Inmate Tax Fraud Prevention Act of 2008

Mr. Speaker, I yield myself such time as I may consume.

I first want to thank my friend, my brother and my chairman--Mr. Lewis--who represents the absolute best in public service and who is truly the conscience of the Congress. I'm just grateful for his friendship and for the privilege of working with him for the past 18 years.

Mr. Speaker, the legislation before us addresses a very serious situation in America's prisons--rampant tax fraud. I'm deeply grateful to Chairman Lewis for being an original cosponsor of this legislation and for helping me get this crucial legislation on the suspension calendar and here to the floor today.

When I chaired the Ways and Means Oversight Subcommittee in the last Congress, Mr. Speaker, we held a hearing that featured an inmate from our Federal prison system. He was known as inmate Dole, a prisoner from South Carolina who single-handedly swindled taxpayers out of $3.5 million by filing fraudulent tax returns. That's right, Mr. Speaker, $3.5 million of outrageous tax fraud committed by a prisoner while he was behind bars, while incarcerated in a Federal prison.

The hearing revealed that this was no isolated incident. There is massive tax fraud going on within the walls of our Nation's prisons. In fact, the IRS reports that 15 percent of all tax fraud committed in America is committed by prison inmates, 15 percent.

As we all agree here, tax fraud in any form is unacceptable and illegal, obviously, but it's particularly outrageous when it's committed by prison inmates who are supposed to be paying their debt to society and not bilking taxpayers. While the IRS is able to catch some of it, far too much inmate tax fraud falls through the cracks. Unfortunately, the IRS is prohibited by law

from sharing information with prison officials, information that would allow them to take action to punish and to stop this fraud from going on in their prison facilities right under their noses. So, in other words, Mr. Speaker, Federal law enforcement is effectively blocked from pursuing these cases because of the ban on information sharing.

Well, this legislation that I have introduced and have brought here today, the Inmate Tax Fraud Prevention Act, would allow the IRS to reveal information on tax fraud to the Federal Bureau of Prisons and to compile statistics on tax fraud in each and every Federal and State prison. The authority for the IRS to disclose tax fraud information sunsets in 3 years, and the Treasury Inspector General for Tax Administration will issue a report, so in 3 years, Congress can determine whether the program should be renewed and whether other changes should be implemented.

Mr. Speaker, in conclusion, let me just say that it's obviously time to protect honest taxpayers from this blatant, outrageous fraud that's being committed by prison inmates. I urge my colleagues to protect this commonsense, bipartisan legislation that will protect the taxpayers. Support the Inmate Tax Fraud Prevention Act because the taxpayers of America deserve nothing less.

I reserve the balance of my time.

Mr. Speaker, I have no further speakers.

Mr. Speaker, having no further speakers, I would be happy to yield back my time, and I look forward to Mr. Lewis' closing.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 7082) to amend the Internal Revenue Code of 1986 to permit the Secretary of the Treasury to disclose certain prisoner return information to the Federal Bureau of Prisons, as amended.

Mr. Speaker, I ask unanimous consent to give all Members 5 legislative days to revise and extend their remarks on House bill 7082, as amended.

Mr. Speaker, I yield myself such time as I may consume.

I thank the gentleman from Minnesota for bringing House bill 7082, the Inmate Tax Fraud Prevention Act of 2008, to the House.

Mr. Ramstad has served at my side on the Oversight Subcommittee for years. He has been a wonderful friend, a good friend. We call ourselves brothers. He will be missed when he retires this year. He has worked to make our taxes fair and to protect taxpayers. This bill is a great and shining example of his good effort.

Jim, I want to thank you again for all of your great work, for working so hard, for hanging in there, for never giving up, and for never giving in. Thank you so much.

The Oversight Subcommittee found that thousands of false returns were being filed by prisoners. However, the Internal Revenue Service could not disclose the information to the Federal Bureau of Prisons. This bill was developed to correct this problem. This bill will stop the abuse of our tax system.

I urge all of my colleagues on both sides of the aisle to vote in favor of House bill 7082.

I reserve the balance of my time.

Mr. Speaker, I would like to inquire as to whether Mr. Ramstad has any additional speakers.

I am prepared to close, Mr. Speaker.

Mr. Speaker, again, I want to thank my friend from Minnesota (Mr. Ramstad) for his good and great work for bringing this bill before us today. The Inmate Tax Fraud Prevention Act is an important bill, and I urge its passage. I fully support House bill 7082, and I urge all of my colleagues on both sides of the aisle to support this bill.

I yield back the balance of my time.

Mr. President, I ask unanimous consent that the Senate proceed to the immediate consideration of H.R. 7082, which was received from the House.

Mr. President, I ask unanimous consent that the bill be read three times and passed, the motion to reconsider be laid upon the table, with no intervening action or debate, and that any statements relating to the bill be printed in the Record.