[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1930 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1930

       To amend the Internal Revenue Code of 1986 to enhance the 
    administration of, and reduce fraud related to, the first-time 
             homebuyer tax credit, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 26, 2009

   Mr. Casey introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
       To amend the Internal Revenue Code of 1986 to enhance the 
    administration of, and reduce fraud related to, the first-time 
             homebuyer tax credit, 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. SHORT TITLE.

    This Act may be cited as the ``Homebuyer Tax Credit Oversight and 
Accountability Act of 2009''.

SEC. 2. PROVISIONS TO ENHANCE THE ADMINISTRATION OF THE FIRST-TIME 
              HOMEBUYER TAX CREDIT.

    (a) Age Limitation.--
            (1) In general.--Subsection (b) of section 36 of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new paragraph:
            ``(3) Age limitation.--No credit shall be allowed under 
        subsection (a) with respect to the purchase of any residence 
        unless the taxpayer has attained age 18 as of the date of such 
        purchase. In the case of any taxpayer who is married (within 
        the meaning of section 7703), the taxpayer shall be treated as 
        meeting the age requirement of the preceding sentence if the 
        taxpayer or the taxpayer's spouse meets such age 
        requirement.''.
            (2) Conforming amendment.--Subsection (g) of section 36 of 
        such Code is amended by striking ``subsections (c) and 
        (f)(4)(D)'' and inserting ``subsection (b)(3), (c), and 
        (f)(4)(D)''.
    (b) Documentation Requirement.--Subsection (d) of section 36 of the 
Internal Revenue Code of 1986 is amended by striking ``or'' at the end 
of paragraph (1), by striking the period at the end of paragraph (2) 
and inserting a comma, and by adding at the end the following new 
paragraphs:
            ``(3) the taxpayer fails to attach to the return of tax for 
        such taxable year a properly executed copy of the settlement 
        statement used to complete such purchase, or
            ``(4) the taxpayer fails to attach to the return of tax for 
        such taxable year a certified statement of the taxpayer's 
        eligibility for the tax credit issued by the real estate 
        reporting person (as defined in section 6045(e)(2)) with 
        respect to such purchase.''.
    (c) Restriction on Married Individual Acquiring Residence From 
Family of Spouse.--Clause (i) of section 36(c)(3)(A) of the Internal 
Revenue Code of 1986 is amended by inserting ``(or, if married, such 
individual's spouse)'' after ``person acquiring such property''.
    (d) Certain Errors With Respect to the First-Time Homebuyer Tax 
Credit Treated as Mathematical or Clerical Errors.--Paragraph (2) of 
section 6213(g) of the Internal Revenue Code of 1986 is amended by 
striking ``and'' at the end of subparagraph (M), by striking the period 
at the end of subparagraph (N) and inserting ``, and'', and by 
inserting after subparagraph (N) the following new subparagraph:
                    ``(O) an entry on a return claiming the credit 
                under section 36 if--
                            ``(i) the Secretary obtains information 
                        from the person issuing the TIN of the taxpayer 
                        that indicates that the taxpayer does not meet 
                        the age requirement of section 36(b)(3),
                            ``(ii) information provided to the 
                        Secretary by the taxpayer on an income tax 
                        return for at least one of the 2 preceding 
                        taxable years is inconsistent with eligibility 
                        for such credit, or
                            ``(iii) the taxpayer fails to attach to the 
                        return the form described in paragraph (3) or 
                        (4) of section 36(d).''.
    (e) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        purchases after the date of the enactment of this Act.
            (2) Documentation requirement.--The amendments made by 
        subsection (b) shall apply to returns for taxable years ending 
        after the date of the enactment of this Act.
            (3) Treatment as mathematical and clerical errors.--The 
        amendments made by subsection (d) shall apply to returns for 
        taxable years ending on or after April 9, 2008.
    (f) Investigation and Prosecution; Report.--The Commissioner of 
Internal Revenue shall take such steps as are necessary to investigate 
and prosecute instances of fraud related to the first-time homebuyer 
tax credit under section 36 of the Internal Revenue Code of 1986. The 
Commissioner of Internal Revenue shall provide reports to Congress on 
the status of the investigatory and prosecutorial actions not later 
than 90 days after the date of the enactment of this Act, and quarterly 
thereafter.

SEC. 3. CERTAIN TAX RETURN PREPARERS REQUIRED TO FILE RETURNS 
              ELECTRONICALLY.

    (a) In General.--Subsection (e) of section 6011 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(3) Special rule for tax return preparers.--
                    ``(A) In general.--The Secretary shall require than 
                any individual income tax return prepared by a tax 
                return preparer be filed on magnetic media if--
                            ``(i) such return is filed by such tax 
                        return preparer, and
                            ``(ii) such tax return preparer is a 
                        specified tax return preparer for the calendar 
                        year during which such return is filed.
                    ``(B) Specified tax return preparer.--For purposes 
                of this paragraph, the term `specified tax return 
                preparer' means, with respect to any calendar year, any 
                tax return preparer unless such preparer reasonably 
                expects to file 100 or fewer individual income tax 
                returns during such calendar year.
                    ``(C) Individual income tax return.--For purposes 
                of this paragraph, the term `individual income tax 
                return' means any return of the tax imposed by subtitle 
                A on individuals, estates, or trusts.''.
    (b) Conforming Amendment.--Paragraph (1) of section 6011(e) of the 
Internal Revenue Code of 1986 is amended by striking ``The Secretary 
may not'' and inserting ``Except as provided in paragraph (3), the 
Secretary may not''.
    (c) Effective Date.--The amendments made by this section shall 
apply to returns filed after December 31, 2010.
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