A bill to amend the Internal Revenue Code of 1986 to improve the notice and review procedure with respect to multi-year bans on claiming credits.

This bill changes how the IRS handles multi-year bans on claiming the Child Tax Credit, the American Opportunity education credit, and the Earned Income Tax Credit. IRS deficiency notices that deny these credits would have to name the credit denied, explain why, and state the reasons and length of any multi-year ban. The U.S. Tax Court would gain authority to review whether a ban was properly imposed, including some bans imposed in the past, and could order refunds for years covered by an improper ban. The IRS would carry the burden of production in court on these bans, and deadlines to claim refunds would pause while a ban is under Tax Court review.

Full text and official record on Congress.gov

Sponsors

• Michael F. Bennet Democrat sponsor
• 0 cosponsors