WASHINGTON, D.C. - The Committee on Ways and Means today held a markup and passed H.R. 1677, the Taxpayer Protection Act of 2007 by voice vote. The legislation, introduced by Chairman Charles B. Rangel (D-NY) and Oversight Subcommittee Chairman John Lewis (D-GA) drew unanimous bipartisan support for its common sense provisions designed to improve communication between the Internal Revenue Service (IRS) and taxpayers to protect them from fraudulent or predatory behavior.
“This bill improves and increases IRS outreach to provide taxpayers with stronger protections against tax fraud and identity theft." said Oversight Subcommittee Chairman Lewis, who presided over the markup. “It is a shame and a crime to use schemes to steal personal information from American taxpayers, so this legislation cracks down on misleading websites and subjects them to a higher penalty for any violations."
“We have also worked with our colleagues in the Treasury Department on their recommendation that we strengthen outreach on the Earned Income Tax Credit (EITC)," added Chairman Lewis. “As a result, the Taxpayer Protection Act expands the current outreach program to help more Americans with lower incomes realize the benefit of the EITC."
The Taxpayer Protection Act of 2007 is the result of hearings conducted by Oversight Subcommittee. It is expected that the bill will be brought to the House Floor during the week of April 17th, the tax return filing due date this year. The bill has little or no net revenue effect.
H.R. 1677 as agreed to by the Committee:
* Require the IRS (in the course of a tax fraud investigation) to notify a taxpayer that there may have been an unauthorized use of the taxpayer’s (or dependent’s) identity.
* Provide an individual with a longer period of time to seek return of property (money or proceeds from the sale of property) resulting from a wrongful IRS levy, as well as for bringing a civil action.
* Allow a taxpayer to recontribute individual retirement fund amounts as if the wrongful levy had never occurred.
* Allow the IRS to notify taxpayers on the Internet about unclaimed tax refunds, rather than only in the media.
* Prohibit the Secretary of Treasury (IRS) from providing debt indicators to any person if their business practices involve refund anticipation loans (plus related charges and fees) that are predatory.
* Clarify that current rules prohibiting the misleading use of Department of Treasury names and symbols apply to internet domain names (e.g., IRS.com, IRS.net, IRS.org) and “phishing" and are subject to the higher-level civil and criminal penalties.
* Require, to the extent possible, that the IRS conduct additional EITC outreach including notification of potential eligibility.
* Provide tax simplification for family businesses by allowing both spouses in a family-owned business to pay social security and Medicare taxes as a sole proprietorship (rather than as a partnership).
* Provide federal prison officials with certain information to prevent tax fraud schemes.
* Allow attorney and title companies (not real estate agents) to collect Social Security Numbers on property sales involving foreigners and ten percent withholding.
