Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I strongly support the Taxpayer Protection Act. This legislation is a package of commonsense reforms that passed the Ways and Means Committee by a voice vote with broad…
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I strongly support the Taxpayer Protection Act. This legislation is a package of commonsense reforms that passed the Ways and Means Committee by a voice vote with broad bipartisan support, and I want to take this opportunity to thank Chairman Rangel of the full Ways and Means Committee, as well as Chairman Lewis, the chairman of our Oversight Subcommittee, for working in a bipartisan, pragmatic and commonsense way on this legislation, and for working in a bipartisan way thus far generally in the committee. I also want to thank Ranking Member McCrery for his leadership.
Mr. Speaker, true to its name, this bill will protect taxpayers and expand their rights. One important reform will prevent Internet domains from using the Treasury Department's name or symbol, which is usually done to trick people into giving out sensitive personal or financial information. Clearly, this should not be allowed and should be outlawed, as this bill provides. It
prohibits phishing, and by that I mean phishing with a ``P-H,'' not the kind that Minnesota is famous for. We are referring here to mass e-mail communications falsely claiming to be from the IRS that can lead to identity theft and have victimized too many Americans.
The bill also requires the IRS to notify taxpayers when there is an unauthorized use of the taxpayer's identity. This will help taxpayers take steps to clear their names quickly if and when their identity is stolen.
Another commonsense provision of this bill allows the IRS to return funds directly to a taxpayer's retirement account if the IRS improperly levied fines from that account.
One provision, Mr. Speaker, that received considerable attention in the committee deals with refund anticipation loans. I mentioned in the committee that while I certainly understand the motivation behind the provision and the belief that the IRS should not be a facilitator for predatory loans, I am concerned because the bill does not define ``predatory''; but I trust, Mr. Speaker, that will be clarified in the conference.
I also hope we are not inadvertently making this problem worse by denying lenders information on ``debt indicators'' so that the provision increases the risk that a lender will not be reimbursed by the taxpayer's refund. This could cause lenders to increase fees and interest rates even further, making taxpayers pay even more for early access to their refunds. While I am not opposed to the provision, this should be addressed in the conference.
I strongly support another provision in the bill which would encourage the IRS to do more to ensure that taxpayers entitled to receive earned income credit refunds actually receive them.
Mr. Speaker, as we all know, the earned income credit is one of our most effective antipoverty tools for working families. This provision certainly deserves our strong support.
Mr. Speaker, I am also very pleased that the committee adopted my amendment to prevent tax fraud by prison inmates. This amendment is based on legislation that Chairman Lewis and I introduced in the last Congress in response to a hearing we held in 2005. This hearing revealed massive tax fraud going on within the walls of our Nation's prisons. In fact, the IRS testified that 15 percent of all tax fraud in the United States is committed by prison inmates while in prison. Tax fraud in any form is obviously unacceptable and illegal; but it is particularly outrageous and egregious when it is committed by prison inmates who are supposed to be paying their debt to society, not bilking taxpayers.
For example, we heard testimony, Mr. Speaker, from one inmate who had swindled taxpayers to the tune of $3.5 million in false tax return claims, and this was not an isolated incident.
While the IRS is able to detect some inmate tax fraud, far too much of it falls through the cracks. And, unfortunately, the IRS is prohibited by current law from sharing information with prison officials that would allow those officials to punish and stop this fraud.
My amendment, and I appreciate the chairman's support of this amendment, my amendment would allow the IRS to disclose information to Federal prison officials to help them stop the tax fraud that is occurring right under their noses within the walls of Federal prisons. I hope in time this commonsense provision can also be extended to include State prisons.
Mr. Speaker, it is truly fitting that in a bill entitled the Taxpayer Protection Act we protect honest taxpayers from such blatant, outrageous fraud that is being committed by some prison inmates.
Mr. Speaker, I urge my colleagues to protect taxpayers and support this legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 2 minutes to the gentleman from California (Mr. Herger), a distinguished member of the Ways and Means Committee and ranking member of the Trade Subcommittee.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I continue to reserve the balance of my time.
Mr. Speaker, I yield 3 minutes to the gentleman from Georgia (Mr. Price), a champion of the taxpayer.
(Mr. PRICE of Georgia asked and was given permission to revise and extend his remarks.)
Madam Speaker, may I just inquire as to how many speakers the other side may have.
Madam Speaker, before yielding back, I too want to express my deepest sympathy to the entire Virginia Tech community. Like every other Member of this body, my thoughts and prayers are with all those affected by the tragic and senseless loss of lives.
Having no further speakers, I urge a strong ``yes'' vote for this taxpayer protection.
Madam Speaker, I yield back the balance of my time.