[Congressional Record Volume 166, Number 209 (Thursday, December 10, 2020)]
[Senate]
[Pages S7426-S7428]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2701. Mr. SANDERS (for himself and Mr. Hawley) submitted an
amendment intended to be proposed by him to the bill H.R. 8900, making
further continuing appropriations for fiscal year 2021, and for other
purposes; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ____. ADDITIONAL RECOVERY REBATES FOR INDIVIDUALS.
(a) In General.--Subchapter B of chapter 65 of subtitle F
of the Internal Revenue Code of 1986 is amended by inserting
after section 6428 the following new section:
``SEC. 6428A. ADDITIONAL RECOVERY REBATES FOR INDIVIDUALS.
``(a) In General.--In the case of an eligible individual,
there shall be allowed as a credit against the tax imposed by
subtitle A for the first taxable year beginning in 2020 an
amount equal to the sum of--
``(1) $1,200 ($2,400 in the case of eligible individuals
filing a joint return), plus
``(2) an amount equal to the product of $500 multiplied by
the number of dependents (as defined in section 152) of the
taxpayer.
``(b) Treatment of Credit.--The credit allowed by
subsection (a) shall be treated as allowed by subpart C of
part IV of subchapter A of chapter 1.
``(c) Limitation Based on Adjusted Gross Income.--The
amount of the credit allowed by subsection (a) (determined
without regard to this subsection and subsection (e)) shall
be reduced (but not below zero) by 5 percent of so much of
the taxpayer's adjusted gross income as exceeds--
``(1) $150,000 in the case of a joint return,
``(2) $112,500 in the case of a head of household, and
``(3) $75,000 in the case of a taxpayer not described in
paragraph (1) or (2).
``(d) Eligible Individual.--For purposes of this section,
the term `eligible individual' means any individual other
than--
``(1) any nonresident alien individual,
``(2) any individual with respect to whom a deduction under
section 151 is allowable to
[[Page S7427]]
another taxpayer for a taxable year beginning in the calendar
year in which the individual's taxable year begins, and
``(3) an estate or trust.
``(e) Coordination With Advance Refunds of Credit.--
``(1) In general.--The amount of credit which would (but
for this paragraph) be allowable under this section shall be
reduced (but not below zero) by the aggregate refunds and
credits made or allowed to the taxpayer under subsection (f).
Any failure to so reduce the credit shall be treated as
arising out of a mathematical or clerical error and assessed
according to section 6213(b)(1).
``(2) Joint returns.--In the case of a refund or credit
made or allowed under subsection (f) with respect to a joint
return, half of such refund or credit shall be treated as
having been made or allowed to each individual filing such
return.
``(f) Advance Refunds and Credits.--
``(1) In general.--Subject to paragraph (5), each
individual who was an eligible individual for such
individual's first taxable year beginning in 2019 shall be
treated as having made a payment against the tax imposed by
chapter 1 for such taxable year in an amount equal to the
advance refund amount for such taxable year.
``(2) Advance refund amount.--For purposes of paragraph
(1), the advance refund amount is the amount that would have
been allowed as a credit under this section for such taxable
year if this section (other than subsection (e) and this
subsection) had applied to such taxable year.
``(3) Timing and manner of payments.--
``(A) Timing.--The Secretary shall, subject to the
provisions of this title, refund or credit any overpayment
attributable to this section as rapidly as possible. No
refund or credit shall be made or allowed under this
subsection after December 31, 2021.
``(B) Delivery of payments.--Notwithstanding any other
provision of law, the Secretary may certify and disburse
refunds payable under this subsection electronically to any
account to which the payee authorized, on or after January 1,
2018, the delivery of a refund of taxes under this title or
of a Federal payment (as defined in section 3332 of title 31,
United States Code).
``(C) Waiver of certain rules.--Notwithstanding section
3325 of title 31, United States Code, or any other provision
of law, with respect to any payment of a refund under this
subsection, a disbursing official in the executive branch of
the United States Government may modify payment information
received from an officer or employee described in section
3325(a)(1)(B) of such title for the purpose of facilitating
the accurate and efficient delivery of such payment. Except
in cases of fraud or reckless neglect, no liability under
sections 3325, 3527, 3528, or 3529 of title 31, United States
Code, shall be imposed with respect to payments made under
this subparagraph.
``(4) No interest.--No interest shall be allowed on any
overpayment attributable to this section.
``(5) Alternate taxable year.--In the case of an individual
who, at the time of any determination made pursuant to
paragraph (3), has not filed a tax return for the year
described in paragraph (1), the Secretary may--
``(A) apply such paragraph by substituting `2018' for
`2019', and
``(B) if the individual has not filed a tax return for such
individual's first taxable year beginning in 2018, use
information with respect to such individual for calendar year
2019 provided in--
``(i) Form SSA-1099, Social Security Benefit Statement, or
``(ii) Form RRB-1099, Social Security Equivalent Benefit
Statement.
``(6) Payment to representative payees and fiduciaries.--
``(A) In general.--In the case of any individual for which
payment information is provided to the Secretary by the
Commissioner of Social Security, the Railroad Retirement
Board, or the Secretary of Veterans Affairs, the payment by
the Secretary under paragraph (3) with respect to such
individual may be made to such individual's representative
payee or fiduciary and the entire payment shall be--
``(i) provided to the individual who is entitled to the
payment, or
``(ii) used only for the benefit of the individual who is
entitled to the payment.
``(B) Application of enforcement provisions.--
``(i) In the case of a payment described in subparagraph
(A) which is made with respect to a social security
beneficiary or a supplemental security income recipient,
section 1129(a)(3) of the Social Security Act (42 U.S.C.
1320a-8(a)(3)) shall apply to such payment in the same manner
as such section applies to a payment under title II or XVI of
such Act.
``(ii) In the case of a payment described in subparagraph
(A) which is made with respect to a railroad retirement
beneficiary, section 13 of the Railroad Retirement Act (45
U.S.C. 231l) shall apply to such payment in the same manner
as such section applies to a payment under such Act.
``(iii) In the case of a payment described in subparagraph
(A) which is made with respect to a veterans beneficiary,
sections 5502, 6106, and 6108 of title 38, United States
Code, shall apply to such payment in the same manner as such
sections apply to a payment under such title.
``(7) Notice to taxpayer.--Not later than 15 days after the
date on which the Secretary distributed any payment to an
eligible taxpayer pursuant to this subsection, notice shall
be sent by mail to such taxpayer's last known address. Such
notice shall indicate the method by which such payment was
made, the amount of such payment, and a phone number for the
appropriate point of contact at the Internal Revenue Service
to report any failure to receive such payment.
``(g) Identification Number Requirement.--
``(1) In general.--No credit shall be allowed under
subsection (a) to an eligible individual who does not include
on the return of tax for the taxable year--
``(A) such individual's valid identification number,
``(B) in the case of a joint return, the valid
identification number of such individual's spouse, and
``(C) in the case of any dependent taken into account under
subsection (a)(2), the valid identification number of such
dependent.
``(2) Valid identification number.--
``(A) In general.--For purposes of paragraph (1), the term
`valid identification number' means a social security number
(as such term is defined in section 24(h)(7)).
``(B) Adoption taxpayer identification number.--For
purposes of paragraph (1)(C), in the case of a dependent who
is adopted or placed for adoption, the term `valid
identification number' shall include the adoption taxpayer
identification number of such dependent.
``(3) Special rule for members of the armed forces.--
Paragraph (1)(B) shall not apply in the case where at least 1
spouse was a member of the Armed Forces of the United States
at any time during the taxable year and at least 1 spouse
satisfies paragraph (1)(A).
``(4) Mathematical or clerical error authority.--Any
omission of a correct valid identification number required
under this subsection shall be treated as a mathematical or
clerical error for purposes of applying section 6213(g)(2) to
such omission.
``(h) Regulations.--The Secretary shall prescribe such
regulations or other guidance as may be necessary to carry
out the purposes of this section, including any such measures
as are deemed appropriate to avoid allowing multiple credits
or rebates to a taxpayer.''.
(b) Administrative Amendments.--
(1) Definition of deficiency.--Section 6211(b)(4)(A) of the
Internal Revenue Code of 1986 is amended by striking ``and
6428'' and inserting ``6428, and 6428A''.
(2) Mathematical or clerical error authority.--Section
6213(g)(2)(L) of such Code is amended by striking ``or 6428''
and inserting ``6428, or 6428A''.
(c) Treatment of Possessions.--
(1) Payments to possessions.--
(A) Mirror code possession.--The Secretary of the Treasury
shall pay to each possession of the United States which has a
mirror code tax system amounts equal to the loss (if any) to
that possession by reason of the amendments made by this
section. Such amounts shall be determined by the Secretary of
the Treasury based on information provided by the government
of the respective possession.
(B) Other possessions.--The Secretary of the Treasury shall
pay to each possession of the United States which does not
have a mirror code tax system amounts estimated by the
Secretary of the Treasury as being equal to the aggregate
benefits (if any) that would have been provided to residents
of such possession by reason of the amendments made by this
section if a mirror code tax system had been in effect in
such possession. The preceding sentence shall not apply
unless the respective possession has a plan, which has been
approved by the Secretary of the Treasury, under which such
possession will promptly distribute such payments to its
residents.
(2) Coordination with credit allowed against united states
income taxes.--No credit shall be allowed against United
States income taxes under section 6428A of the Internal
Revenue Code of 1986 (as added by this section) to any
person--
(A) to whom a credit is allowed against taxes imposed by
the possession by reason of the amendments made by this
section, or
(B) who is eligible for a payment under a plan described in
paragraph (1)(B).
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes of this
subsection, the term ``possession of the United States''
includes the Commonwealth of Puerto Rico and the Commonwealth
of the Northern Mariana Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means, with
respect to any possession of the United States, the income
tax system of such possession if the income tax liability of
the residents of such possession under such system is
determined by reference to the income tax laws of the United
States as if such possession were the United States.
(C) Treatment of payments.--For purposes of section 1324 of
title 31, United States Code, the payments under this
subsection shall be treated in the same manner as a refund
due from a credit provision referred to in subsection (b)(2)
of such section.
(d) Exception From Reduction, Offset, Garnishment, etc..--
(1) In general.--Any credit or refund allowed or made to
any individual by reason of section 6428A of the Internal
Revenue Code of 1986 (as added by this section) or by reason
of subsection (c) of this section shall not be--
[[Page S7428]]
(A) subject to reduction or offset pursuant to section 3716
or 3720A of title 31, United States Code,
(B) subject to reduction or offset pursuant to subsection
(d), (e), or (f) of section 6402 of the Internal Revenue Code
of 1986, or
(C) reduced or offset by other assessed Federal taxes that
would otherwise be subject to levy or collection.
(2) Assignment of benefits.--
(A) In general.--Any applicable payment shall not be
subject to transfer, assignment, execution, levy, attachment,
garnishment, or other legal process, or the operation of any
bankruptcy or insolvency law, to the same extent as payments
described in section 207 of the Social Security Act (42
U.S.C. 407) without regard to subsection (b) thereof.
(B) Encoding of payments.--As soon as practicable after the
date of the enactment of this paragraph, the Secretary of the
Treasury shall encode applicable payments that are paid
electronically to any account--
(i) with a unique identifier that is reasonably sufficient
to allow a financial institution to identify the payment as a
payment protected under subparagraph (A), and
(ii) pursuant to the same specifications as required for a
benefit payment to which part 212 of title 31, Code of
Federal regulations applies.
(C) Garnishment.--
(i) Encoded payments.--Upon receipt of a garnishment order
that applies to an account that has received an applicable
payment that is encoded as provided in subparagraph (B), a
financial institution shall follow the requirements and
procedures set forth in part 212 of title 31, Code of Federal
Regulations. This paragraph shall not alter the status of
payments as tax refunds or other nonbenefit payments for
purpose of any reclamation rights of the Department of
Treasury or the Internal Revenue Service as per part 210 of
title 31 of the Code of Federal Regulations.
(ii) Other payments.--If a financial institution receives a
garnishment order (other than an order that has been served
by the United States) that applies to an account into which
an applicable payment that has not been encoded as provided
in subparagraph (B) has been deposited on any date in the
prior 60 days (including any date before the date of the
enactment of this paragraph), the financial institution, upon
the request of the account holder or for purposes of
complying in good faith with a State order, State law, court
order, or interpretation by a State Attorney General relating
to garnishment order, may, but is not required to, treat the
amount of the payment as exempt under law from garnishment
without requiring the account holder to assert any right of
garnishment exemption or requiring the consent of the
judgment creditor.
(iii) Liability.--A financial institution that complies in
good faith with clause (i) or that acts in good faith in
reliance on clause (ii) shall not be liable under any Federal
or State law, regulation, or court or other order to a
creditor that initiates an order for any protected amounts,
to an account holder for any frozen amounts or garnishment
order applied.
(D) Definitions.--For purposes of this paragraph--
(i) Account holder.--The term ``account holder'' means a
natural person against whom a garnishment order is issued and
whose name appears in a financial institution's records.
(ii) Applicable payment.--The term ``applicable payment''
means any payment of credit or refund by reason of section
6428A of such Code (as so added) or by reason of subsection
(c) of this section.
(iii) Garnishment.--The term ``garnishment'' means
execution, levy, attachment, garnishment, or other legal
process.
(iv) Garnishment order.--
(I) In general.--The term ``garnishment order'' means a
writ, order, notice, summons, judgment, levy, or similar
written instruction issued by a court, a State or State
agency, or a municipality or municipal corporation, including
an order to freeze the assets in an account, to effect a
garnishment against a debtor.
(II) Exception for child support.--The term ``garnishment
order'' shall not include any writ, order, notice, summons,
judgment, levy or other similar written instruction issued by
a State child support enforcement agency.
(E) Exception for child support.--Nothing in this
subsection shall prevent or prejudice the enforcement of any
writ, order, notice, summons, judgment, levy or other similar
written instruction issued by a State child support
enforcement agency.
(e) Public Awareness Campaign.--The Secretary of the
Treasury (or the Secretary's delegate) shall conduct a public
awareness campaign, in coordination with the Commissioner of
Social Security and the heads of other relevant Federal
agencies, to provide information regarding the availability
of the credit and rebate allowed under section 6428A of the
Internal Revenue Code of 1986 (as added by this section),
including information with respect to individuals who may not
have filed a tax return for taxable year 2018 or 2019.
(f) Appropriations to Carry Out Rebates.--
(1) In general.--Immediately upon the enactment of this
Act, the following sums are appropriated, out of any money in
the Treasury not otherwise appropriated, for the fiscal year
ending September 30, 2021:
(A) Department of the treasury.--
(i) For an additional amount for ``Department of the
Treasury--Bureau of the Fiscal Service--Salaries and
Expenses'', $78,650,000, to remain available until September
30, 2022.
(ii) For an additional amount for ``Department of the
Treasury--Internal Revenue Service--Taxpayer Services'',
$293,500,000, to remain available until September 30, 2022.
(iii) For an additional amount for ``Department of the
Treasury--Internal Revenue Service--Operations Support'',
$170,000,000, to remain available until September 30, 2022.
(iv) For an additional amount for ``Department of
Treasury--Internal Revenue Service--Enforcement'',
$37,200,000, to remain available until September 30, 2022.
Amounts made available in appropriations under clauses (ii),
(iii), and (iv) of this subparagraph may be transferred
between such appropriations upon the advance notification of
the Committees on Appropriations of the House of
Representatives and the Senate. Such transfer authority is in
addition to any other transfer authority provided by law.
(B) Social security administration.--For an additional
amount for ``Social Security Administration--Limitation on
Administrative Expenses'', $38,000,000, to remain available
until September 30, 2022.
(2) Reports.--No later than 15 days after enactment of this
Act, the Secretary of the Treasury shall submit a plan to the
Committees on Appropriations of the House of Representatives
and the Senate detailing the expected use of the funds
provided by paragraph (1)(A). Beginning 90 days after
enactment of this Act, the Secretary of the Treasury shall
submit a quarterly report to the Committees on Appropriations
of the House of Representatives and the Senate detailing the
actual expenditure of funds provided by paragraph (1)(A) and
the expected expenditure of such funds in the subsequent
quarter.
(g) Conforming Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``6428A,'' after
``6428,''.
(2) The table of sections for subchapter B of chapter 65 of
subtitle F of the Internal Revenue Code of 1986 is amended by
inserting after the item relating to section 6428 the
following:
``Sec. 6428A. Additional recovery Rebates for individuals.''.
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