Statutory Notes and Related Subsidiaries

Effective Date of 2019 Amendment

Pub. L. 116–25, title II, § 2007(d), July 1, 2019, 133 Stat. 1006, provided that: “The amendments made by this section [enacting this section and amending section 432 of Title 42, The Public Health and Welfare] shall apply to determinations made after the date that is 6 months after the date of the enactment of this Act [July 1, 2019].”

Public-Private Partnership To Address Identity Theft Refund Fraud

Pub. L. 116–25, title II, § 2001, July 1, 2019, 133 Stat. 1001, provided that: “The Secretary of the Treasury (or the Secretary’s delegate) shall work collaboratively with the public and private sectors to protect taxpayers from identity theft refund fraud.”

Information Sharing and Analysis Center

Pub. L. 116–25, title II, § 2003(a), (b), July 1, 2019, 133 Stat. 1001, provided that:

“(a)

In General.—

The Secretary of the Treasury (or the Secretary’s delegate) may participate in an information sharing and analysis center to centralize, standardize, and enhance data compilation and analysis to facilitate sharing actionable data and information with respect to identity theft tax refund fraud.

“(b)

Development of Performance Metrics.—

The Secretary of the Treasury (or the Secretary’s delegate) shall develop metrics for measuring the success of such center in detecting and preventing identity theft tax refund fraud.”

Single Point of Contact for Tax-Related Identity Theft Victims

Pub. L. 116–25, title II, § 2006, July 1, 2019, 133 Stat. 1004, provided that:

“(a)

In General.—

The Secretary of the Treasury (or the Secretary’s delegate) shall establish and implement procedures to ensure that any taxpayer whose return has been delayed or otherwise adversely affected due to tax-related identity theft has a single point of contact at the Internal Revenue Service throughout the processing of the taxpayer’s case. The single point of contact shall track the taxpayer’s case to completion and coordinate with other Internal Revenue Service employees to resolve case issues as quickly as possible.

“(b)

Single Point of Contact.—

“(1)

In general.—

For purposes of subsection (a), the single point of contact shall consist of a team or subset of specially trained employees who—

“(A)

have the ability to work across functions to resolve the issues involved in the taxpayer’s case; and

“(B)

shall be accountable for handling the case until its resolution.

“(2)

Team or subset.—

The employees included within the team or subset described in paragraph (1) may change as required to meet the needs of the Internal Revenue Service, provided that procedures have been established to—

“(A)

ensure continuity of records and case history; and

“(B)

notify the taxpayer when appropriate.”

Examination of Both Paper and Electronic Statements and Returns

Pub. L. 116–25, title II, § 2007(b)(1), July 1, 2019, 133 Stat. 1006, provided that: “The Secretary of the Treasury (or the Secretary’s delegate) shall examine the statements, information returns, and tax returns described in section 7529(b)(2) of the Internal Revenue Code of 1986 (as added by subsection (a)) for any evidence of employment-related identity theft, regardless of whether such statements or returns are submitted electronically or on paper.”

Underreporting of Income

Pub. L. 116–25, title II, § 2007(b)(3), July 1, 2019, 133 Stat. 1006, provided that: “The Secretary of the Treasury (or the Secretary’s delegate) shall establish procedures to ensure that income reported in connection with the unauthorized use of a taxpayer’s identity is not taken into account in determining any penalty for underreporting of income by the victim of identity theft.”

Guidelines for Stolen Identity Refund Fraud Cases

Pub. L. 116–25, title II, § 2008, July 1, 2019, 133 Stat. 1006, provided that:

“(a)

In General.—

Not later than 1 year after the date of the enactment of this Act [July 1, 2019], the Secretary of the Treasury (or the Secretary’s delegate), in consultation with the National Taxpayer Advocate, shall develop and implement publicly available guidelines for management of cases involving stolen identity refund fraud in a manner that reduces the administrative burden on taxpayers who are victims of such fraud.

“(b)

Standards and Procedures To Be Considered.—

The guidelines described in subsection (a) may include—

“(1)

standards for—

“(A)

the average length of time in which a case involving stolen identity refund fraud should be resolved;

“(B)

the maximum length of time, on average, a taxpayer who is a victim of stolen identity refund fraud and is entitled to a tax refund which has been stolen should have to wait to receive such refund; and

“(C)

the maximum number of offices and employees within the Internal Revenue Service with whom a taxpayer who is a victim of stolen identity refund fraud should be required to interact in order to resolve a case;

“(2)

standards for opening, assigning, reassigning, or closing a case involving stolen identity refund fraud; and

“(3)

procedures for implementing and accomplishing the standards described in paragraphs (1) and (2), and measures for evaluating such procedures and determining whether such standards have been successfully implemented.”