I 111th CONGRESS 1st Session H. R. 2168 IN THE HOUSE OF REPRESENTATIVES April 29, 2009 Mr. Duncan 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 suspend the penalty on underpayments of Federal income tax for unemployed individuals.

1.

Suspension of penalty on underpayments of Federal income tax for unemployed individuals

(a)

In general

Section 6662 of the Internal Revenue Code of 1986 (relating to imposition of accuracy-related penalty on underpayments) is amended by adding at the end the following new subsection: (f)

Suspension of penalty for unemployed individuals

In the case of an individual who receives unemployment compensation (as defined in section 85(b) of the Internal Revenue Code of 1986) during a taxable year beginning in 2008 or 2009, subsection (a) shall not apply with respect to any underpayment of tax required to be shown on the return for such taxable year unless such underpayment is still outstanding on the date which is 2 years after the due date (including extensions) for filing such return. . (b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2007.