Washington – Senators Ron Johnson (R-Wis.), Mark Warner (D-Va.) and Kelly Ayotte (R-N.H.) introduced a bill Wednesday to require the Internal Revenue Service to notify potential victims of identity theft, something the agency has failed to do in the past.

The Social Security Identity Defense Act of 2015 would require the IRS to notify an individual if the agency has reason to believe the individual’s Social Security number has been fraudulently used. It also requires that the IRS notify law enforcement and that the Social Security Administration notify employers who submit fraudulently used Social Security numbers. The bill adds civil penalties and extends jail time for those who fraudulently use an individual’s Social Security number.

Senator Johnson, who took on the cause after a Wisconsin couple brought the problem to his attention, said, “The IRS and Social Security Administration are in unique positions to detect and prevent identity theft through the fraudulent use of Social Security numbers.  However, the IRS has a history of remaining silent when this fraud is apparent in tax filings. 

“For over a decade, Debi and Robert Guenterberg of Wisconsin struggled for answers to why they were having difficulty obtaining credit and why they were receiving calls from collections agencies and delinquent payment notices, despite living responsibly. Yet the IRS knew Robert Guenterberg’s Social Security number was being used fraudulently for nearly 15 years — and chose to leave the family in the dark. This should not have happened. The IRS should be using its resources to protect honest U.S. taxpayers, not criminals. This bill ensures that identity theft victims will not be further victimized by IRS inaction. Unfortunately, this bill cannot go back in time and redress the wrongs committed against families like the Guenterbergs.  But it can ensure that identity theft victims are provided the notification and justice they deserve.  I am grateful to Senator Warner and Senator Ayotte for their support in co-sponsoring this bill.  I also greatly appreciate my fellow Wisconsinite, Rep. Glenn Grothman, who will be introducing a companion bill in the House.  I urge Congress to protect honest taxpayers by passing this bill.”

Senator Warner said, “As data breaches exposing the personal information of consumers have become more frequent, the number of these cases has continued to soar.  This bipartisan, commonsense legislation will help alert Virginians more quickly if they have been victims of identity theft. It will also allow the IRS to share information so that law enforcement agencies can more effectively track and apprehend identity thieves. In our digital economy, it’s critical that we all – including the IRS – do everything possible to protect individuals’ personal information and prevent identity theft.”

Senator Ayotte said, “The IRS can and must do better when it comes to protecting and notifying victims of tax-related identity theft. Our legislation will help ensure that identity theft victims in New Hampshire and across the country are properly notified, provide additional tools to combat tax fraud, and establish stricter penalties for tax-related identity theft.”

A copy of the bill can be found here.

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