S.Amdt. 4486

1. Adds PART V--EARNED INCOME CREDIT - FRAUD REDUCTION at the end of subtitle B of title II

   Adds a section

   In S.Amdt. 4402 as proposed

   The percentage under paragraph (2) of section 561 of the Hiring Incentives to Restore Employment Act in effect on the date of the enactment of this Act is increased by 36 percentage points.

   Inserted: PART V--EARNED INCOME CREDIT - FRAUD REDUCTION

   Inserted: SEC. 2141. FILERS OF SCHEDULE C (PROFIT OR LOSS FROM BUSINESS).

   Inserted: (a) In General.--Section 32 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

   Inserted: "(n) Information Regarding Schedule C Filers.--

   Inserted: "(1) Taxpayer information.--For any taxable year beginning after December 31, 2009, any taxpayer who is required to file a Federal schedule C and also claims the credit under this section with respect to 1 or more qualifying children shall include on the return of tax for such taxable year a sales tax identification number, professional license number, or its equivalent (if any) issued by any State which relates to income reported on such schedule.

   Inserted: "(2) State information.--For any taxable year beginning after December 31, 2009, each State shall forward to the Secretary, in a format to be determined by the Secretary, a sales tax identification number, professional license number, or its equivalent (if any) for each taxpayer issued such a number, along with the taxpayer's name and address, not later than a date in the following calendar year determined by the Secretary.

   Inserted: "(3) Comparison of information.--The Secretary shall compare the information obtained under paragraphs (1) and (2) for each taxable year and shall request that any taxpayer who provided information on Federal schedule C that did not correspond with the information provided by a State, did not submit a number, or did not attach 1 or more Federal forms 1099 relating to the income reported on the Federal schedule C to the return of tax for such taxable year--

   Inserted: "(A) submit the correct number,

   Inserted: "(B) provide the Secretary 1 or more Federal forms 1099 relating to such income, or

   Inserted: "(C) document the existence of the business relating to such income.

   Inserted: Notwithstanding section 6103(d)(1), the Secretary shall, without a preceding request, share the results of the comparison and the documentation of the business with the corresponding State.

   Inserted: "(4) Denial of credit.--No credit shall be allowed under this section for any taxable year to any taxpayer who fails to meet the requirements of paragraphs (1) or (3) for such taxable year.

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   Inserted: "(5) Documentation requirements.--For purposes of paragraph (3)(C), a taxpayer may document the existence of a business relating to the income reported on a Federal schedule C for any taxable year by providing the Secretary--

   Inserted: "(A) 1 or more Federal forms 1099 relating to such income,

   Inserted: "(B) a document which reflects the registration of such business with a local or State government,

   Inserted: "(C) 1 or more business contracts relating to such income,

   Inserted: "(D) 1 or more sales invoices relating to such income, or

   Inserted: "(E) any other document the Secretary deems appropriate.

   Inserted: "(6) Exceptions.--This subsection shall not apply to--

   Inserted: "(A) any taxpayer's return of tax with a Federal schedule C prepared under the auspices of the Volunteer Income Tax Assistance Program or the Tax Counseling for the Elderly Program, or

   Inserted: "(B) any taxable year if at any time during such taxable year the taxpayer or the taxpayer's spouse is performing qualified official extended duty service (as defined in section 36(f)(4)(E)(ii)) outside the United States.".

   Inserted: (b) Mathematical or Clerical Error.--Section 6213(g)(2) of the Internal Revenue Code of 1986 is amended by striking "and" at the end of subparagraph (O), by striking the period at the end of subparagraph (P) and inserting ", and", and by inserting after subparagraph (P) the following new subparagraph:

   Inserted: "(Q) An omission of a State sales tax identification number, professional license number, or its equivalent as required under section 32(n) to be included on a return of tax.".

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2009.

   Inserted: SEC. 2142. PUNISHMENT FOR AGGRAVATED IDENTITY THEFT INVOLVING THE EARNED INCOME CREDIT.

   Inserted: (a) In General.--Section 1028A(a) of title 18, United States Code, is amended by adding at the end the following new paragraph:

   Inserted: "(3) Identity theft involving the earned income credit.--Whoever, during and in relation to any felony violation under section 7201 or 7206 of the Internal Revenue Code of 1986, in relation to the attempt to meet any requirement under section 32 of such Code, knowingly transfers, possesses, or uses, without lawful authority, a means of identification of another person, a corporation, an organization, or a business entity, or a false identification document shall, in addition to the punishment provided for such a felony under section 1028, be sentenced to a term of imprisonment of not more than 5 years.".

   Inserted: (b) Effective Date.--The amendment made by this section shall apply to any transfer, possession, or use after the date of the enactment of this Act.

   Inserted: SEC. 2143. REQUIRING THE SECRETARY OF HEALTH AND HUMAN SERVICES TO PROHIBIT THE DISPLAY OF SOCIAL SECURITY ACCOUNT NUMBERS ON MEDICARE IDENTIFICATION CARDS.

   Inserted: (a) In General.--Not later than 3 years after the date of the enactment of this Act, the Secretary of Health and Human Services shall establish and begin to implement procedures to eliminate the unnecessary collection, use, and display of Social Security account numbers of Medicare beneficiaries.

   Inserted: (b) Medicare Cards.--

   Inserted: (1) New cards.--Not later than 3 years after the date of the enactment of this Act, the Secretary of Health and Human Services shall ensure that each newly issued Medicare identification card meets the requirements described in paragraph (3).

   Inserted: (2) Replacement of existing cards.--Not later than 5 years after the date of the enactment of this Act, the Secretary of Health and Human Services shall ensure that all Medicare beneficiaries have been issued a Medicare identification card that meets the requirements of paragraph (3).

   Inserted: (3) Requirements.--The requirements described in this paragraph are, with respect to a Medicare identification card, that the card does not display or electronically store (in an unencrypted format) a Medicare beneficiary's Social Security account number.

   Inserted: (c) Medicare Beneficiary Defined.--In this section, the term "Medicare beneficiary" means an individual who is entitled to, or enrolled for, benefits under part A of title XVIII of the Social Security Act or enrolled under part B of such title.

   Inserted: (d) Conforming Reference in the Social Security Act.--Section 205(c)(2)(C) of the Social Security Act (42 U.S.C. 405(c)(2)(C)) is amended by adding at the end the following new clause:

   Inserted: "(x) For provisions relating to requiring the Secretary of Health and Human Services to prohibit the display of Social Security account numbers on Medicare identification cards, see section 2143 of the Small Business Jobs Act of 2010.".

   Inserted: (e) Authorization of Appropriations.--There are authorized to be appropriated such sums as may be necessary to carry out this section.

   Original wording

   At the end of subtitle B of title II, add the following:

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As printed