On June 28, the Senate Finance Committee approved, by voice vote, the Telephone Excise Tax Repeal Act of 2005 (S. 1321).
During debate on the bill, the committee approved, by voice vote, an amendment by Chair Charles Grassley (R-IA) that would allow the Internal Revenue Service (IRS) to arrest criminals who make money by trafficking women and girls. The amendment would allow the IRS to pursue criminal charges against traffickers for failing to file income and business tax returns. The penalty would be 10 years in prison for each failure to file appropriate tax documentation. The amendment also would authorize $2 million to establish an office within the IRS to prosecute crimes related to sexual trafficking.
“It’s a no-brainer to have the IRS go after sex traffickers,” said Sen. Grassley. “Prosecuting tax code violations can get these guys off the street and yank from their grasp the women and girls they exploit, “ adding, “Al Capone was finally put behind bars for evading the tax code. The IRS goes after drug traffickers. We can use the tax code to help get illegal sex traffickers, too.”
