,,ii  #aac? ,,congress  #a/ ,session    
,s4 #fgf  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,april #i1 #bjac ,mr4  
,nelson 7= himself1 ,mrs4 ,fe9/e91 ,mr4 
,s*um]1 & ,mr4 ,c>d97 introduc$ ! foll[+
 bill2 :i* 0 read twice & ref]r$ to !   
,committee on ,f9ance  ,a ,,bill  ,to   
prev5t tax-relat$ id5tity !ft & tax     
fraud4  #a4 ,%ort title1 etc  7a7 ,%ort 
title ,?is ,act may be cit$ z ! ,id5tity
 ,!ft & ,tax ,fraud ,prev5tion ,act (   
#bjac4  7b7 ,table ( cont5ts ,! table ( 
cont5ts ( ?is ,act is z foll[s3  ,sec4  
#a4 ,%ort title1 etc4 ,,title           
,i--,protect+ victims ( tax-relat$      
id5tity !ft ,sec4 #aja4 ,exp$it$ refunds
 = id5tity !ft victims4 ,sec4 #ajb4     
,s+le po9t ( contact = id5tity !ft      
victims4 ,sec4 #ajc4 ,enhancem5ts to    
,,irs ,,p9 ,program4 ,sec4 #ajd4        
,electronic fil+ opt out4 ,,title       
,,ii--,%utt+ d[n abusive id5tity !ft &  
tax fraud s*emes ,sec4 #bja4            
,re/rictions on ability to use prepaid  
c>ds = tax fraud4 ,sec4 #bjb4           

,limitation on multiple tax refunds to !
 same acc\nt4 ,,title ,,iii--,add+      
critical new protections to safegu>d    
social security numb]s ,sec4 #cja4      
,re/riction on access to ! dea? ma/]    
file4 ,sec4 #cjb4 ,prohibit+ ! display (
 ,social ,security acc\nt numb]s on     
newly issu$ ,m$ic>e id5tification c>ds &
 communications provid$ to ,m$ic>e      
b5efici>ies4 ,sec4 #cjc4 ,prohibition ( 
! display1 sale1 or pur*ase ( ,social   
,security numb]s4 ,sec4 #cjd4 ,crim9al  
p5alties = ! misuse ( a ,social         
,security numb]4 ,sec4 #cje4 ,civil     
actions & civil p5alties4 ,,title       
,,iv--,/r5g!n+ laws & improv+ en=cem5t  
aga9/ tax-relat$ id5tity !ft ,sec4 #dja4
 ,crim9al p5alty = us+ a false id5tity 9
 connection ) tax fraud4 ,sec4 #djb4    
,increas$ p5alty = improp] disclosure or
 use ( in=mation by prep>]s ( returns4  
,sec4 #djc4 ,au?ority to transf]        
,int]nal ,rev5ue ,s]vice appropriations 
to use = tax fraud en=cem5t4 ,sec4 #djd4
 ,local law en=cem5t liaison4 ,,title   

,v--,accel]at+ transition to a real-"t  
tax sy/em t protects taxpay]s & r$uces  
fraud ,sec4 #eja4 ,improvem5t 9 access  
to in=mation 9 ! ,national ,directory ( 
,new ,hires = tax adm9i/ration purposes4
 ,sec4 #ejb4 ,plan ( action =           
transition+ to a real-"t tax sy/em4  ,i 
,protect+ victims ( tax-relat$ id5tity  
!ft  #aja4 ,exp$it$ refunds = id5tity   
!ft victims ,n lat] ?an #ahj days aft] !
 date ( enactm5t ( ?is ,act1 ! ,secret>y
 ( ! ,treasury1 or ! ,secret>y's        
delegate1 %all e/abli% a plan ( action  
to r$uce ! adm9i/rative "t requir$ to   
process & resolve cases ( id5tity !ft 9 
connection ) tax returns1 includ+ !     
issuance ( refunds to legitimate        
taxpay]s1 to no m ?an #ij days1 on      
av]age4  #ajb4 ,s+le po9t ( contact =   
id5tity !ft victims ,n lat] ?an #ahj    
days aft] ! date ( enactm5t ( ?is ,act1 
! ,secret>y ( ! ,treasury1 or !         
,secret>y's delegate1 %all e/abli% new  
proc$ures to ensure t any taxpay] ^:    
return has be5 delay$ or o!rwise        

adv]sely affect$ due to id5tity !ft has 
a s+le po9t ( contact at ! ,int]nal     
,rev5ue ,s]vice ?r\gh\t ! process+ ( 8  
or h] case4 ,! s+le po9t ( contact %all 
track ! case ( ! taxpay] f />t to f9i% &
 coord9ate ) o!r specializ$ units to    
resolve case issues z quickly z         
possible4  #ajc4 ,enhancem5ts to ,,irs  
,,p9 ,program  7a7 ,9 g5]al ,! ,secret>y
 ( ! ,treasury1 or ! ,secret>y's        
delegate1 %all issue a p]sonal          
id5tification numb] to id5tity !ft      
victims z soon z practicable aft] _!    
true id5tity has be5 e/abli%$ & v]ifi$4 
7b7 ,report ,n lat] ?an #cfj days aft] !
 date ( enactm5t ( ?is ,act1 ! ,secret>y
 ( ! ,treasury %all submit to ,congress 
a report analyz+ ! effectiv5ess ( !     
program describ$ 9 subsection 7a7 9     
r$uc+ tax fraud4  #ajd4 ,electronic fil+
 opt out ,n lat] ?an #ahj days aft] !   
date ( enactm5t ( ?is ,act1 ! ,secret>y 
( ! ,treasury1 or ! ,secret>y's         
delegate1 %all implem5t a program "u :i*
 a p]son :o has fil$ an id5tity !ft     

affidavit ) ! ,secret>y may elect to    
prev5t ! process+ ( any ,f$]al tax      
return submitt$ 9 an electronic =mat by 
a p]son purport+ to be su* a p]son4     
,,ii ,%utt+ d[n abusive id5tity !ft &   
tax fraud s*emes  #bja4 ,re/rictions on 
ability to use prepaid c>ds = tax fraud 
7a7 ,acc\nts ) elevat$ risk ( id5tity   
!ft  7#a7 ,9 g5]al ,n lat] ?an #cfj days
 aft] ! date ( ! enactm5t ?is ,act1 !   
,f$]al prim>y f9ancial regulatory       
ag5cies1 9 consultation ) ! ,secret>y ( 
! ,treasury1 %all jo9tly prescribe      
regulations requir+ newly issu$ deposit 
or transaction acc\nt numb]s1 z ! case  
may be1 to be di/+ui%able betwe5 v]ifi$ 
acc\nts & at-risk acc\nts4  7#b7        
,def9itions ,z us$ 9 ?is section--  7,a7
 ! t]m at-risk acc\nt means any deposit 
acc\nt or transaction acc\nt1 includ+   
acc\nts associat$ ) a prepaid access    
arrangem5t1 t is n a v]ifi$ acc\nt2     
7,b7 ! t]m prim>y f9ancial regulatory   
ag5cy has ! same mean+ z 9 section      
#b7ab7 ( ! ,dodd-,frank ,wall ,/reet    

,re=m & ,consum] ,protection ,act 7#ab  
,u4,s4,c4 #ecja7ab772 &  7,c7 ! t]m     
v]ifi$ acc\nt means any deposit acc\nt  
or transaction acc\nt 9 :i* ! id5tity ( 
! acc\nt hold] & any prepaid access     
cu/om] associat$ ) ! acc\nt is v]ifi$   
by--  7i7 cu/om] id5tification proc$ures
 t comply ) section #ecah7l7 ( title    
#ca1 ,unit$ ,/ates ,code2 &  7ii7 direct
 review ( an orig9al1 unexpir$          
gov]nm5t-issu$ =m ( id5tification be>+ a
 photograph or simil> safegu>d1 su* z a 
driv]'s lic5se or passport4  7b7 ,,gao  
audit ( debit c>d issu]s ,to ensure     
compliance ) cu/om] id5tification       
requirem5ts  7#a7 ,review & evaluation  
,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates 
%all review & evaluate ! effectiv5ess ( 
! curr5t ,cu/om] ,id5tification ,program
 rules implem5t+ ! cu/om] id5tification 
program requirem5ts "u section #ecah7l7 
( title #ca1 ,unit$ ,/ates ,code1 z su* 
rules apply to ! prepaid c>d indu/ry4   
7#b7 ,requir$ consid]ations ,! review & 
evaluation requir$ "u p>agraph 7#a7     

%all--  7,a7 consid] :e!r weaknesses 9  
curr5t cu/om] id5tification programs are
 contribut+ to id5tity !ft & f9ancial   
loss1 p>ticul>ly ) respect to tax fraud2
 &  7,b7 review :e!r--  7i7 curr5t      
risk-bas$ /&>ds = cu/om] id5tification  
are ! be/ means to prev5t crim9al use ( 
prepaid c>ds & provide suffici5t        
guidance & c]ta9ty to ! sell]s &        
provid]s ( prepaid access2  7ii7 curr5t 
exclusions f cu/om] id5tification       
requirem5ts1 su* z exclusions = gov]nm5t
 b5efit programs1 are appropriate2 &    
7iii7 ,f$]al regulatory ag5cies ex]cise 
adequate ov]sight & sup]vision ( cu/om] 
id5tification practices ( ! prepaid c>d 
indu/ry4  7#c7 ,report to ,congress ,n  
lat] ?an #cfj days aft] ! date ( !      
enactm5t ?is ,act1 ! ,comptroll] ,g5]al 
( ! ,unit$ ,/ates %all submit to        
,congress a report--  7,a7 on ! f9d+s ( 
! review & evaluation requir$ "u        
p>agraph 7#a72 &  7,b7 conta9+ any      
recomm5dations or proposals =           
legislative or adm9i/rative action to   

improve ! cu/om] id5tification practices
 ( ! prepaid c>d indu/ry4  #bjb4        
,limitation on multiple tax refunds to !
 same acc\nt  7a7 ,9 g5]al ,n lat] ?an  
#ahj days aft] ! date ( enactm5t ( ?is  
,act1 ! ,secret>y ( ! ,treasury1 or !   
,secret>y's delegate1 %all issue        
regulations t re/rict ! deliv]y or      
deposit ( multiple tax refunds f ! same 
tax ye> to ! same individual acc\nt or  
mail+ address4  7b7 ,exception ,!       
regulation promulgat$ "u subsection 7a7 
%all provide t ! re/rictions %all n     
apply 9 cases & situations :]e !        
,secret>y det]m9es !re is n a likelihood
 ( tax fraud4  ,,iii ,add+ critical new 
protections to safegu>d social security 
numb]s  #cja4 ,re/riction on access to !
 dea? ma/] file  7a7 ,9 g5]al ,n lat]   
?an #ij days aft] ! date ( ! enactm5t ( 
?is ,act1 ! ,commission] ( ! ,social    
,security ,adm9i/ration %all ve/ all    
responsibilities = ! release ( ,social  
,security dea? records to non-gov]nm5tal
 p]sons or entities ) ! ,secret>y (     

,comm]ce ?r\gh a memor&um ( und]/&+4    
7b7 ,prohibition ,! ,secret>y ( ,comm]ce
 %all n disclose in=mation conta9$ 9    
,social ,security dea? records to any   
non-gov]nm5tal p]son or entity ) respect
 to any individual :o has di$ at any "t 
dur+ ! cal5d> ye> 9 :i* ! reque/ =      
disclosure is made or ! succe$+ #b      
cal5d> ye>s unless su* p]son is c]tifi$ 
"u ! program e/abli%$ "u subsection 7c74
  7c7 ,c]tification program  7#a7 ,9    
g5]al ,! ,secret>y ( ,comm]ce %all      
e/abli% a program--  7,a7 to c]tify     
p]sons :o are eligible to access !      
in=mation describ$ 9 subsection 7b7     
conta9$ on ! ,dea? ,ma/] ,file1 &  7,b7 
to p]=m p]iodic & uns*$ul$ audits (     
c]tifi$ p]sons to det]m9e ! compliance  
by su* c]tifi$ p]sons ) ! requirem5ts ( 
! program4  7#b7 ,c]tification ,a p]son 
%all n be c]tifi$ nor rema9 c]tifi$ "u !
 program e/abli%$ "u p>agraph 7#a7      
unless--  7,a7 ! ,secret>y ( ,comm]ce   
det]m9es t access to ! in=mation        
describ$ 9 subsection 7b7 is appropriate

 because--  7i7 su* p]son has a         
legitimate int]e/ 9 prev5t+ fraud or    
unau?oriz$ f9ancial transactions1  7ii7 
su* access w facilitate compliance by   
su* p]son ) an applicable law1          
regulation1 c\rt ord]1 or fiduci>y duty1
  7iii7 su* access w facilitate timely &
 prop] adm9i/ration by su* p]son ( an   
insurance policy or b5efit program1 or  
7iv7 su* p]son is subject to disclosure 
requirem5ts "u section #ejb ( !         
,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4
 #fhjb71 section #fbj ( ! ,fair ,cr$it  
,report+ ,act 7#ae ,u4,s4,c4 #afhar71 or
 any o!r ,f$]al /atute t ! ,secret>y    
det]m9es1 foll[+ notice & comm5t        
rulemak+1 provides suffici5t protection 
aga9/ improp] disclosure ( in=mation    
describ$ 9 subsection 7b71 &  7,b7 !    
,secret>y ( ,comm]ce v]ifies t su* p]son
 has facilities & proc$ures 9 place to  
safegu>d su* in=mation1 & exp]i5ce 9    
ma9ta9+ ! confid5tiality1 security1 &   
appropriate use ( su* in=mation4  7#c7  
,fees ,! ,secret>y ( ,comm]ce %all      

e/abli% "u section #igja ( title #ca1   
,unit$ ,/ates ,code1 = ! *>ge ( fees    
suffici5t to cov] all co/s associat$ )  
evaluat+ applications = c]tification &  
audit+1 inspect+1 & monitor+ c]tifi$    
p]sons "u ! program4  7d7 ,imposition ( 
p5alty  7#a7 ,9 g5]al ,subject to       
p>agraph 7#b71 any p]son :o is c]tifi$  
"u ! program e/abli%$ "u subsection 7c71
 :o receives in=mation describ$ 9       
subsection 7b71 & :o dur+ ! p]iod ( "t  
describ$ 9 subsection 7b7--  7,a7       
discloses su* in=mation to any o!r      
p]son1 or  7,b7 uses any su* in=mation  
to commit1 or aid or abet1 any crim9al  
(f5se1  %all pay a p5alty ( #e1jjj = ea*
 su* disclosure or use1 b ! total am\nt 
impos$ "u ?is subsection on su* a p]son 
= any cal5d> ye> %all n exce$ #ejj1jjj4 
7#b7 ,exception ,a p]son :o--  7,a7 is  
c]tifi$ "u ! program e/abli%$ "u        
subsection 7c71  7,b7 ^u reque/ by ano!r
 p]son1 v]ifies t an individual is or is
 n deceas$ pursuant to in=mation conta9$
 on ! ,dea? ,ma/] ,file1 &  7,c7 does n 

disclose any additional in=mation       
describ$ 9 subsection 7b71  %all n be   
subject to a p5alty pursuant to p>agraph
 7#a74  7e7 ,exemption f ,fre$om (      
,in=mation ,act requirem5t ) respect to 
c]ta9 records ( deceas$ individuals     
7#a7 ,9 g5]al ,subsequ5t to ! date on   
:i* ! ,secret>y ( ,comm]ce e/abli%es !  
program describ$ 9 subsection 7c77#a71 !
 ,social ,security ,adm9i/ration %all n 
be compell$ to disclose any in=mation   
describ$ 9 subsection 7b7 to any        
non-gov]nm5tal p]son or entity :o is n  
c]tifi$ "u su* program4  7#b7 ,treatm5t 
( in=mation ,= purposes ( section #eeb (
 title #e1 ,unit$ ,/ates ,code1 ?is     
section %all be consid]$ a /atute       
describ$ 9 subsection 7b77#c77;,b7 ( su*
 section #eeb4  #cjb4 ,prohibit+ !      
display ( ,social ,security acc\nt      
numb]s on newly issu$ ,m$ic>e           
id5tification c>ds & communications     
provid$ to ,m$ic>e b5efici>ies  7a7 ,9  
g5]al ,n lat] ?an #b ye>s aft] ! date ( 
! enactm5t ( ?is ,act1 ! ,secret>y (    

,heal? & ,human ,s]vices1 9 consultation
 ) ! ,commission] ( ,social ,security1  
%all e/abli% & beg9 to implem5t         
proc$ures to elim9ate ! unnecess>y      
collection1 use1 & display ( ,social    
,security acc\nt numb]s ( ,m$ic>e       
b5efici>ies4  7b7 ,newly issu$ m$ic>e   
c>ds & communications provid$ to        
b5efici>ies  7#a7 ,newly issu$ c>ds     
7,a7 ,9 g5]al ,n lat] ?an #d ye>s aft] !
 date ( enactm5t ( ?is ,act1 ! ,secret>y
 ( ,heal? & ,human ,s]vices1 9          
consultation ) ! ,commission] ( ,social 
,security1 %all ensure t ea* newly issu$
 ,m$ic>e id5tification c>d meets !      
requirem5ts describ$ 9 subp>agraph 7,b74
  7,b7 ,requirem5ts  7i7 ,9 g5]al       
,subject to clauses 7ii7 & 7iii71 !     
requirem5ts describ$ 9 ?is subp>agraph  
are1 ) respect to a ,m$ic>e             
id5tification c>d1 t ! c>d does n       
display or electronically /ore 79 an    
un5crypt$ =mat7 a ,m$ic>e b5efici>y's   
,social ,security acc\nt numb]4  7ii7   
,exception ,! ,secret>y may waive !     

requirem5ts "u clause 7i7 9 ! case :]e !
 heal? insurance claim numb] ( a        
b5efici>y is ! ,social ,security numb] (
 ! b5efici>y1 ! b5efici>y's sp\se1 or   
ano!r individual4  7iii7 ,use ( p>tial  
acc\nt numb] ,! ,secret>y ( ,heal? &    
,human ,s]vices1 9 consultation ) !     
,commission] ( ,social ,security1 may   
provide = ! use ( a p>tial ,social      
,security acc\nt numb] on a ,m$ic>e     
id5tification c>d if ! ,secret>y        
det]m9es t su* use does n all[ an       
unacceptable risk ( fraudul5t use4  7#b7
 ,communications provid$ to b5efici>ies 
,n lat] ?an #d ye>s aft] ! date (       
enactm5t ( ?is ,act1 ! ,secret>y (      
,heal? & ,human ,s]vices %all prohibit !
 display ( a ,m$ic>e b5efici>y's ,social
 ,security acc\nt numb] on writt5 or    
electronic communication provid$ to !   
b5efici>y unless ! ,secret>y1 9         
consultation ) ! ,commission] ( ,social 
,security1 det]m9es t inclusion (       
,social ,security acc\nt numb]s on su*  
communications is ess5tial = ! op]ation 

( ! ,m$ic>e program4  7c7 ,m$ic>e       
b5efici>y def9$ ,9 ?is section1 ! t]m   
,m$ic>e b5efici>y means an individual   
entitl$ to1 or enroll$ =1 b5efits "u "p 
,a ( title ,,xviii ( ! ,social ,security
 ,act 7#db ,u4,s4,c4 #acie;c et seq47 or
 enroll$ = b5efits "u "p ,b ( su* title 
7#db ,u4,s4,c4 #acie;j et seq474  7d7   
,con=m+ am5dm5ts  7#a7 ,ref]5ce 9 !     
,social ,security ,act ,section         
#bje7;c77#b77;,c7 ( ! ,social ,security 
,act 7#db ,u4,s4,c4 #dje7;c77#b77;,c77  
is am5d$--  7,a7 by mov+ clause 7x71 z  
add$ by section #adad7;a77#b7 ( !       
,pati5t ,protection & ,af=dable ,c>e    
,act 7,public ,law #aaa-adh71 #f ems to 
! left2  7,b7 by r$esignat+ clause 7x71 
z add$ by section #b7;a77#a7 ( ! ,social
 ,security ,numb] ,protection ,act (    
#bjaj 7#db ,u4,s4,c4 #acje note71 z     
clause 7xii72 &  7,c7 by add+ aft]      
clause 7xii71 z r$esignat$ by           
subp>agraph 7,b71 ! foll[+ new clause3  
7xiii7 ,subject to section #cjb ( !     
,id5tity ,!ft & ,tax ,fraud ,prev5tion  

,act ( #bjac1 social security acc\nt    
numb]s %all n be display$ on ,m$ic>e    
id5tification c>ds or on communications 
provid$ to ,m$ic>e b5efici>ies4  4  7#b7
 ,access to in=mation ,section #bje7r7 (
 ! ,social ,security ,act 7#db ,u4,s4,c4
 #dje7r77 is am5d$ by add+ at ! end !   
foll[+ new p>agraph3  7#aj7 ,to prev5t &
 id5tify fraudul5t activity1 !          
,commission] %all ^u ! reque/ ( !       
,attorney ,g5]al or ^u ! reque/ ( !     
,secret>y ( ,heal? & ,human ,s]vices    
ent] into a reimbursable agreem5t ) !   
,attorney ,g5]al or ! ,secret>y to      
provide in=mation collect$ "u p>agraph  
7#a7 if--  7,a7 ! requirem5ts (         
subp>agraphs 7,a7 & 7,b7 ( p>agraph 7#c7
 are met2 &  7,b7 su* agreem5t includes 
appropriate provisions to protect !     
confid5tiality ( in=mation provid$ by ! 
,commission] "u su* agreem5t4  4  7e7   
,pilot program  7#a7 ,e/abli%m5t ,!     
,secret>y %all e/abli% a pilot program  
utiliz+ sm>t c>d te*nology to evaluate--
  7,a7 ! applicability ( sm>t c>d       

te*nology to ! ,m$ic>e program "u title 
,,xviii ( ! ,social ,security ,act 7#db 
,u4,s4,c4 #acie et seq471 includ+ !     
applicability ( su* te*nology to ,m$ic>e
 b5efici>ies or ,m$ic>e provid]s2 &     
7,b7 :e!r su* c>ds w\ld be effective 9  
prev5t+ fraud "u ! ,m$ic>e program4     
7#b7 ,implem5tation  7,a7 ,initial      
implem5tation ,! ,secret>y %all implem5t
 ! pilot program "u ?is subsection n    
lat] ?an #a ye> aft] ! date ( enactm5t (
 ?is ,act4  7,b7 ,scope & duration ,!   
,secret>y %all conduct ! pilot program--
  7i7 9 n less ?an #b ,/ates2 &  7ii7 = 
a p]iod ( n less ?an #ahj days or m ?an 
#b ye>s4  7#c7 ,report ,n lat] ?an #ab  
mon?s aft] ! completion ( ! pilot       
program "u ?is subsection1 ! ,secret>y  
%all submit to ! appropriate committees 
( ,congress & make available to ! public
 a report t includes ! foll[+3  7,a7 ,a 
summ>y ( ! pilot program & f9d+s1       
includ+--  7i7 ! co/s or sav+s to !     
,m$ic>e program z a result ( !          
implem5tation ( ! pilot program2  7ii7  

:e!r ! use ( sm>t c>d te*nology result$ 
9 improvem5ts 9 ! quality ( c>e provid$ 
to ,m$ic>e b5efici>ies "u ! pilot       
program2 &  7iii7 :e!r su* te*nology 0  
useful 9 prev5t+ or detect+ fraud1 wa/e1
 & abuse 9 ! ,m$ic>e program4  7,b7     
,recomm5dations reg>d+ :e!r ! use ( sm>t
 c>d te*nology %\ld be exp&$ "u !       
,m$ic>e program4  7#d7 ,def9itions ,9   
?is subsection3  7,a7 ,m$ic>e provid] ,!
 t]m ,m$ic>e provid] includes a provid] 
( s]vices 7z def9$ 9 section #ahfa7u7 ( 
! ,social ,security ,act 7#db ,u4,s4,c4 
#aciex7u777 & a suppli] 7z def9$ 9      
section #ahfa7;d7 ( su* ,act 7#db       
,u4,s4,c4 #aciex7d7774  7,b7 ,secret>y  
,! t]m ,secret>y means ! ,secret>y (    
,heal? & ,human ,s]vices4  7,c7 ,sm>t   
c>d ,! t]m sm>t c>d means id5tification 
us$ by a ,m$ic>e b5efici>y or a ,m$ic>e 
provid] t includes anti-fraud           
attributes4 ,su* a c>d--  7i7 may rely  
on exi/+ comm]cial data transf] networks
 or on a network ( propriet>y c>d read]s
 or databases2 &  7ii7 may include--    

7,i7 c>ds us+ te*nology adapt$ f !      
f9ancial s]vices indu/ry2  7,,ii7 c>ds  
conta9+ individual biometric            
id5tification1 provid$ t su*            
id5tification is encrypt$ & n conta9$ 9 
any c5tral database2  7,,iii7 c>ds      
adapt+ te*nology & processes utiliz$ 9 !
 ,,tric>e program "u *apt] #ee ( title  
#aj1 ,unit$ ,/ates ,code1 or by !       
,vet]ans' ,adm9i/ration2 or  7,,iv7 su* 
o!r te*nology z ! ,secret>y det]m9es    
appropriate4  #cjc4 ,prohibition ( !    
display1 sale1 or pur*ase ( ,social     
,security numb]s  7a7 ,prohibition  7#a7
 ,9 g5]al ,*apt] #dg ( title #ah1 ,unit$
 ,/ates ,code1 is am5d$ by ins]t+ aft]  
section #ajbh;,a ! foll[+3  #ajbh;,b4   
,prohibition ( ! display1 sale1 or      
pur*ase ( ,social ,security numb]s  7a7 
,def9itions ,9 ?is section3  7#a7       
,display ,! t]m display means to        
int5tionally communicate or o!rwise make
 available 7on ! ,int]net or 9 any o!r  
mann]7 to ! g5]al public an individual's
 ,social ,security numb]4  7#b7 ,p]son  

,! t]m p]son means any individual1      
p>tn]%ip1 corporation1 tru/1 e/ate1     
coop]ative1 association1 or any o!r     
entity4  7#c7 ,pur*ase ,! t]m pur*ase   
means provid+ directly or indirectly1   
any?+ ( value 9 ex*ange = a ,social     
,security numb]4  7#d7 ,sale ,! t]m sale
 means obta9+1 directly or indirectly1  
any?+ ( value 9 ex*ange = a ,social     
,security numb]4  7#e7 ,/ate ,! t]m     
,/ate means any ,/ate ( ! ,unit$ ,/ates1
 ! ,di/rict ( ,columbia1 ,pu]to ,rico1 !
 ,nor!rn ,m>iana ,isl&s1 ! ,unit$ ,/ates
 ,virg9 ,isl&s1 ,guam1 ,am]ican ,samoa1 
& any t]ritory or possession ( ! ,unit$ 
,/ates4  7b7 ,limitation on display ,no 
p]son may display any individual's      
,social ,security numb] to ! g5]al      
public )\t ! affirmatively express$     
cons5t ( ! individual4  7c7 ,limitation 
on sale or pur*ase ,except z o!rwise    
provid$ 9 ?is section1 no p]son may sell
 or pur*ase any individual's ,social    
,security numb] )\t ! affirmatively     
express$ cons5t ( ! individual4  7d7    

,pr]equisites = cons5t ,9 ord] = cons5t 
to exi/ "u subsection 7b7 or 7c71 !     
p]son display+ or seek+ to display1     
sell+ or attempt+ to sell1 or pur*as+ or
 attempt+ to pur*ase1 an individual's   
,social ,security numb] %all--  7#a7    
in=m ! individual ( ! g5]al purpose =   
:i* ! numb] w be us$1 ! types ( p]sons  
to :om ! numb] may be available1 & !    
scope ( transactions p]mitt$ by !       
cons5t2 &  7#b7 obta9 ! affirmatively   
express$ cons5t 7electronically or 9    
writ+7 ( ! individual4  7e7 ,exceptions 
,no?+ 9 ?is section %all be con/ru$ to  
prohibit or limit ! display1 sale1 or   
pur*ase ( a ,social ,security numb]--   
7#a7 requir$1 au?oriz$1 or except$ "u   
any ,f$]al law2  7#b7 = a public heal?  
purpose1 includ+ ! protection ( ! heal? 
or safety ( an individual 9 an em]g5cy  
situation2  7#c7 = a national security  
purpose2  7#d7 = a law en=cem5t purpose1
 includ+ ! inve/igation ( fraud & !     
en=cem5t ( a *ild support obligation2   
7#e7 if ! display1 sale1 or pur*ase ( ! 

numb] is = a use occurr+ z a result ( an
 int]action betwe5 bus9esses1 gov]nm5ts1
 or bus9ess & gov]nm5t 7reg>dless ( :i* 
entity initiates ! int]action71 includ+1
 b n limit$ to--  7,a7 ! prev5tion (    
fraud 7includ+ fraud 9 protect+ an      
employee's "r to employm5t b5efits72    
7,b7 ! facilitation ( cr$it *ecks or !  
facilitation ( backgr\nd *ecks (        
employees1 prospective employees1 or    
volunte]s2  7,c7 ! retrieval ( o!r      
in=mation f o!r bus9esses1 comm]cial    
ent]prises1 gov]nm5t entities1 or       
private nonpr(it organizations2 or  7,d7
 :5 ! transmission ( ! numb] is         
incid5tal to1 & 9 ! c\rse (1 ! sale1    
lease1 fran*is+1 or m]g] ( all1 or a    
portion (1 a bus9ess2  7#f7 if ! transf]
 ( su* a numb] is "p ( a data mat*+     
program involv+ a ,f$]al1 ,/ate1 or     
local ag5cy2 or  7#g7 if su* numb] is   
requir$ to be submitt$ z "p ( ! process 
= apply+ = any type ( ,f$]al1 ,/ate1 or 
local gov]nm5t b5efit or program2       
except t1 no?+ 9 ?is subsection %all be 

con/ru$ z p]mitt+ a pr(essional or      
comm]cial us] to display or sell a      
,social ,security numb] to ! g5]al      
public4  7f7 ,limitation ,no?+ 9 ?is    
section %all prohibit or limit !        
display1 sale1 or pur*ase ( ,social     
,security numb]s z p]mitt$ "u title ,v (
 ! ,gramm-,lea*-,bliley ,act1 or = !    
purpose ( affiliate %>+ z p]mitt$ "u !  
,fair ,cr$it ,report+ ,act1 except t no 
entity regulat$ "u su* ,acts may make   
,social ,security numb]s available to ! 
g5]al public1 z may be det]m9$ by !     
appropriate regulators "u su* ,acts4 ,= 
purposes ( ?is subsection1 ! g5]al      
public %all n include affiliates or     
unaffiliat$ ?ird-p>ty bus9ess entities z
 may be def9$ by ! appropriate          
regulators4  4  7#b7 ,con=m+ am5dm5t ,! 
*apt] analysis = *apt] #dg ( title #ah1 
,unit$ ,/ates ,code1 is am5d$ by ins]t+ 
aft] ! item relat+ to section #ajbh !   
foll[+3  #ajbh;,b4 ,prohibition ( !     
display1 sale1 or pur*ase ( ,social     
,security numb]s4  4  7b7 ,/udy2 report 

7#a7 ,9 g5]al ,! ,attorney ,g5]al %all  
conduct a /udy & prep>e a report on all 
( ! uses ( ,social ,security numb]s     
p]mitt$1 requir$1 au?oriz$1 or except$  
"u any ,f$]al law4 ,! report %all       
include a detail$ description ( ! uses  
all[$ z ( ! date ( enactm5t ( ?is ,act1 
! impact ( su* uses on privacy & data   
security1 & %all evaluate :e!r su* uses 
%\ld be cont9u$ or discont9u$ by        
appropriate legislative action4  7#b7   
,report ,n lat] ?an #a ye> aft] ! date (
 enactm5t ( ?is ,act1 ! ,attorney ,g5]al
 %all report to ,congress f9d+s "u ?is  
subsection4 ,! report %all include su*  
recomm5dations = legislation bas$ on    
crit]ia ! ,attorney ,g5]al det]m9es to  
be appropriate4  7c7 ,effective date ,! 
am5dm5ts made by ?is section %all take  
effect on ! date t is #cj days aft] !   
date on :i* ! f9al regulations          
promulgat$ "u section #e are publi%$ 9 !
 ,f$]al ,regi/]4  #cjd4 ,crim9al        
p5alties = ! misuse ( a ,social         
,security numb]  7a7 ,prohibition (     

wrongful use z p]sonal id5tification    
numb] ,no p]son may obta9 any           
individual's ,social ,security numb] =  
purposes ( locat+ or id5tify+ an        
individual ) ! int5t to physically      
injure1 h>m1 or use ! id5tity ( !       
individual = any illegal purpose4  7b7  
,crim9al sanctions ,section #bjh7;a7 ( !
 ,social ,security ,act 7#db ,u4,s4,c4  
#djh7;a77 is am5d$--  7#a7 9 p>agraph   
7#h71 by ins]t+ or aft] ! semicolon2 &  
7#b7 by ins]t+ aft] p>agraph 7#h7 !     
foll[+3  7#i7 except z provid$ 9        
subsections 7e7 & 7f7 ( section #ajbh;,b
 ( title #ah1 ,unit$ ,/ates ,code1      
kn[+ly & willfully displays1 sells1 or  
pur*ases 7z ^? t]ms are def9$ 9 section 
#ajbh;,b7a7 ( title #ah1 ,unit$ ,/ates  
,code7 any individual's ,social         
,security acc\nt numb] )\t hav+ met !   
pr]equisites = cons5t "u section        
#ajbh;,b7d7 ( title #ah1 ,unit$ ,/ates  
,code2 or  7#aj7 obta9s any individual's
 ,social ,security numb] = ! purpose (  
locat+ or id5tify+ ! individual ) !     

int5t to injure or to h>m t individual1 
or to use ! id5tity ( t individual = an 
illegal purpose2  4  #cje4 ,civil       
actions & civil p5alties  7a7 ,civil    
action 9 ,/ate c\rts  7#a7 ,9 g5]al ,any
 individual aggriev$ by an act ( any    
p]son 9 violation ( ?is ,act or any     
am5dm5ts made by ?is ,act may1 if       
o!rwise p]mitt$ by ! laws or rules ( !  
c\rt ( a ,/ate1 br+ 9 an appropriate    
c\rt ( t ,/ate--  7,a7 an action to     
enjo9 su* violation2  7,b7 an action to 
recov] = actual monet>y loss f su* a    
violation1 or to receive up to #ejj 9   
damages = ea* su* violation1 :i*ev] is  
great]2 or  7,c7 bo? su* actions4  ,x   
%all be an affirmative def5se 9 any     
action br\ght "u ?is p>agraph t !       
def5dant has e/abli%$ & implem5t$1 ) due
 c>e1 reasonable practices & proc$ures  
to effectively prev5t violations ( !    
regulations prescrib$ "u ?is ,act4 ,if !
 c\rt f9ds t ! def5dant willfully or    
kn[+ly violat$ ! regulations prescrib$  
"u ?is subsection1 ! c\rt may1 9 its    

discretion1 increase ! am\nt ( ! aw>d to
 an am\nt equal to n m ?an #c times !   
am\nt available "u subp>agraph 7,b74    
7#b7 ,/atute ( limitations ,an action   
may be comm5c$ "u ?is subsection n lat] 
?an ! e>li] (--  7,a7 #e ye>s aft] !    
date on :i* ! alleg$ violation occurr$2 
or  7,b7 #c ye>s aft] ! date on :i* !   
alleg$ violation 0 or %\ld h be5        
reasonably discov]$ by ! aggriev$       
individual4  7#c7 ,nonexclusive rem$y ,!
 rem$y provid$ "u ?is subsection %all be
 9 addition to any o!r rem$ies available
 to ! individual4  7b7 ,civil p5alties  
7#a7 ,9 g5]al ,any p]son :o ! ,attorney 
,g5]al det]m9es has violat$ any section 
( ?is ,act or ( any am5dm5ts made by ?is
 ,act %all be subject1 9 addition to any
 o!r p5alties t may be prescrib$ by     
law--  7,a7 to a civil p5alty ( n m ?an 
#e1jjj = ea* su* violation2 &  7,b7 to a
 civil p5alty ( n m ?an #ej1jjj1 if !   
violations h occurr$ ) su* frequ5cy z to
 con/itute a g5]al bus9ess practice4    
7#b7 ,det]m9ation ( violations ,any     

willful violation committ$              
contemporane\sly ) respect to ! ,social 
,security numb]s ( #b or m individuals  
by means ( mail1 telecommunication1 or  
o!rwise1 %all be treat$ z a sep>ate     
violation ) respect to ea* su*          
individual4  7#c7 ,en=cem5t proc$ures ,!
 provisions ( section #aabh;,a ( !      
,social ,security ,act 7#db ,u4,s4,c4   
#acbj;a-#g;a71 o!r ?an subsections 7a71 
7b71 7f71 7h71 7i71 7j71 7m71 & 7n7 & ! 
fir/ s5t5ce ( subsection 7c7 ( su*      
section1 & ! provisions ( subsections   
7d7 & 7e7 ( section #bje ( su* ,act 7#db
 ,u4,s4,c4 #dje7 %all apply to a civil  
p5alty action "u ?is subsection 9 ! same
 mann] z su* provisions apply to a      
p5alty or proce$+ "u section #aabh;,a7a7
 ( su* ,act 7#db ,u4,s4,c4              
#acbj;a-#g;a7a771 except t1 = purposes (
 ?is p>agraph1 any ref]5ce 9 section    
#aabh;,a ( su* ,act 7#db ,u4,s4,c4      
#acbj;a-#g;a7 to ! ,secret>y %all be    
deem$ to be a ref]5ce to ! ,attorney    
,g5]al4  ,,iv ,/r5g!n+ laws & improv+   

en=cem5t aga9/ tax-relat$ id5tity !ft   
#dja4 ,crim9al p5alty = us+ a false     
id5tity 9 connection ) tax fraud  7a7 ,9
 g5]al ,section #gbjf ( ! ,int]nal      
,rev5ue ,code ( #aihf is am5d$--  7#a7  
by /rik+ ,any p]son & ins]t+ ! foll[+3  
7a7 ,9 g5]al ,any p]son  1 &  7#b7 by   
add+ at ! end ! foll[+ new subsection3  
7b7 ,use ( false id5tity ,any p]son :o  
willfully misappropriates ano!r p]son's 
taxpay] id5tity 7z def9$ 9 section      
#fajc7;b77#f77 = ! purpose ( mak+ any   
li/1 return1 acc\nt1 /atem5t1 or o!r    
docum5t submitt$ to ! ,secret>y "u !    
provisions ( ?is title %all be guilty ( 
a felony &1 ^u conviction !re(1 %all be 
f9$ n m ?an #bej1jjj 7#ejj1jjj 9 ! case 
( a corporation7 or imprison$ n m ?an #e
 ye>s1 or bo?1 toge!r ) ! co/s (        
prosecution4  4  7b7 ,aggravat$ id5tity 
!ft ,section #ajbh;,a7c7 ( title #ah1   
,unit$ ,/ates ,code1 is am5d$ by /rik+  
or at ! end ( p>agraph 7#aj71 by /rik+ !
 p]iod at ! end ( p>agraph 7#aa7 &      
ins]t+ 2 or1 & by add+ at ! end ! foll[+

 new p>agraph3  7#ab7 section #gbjf7;b7 
( ! ,int]nal ,rev5ue ,code ( #aihf      
7relat+ to use ( false id5tity 9        
connection ) tax fraud74  4  7c7        
,effective date ,! am5dm5ts made by ?is 
section %all apply to (f5ses committ$   
aft] ! date ( ! enactm5t ( ?is ,act4    
#djb4 ,increas$ p5alty = improp]        
disclosure or use ( in=mation by prep>]s
 ( returns  7a7 ,9 g5]al ,section       
#fgac7;a7 ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$--  7#a7 by /rik+ #bej &  
ins]t+ #a1jjj1 &  7#b7 by /rik+ #aj1jjj 
& ins]t+ #ej1jjj4  7b7 ,crim9al p5alty  
,section #gbaf7;a7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by /rik+ #a1jjj &
 ins]t+ #ajj1jjj4  7c7 ,effective date  
,! am5dm5ts made by ?is section %all    
apply to disclosures or uses aft] ! date
 ( ! enactm5t ( ?is ,act4  #djc4        
,au?ority to transf] ,int]nal ,rev5ue   
,s]vice appropriations to use = tax     
fraud en=cem5t ,= any fiscal ye>1 !     
,commission] ( ,int]nal ,rev5ue may     
transf] n m ?an #aj1jjj1jjj to !        

,en=cem5t acc\nt ( ! ,int]nal ,rev5ue   
,s]vice f am\nts appropriat$ to o!r     
,int]nal ,rev5ue ,s]vice acc\nts4 ,any  
am\nts s transf]r$ %all be us$ solely = 
! purposes ( prev5t+ & resolv+ pot5tial 
cases ( tax fraud4  #djd4 ,local law    
en=cem5t liaison  7a7 ,e/abli%m5t ,!    
,commission] ( ,int]nal ,rev5ue %all    
e/abli% )9 ! ,crim9al ,inve/igation     
,division ( ! ,int]nal ,rev5ue ,s]vice !
 position ( ,local ,law ,en=cem5t       
,liaison4  7b7 ,duties ,! ,local ,law   
,en=cem5t ,liaison %all s]ve z ! prim>y 
s\rce ( contact = ,/ate & local law     
en=cem5t au?orities ) respect to        
tax-relat$ id5tity !ft & o!r tax fraud  
matt]s1 hav+ duties t %all include--    
7#a7 receiv+ in=mation f ,/ate & local  
law en=cem5t au?orities2  7#b7 respond+ 
to inquiries f ,/ate & local law        
en=cem5t au?orities2  7#c7 adm9i/]+     
au?oriz$ in=mation-%>+ initiatives )    
,/ate or local law en=cem5t au?orities &
 review+ ! p]=mance ( su* initiatives2  
7#d7 ensur+ any in=mation provid$ ?r\gh 

au?oriz$ in=mation-%>+ initiatives )    
,/ate or local law en=cem5t au?orities  
is us$ only = ! prosecution ( id5tity   
!ft-relat$ crimes & n re-disclos$ to    
?ird p>ties2 &  7#e7 any o!r duties z   
delegat$ by ! ,commission] ( ,int]nal   
,rev5ue4  ,v ,accel]at+ transition to a 
real-"t tax sy/em t protects taxpay]s & 
r$uces fraud  #eja4 ,improvem5t 9 access
 to in=mation 9 ! ,national ,directory (
 ,new ,hires = tax adm9i/ration purposes
  7a7 ,9 g5]al ,p>agraph 7#c7 ( section 
#dec7;i7 ( ! ,social ,security ,act 7#db
 ,u4,s4,c4 #fec7;i77 is am5d$ to read z 
foll[s3  7#c7 ,adm9i/ration ( ,f$]al tax
 laws ,! ,secret>y ( ! ,treasury %all h 
access to ! in=mation 9 ! ,national     
,directory ( ,new ,hires = purposes (   
adm9i/]+ ! ,int]nal ,rev5ue ,code (     
#aihf4  4  7b7 ,effective date ,!       
am5dm5t made by ?is section %all take   
effect on ! date ( ! enactm5t ( ?is     
,act4  #ejb4 ,plan ( action =           
transition+ to a real-"t tax sy/em ,n   
lat] ?an #bgj days aft] ! date (        

enactm5t ( ?is ,act1 ! ,secret>y ( !    
,treasury1 or ! ,secret>y's delegate1   
%all submit to ,congress a report       
analyz+ & outl9+ options & pot5tial     
timel9es = mov+ t[>d a tax sy/em t      
r$uces burd5s on taxpay]s & decreases   
tax fraud ?r\gh real-"t in=mation mat*+4