[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5142 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 5142

 To amend the Internal Revenue Code of 1986 to improve the process for 
                    providing refunds to taxpayers.


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                   IN THE SENATE OF THE UNITED STATES

                             July 28, 2026

Mr. Bennet (for himself and Mr. Cassidy) 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 improve the process for 
                    providing refunds to taxpayers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. AUTOMATION OF REFUND OFFSET BYPASS.

    (a) In General.--Section 6402(a) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``In the case'' and inserting the 
        following:
            ``(1) Authority.--Except as provided in paragraph (2), in 
        the case'', and
            (2) by adding at the end the following new paragraphs:
            ``(2) Special rule for certain individuals.--In the case of 
        an overpayment with respect to any taxable year for which a 
        credit is allowed to an applicable taxpayer under section 32, 
        the Secretary shall, subject to subsections (c), (d), (e), and 
        (f), refund such overpayment in an amount not to exceed the 
        amount of the credit allowed under such section for such 
        taxable year.
            ``(3) Applicable taxpayer.--For purposes of paragraph (2), 
        the term `applicable taxpayer' means a taxpayer who was 
        classified by the Secretary as currently not collectible 
        (within the meaning of section 6343(e)) prior to the date on 
        which the refund was requested by the taxpayer.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to offsets made after the date which is 12 months after the date 
of enactment of this Act.
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