Introduced Version
SENATE BILL No. 34
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-8.1.
Synopsis: Income tax and use of fraudulent identities. Specifies that
all state agencies shall cooperate with the department of state revenue
(department) in tax administration by providing, at no charge to the
department, relevant information that the department requests,
including monthly reports identifying the use of a fraudulent identity.
Requires the department of correction to provide annually an electronic
file listing the name and Social Security number of each individual
under the jurisdiction of the department of correction. Requires the
state department of health to provide annually an electronic file listing
the name of each individual for whom an Indiana death certificate was
issued during the last year. Specifies that an individual adjusted gross
income tax deduction or credit that is based on an individual exemption
under the Internal Revenue Code, other than exemptions for the
taxpayer and the taxpayer's spouse, is not allowed if the individual: (1)
is a resident alien who has come to, entered, or remained in the United
States in violation of the law; or (2) is not a citizen of the United States
and not a resident of the United States. Requires, for purposes of
claiming an income tax deduction for a dependent, that the taxpayer
provide either: (1) the Social Security number of the dependent; or (2)
an individual taxpayer identification number, if a dependent is not
eligible for a Social Security number or is a dependent of a taxpayer
(Continued next page)
Effective: July 1, 2013.
Tomes
January 7, 2013, read first time and referred to Committee on Tax and Fiscal Policy.
Digest Continued
who is exempt from obtaining a Social Security number. Permits the
department to request any information the department considers
necessary to verify that an individual qualifies for such a deduction or
credit. Provides a specific civil penalty if the taxpayer intentionally,
knowingly, or recklessly fails to comply with the requirements to
establish that the taxpayer is entitled to the dependent deduction.
Specifies that the penalty also applies to a professional tax return
preparer. Provides that the penalty is an amount equal to the tax that is
owed after the dependent deduction is denied.
Introduced
First Regular Session 118th General Assembly (2013)
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SENATE BILL No. 34
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-8.1-3-7; (13)IN0034.1.1. -->
SECTION 1. IC 6-8.1-3-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. (a) The department
may enter into reciprocal agreements with the taxing officials of the
United States government or with the taxing officials of other state
governments to furnish and receive information relevant to the
administration and enforcement of the listed taxes. However, the
department may not furnish information obtained from federal returns
or schedules to officials of other state governments.
(b) All agencies of the state of Indiana shall cooperate with the
department in the administration of the listed taxes and shall,
upon
request and at no charge to the department, furnish to the
department any information relevant to the administration and
collection of the listed taxes that the department requests.
In addition,
a state agency that encounters the use of a fraudulent identity shall
notify the department and provide in electronic format identifying
information as specified by the department for the department's
use in preventing tax fraud. If a state agency encounters the use of
fraudulent identities on a regular basis, the state agency shall
provide to the department a monthly electronic report furnishing
the identifying information specified by the department.
(c) Before December 1 each year:
(1) the department of correction shall provide to the
department an electronic file listing the name and Social
Security number of each individual under the jurisdiction of
the department of correction as of November 1 of that year;
and
(2) the state department of health shall provide to the
department an electronic file listing the name of each
individual for whom an Indiana death certificate was issued
during the immediately preceding twelve (12) months.
SOURCE: IC 6-8.1-6-9; (13)IN0034.1.2. -->
SECTION 2. IC 6-8.1-6-9 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2013]:
Sec. 9. (a) This section does not apply to a taxpayer or a
taxpayer's spouse.
(b) As used in this section, "alien" has the meaning set forth in
8 U.S.C. 1101(a).
(c) As used in this section, "intentionally", "knowingly", and
"recklessly" have the meanings set forth in IC 35-41-2-2.
(d) An individual does not qualify for any deduction or credit
regarding adjusted gross income under IC 6-3-1 that is determined
by reference to Section 151(c) or Section 152 of the Internal
Revenue Code, including any internal reference in the Internal
Revenue Code to Section 151(c) or Section 152 of the Internal
Revenue Code, if the individual:
(1) is a resident alien who has come to, entered, or remained
in the United States in violation of the law; or
(2) is not a citizen of the United States and not a resident of
the United States.
(e) For purposes of claiming the dependent deduction from
adjusted gross income under IC 6-3-1-3.5(a)(4)(A) or
IC 6-3-1-3.5(a)(5)(A), the taxpayer shall provide one (1) of the
following:
(1) The Social Security number of the dependent.
(2) An individual taxpayer identification number, if a
dependent:
(A) is not eligible for a Social Security number; or
(B) is a dependent of a taxpayer who is exempt from
obtaining a Social Security number under federal law.
(f) The department may request any information the
department considers necessary to verify that an individual
qualifies under this section.
(g) A person, including a professional tax return preparer, who
intentionally, knowingly, or recklessly fails to comply with
subsection (e) is subject to the penalty prescribed by
IC 6-8.1-10-14.
SOURCE: IC 6-8.1-10-14; (13)IN0034.1.3. -->
SECTION 3. IC 6-8.1-10-14 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2013]: Sec. 14. (a) The penalty for a person who commits a
violation described in IC 6-8.1-6-9(g) is the amount of the tax that
is owed after the dependent deduction is denied.
(b) The penalty imposed under this section is imposed in place
of and not in addition to the penalty imposed under section 2.1 of
this chapter.
(c) A civil penalty imposed under this section:
(1) shall be deposited in the state general fund; and
(2) is in addition to any criminal penalties imposed by a court.
SOURCE: ; (13)IN0034.1.4. -->
SECTION 4. [EFFECTIVE JULY 1, 2013]
(a) IC 6-8.1-6-9, as
added by this act, applies to claims for taxable years beginning
after December 31, 2012.
(b) This SECTION expires January 1, 2015.