To amend the Internal Revenue Code of 1986 to provide relief for taxpayers that were victims of identity theft to commit unemployment insurance fraud.

I 117TH CONGRESS 1ST SESSION H. R. 3170 To amend the Internal Revenue Code of 1986 to provide relief for taxpayers that were victims of identity theft to commit unemployment insurance fraud. IN THE HOUSE OF REPRESENTATIVES MAY 12, 2021 Mr. WENSTRUP introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to provide relief for taxpayers that were victims of identity theft to commit unemployment insurance fraud. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. RELIEF FOR TAXPAYERS THAT WERE VICTIMS 3 OF IDENTITY THEFT TO COMMIT UNEMPLOY- 4 MENT INSURANCE FRAUD. 5 In collaboration with the Department of Labor, and 6 applicable to tax years beginning in 2020 or 2021, the 7 Commissioner of Internal Revenue shall— 8 (1) implement a process to hold harmless tax- 9 payers who are flagged for unreported income if 10 VerDate Sep 11 2014 03:22 Jun 12, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3170.IH H3170 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3170 IH those taxpayers believe they are victims of identity 1 theft, or that fraudulent unemployment benefits 2 were claimed in their name, such that no penalties 3 or interest shall accrue against them; and 4 (2) require States to report the amount of 5 fraudulent unemployment benefits that are excluded 6 as income from Form 1099–G’s issued by the State 7 due to suspected or confirmed fraud. 8 Æ VerDate Sep 11 2014 03:22 Jun 12, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H3170.IH H3170 kjohnson on DSK79L0C42PROD with BILLS