[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2334 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 2334

 To amend the Internal Revenue Code of 1986 to require individuals to 
  include their social security numbers on the income tax return as a 
 condition of claiming the refundable portion of the child tax credit, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 14, 2015

   Mr. Sam Johnson of Texas 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 require individuals to 
  include their social security numbers on the income tax return as a 
 condition of claiming the refundable portion of the child 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 ``Refundable Child Tax Credit 
Eligibility Verification Reform Act of 2015''.

SEC. 2. SOCIAL SECURITY NUMBER REQUIRED TO CLAIM THE REFUNDABLE PORTION 
              OF THE CHILD TAX CREDIT.

    (a) In General.--Section 24(d) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new paragraph:
            ``(5) Identification requirement with respect to taxpayer 
        and qualifying child.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                any taxpayer for any taxable year unless the taxpayer 
                includes on the return of tax for such taxable year the 
                taxpayer's social security number.
                    ``(B) Joint returns.--In the case of a joint 
                return, the requirement of subparagraph (A) shall be 
                treated as met if the social security number of either 
                spouse is included on such return.
                    ``(C) Limitation.--Subparagraph (A) shall not apply 
                to the extent the tentative minimum tax (as defined in 
                section 55(b)(1)(A)) exceeds the credit allowed under 
                section 32.''.
    (b) Omissions Treated as Mathematical or Clerical Error.--Section 
6213(g)(2)(I) of such Code is amended to read as follows:
                    ``(I) an omission of a correct social security 
                number required under section 24(d)(5) (relating to 
                refundable portion of child tax credit), or a correct 
                TIN under section 24(e) (relating to child tax credit), 
                to be included on a return,''.
    (c) Conforming Amendment.--Section 24(e) of such Code is amended by 
inserting ``With Respect to Qualifying Children'' after 
``Identification Requirement'' in the heading thereof.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

SEC. 3. RESTRICTIONS ON TAXPAYERS WHO IMPROPERLY CLAIMED REFUNDABLE 
              PORTION OF THE CHILD TAX CREDIT IN PRIOR YEAR.

    (a) In General.--Section 24(d) of the Internal Revenue Code of 
1986, as amended by this Act, is amended by adding at the end the 
following new paragraph:
            ``(6) Restrictions on taxpayers who improperly claimed 
        credit in prior year.--
                    ``(A) Taxpayers making prior fraudulent or reckless 
                claims.--
                            ``(i) In general.--No credit shall be 
                        allowed under this subsection for any taxable 
                        year in the disallowance period.
                            ``(ii) Disallowance period.--For purposes 
                        of clause (i), the disallowance period is--
                                    ``(I) the period of 10 taxable 
                                years after the most recent taxable 
                                year for which there was a final 
                                determination that the taxpayer's claim 
                                of credit under this subsection was due 
                                to fraud, and
                                    ``(II) the period of 2 taxable 
                                years after the most recent taxable 
                                year for which there was a final 
                                determination that the taxpayer's claim 
                                of credit under this subsection was due 
                                to reckless or intentional disregard of 
                                rules and regulations (but not due to 
                                fraud).
                    ``(B) Taxpayers making improper prior claims.--In 
                the case of a taxpayer who is denied credit under this 
                subsection for any taxable year as a result of the 
                deficiency procedures under subchapter B of chapter 63, 
                no credit shall be allowed under this subsection for 
                any subsequent taxable year unless the taxpayer 
                provides such information as the Secretary may require 
                to demonstrate eligibility for such credit.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2015.

SEC. 4. CHECKLIST FOR PAID PREPARERS TO VERIFY ELIGIBILITY FOR 
              REFUNDABLE PORTION OF THE CHILD TAX CREDIT; PENALTY FOR 
              FAILURE TO MEET DUE DILIGENCE REQUIREMENTS.

    (a) In General.--The Secretary of the Treasury (or the Secretary's 
delegate) shall prescribe a form (similar to Form 8867) which is 
required to be completed by paid income tax return preparers in 
connection with claims for the refundable portion of the child tax 
credit under section 24(d) of the Internal Revenue Code of 1986.
    (b) Penalty.--
            (1) In general.--Section 6695 of the Internal Revenue Code 
        of 1986 is amended by redesignating subsection (h) as 
        subsection (i) and by inserting after subsection (g) following 
        new subsection:
    ``(h) Failure To Be Diligent in Determining Eligibility for 
Refundable Portion of Child Tax Credit.--Any person who is a tax return 
preparer with respect to any return or claim for refund who fails to 
comply with due diligence requirements imposed by the Secretary by 
regulations with respect to determining eligibility for, or the amount 
of, the credit allowable by section 24(d) shall pay a penalty of $500 
for each such failure.''.
            (2) Inflation adjustment.--Section 6695(h)(1) of such Code, 
        as so redesignated, is amended--
                    (A) by striking ``and (g)'' and inserting ``(g), 
                and (h)'', and
                    (B) by striking ``determined by substituting'' and 
                all that follows and inserting the following: 
                ``determined by substituting for `calendar year 1992' 
                in subparagraph (B) thereof--
                    ``(A) except as provided in subparagraph (B), 
                `calendar year 2013', and
                    ``(B) in the case of the dollar amount under 
                subsection (h), `calendar year 2015'.''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 2015.
            (2) Subsection (b)(2).--The amendments made by subsection 
        (b)(2) shall apply to returns or claims for refund filed in a 
        calendar year beginning after December 31, 2016.
                                 <all>