House Passes Anti-Fraud Cause Championed by Johnson

Provision included in the Bipartisan Budget Act of 2013

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Washington, December 12, 2013 | comments

Today the U.S. House of Representatives passed a common-sense, anti-fraud provision championed by U.S. Congressman Sam Johnson (R-TX).  As Chairman of the Ways and Means Social Security Subcommittee, Johnson has led the effort to protect families and the American taxpayer from identity thieves by restricting access to Social Security’s Death Master File (DMF). 

“For far too long, identity thieves have been exploiting the DMF to steal Americans’ identities to obtain fraudulent tax refunds.  Taxpayers who are victims of such fraud endure the terrible ordeal of proving their real identities.  That’s just plain wrong!  Worse, these thieves target deceased children, like 4-year-old Alexis Agin, whose family learned of the fraud after the IRS rejected their tax return.  Worrying about the stolen identity of a loved one is the last thing a grieving family should do,” said Johnson. 

The Agin’s tragic experience led Johnson to introduce legislation to better protect families in 2011 and again this year.  In July 2013, Johnson introduced the Alexis Agin Identity Theft Protection Act (H.R. 2720) – along with Democrat colleague and ranking-member on Social Security, Congressman Xavier Becerra (D-CA).  

As included in the budget agreement, the provision would require that only death information older than three years would be publicly available through the DMF – except for certified entities.  The provision would prevent the disclosure of recent death information and help reduce incidents of identity theft and tax fraud.  It is estimated to generate nearly $800 million in savings.

Background on the Death Master File

The Social Security Administration collects death information so it can stop benefits to those who have died and start benefits for their survivors.  As a result of a 1978 Freedom of Information Act (FOIA) court-mandated settlement, Social Security has been required to make public the Social Security numbers and other personal information of those who have died.  Unfortunately, this file has turned into a resource for criminals who file fraudulent tax returns based on identities of the deceased, particularly children. 

In 2011, the Internal Revenue Service rejected the Agin’s tax return advising the family that an identity thief had already filed a tax return for 2010 claiming their child as a dependent.  The Agin’s reached out to the cancer community, which they had come to know since April 2008 when their daughter was diagnosed with a terminal brain tumor, to share their experience.  In less than an hour, 14 other families whose children had died said they had also experienced the additional travesty of their child’s Social Security number being stolen.  “I salute the Agins for their tireless advocacy on behalf of their daughter and other grieving families,” added Johnson.   

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