I 111th CONGRESS 1st Session H. R. 2303 IN THE HOUSE OF REPRESENTATIVES May 7, 2009 Mr. Lewis of Georgia (for himself, Mr. Rangel, and Mr. Faleomavaega) 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 eliminate the restriction on reducing Federal income tax refunds for past-due State income tax obligations of out-of-state residents in the case of States with reciprocal agreements with the Federal Government to reduce State income tax refunds for Federal income tax obligations.

1.

Short title

This Act may be cited as the State Tax Administration Assistance Act of 2009.

2.

Elimination of restriction on reducing Federal income tax refunds for past-due State income tax obligations of out-of-state residents in the case of States with reciprocal agreements with the Federal Government to reduce State income tax refunds for Federal income tax obligations

(a)

In general

Paragraph (2) of section 6402(e) of the Internal Revenue Code of 1986 is amended— (1)by striking Paragraph (1) and inserting the following: (A)

In general

Paragraph (1) , and (2)by adding at the end the following new subparagraph: (B)

Exception for States which have reciprocal agreements with Secretary

Subparagraph (A) shall not apply with respect to any State seeking an offset if such State has in effect a reciprocal agreement with the Secretary under which such State agrees to offset the amount of any overpayment of State income tax payable to any person by the amount of any Federal income tax obligation of such person under a program similar to the program described in paragraph (1). . (b)

Effective date

The amendments made by this section shall take effect on the date of the enactment of this Act.