identification practices of the prepaid card industry4 #bjb4 ,limitation on multiple tax refunds to the same account 7a7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary of the ,treasury1 or the ,secretary's delegate1 shall issue regulations that restrict the delivery or deposit of multiple tax refunds from the same tax year to the same individual account or mailing address4 7b7 ,exception ,the regulation promulgated under subsection 7a7 shall provide that the restrictions shall not apply in cases and situations where the ,secretary determines there is not a likelihood of tax fraud4 ,,iii ,adding critical new protections to safeguard social security numbers #cja4 ,restriction on access to the death master file 7a7 ,in general ,not later than #ij days after the date of the enactment of this ,act1 the ,commissioner of the ,social ,security ,administration shall vest all responsibilities for the release of ,social ,security death records to non-governmental persons or entities with the ,secretary of ,commerce through a memorandum of understanding4 7b7 ,prohibition ,the ,secretary of ,commerce shall not disclose information contained in ,social ,security death records to any non-governmental person or entity with respect to any individual who has died at any time during the calendar year in which the request for disclosure is made or the succeeding #b calendar years unless such person is certified under the program established under subsection 7c74 7c7 ,certification program 7#a7 ,in general ,the ,secretary of ,commerce shall establish a program-- 7,a7 to certify persons who are eligible to access the information described in subsection 7b7 contained on the ,death ,master ,file1 and 7,b7 to perform periodic and unscheduled audits of certified persons to determine the compliance by such certified persons with the requirements of the program4 7#b7 ,certification ,a person shall not be certified nor remain certified under the program established under paragraph 7#a7 unless-- 7,a7 the ,secretary of ,commerce determines that access to the information described in subsection 7b7 is appropriate because-- 7i7 such person has a legitimate interest in preventing fraud or unauthorized financial transactions1 7ii7 such access will facilitate compliance by such person with an applicable law1 regulation1 court order1 or fiduciary duty1 7iii7 such access will facilitate timely and proper administration by such person of an insurance policy or benefit program1 or 7iv7 such person is subject to disclosure requirements under section #ejb of the ,gramm-,leach-,bliley ,act 7#ae ,u4,s4,c4 #fhjb71 section #fbj of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afhar71 or any other ,federal statute that the ,secretary determines1 following notice and comment rulemaking1 provides sufficient protection against improper disclosure of information described in subsection 7b71 and 7,b7 the ,secretary of ,commerce verifies that such person has facilities and procedures in place to safeguard such information1 and experience in maintaining the confidentiality1 security1 and appropriate use of such information4 7#c7 ,fees ,the ,secretary of ,commerce shall establish under section #igja of title #ca1 ,united ,states ,code1 for the charge of fees sufficient to cover all costs associated with evaluating applications for certification and auditing1 inspecting1 and monitoring certified persons under the program4 7d7 ,imposition of penalty 7#a7 ,in general ,subject to paragraph 7#b71 any person who is certified under the program established under subsection 7c71 who receives information described in subsection 7b71 and who during the period of time described in subsection 7b7-- 7,a7 discloses such information to any other person1 or 7,b7 uses any such information to commit1 or aid or abet1 any criminal offense1 shall pay a penalty of #e1jjj for each such disclosure or use1 but the total amount imposed under this subsection on such a person for any calendar year shall not exceed #ejj1jjj4 7#b7 ,exception ,a person who-- 7,a7 is certified under the program established under subsection 7c71 7,b7 upon request by another person1 verifies that an individual is or is not deceased pursuant to information contained on the ,death ,master ,file1 and 7,c7 does not disclose any additional information described in subsection 7b71 shall not be subject to a penalty pursuant to paragraph 7#a74 7e7 ,exemption from ,freedom of ,information ,act requirement with respect to certain records of deceased individuals 7#a7 ,in general ,subsequent to the date on which the ,secretary of ,commerce establishes the program described in subsection 7c77#a71 the ,social ,security ,administration shall not be compelled to disclose any information described in subsection 7b7 to any non-governmental person or entity who is not certified under such program4 7#b7 ,treatment of information ,for purposes of section #eeb of title #e1 ,united ,states ,code1 this section shall be considered a statute described in subsection 7b77#c77;,b7 of such section #eeb4 #cjb4 ,prohibiting the display of ,social ,security account numbers on newly issued ,medicare identification cards and communications provided to ,medicare beneficiaries 7a7 ,in general ,not later than #b years after the date of the enactment of this ,act1 the ,secretary of ,health and ,human ,services1 in consultation with the ,commissioner of ,social ,security1 shall establish and begin to implement procedures to eliminate the unnecessary collection1 use1 and display of ,social ,security account numbers of ,medicare beneficiaries4 7b7 ,newly issued medicare cards and communications provided to beneficiaries 7#a7 ,newly issued cards 7,a7 ,in general ,not later than #d years after the date of enactment of this ,act1 the ,secretary of ,health and ,human ,services1 in consultation with the ,commissioner of ,social ,security1 shall ensure that each newly issued ,medicare identification card meets the requirements described in subparagraph 7,b74 7,b7 ,requirements 7i7 ,in general ,subject to clauses 7ii7 and 7iii71 the requirements described in this subparagraph are1 with respect to a ,medicare identification card1 that the card does not display or electronically store 7in an unencrypted format7 a ,medicare beneficiary's ,social ,security account number4 7ii7 ,exception ,the ,secretary may waive the requirements under clause 7i7 in the case where the health insurance claim number of a beneficiary is the ,social ,security number of the beneficiary1 the beneficiary's spouse1 or another individual4 7iii7 ,use of partial account number ,the ,secretary of ,health and ,human ,services1 in consultation with the ,commissioner of ,social ,security1 may provide for the use of a partial ,social ,security account number on a ,medicare identification card if the ,secretary determines that such use does not allow an unacceptable risk of fraudulent use4 7#b7 ,communications provided to beneficiaries ,not later than #d years after the date of enactment of this ,act1 the ,secretary of ,health and ,human ,services shall prohibit the display of a ,medicare beneficiary's ,social ,security account number on written or electronic communication provided to the beneficiary unless the ,secretary1 in consultation with the ,commissioner of ,social ,security1 determines that inclusion of ,social ,security account numbers on such communications is essential for the operation of the ,medicare program4 7c7 ,medicare beneficiary defined ,in this section1 the term ,medicare beneficiary means an individual entitled to1 or enrolled for1 benefits under part ,a of title ,,xviii of the ,social ,security ,act 7#db ,u4,s4,c4 #acie;c et seq47 or enrolled for benefits under part ,b of such title 7#db ,u4,s4,c4 #acie;j et seq474 7d7 ,conforming amendments 7#a7 ,reference in the ,social ,security ,act ,section #bje7;c77#b77;,c7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dje7;c77#b77;,c77 is amended-- 7,a7 by moving clause 7x71 as added by section #adad7;a77#b7 of the ,patient ,protection and ,affordable ,care ,act 7,public ,law #aaa-adh71 #f ems to the left2 7,b7 by redesignating clause 7x71 as added by section #b7;a77#a7 of the ,social ,security ,number ,protection ,act of #bjaj 7#db ,u4,s4,c4 #acje note71 as clause 7xii72 and 7,c7 by adding after clause 7xii71 as redesignated by subparagraph 7,b71 the following new clause3 7xiii7 ,subject to section #cjb of the ,identity ,theft and ,tax ,fraud ,prevention ,act of #bjac1 social security account numbers shall not be displayed on ,medicare identification cards or on communications provided to ,medicare beneficiaries4 4 7#b7 ,access to information ,section #bje7r7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dje7r77 is amended by adding at the end the following new paragraph3 7#aj7 ,to prevent and identify fraudulent activity1 the ,commissioner shall upon the request of the ,attorney ,general or upon the request of the ,secretary of ,health and ,human ,services enter into a reimbursable agreement with the ,attorney ,general or the ,secretary to provide information collected under paragraph 7#a7 if-- 7,a7 the requirements of subparagraphs 7,a7 and 7,b7 of paragraph 7#c7 are met2 and 7,b7 such agreement includes appropriate provisions to protect the confidentiality of information provided by the ,commissioner under such agreement4 4 7e7 ,pilot program 7#a7 ,establishment ,the ,secretary shall establish a pilot program utilizing smart card technology to evaluate-- 7,a7 the applicability of smart card technology to the ,medicare program under title ,,xviii of the ,social ,security ,act 7#db ,u4,s4,c4 #acie et seq471 including the applicability of such technology to ,medicare beneficiaries or ,medicare providers2 and 7,b7 whether such cards would be effective in preventing fraud under the ,medicare program4 7#b7 ,implementation 7,a7 ,initial implementation ,the ,secretary shall implement the pilot program under this subsection not later than #a year after the date of enactment of this ,act4 7,b7 ,scope and duration ,the ,secretary shall conduct the pilot program-- 7i7 in not less than #b ,states2 and 7ii7 for a period of not less than #ahj days or more than #b years4 7#c7 ,report ,not later than #ab months after the completion of the pilot program under this subsection1 the ,secretary shall submit to the appropriate committees of ,congress and make available to the public a report that includes the following3 7,a7 ,a summary of the pilot program and findings1 including-- 7i7 the costs or savings to the ,medicare program as a result of the implementation of the pilot program2 7ii7 whether the use of smart card technology resulted in improvements in the quality of care provided to ,medicare beneficiaries under the pilot program2 and 7iii7 whether such technology was useful in preventing or detecting fraud1 waste1 and abuse in the ,medicare program4 7,b7 ,recommendations regarding whether the use of smart card technology should be expanded under the ,medicare program4 7#d7 ,definitions ,in this subsection3 7,a7 ,medicare provider ,the term ,medicare provider includes a provider of services 7as defined in section #ahfa7u7 of the ,social ,security ,act 7#db ,u4,s4,c4 #aciex7u777 and a supplier 7as defined in section #ahfa7;d7 of such ,act 7#db ,u4,s4,c4 #aciex7d7774 7,b7 ,secretary ,the term ,secretary means the ,secretary of ,health and ,human ,services4 7,c7 ,smart card ,the term smart card means identification used by a ,medicare beneficiary or a ,medicare provider that includes anti-fraud attributes4 ,such a card-- 7i7 may rely on existing commercial data transfer networks or on a network of proprietary card readers or databases2 and 7ii7 may include-- 7,i7 cards using technology adapted from the financial services industry2 7,,ii7 cards containing individual biometric identification1 provided that such identification is encrypted and not contained in any central database2 7,,iii7 cards adapting technology and processes utilized in the ,,tricare program under chapter #ee of title #aj1 ,united ,states ,code1 or by the ,veterans' ,administration2 or 7,,iv7 such other technology as the ,secretary determines appropriate4 #cjc4 ,prohibition of the display1 sale1 or purchase of ,social ,security numbers 7a7 ,prohibition 7#a7 ,in general ,chapter #dg of title #ah1 ,united ,states ,code1 is amended by inserting after section #ajbh;,a the following3 #ajbh;,b4 ,prohibition of the display1 sale1 or purchase of ,social ,security numbers 7a7 ,definitions ,in this section3 7#a7 ,display ,the term display means to intentionally communicate or otherwise make available 7on the ,internet or in any other manner7 to the general public an individual's ,social ,security number4 7#b7 ,person ,the term person means any individual1 partnership1 corporation1 trust1 estate1 cooperative1 association1 or any other entity4 7#c7 ,purchase ,the term purchase means providing directly or indirectly1 anything of value in exchange for a ,social ,security number4 7#d7 ,sale ,the term sale means obtaining1 directly or indirectly1 anything of value in exchange for a ,social ,security number4 7#e7 ,state ,the term ,state means any ,state of the ,united ,states1 the ,district of ,columbia1 ,puerto ,rico1 the ,northern ,mariana ,islands1 the ,united ,states ,virgin ,islands1 ,guam1 ,american ,samoa1 and any territory or possession of the ,united ,states4 7b7 ,limitation on display ,no person may display any individual's ,social ,security number to the general public without the affirmatively expressed consent of the individual4 7c7 ,limitation on sale or purchase ,except as otherwise provided in this section1 no person may sell or purchase any individual's ,social ,security number without the affirmatively expressed consent of the individual4 7d7 ,prerequisites for consent ,in order for consent to exist under subsection 7b7 or 7c71 the person displaying or seeking to display1 selling or attempting to sell1 or purchasing or attempting to purchase1 an individual's ,social ,security number shall-- 7#a7 inform the individual of the general purpose for which the number will be used1 the types of persons to whom the number may be available1 and the scope of transactions permitted by the consent2 and 7#b7 obtain the affirmatively expressed consent 7electronically or in writing7 of the individual4 7e7 ,exceptions ,nothing in this section shall be construed to prohibit or limit the display1 sale1 or purchase of a ,social ,security number-- 7#a7 required1 authorized1 or excepted under any ,federal law2 7#b7 for a public health purpose1 including the protection of the health or safety of an individual in an emergency situation2 7#c7 for a national security purpose2 7#d7 for a law enforcement purpose1 including the investigation of fraud and the enforcement of a child support obligation2 7#e7 if the display1 sale1 or purchase of the number is for a use occurring as a result of an interaction between businesses1 governments1 or business and government 7regardless of which entity initiates the interaction71 including1 but not limited to-- 7,a7 the prevention of fraud 7including fraud in protecting an employee's right to employment benefits72 7,b7 the facilitation of credit checks or the facilitation of background checks of employees1 prospective employees1 or volunteers2 7,c7 the retrieval of other information from other businesses1 commercial enterprises1 government entities1 or private nonprofit organizations2 or 7,d7 when the transmission of the number is incidental to1 and in the course of1 the sale1 lease1 franchising1 or merger of all1 or a portion of1 a business2 7#f7 if the transfer of such a number is part of a data matching program involving a ,federal1 ,state1 or local agency2 or 7#g7 if such number is required to be submitted as part of the process for applying for any type of ,federal1 ,state1 or local government benefit or program2 except that1 nothing in this subsection shall be construed as permitting a professional or commercial user to display or sell a ,social ,security number to the general public4 7f7 ,limitation ,nothing in this section shall prohibit or limit the display1 sale1 or purchase of ,social ,security numbers as permitted under title ,v of the ,gramm-,leach-,bliley ,act1 or for the purpose of affiliate sharing as permitted under the ,fair ,credit ,reporting ,act1 except that no entity regulated under such ,acts may make ,social ,security numbers available to the general public1 as may be determined by the appropriate regulators under such ,acts4 ,for purposes of this subsection1 the general public shall not include affiliates or unaffiliated third-party business entities as may be defined by the appropriate regulators4 4 7#b7 ,conforming amendment ,the chapter analysis for chapter #dg of title #ah1 ,united ,states ,code1 is amended by inserting after the item relating to section #ajbh the following3 #ajbh;,b4 ,prohibition of the display1 sale1 or purchase of ,social ,security numbers4 4 7b7 ,study2 report 7#a7 ,in general ,the ,attorney ,general shall conduct a study and prepare a report on all of the uses of ,social ,security numbers permitted1 required1 authorized1 or excepted under any ,federal law4 ,the report shall include a detailed description of the uses allowed as of the date of enactment of this ,act1 the impact of such uses on privacy and data security1 and shall evaluate whether such uses should be continued or discontinued by appropriate legislative action4 7#b7 ,report ,not later than #a year after the date of enactment of this ,act1 the ,attorney ,general shall report to ,congress findings under this subsection4 ,the report shall include such recommendations for legislation based on criteria the ,attorney ,general determines to be appropriate4 7c7 ,effective date ,the amendments made by this section shall take effect on the date that is #cj days after the date on which the final regulations promulgated under section #e are published in the ,federal ,register4 #cjd4 ,criminal penalties for the misuse of a ,social ,security number 7a7 ,prohibition of wrongful use as personal identification number ,no person may obtain any individual's ,social ,security number for purposes of locating or identifying an individual with the intent to physically injure1 harm1 or use the identity of the individual for any illegal purpose4 7b7 ,criminal sanctions ,section #bjh7;a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #djh7;a77 is amended-- 7#a7 in paragraph 7#h71 by inserting or after the semicolon2 and 7#b7 by inserting after paragraph 7#h7 the following3 7#i7 except as provided in subsections 7e7 and 7f7 of section #ajbh;,b of title #ah1 ,united ,states ,code1 knowingly and willfully displays1 sells1 or purchases 7as those terms are defined in section #ajbh;,b7a7 of title #ah1 ,united ,states ,code7 any individual's ,social ,security account number without having met the prerequisites for consent under section #ajbh;,b7d7 of title #ah1 ,united ,states ,code2 or 7#aj7 obtains any individual's ,social ,security number for the purpose of locating or identifying the individual with the intent to injure or to harm that individual1 or to use the identity of that individual for an illegal purpose2 4 #cje4 ,civil actions and civil penalties 7a7 ,civil action in ,state courts 7#a7 ,in general ,any individual aggrieved by an act of any person in violation of this ,act or any amendments made by this ,act may1 if otherwise permitted by the laws or rules of the court of a ,state1 bring in an appropriate court of that ,state-- 7,a7 an action to enjoin such violation2 7,b7 an action to recover for actual monetary loss from such a violation1 or to receive up to #ejj in damages for each such violation1 whichever is greater2 or 7,c7 both such actions4 ,it shall be an affirmative defense in any action brought under this paragraph that the defendant has established and implemented1 with due care1 reasonable practices and procedures to effectively prevent violations of the regulations prescribed under this ,act4 ,if the court finds that the defendant willfully or knowingly violated the regulations prescribed under this subsection1 the court may1 in its discretion1 increase the amount of the award to an amount equal to not more than #c times the amount available under subparagraph 7,b74 7#b7 ,statute of limitations ,an action may be commenced under this subsection not later than the earlier of-- 7,a7 #e years after the date on which the alleged violation occurred2 or 7,b7 #c years after the date on which the alleged violation was or should have been reasonably discovered by the aggrieved individual4 7#c7 ,nonexclusive remedy ,the remedy provided under this subsection shall be in addition to any other remedies available to the individual4 7b7 ,civil penalties 7#a7 ,in general ,any person who the ,attorney ,general determines has violated any section of this ,act or of any amendments made by this ,act shall be subject1 in addition to any other penalties that may be prescribed by law-- 7,a7 to a civil penalty of not more than #e1jjj for each such violation2 and 7,b7 to a civil penalty of not more than #ej1jjj1 if the violations have occurred with such frequency as to constitute a general business practice4 7#b7 ,determination of violations ,any willful violation committed contemporaneously with respect to the ,social ,security numbers of #b or more individuals by means of mail1 telecommunication1 or otherwise1 shall be treated as a separate violation with respect to each such individual4 7#c7 ,enforcement procedures ,the provisions of section #aabh;,a of the ,social ,security ,act 7#db ,u4,s4,c4 #acbj;a-#g;a71 other than subsections 7a71 7b71 7f71 7h71 7i71 7j71 7m71 and 7n7 and the first sentence of subsection 7c7 of such section1 and the provisions of subsections 7d7 and 7e7 of section #bje of such ,act 7#db ,u4,s4,c4 #dje7 shall apply to a civil penalty action under this subsection in the same manner as such provisions apply to a penalty or proceeding under section #aabh;,a7a7 of such ,act 7#db ,u4,s4,c4 #acbj;a-#g;a7a771 except that1 for purposes of this paragraph1 any reference in section #aabh;,a of such ,act 7#db ,u4,s4,c4 #acbj;a-#g;a7 to the ,secretary shall be deemed to be a reference to the ,attorney ,general4 ,,iv ,strengthening laws and improving enforcement against tax-related identity theft #dja4 ,criminal penalty for using a false identity in connection with tax fraud 7a7 ,in general ,section #gbjf of the ,internal ,revenue ,code of #aihf 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 ,use of false identity ,any person who willfully misappropriates another person's taxpayer identity 7as defined in section #fajc7;b77#f77 for the purpose of making any list1 return1 account1 statement1 or other document submitted to the ,secretary under the provisions of this title shall be guilty of a felony and1 upon conviction thereof1 shall be fined not more than #bej1jjj 7#ejj1jjj in the case of a corporation7 or imprisoned not more than #e years1 or both1 together with the costs of prosecution4 4 7b7 ,aggravated identity theft ,section #ajbh;,a7c7 of title #ah1 ,united ,states ,code1 is amended by striking or at the end of paragraph 7#aj71 by striking the period at the end of paragraph 7#aa7 and inserting 2 or1 and by adding at the end the following new paragraph3 7#ab7 section #gbjf7;b7 of the ,internal ,revenue ,code of #aihf 7relating to use of false identity in connection with tax fraud74 4 7c7 ,effective date ,the amendments made by this section shall apply to offenses committed after the date of the enactment of this ,act4 #djb4 ,increased penalty for improper disclosure or use of information by preparers of returns 7a7 ,in general ,section #fgac7;a7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking #bej and inserting #a1jjj1 and 7#b7 by striking #aj1jjj and inserting #ej1jjj4 7b7 ,criminal penalty ,section #gbaf7;a7 of the ,internal ,revenue ,code of #aihf is amended by striking #a1jjj and inserting #ajj1jjj4 7c7 ,effective date ,the amendments made by this section shall apply to disclosures or uses after the date of the enactment of this ,act4 #djc4 ,authority to transfer ,internal ,revenue ,service appropriations to use for tax fraud enforcement ,for any fiscal year1 the ,commissioner of ,internal ,revenue may transfer not more than #aj1jjj1jjj to the ,enforcement account of the ,internal ,revenue ,service from amounts appropriated to other ,internal ,revenue ,service accounts4 ,any amounts so transferred shall be used solely for the purposes of preventing and resolving potential cases of tax fraud4 #djd4 ,local law enforcement liaison 7a7 ,establishment ,the ,commissioner of ,internal ,revenue shall establish within the ,criminal ,investigation ,division of the ,internal ,revenue ,service the position of ,local ,law ,enforcement ,liaison4 7b7 ,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 and other tax fraud matters1 having duties that shall include-- 7#a7 receiving information from ,state and local law enforcement authorities2 7#b7 responding to inquiries from ,state and local law enforcement authorities2 7#c7 administering authorized information-sharing initiatives with ,state or local law enforcement authorities and reviewing the performance of such initiatives2 7#d7 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 parties2 and 7#e7 any other duties as delegated by the ,commissioner of ,internal ,revenue4 ,v ,accelerating transition to a real-time tax system that protects taxpayers and reduces fraud #eja4 ,improvement in access to information in the ,national ,directory of ,new ,hires for tax administration purposes 7a7 ,in general ,paragraph 7#c7 of section #dec7;i7 of the ,social ,security ,act 7#db ,u4,s4,c4 #fec7;i77 is amended to read as follows3 7#c7 ,administration of ,federal tax laws ,the ,secretary of the ,treasury shall have access to the information in the ,national ,directory of ,new ,hires for purposes of administering the ,internal ,revenue ,code of #aihf4 4 7b7 ,effective date ,the amendment made by this section shall take effect on the date of the enactment of this ,act4 #ejb4 ,plan of action for transitioning to a real-time tax system ,not later than #bgj days after the date of enactment of this ,act1 the ,secretary of the ,treasury1 or the ,secretary's delegate1 shall submit to ,congress a report analyzing and outlining options and potential timelines for moving toward a tax system that reduces burdens on taxpayers and decreases tax fraud through real-time information matching4