Prisoner Fraud Reduction Act of 2011 - Requires: (1) the Director of the Federal Bureau of Prisons and the head of each state prison system, by December 1 each year, to transmit to the Internal Revenue Service (IRS) in electronic format certain identifying information on inmates who have been incarcerated during any portion of the three-calendar-year period ending with November 15 of the year of the report, and (2) the IRS to notify the Federal Bureau of Prisons and the head of each state prison system annually of any incarcerated individual whom the IRS has determined may have filed or facilitated the filing of a false or fraudulent federal tax return.
Amends the Internal Revenue Code to make permanent the authority of the Secretary of the Treasury to disclose tax return information to the Federal Bureau of Prisons and to state prison systems to prevent false or fraudulent filings by prison inmates.