[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2978 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 2978

To amend the Internal Revenue Code of 1986 to exclude from gross income 
any interest paid on an overpayment of tax in the case of an individual 
                           or small business.


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                    IN THE HOUSE OF REPRESENTATIVES

                             April 27, 2023

Ms. Spanberger (for herself and Mrs. Kim of California) 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 exclude from gross income 
any interest paid on an overpayment of tax in the case of an individual 
                           or small business.

    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 ``Cutting Paperwork for Taxpayers 
Act''.

SEC. 2. INTEREST RECEIVED ON OVERPAYMENTS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting before section 
140 the following new section:

``SEC. 139J. INTEREST RECEIVED ON TAX OVERPAYMENTS.

    ``In the case of an individual or an eligible small business 
described in section 44(b)(1), gross income shall not include any 
interest allowed and paid upon an overpayment of tax pursuant to 
section 6611.''.
    (b) Clerical Amendment.--The table of contents for Part III of 
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is 
amended by inserting before the item relating to section 140 the 
following new item:

``139J. Interest received on tax overpayments.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this section.
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