,,ii  #aadth ,,congress  #b;d ,session  
,s4 #cbfh  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #ad1     
#bjaf,mr4 ,carper 7for himself1 ,mr4    
,coons1 and ,mr4 ,heller7 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    
require all ,united ,states entities to 
have an employer identification number  
issued by the ,secretary of the         
,treasury1 and for other purposes4  #a4 
,short title ,this ,act may be cited as 
the ,closing ,loopholes ,against        
,money-,laundering ,practices ,act or   
the ,,clamp ,act4  #b4 ,requirement of  
,,ein for ,united ,states entities  7a7 
,in general ,section #faji of the       
,internal ,revenue ,code of #aihf is    
amended by inserting after subsection   
7d7 the following new subsection3  7e7  
,requirement of ,,ein for ,united       
,states entities  7#a7 ,in general      
,except as otherwise determined by the  

,secretary1 every ,united ,states entity
 shall obtain and have an employer      
identification number assigned by the   
,secretary4  7#b7 ,definitions ,for     
purposes of this subsection-- 7,a7      
,united ,states entity ,except as may be
 provided by regulations1 the term      
,united ,states entity means any        
business entity created or organized in 
the ,united ,states or under the law of 
the ,united ,states or of a ,state1     
possession1 or territory of the ,united 
,states4  7,b7 ,exception ,the term     
,united ,states entity does not include 
any organization which is exempt from   
taxation under section #eja7;a74  7,c7  
,united ,states ,the term ,united       
,states includes the ,states1 the       
,district of ,columbia1 and the         
possessions and territories of the      
,united ,states4  7#c7 ,time and manner 
of application ,the ,secretary shall set
 forth the time and manner for a ,united
 ,states entity that does not have an   
employer identification number to obtain

 such a number4  4  7b7 ,civil penalty  
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 ,penalty for        
failures relating to employer           
identification numbers  7a7 ,failure ,to
 have an identifying number  7#a7 ,in   
general ,any ,united ,states entity 7as 
defined in section #faji7;e77#b77;,a77  
that fails to obtain an employer        
identification number in accordance with
 section #faji7;e77#a7 shall pay a      
penalty of #aj1jjj4  7#b7 ,joint and    
several liability ,notwithstanding      
section #ffga7;a71 if a ,united ,states 
entity does not pay a penalty assessed  
under paragraph 7#a7 within #fj days    
after the date of the notice and demand 
for payment1 any person who is treated  
as a responsible party with respect to  
such entity at any time during the      
period beginning on the date the entity 
was required to obtain such number and  

ending on the date that is #fj days     
after the date of the notice and demand 
for payment shall be jointly and        
severally liable with the entity for    
such penalty4  7b7 ,failure ,to provide 
required information  7#a7 ,in general  
,any person who fails to provide        
information required by the ,secretary  
under section #faji7;c7 7including      
updating previously submitted           
information as the ,secretary may       
require by regulations7 shall pay a     
penalty of #ajj for each such failure4  
7#b7 ,intentional failures ,in the case 
of a failure that the ,secretary        
determines to be intentional1 paragraph 
7#a7 shall be applied by substituting   
#a1jjj for #ajj4 ,for purposes of the   
preceding sentence1 a pattern of failing
 to provide or update information shall 
be treated as intentional failure4  7#c7
 ,joint and several liability           
,notwithstanding section #ffga7;a71 if  
any ,united ,states entity 7as defined  
in section #faji7;e77#b77;,a77 does not 

pay a penalty assessed under paragraph  
7#a7 within #fj days after the date of  
the notice and demand for payment1 any  
person who at any time during the period
 beginning on the date the entity was   
required to provide the information     
under paragraph 7#a7 and ending on the  
date that is #fj days after the date of 
the notice and demand for payment is    
treated as a responsible party with     
respect to such entity shall be jointly 
and severally liable with such entity   
for such penalty4  7#d7 ,coordination   
with subsection 7a7 ,no penalty shall be
 imposed under this subsection for any  
taxable year with respect to which a    
penalty is imposed under subsection 7a7 
on the same entity4  7c7 ,reasonable    
cause ,no penalty shall apply under     
subsection 7a7 or 7b7 if it is shown    
that the failure to satisfy the         
requirements of section #faji7;e7 or    
#faji7;c71 as the case may be1 is due to
 reasonable cause and not due to willful
 neglect4  4  7#b7 ,clerical amendment  

,the table of sections for 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 item3  ,sec4 #fgbj;,d4    
,penalty for failures relating to       
employer identification numbers4  4  7c7
 ,criminal penalty  7#a7 ,in general    
,part ,i of subchapter ,a of chapter #ge
 of the ,internal ,revenue ,code of     
#aihf is amended by adding at the end   
the following new section3  #gbah4      
,willful failure to obtain an employer  
identification number ,any person who   
willfully attempts in any manner to     
evade or defeat the employer            
identification number requirement of    
section #faji7;e7 or any regulations    
thereunder for the purpose of hiding the
 existence of an entity or the identity 
of its responsible party shall1 in      
addition to any other penalties provided
 by law1 be guilty of a felony and1 upon
 conviction thereof1 shall be fined not 
more than #ajj1jjj 7#ejj1jjj in the case

 of a corporation71 or imprisoned not   
more than #e years1 or both1 together   
with the costs of prosecution4  4  7#b7 
,clerical amendment ,the table of       
sections for part ,i of subchapter ,a of
 chapter #ge of the ,internal ,revenue  
,code of #aihf is amended by adding at  
the end the following new item3  ,sec4  
#gbah4 ,willful failure to obtain an    
employer identification number4  4  7d7 
,effective date  7#a7 ,in general       
,except as provided in paragraph 7#b71  
the amendment made by subsection 7a7    
shall apply to ,united ,states entities 
7as defined in section                  
#faji7;e77#b77;,a7 of the ,internal     
,revenue ,code of #aihf7 formed on or   
after the date that is #ahj days after  
the date of the enactment of this ,act4 
7#b7 ,application to existing ,united   
,states entities ,with respect to       
,united ,states entities 7as so defined7
 in existence on the day before the date
 specified in paragraph 7#a71 the       
amendment made by subsection 7a7 shall  

take effect on the date that is #c years
 after the date of the enactment of this
 ,act4  7#c7 ,issuance of identifying   
numbers with respect to existing        
entities ,not later than the date that  
is #c years after the date of the       
enactment of this ,act1 the ,secretary  
of the ,treasury shall provide a method 
for all ,united ,states entities 7as so 
defined7 to whom paragraph 7#a7 does not
 apply to obtain an identifying number  
under section #faji7;e7 of such ,code1  
and shall assign such an identifying    
number to each such entity4  7#d7       
,penalties ,with respect to a ,united   
,states entity 7as so defined71 the     
amendments made by subsections 7b7 and  
7c7 shall apply to failures after the   
date described in paragraph 7#a7 or     
7#b71 whichever is applicable4  #c4     
,disclosure of responsible party        
identity for use in anti-money          
laundering and counterterrorism         
investigations and prosecutions  7a7 ,in
 general ,subsection 7i7 of section     

#fajc of the ,internal ,revenue ,code of
 #aihf is amended by adding at the end  
the following new paragraph3  7#i7      
,disclosure upon request of responsible 
party identity for use in anti-money    
laundering and counterterrorism         
investigations and prosecutions  7,a7   
,in general ,except as provided in      
paragraph 7#f71 after taking into       
consideration the factors described in  
subparagraph 7,b71 the ,secretary may   
disclose1 upon written request1 to the  
individuals described in subparagraph   
7,c7 taxpayer identity information      
consisting of--  7i7 the name and       
employer identification number of the   
specific entity to whom the request     
relates1  7ii7 the name and identifying 
number1 and any available contact       
information1 of the responsible party   
and any third-party designee reflected  
on the entity's application for an      
employer identification number1 and     
7iii7 any trade name1 other addresses1  
entity type1 or principal activity of   

the business reflected on such          
application1  but only to the extent    
such information was included on the    
entity's application for an employer    
identification number pursuant to the   
requirements of section #faji7;e7 or any
 predecessor provision or program1 and  
to the extent the ,secretary determines 
such disclosure would not seriously     
impair ,federal tax administration4     
7,b7 ,factors for consideration ,the    
factors described in this subparagraph  
are whether the information requested in
 such written request--  7i7 is being   
sought exclusively for use in a ,federal
 criminal investigation or proceeding   
pertaining to offenses described in     
clause 7i7 or 7ii7 of subparagraph 7,c71
  7ii7 is or may be relevant to a matter
 relating to such an offense1 and  7iii7
 cannot be reasonably obtained1 taking  
into account all relevant circumstances1
 from any other source4  7,c7           
,individuals described ,for purposes of 
subparagraph 7,a71 the individuals      

described in this paragraph are officers
 and employees of any ,federal law      
enforcement agency who are personally   
and directly engaged in the             
investigation1 response1 or analysis1 or
 in any judicial1 administrative1 or    
grand jury proceedings1 pertaining to   
offenses under--  7i7 section #aief1    
#aieg1 #aifj1 #bcci;,a1 #bcci;,b1 or    
#bcci;,c of title #ah1 ,united ,states  
,code1 or  7ii7 subchapter ,,ii of      
chapter #ec of title #ca1 ,united       
,states ,code4  4  7b7 ,conforming      
amendments  7#a7 ,paragraph 7#f7 of     
section #fajc 7i7 of the ,internal      
,revenue ,code of #aihf is amended by   
striking or 7#h7 and inserting 7#h71 or 
7#i74  7#b7 ,paragraph 7#d7 of section  
#fajc7p7 of such ,code is amended--     
7,a7 by striking 7#e71 or 7#g7 and      
inserting 7#e71 7#g71 or 7#i71 and  7,b7
 by striking 7#e7 or 7#g7 and inserting 
7#e71 7#g71 or 7#i74  7c7 ,effective    
date ,the amendments made by this       
section shall apply to disclosures made 

after the date of the enactment of this 
,act4