Introduction of the Human Trafficking Fraud Enforcement Act of 2015
Floor Speech
BREAK IN TRANSCRIPT
Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I am pleased to
introduce bipartisan legislation with my colleague Rep. Ted Poe.
In March of 1931 the infamous gangster, Al Capone, was indicted for
tax fraud. Today the IRS Criminal Investigations division continues to
play a vital role in proving criminal activity and fraud, and I believe
they can play an even stronger role in cracking down on human
trafficking and prostitution.
This bill is meant to enhance the Internal Revenue Service's ability
to crack down on sex trafficking by authorizing $4 million to establish
an office within the IRS to prosecute sex traffickers for violations of
tax laws. The office would focus on the willful failure of traffickers
to file returns, supply information, or pay tax where the taxpayer is
an ``aggravated'' non-filer. In addition, the office would coordinate
closely with existing task forces focused on sex trafficking offenders
in the Department of Justice.
The bill also amends the Internal Revenue Code to increase criminal
monetary and other penalties for attempts to: evade or defeat tax,
willful failure to file a tax return, supply information, or pay tax,
aggravated failure to file tax returns, fraud and false statements, and
underpayment or overpayment of tax due to fraud. This offense will
carry a maximum sentence of 10 years and a maximum fine of $50,000.00.
The Human Trafficking Fraud Enforcement Act of 2015 also establishes
a new felony offense for an aggravated failure to file to include
failure to file with respect to income or payments derived from
activity which is criminal under Federal or State law. This will target
conduct committed by those involved in the promotion of commercial sex
acts--pimps and traffickers--and not conduct of exploited persons in
prostitution.
Last, this bill directly benefits those that are victimized by the
traffickers by revising current IRS Whistleblower provisions so that
women and girls who choose to participate in the investigation will be
eligible to participate in the whistleblower program and may ultimately
be granted up to 15% of any fines levied against the trafficker.
While important strides have been made to address trafficking, we
must still use every tool possible to take down the traffickers. I urge
my colleagues to cosponsor this important legislation.
BREAK IN TRANSCRIPT
Source