House Passes Bill to Help Victims of ID Theft Tax Fraud

House Passes Bill to Help Victims of ID Theft Tax Fraud

The House passed bipartisan legislation Monday to prevent taxpayer identity theft and help victims whose tax refunds have been stolen by identity thieves. The bill was co-sponsored by a CPA turned lawmaker whose own identity was stolen last tax season.

H.R. 3832, Stolen Identity Refund Fraud Prevention Act of 2016, would establish a centralized point of contact at IRS for ID theft victims; improve taxpayer notification of suspected identity theft; require the Internal Revenue Service to submit a study on the feasibility of establishing a program for victims of identity theft-related tax fraud to opt out of electronic filing; and establish an Information Sharing and Analysis Center to collect, analyze, and share actionable data and information to detect and prevent identity theft. Two core components of the bill were enacted last December and the rest were passed Monday.

The bill was sponsored by Rep. Jim Renacci, R-Ohio, and John Lewis, D-Ga., the ranking Democrat on the House Ways and Means Oversight Subcommittee. Renacci is a CPA who also fell victim to identity theft.

“Today, the House passed my bipartisan bill to protect hardworking American taxpayers,” Renacci said in a statement Monday. “Tax-related identity theft is an evolving criminal activity that can happen to anyone. In fact, last tax season my identity was stolen and used to file a fraudulent tax return.”

The Ways and Means Committee passed the bill late last month (see House Committee Passes IRS Legislation on Identity Theft, Missing Children and Tax-Exempt Donors).  Read more on Accounting Today