[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1641 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1641

To impose additional requirements to ensure greater use of the advance 
payment of the earned income credit and to extend such advance payment 
               to all taxpayers eligible for the credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 6, 2001

  Mr. Sessions (for himself and Mr. Nickles) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To impose additional requirements to ensure greater use of the advance 
payment of the earned income credit and to extend such advance payment 
               to all taxpayers eligible for the credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. ADDITIONAL REQUIREMENTS TO ENSURE GREATER USE OF ADVANCE 
              PAYMENT OF EARNED INCOME CREDIT.

    Not later than January 1, 2002, the Secretary of the Treasury by 
regulation shall require--
            (1) each employer of an employee who the employer 
        determines receives wages in an amount which indicates that 
        such employee would be eligible for the earned income credit 
        under section 32 of the Internal Revenue Code of 1986 to 
        provide such employee with a simplified application for an 
        earned income eligibility certificate, and
            (2) require each employee wishing to receive the earned 
        income tax credit to complete and return the application to the 
        employer within 30 days of receipt.
Such regulations shall require an employer to provide such an 
application within 30 days of the hiring date of an employee and at 
least annually thereafter. Such regulations shall further provide that, 
upon receipt of a completed form, an employer shall provide for the 
advance payment of the earned income credit as provided under section 
3507 of the Internal Revenue Code of 1986.

SEC. 2. EXTENSION OF ADVANCE PAYMENT OF EARNED INCOME CREDIT TO ALL 
              ELIGIBLE TAXPAYERS.

    (a) In General.--Section 3507(b) of the Internal Revenue Code of 
1986 (relating to earned income eligibility certificate) is amended by 
striking paragraph (2) and by redesignating paragraphs (3) and (4) as 
paragraphs (2) and (3), respectively.
    (b) Conforming Amendments.--
            (1) Section 3507(c)(2)(B) of the Internal Revenue Code of 
        1986 is amended by inserting ``has 1 or more qualifying 
        children and'' before ``is not married,''.
            (2) Section 3507(c)(2)(C) of such Code is amended by 
        striking ``the employee'' and inserting ``an employee with 1 or 
        more qualifying children''.
            (3) Section 3507(f) of such Code is amended by striking 
        ``who have 1 or more qualifying children and''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.
                                 <all>