A bill to amend the Internal Revenue Code of 1986 to improve the process for providing refunds to taxpayers.

This bill changes how the IRS handles tax refunds for some people who owe back federal taxes. Normally, the IRS can use a taxpayer's refund to pay down other federal tax debts they owe. Under this bill, if a taxpayer receives the Earned Income Tax Credit and the IRS had already classified them as 'currently not collectible' before they asked for the refund, the IRS would have to pay out the refund, up to the amount of that credit, instead of applying it to their tax debt. The refund could still be reduced for other debts, such as past-due child support, debts to other federal agencies, state income taxes, and unemployment compensation debts. The change would apply to offsets made more than 12 months after the bill becomes law.

Full text and official record on Congress.gov

Sponsors

• Michael F. Bennet Democrat sponsor
• 1 cosponsors