,,ii #aadth ,,congress #ast ,session ,s4 #acbc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #ac1 #bjae,mr4 ,johnson 7for himself1 ,mr4 ,warner1 and ,ms4 ,ayotte7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to permit the ,secretary of the ,treasury and the ,commissioner of the ,social ,security ,administration to disclose certain return information related to identity theft1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,social ,security ,identity ,defense ,act of #bjae4 #b4 ,disclosure of certain return information with respect to identity theft 7a7 ,in general ,subsection 7l7 of section #fajc of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#bc7 ,disclosure of return information in certain cases of identity theft 7,a7 ,in general ,if the ,secretary has reason to believe that there has been a fraudulent use of a social security account number on a statement described in section #fjea-- 7i7 the ,secretary shall disclose to the individual who was validly assigned such social security account number-- 7,i7 that the ,secretary has reason to believe that the social security account number assigned to such individual has been fraudulently used in the employment context1 7,,ii7 that the ,secretary has made the disclosure described in clause 7ii7 to the ,director of the ,federal ,bureau of ,investigation and the ,attorney ,general with respect to such fraudulent use1 and 7,,iii7 such other information 7other than return information7 as the ,secretary determines1 in consultation with ,federal ,trade ,commission1 would be helpful and appropriate to provide to a victim of identity theft1 and 7ii7 the ,secretary shall disclose to the ,director of the ,federal ,bureau of ,investigation and the ,attorney ,general-- 7,i7 such social security account number1 7,,ii7 that the ,secretary has reason to believe that such social security account number has been fraudulently used in the employment context1 and 7,,iii7 the taxpayer identity information of the individual who was assigned such social security account number1 the individual believed to have fraudulently used such social security account number1 and the employer who made the statement described in section #fjea which included such social security account number4 7,b7 ,restriction on disclosure to law enforcement 7i7 ,disclosure to other law enforcement officials ,the ,director of the ,federal ,bureau of ,investigation and the ,attorney ,general may disclose information received under subparagraph 7,a77ii7 to appropriate ,federal1 ,state1 and local law enforcement officials4 7ii7 ,restriction on use of disclosed information ,return information disclosed under subparagraph 7,a77ii7 may be used by ,federal1 ,state1 and local law enforcement officials only for purposes of carrying out criminal investigations or prosecutions4 7iii7 ,memorandum of understanding ,for purposes of this paragraph1 any return information disclosed under subparagraph 7,a77ii7 may not be provided to any ,state or local law enforcement official until such official has entered into a memorandum of understanding with the ,secretary that includes the following terms and conditions3 7,i7 ,confidentiality of returns and return information and prohibitions on disclosure described in subsection 7a77#c74 7,,ii7 ,safeguards1 restrictions on access1 and recordkeeping requirements described in subsection 7p77#d74 7,,iii7 ,application of penalties for unauthorized disclosure of returns and return information under section #gbac7;a77#b74 7,,iv7 ,any additional terms and conditions deemed appropriate by the ,secretary4 4 7b7 ,prevention of identity theft ,in the case of an employee for whom the ,commissioner of the ,social ,security ,administration has reason to believe that the social security number included on any statement described in section #fjea7;a7 of the ,internal ,revenue ,code of #aihf with respect to such employee is not the correct social security number for such employee1 the ,commissioner shall provide notification to the employer for such employee which includes-- 7#a7 the name of the employee and the social security number included on such statements2 and 7#b7 relevant information regarding the availability of the ,social ,security ,number ,verification ,service for verification of social security numbers4 7c7 ,conforming amendments related to disclosure 7#a7 ,confidentiality ,paragraph 7#c7 of section #fajc7;a7 of such ,code is amended by striking or 7#ba7 and inserting 7#ba71 or 7#bc74 7#b7 ,procedures and recordkeeping related to disclosures ,paragraph 7#d7 of section #fajc7p7 of such ,code is amended by striking or 7#bj7 each place it appears and inserting 7#bj71 or 7#bc74 7#c7 ,unauthorized disclosure or inspection ,paragraph 7#b7 of section #gbac7;a7 of such ,code is amended by striking or 7#ba7 and inserting 7#ba71 or 7#bc74 #c4 ,penalties for tax-related identity theft 7a7 ,in general ,section #ajbh;,a7c7 of title #ah1 ,united ,states ,code1 is amended-- 7#a7 by redesignating paragraphs 7#h7 through 7#aa7 as paragraphs 7#aj7 through 7#ac71 respectively2 and 7#b7 by inserting after paragraph 7#g7 the following new paragraphs3 7#h7 section #bhf 7relating to conspiracy to defraud the government with respect to claims71 section #bhg 7relating to false1 fictitious1 or fraudulent claims71 section #cga 7relating to conspiracy to commit an offense or to defraud the ,united ,states71 section #ajja 7relating to statements or entries71 section #acda 7relating to frauds and swindles71 section #acdb 7relating to a fictitious name or address71 section #acdc 7relating to fraud by wire1 radio1 or television71 or section #acdd 7relating to bank fraud71 if the felony violation is a tax-related offense punishable under such section2 7#i7 section #gbjf of the ,internal ,revenue ,code of #aihf 7relating to fraud and false statements72 4 7b7 ,penalty for misappropriation of tax identification numbers 7#a7 ,in general ,part ,i of subchapter ,b of chapter #fh of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #fgbj;,d4 ,misappropriation of tax identification number ,in addition to any penalty provided by law1 any person who knowingly or willfully misappropriates another person's tax identification number in connection with any list1 return1 account1 statement1 or other document submitted to the ,secretary shall pay a penalty of #e1jjj4 4 7#b7 ,conforming amendment ,the table of sections for part ,i of subchapter ,b of chapter #fh of such ,code is amended by adding at the end the following new item3 ,sec4 #fgbj;,d4 ,misappropriation of tax identification number44 7#c7 ,effective date ,the amendments made by this subsection shall apply to returns and information submitted after the date of the enactment of this ,act4