Sam Johnson, Senator Cornyn Reintroduce ITIN Reform Act

Holding IRS Accountable & Fighting Waste, Fraud and Abuse

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Washington, May 20, 2015 | comments
Washington, DC – Today, U.S. Congressman Sam Johnson (TX-03) and Senator John Cornyn (R-TX) reintroduced the Individual Taxpayer Identification Number (ITIN) Reform Act.

The ITIN Reform Act is in response to a highly critical 2012 Tax Inspector General for Tax Administration (TIGTA) report on the IRS’ handling of ITIN applications. The IRS provides ITINs to individuals ineligible for Social Security numbers such as illegal immigrants. The ITIN can be used to get refundable tax credits such as the $1,000 refundable child tax credit.

“This bill is part of my ongoing effort to root out waste, fraud, and abuse,” said Johnson. “The ITIN Reform Act makes commonsense reforms that hard-working American taxpayers want, need, and deserve. I thank my colleague and fellow Texan, Senator Cornyn, for leading the effort in the Senate.”

Johnson’s and Cornyn’s ITIN Reform Act would put safeguards in place to prevent fraud in the ITIN application process. It would also require the Tax Inspector General for Tax Administration to conduct regular audits to ensure the IRS is protecting taxpayer dollars.

“Everything we hear about the IRS lately points to abuse, discrimination, and waste. Passing this bill would eliminate one avenue for tax fraud and save American taxpayers billions of dollars,” said Sen. Cornyn.

Specifically, the ITIN Reform Act would require first-time applicants to submit an ITIN application in-person at a Taxpayer Assistance Center or diplomatic consulate. Currently, applicants can submit their applications by mail or through a third party. Individuals seeking an ITIN would need to provide original documentation establishing their identity and foreign status. Additionally, new ITINs would have a 5-year time limit with an option to renew while existing ITINS would be time limited.

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