Preventing Tax Fraud and Identity Theft Act

119th Congress Introduced by Chuck Grassley and 1 co-sponsor

The bill standardizes and tightens electronic filing deadlines to January 31 after each calendar year for key information returns to improve fraud detection.

Introduced in Senate

Overview

The Preventing Tax Fraud and Identity Theft Act (S. 5133, 119th Congress) intends to curb tax fraud and identity theft by accelerating and standardizing the timing for certain tax information returns. The bill amends the Internal Revenue Code to require earlier filing deadlines for electronically filed returns in specified categories and adjusts related reporting provisions. The amendments would take effect for calendar years after December 31, 2027.

Main purpose and intent

Improve enforcement and detection of tax-related fraud and identity theft by reducing the lag between a calendar year and the filing of key information returns.

Harmonize and tighten deadlines for electronic filing of certain information returns, ensuring more timely data for both the IRS and taxpayers.

Key provisions and changes

1) Time for filing certain information returns (Section 1)
- Amends Section 6071(b) of the Internal Revenue Code.
- For certain electronically filed returns, the due date is moved to January 31 of the year following the calendar year to which the return relates.
- Applies specifically to returns required under:
- Section 6041 (excluding returns and statements for nonemployee compensation)
- Section 6042
- Section 6047(d)
- Section 6049
- Section 6050F
- Section 6050W
- The change expands and formalizes an earlier deadline for electronic returns within these categories.
- Effective date: The amendments apply to calendar years after December 31, 2027.

2) Gambling winnings (Section 1, subsection amended)
- Increases or clarifies the filing due date for certain gambling-winnings returns required under section 6051 due to section 3402(q)(7).
- New due date: January 31 of the year following the calendar year to which the returns relate.

3) IRA reporting (Section 1, subsection on 408(i))
- Amends Section 408(i)(1) to insert a deadline reference indicating, for distributions, the timing is “not later than January 31 of the calendar year following the calendar year to which reports relate.”
- Aligns IRA distribution reporting timing with the other information-return deadlines.

4) Effective date
- All amendments apply to returns relating to calendar years after December 31, 2027.

Who would be affected

Businesses and entities required to file various information returns electronically under sections 6041, 6042, 6047(d), 6049, 6050F, and 6050W, as well as gambling-winnings reporting under section 6051 (due to 3402(q)(7)).

Payors and institutions handling Individual Retirement Arrangements (IRAs) subject to distribution reporting under section 408(i).

Taxpayers and tax professionals relying on these information returns for compliance, verification, and identity-theft safeguards.

Procedural and timeline considerations

Deadlines for electronically filed information returns in specified categories move to January 31 of the year following the tax year.

The change creates a uniform January 31 deadline across multiple return types, potentially improving IRS processing timelines and reducing last-minute filing pressure.

Effective for calendar years after 2027, giving taxpayers and filers time to adjust systems and workflows.

Bill