[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3261 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 3261
To amend the Internal Revenue Code of 1986 to expand the offset against
overpayments to include all State and local taxes owed by any person,
whether or not a resident of the State seeking the offset, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 8, 2001
Mr. Moran of Virginia introduced the following bill; which was referred
to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to expand the offset against
overpayments to include all State and local taxes owed by any person,
whether or not a resident of the State seeking the offset, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. EXPANSION OF OFFSETS AGAINST OVERPAYMENTS.
(a) Offsets Not Limited to Residents of State Seeking Offset.--
Subsection (e) of section 6402 of the Internal Revenue Code of 1986
(relating to collection of past-due legally enforceable State income
tax obligations) is amended by striking paragraph (2) and by
redesignating paragraphs (3) through (7) as paragraphs (2) through (6),
respectively.
(b) Collection of All State and Local Government Tax Obligations.--
(1) In general.--Paragraph (1) of section 6402(e) of such
Code is amended to read as follows:
``(1) In general.--Upon receiving notice from any State or
local government that a named person owes a past-due, legally
enforceable tax obligation to such government, the Secretary
shall, under such conditions as may be prescribed by the
Secretary--
``(A) reduce the amount of any overpayment payable
to such person by the amount of such tax obligation;
``(B) pay the amount by which such overpayment is
reduced under subparagraph (A) to such government and
notify such government of such person's name, taxpayer
identification number, address, and the amount
collected; and
``(C) notify the person making such overpayment
that the overpayment has been reduced by an amount
necessary to satisfy a past-due, legally enforceable
tax obligation.
If an offset is made pursuant to a joint return, the notice
under subparagraph (B) shall include the names, taxpayer
identification numbers, and addresses of each person filing
such return.''
(2) Conforming amendments.--
(A) Subsection (e) of section 6402 of such Code is
amended by striking ``State income tax'' each place it
appears and inserting ``State or local tax''.
(B) The last sentence of paragraph (2) of section
6402(e) of such Code, as redesignated by subsection
(a), is amended by striking ``the State'' and inserting
``the State or local governments of such State''.
(C) Paragraph (3) of section 6402(e) of such Code,
as redesignated by subsection (a), is amended--
(i) by striking the material preceding
subparagraph (A) and inserting the following:
``(3) Notice; consideration of evidence.--No State or local
government may take action under this subsection until such
government--'', and
(ii) by striking ``the State'' in
subparagraphs (A) and (D) and inserting ``such
government''.
(D) Paragraph (4) of section 6402(e) of such Code,
as redesignated by subsection (a), is amended by
striking the last sentence.
(E) Paragraph (5) of section 6402(e) of such Code,
as redesignated by subsection (a), is amended--
(i) by striking ``States'' each place it
appears and inserting ``State and local
governments'', and
(ii) by striking ``State income taxes'' and
inserting ``State or local taxes''.
(F) Paragraph (6) of section 6402(e) of such Code,
as redesignated by subsection (a), is amended--
(i) by striking ``state'' in the heading
and inserting ``state or local government'',
(ii) by striking ``Any State'' and
inserting ``Any State or local government'',
and
(iii) by striking ``such State'' each place
it appears and inserting ``such government''.
(G) Subsection (f) of section 6402 of such Code is
amended by striking ``or State'' and inserting ``,
State, or local government''.
(H) Subsection (h) of section 6402 of such Code is
amended--
(i) by striking ``States'' in the heading
and inserting ``State and Local Governments'',
and
(ii) by striking ``State'' in the text and
inserting ``State or local government''.
(c) Use of First Class Mail on Tax Judgments.--Paragraph (3) of
section 6402(e) of such Code, as redesignated by subsection (a), is
amended by adding at the end the following new flush sentence:
``In the case of a debt described in paragraph (4)(A)(i)(I),
the requirement in subparagraph (A) to use certified mail shall
be treated as met by using first-class mail sent to the
taxpayer's last known address.''
(d) Effective Date.--The amendments made by this section shall
apply to refunds payable after December 31, 2002.
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