[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1992 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 1992
To amend the Internal Revenue Code of 1986 to expand the earned income
and child tax credits, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 14, 2023
Mr. Brown (for himself, Mr. Bennet, Mr. Booker, Mr. Warnock, Mr. Wyden,
Mr. Durbin, Ms. Baldwin, Mr. Blumenthal, Ms. Cantwell, Mr. Cardin, Mr.
Casey, Mr. Coons, Ms. Cortez Masto, Ms. Duckworth, Mrs. Feinstein, Mr.
Fetterman, Mrs. Gillibrand, Ms. Hassan, Mr. Heinrich, Ms. Hirono, Mr.
Kaine, Mr. King, Ms. Klobuchar, Mr. Markey, Mr. Merkley, Mr. Murphy,
Mrs. Murray, Mr. Peters, Mr. Reed, Ms. Rosen, Mr. Sanders, Mr. Schatz,
Mr. Schumer, Mrs. Shaheen, Ms. Smith, Ms. Stabenow, Mr. Van Hollen, Mr.
Warner, Ms. Warren, Mr. Welch, and Mr. Whitehouse) 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 expand the earned income
and child tax credits, 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 ``Working Families Tax Relief Act of
2023''.
TITLE I--EXPANSION OF THE EARNED INCOME CREDIT
SEC. 101. PERMANENT EXTENSION OF EARNED INCOME CREDIT RULES FOR
INDIVIDUALS WITHOUT QUALIFYING CHILDREN.
(a) Decrease in Minimum Age for Credit.--
(1) In general.--Subclause (II) of section 32(c)(1)(A)(ii)
of the Internal Revenue Code of 1986 is amended by striking
``age 25'' and inserting ``the applicable minimum age''.
(2) Applicable minimum age.--Paragraph (1) of section 32(c)
of such Code is amended by adding at the end the following new
subparagraph:
``(F) Applicable minimum age.--For purposes of this
paragraph--
``(i) In general.--The term `applicable
minimum age' means--
``(I) except as otherwise provided
in this clause, age 19,
``(II) in the case of a specified
student (other than a qualified former
foster youth or a qualified homeless
youth), age 24, and
``(III) in the case of a qualified
former foster youth or a qualified
homeless youth, age 18.
``(ii) Specified student.--For purposes of
this subparagraph, the term `specified student'
means, with respect to any taxable year, an
individual who is an eligible student (as
defined in section 25A(b)(3)) during at least 5
calendar months during the taxable year.
``(iii) Qualified former foster youth.--For
purposes of this subparagraph, the term
`qualified former foster youth' means an
individual who--
``(I) on or after the date that
such individual attained age 14, was in
foster care provided under the
supervision or administration of an
entity administering (or eligible to
administer) a plan under part B or part
E of title IV of the Social Security
Act (without regard to whether Federal
assistance was provided with respect to
such child under such part E), and
``(II) provides (in such manner as
the Secretary may provide) consent for
entities which administer a plan under
part B or part E of title IV of the
Social Security Act to disclose to the
Secretary information related to the
status of such individual as a
qualified former foster youth.
``(iv) Qualified homeless youth.--For
purposes of this subparagraph, the term
`qualified homeless youth' means, with respect
to any taxable year, an individual who
certifies, in a manner as provided by the
Secretary, that such individual is either an
unaccompanied youth who is a homeless child or
youth, or is unaccompanied, at risk of
homelessness, and self-supporting.''.
(b) Elimination of Maximum Age for Credit.--Subclause (II) of
section 32(c)(1)(A)(ii) of the Internal Revenue Code of 1986 is amended
by striking ``but not attained age 65''.
(c) Increase in Credit and Phaseout Percentages.--The table
contained in paragraph (1) of section 32(b) of the Internal Revenue
Code of 1986 is amended by striking ``7.65'' each place it appears and
inserting ``15.3''.
(d) Increase in Earned Income and Phaseout Amounts.--The table
contained in subparagraph (A) of section 32(b)(2) of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``$4,220'' and inserting ``$9,820'', and
(2) by striking ``$5,280'' and inserting ``$11,610''.
(e) Inflation Adjustments.--
(1) In general.--Paragraph (1) of section 32(j) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(1) In general.--In the case of any taxable year
beginning after--
``(A) 2021, in the case of the dollar amount in
subsection (i)(1),
``(B) 2024, in the case of the dollar amounts in
the third row of the table in subsection (b)(2)(A), and
``(C) 2015, in any other case,
each of the dollar amounts in subsections (b)(2) and (i)(1)
shall be increased by an amount equal to the inflation
amount.''.
(2) Inflation amount.--Subsection (j) of section 32 of such
Code is amended by adding at the end the following new
paragraph:
``(3) Inflation amount.--For purposes of paragraph (1), the
inflation amount with respect to any dollar amount for any
taxable year is the amount equal to--
``(A) such dollar amount, multiplied by
``(B) the percentage (if any) by which--
``(i) the CPI (as defined in section
1(f)(4)) for the calendar year preceding the
year in which the taxable year begins, exceeds
``(ii) the CPI (as so defined) for--
``(I) in the case of amounts in the
third row of the table in subsection
(b)(2)(A), 2023,
``(II) in the case of any other
amount in subsection (b)(2)(A), 1995,
``(III) in the case of the $5,000
amount in subsection (b)(2)(B), 2008,
and
``(IV) in the case of the $10,000
amount in subsection (i)(1), 2020.''.
(f) Conforming Amendment.--Section 32 of the Internal Revenue Code
of 1986 is amended by striking subsection (n).
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2023.
SEC. 102. APPLICATION OF EARNED INCOME CREDIT TO POSSESSIONS OF THE
UNITED STATES.
(a) Puerto Rico.--Subparagraph (B) of section 7530(a)(1) of the
Internal Revenue Code of 1986 is amended by striking ``in the case of
calendar years 2021 through 2025,''.
(b) Possessions With Mirror Code Tax Systems.--Subparagraph (B) of
section 7530(b)(1) of the Internal Revenue Code of 1986 is amended by
striking ``in the case of calendar years 2021 through 2025,''.
(c) American Samoa.--Subparagraph (B) of section 7530(c)(1) of the
Internal Revenue Code of 1986 is amended by striking ``in the case of
calendar years 2021 through 2025,''.
SEC. 103. ELECTION TO USE PRIOR YEAR EARNED INCOME.
(a) In General.--Paragraph (2) of section 32(c) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subparagraph:
``(C) Election to use prior year earned income.--
``(i) In general.--If the earned income of
the taxpayer for any taxable year is less than
the earned income of the taxpayer for the
preceding taxable year, the credit allowed
under subsection (a) may, at the election of
the taxpayer, be determined by substituting--
``(I) such earned income for such
preceding taxable year, for
``(II) such earned income for the
taxable year for which such credit is
being determined.
``(ii) Application to joint returns.--For
purposes of clause (i), in the case of a joint
return, the earned income of the taxpayer for
the preceding taxable year shall be the sum of
the earned income of each spouse for such
taxable year.
``(iii) Special rules.--
``(I) Errors treated as
mathematical errors.--For purposes of
section 6213, an incorrect use on a
return of earned income pursuant to
clause (i) shall be treated as a
mathematical or clerical error.
``(II) No effect on determination
of gross income, etc.--Except as
otherwise provided in this
subparagraph, this title shall be
applied without regard to any
substitution under clause (i).''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 2023.
TITLE II--EXPANSION OF THE CHILD TAX CREDIT
SEC. 201. PERMANENT ESTABLISHMENT OF CHILD TAX CREDIT WITH MONTHLY
ADVANCE PAYMENT.
(a) Credit Amount.--Subsection (a) of section 24 of the Internal
Revenue Code of 1986 is amended by striking ``equal to $1,000'' and
inserting ``equal to--
``(1) $250 ($300 in the case of a qualifying child who has
not attained age 6 as of the close of the taxable year),
multiplied by
``(2) the number of qualifying months of the taxpayer
occurring during the taxable year.''.
(b) Limitation Based on Adjusted Gross Income.--Subsection (b) of
section 24 of the Internal Revenue Code of 1986 is amended to read as
follows:
``(b) Limitations Based on Modified Adjusted Gross Income.--
``(1) Initial reduction.--
``(A) In general.--The amount of the credit
allowable under subsection (a) shall be reduced (but
not below zero) by 5 percent of the excess (if any) of
the taxpayer's modified adjusted gross income for the
applicable taxable year over the initial threshold
amount in effect for such applicable taxable year.
``(B) Limitation on initial reduction.--The amount
of the reduction under subparagraph (A) shall not
exceed the lesser of--
``(i) the excess (if any) of--
``(I) the credit allowable under
subsection (a) for the taxable year
determined without regard to this
paragraph, over
``(II) the amount which would be
described in subclause (I) if
subsection (a)(1) were applied by
substituting `$166.67' for `$250 ($300
in the case of a qualifying child who
has not attained age 6 as of the close
of the taxable year)' and subsection
(i) did not apply, or
``(ii) 5 percent of the excess of the
secondary threshold amount over the initial
threshold amount.
``(2) Secondary reduction.--The amount of the credit
allowable under subsection (a), determined after the
application of paragraph (1), shall be further reduced (but not
below zero) by 5 percent of the excess (if any) of the
taxpayer's modified adjusted gross income for the applicable
taxable year over the secondary threshold amount.
``(3) Threshold amounts.--For purposes of this subsection--
``(A) Initial threshold amount.--The term `initial
threshold amount' means--
``(i) $150,000, in the case of a joint
return or surviving spouse (as defined in
section 2(a)),
``(ii) \1/2\ the dollar amount in effect
under clause (i), in the case of a married
individual filing a separate return, and
``(iii) $112,500, in any other case.
``(B) Secondary threshold amount.--The term
`secondary threshold amount' means--
``(i) $400,000, in the case of a joint
return or surviving spouse (as defined in
section 2(a)),
``(ii) $300,000, in the case of a head of
household (as defined in section 2(b)), and
``(iii) $200,000, in any other case.
``(4) Other terms.--For purposes of this subsection--
``(A) Applicable taxable year.--The term
`applicable taxable year' means, with respect to any
taxable year for which the credit under this section is
determined--
``(i) such taxable year, or
``(ii) if the taxpayer elects the
application of this clause (at such time and in
such form and manner as the Secretary may
provide), the preceding taxable year or the
second preceding taxable year (as specified in
such election).
``(B) Modified adjusted gross income.--The term
`modified adjusted gross income' means adjusted gross
income increased by any amount excluded from gross
income under section 911, 931, or 933.''.
(c) Inflation Adjustments.--Subsection (i) of section 24 of the
Internal Revenue Code of 1986 is amended to read as follows:
``(i) Adjustments for Inflation.--In the case of any taxable year
beginning after December 31, 2024--
``(1) In general.--The dollar amounts in subsection (a) and
clauses (i) and (iii) of subsection (b)(3)(A) shall each be
increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the percentage (if any) by which--
``(i) the CPI (as defined in section
1(f)(4)) for the calendar year preceding the
calendar year in which such month begins,
exceeds
``(ii) the CPI (as so defined) for calendar
year 2023.
``(2) Rounding.--Any increase under the preceding
sentence--
``(A) which is not a multiple of $10, in the case
of the amount in subsection (a), shall be rounded to
the nearest multiple of $10, and
``(B) which is not a multiple of $5,000, in the
case of the amounts in subsection (b)(3)(A), shall be
rounded to the nearest multiple of $5,000.''.
(d) Qualifying Child Rules.--
(1) In general.--Subsection (c) of section 24 of the
Internal Revenue Code of 1986 is amended to read as follows:
``(c) Qualifying Month; Qualifying Child.--For purposes of this
section--
``(1) Qualifying month.--
``(A) In general.--The term `qualifying month'
means any calendar month for which there is a
qualifying child with respect to the taxpayer.
``(B) Rules for birth or death of a child.--In the
case of a child who is born or dies during the taxable
year, any calendar month in such year which occurs
before the month of such birth or after the month of
such death shall be a qualifying month for the taxpayer
who is treated as establishing presumptive eligibility
with respect to such child pursuant to section
7527A(i)(2)(E).
``(2) Qualifying child.--The term `qualifying child' means,
with respect to any taxpayer for any calendar month, an
individual who--
``(A) has the same principal place of abode as the
taxpayer for more than \1/2\ of such month,
``(B) is younger than the taxpayer and will not, as
of the close of the taxable year which includes such
month, have attained age 18,
``(C) receives care from the taxpayer during such
month which is not compensated,
``(D) is not the spouse of the taxpayer at any time
during such month, and
``(E) either--
``(i) is a citizen, national, or resident
of the United States, or
``(ii) if the taxpayer is a citizen or
national of the United States, is described in
section 152(f)(1)(B) with respect to such
taxpayer.
``(3) Certain individuals ineligible.--In the case of an
individual who is a qualifying child with respect to another
taxpayer for any calendar month, such individual shall be
treated for such month as having no qualifying children.
``(4) Care from the taxpayer.--
``(A) In general.--Except as otherwise provided by
the Secretary, whether any individual receives care
from the taxpayer (within the meaning of paragraph
(2)(C)) shall be determined on the basis of facts and
circumstances with respect to the following factors:
``(i) The supervision provided by the
taxpayer regarding the daily activities and
needs of the individual.
``(ii) The maintenance by the taxpayer of a
secure environment at which the individual
resides.
``(iii) The provision or arrangement by the
taxpayer of, and transportation by the taxpayer
to, medical care at regular intervals and as
required for the individual.
``(iv) The involvement by the taxpayer in,
and financial and other support by the taxpayer
for, educational or similar activities of the
individual.
``(v) Any other factor that the Secretary
determines to be appropriate to determine
whether the individual receives care from the
taxpayer.
``(B) Determination of whether care is
compensated.--For purposes of determining if care is
compensated within the meaning of paragraph (2)(C),
compensation from the Federal Government, a State or
local government, a Tribal government, or any
possession of the United States shall not be taken into
account.
``(5) Application of tie-breaker rules.--
``(A) In general.--Except as provided in
subparagraph (D), if any individual would (but for this
paragraph) be a qualifying child of 2 or more taxpayers
for any month, such individual shall be treated as the
qualifying child only of the taxpayer who is--
``(i) the parent of the individual (or, if
such individual would (but for this paragraph)
be a qualifying child of 2 or more parents of
the individual for such month, the parent of
the individual determined under subparagraph
(B)),
``(ii) if the individual is not a
qualifying child of any parent of the
individual (determined without regard to this
paragraph), the specified relative of the
individual with the highest adjusted gross
income for the taxable year which includes such
month, or
``(iii) if the individual is neither a
qualifying child of any parent of the
individual nor a qualifying child of any
specified relative of the individual (in both
cases determined without regard to this
paragraph), the taxpayer with the highest
adjusted gross income for the taxable year
which includes such month.
``(B) Tie-breaker among parents.--If any individual
would (but for this paragraph) be the qualifying child
of 2 or more parents of the individual for any month,
such child shall be treated only as the qualifying
child of--
``(i) the parent with whom the child
resided for the longest period of time during
such month, or
``(ii) if the child resides with both
parents for the same amount of time during such
month, the parent with the highest adjusted
gross income for the taxable year which
includes such month.
``(C) Specified relative.--For purposes of this
paragraph, the term `specified relative' means an
individual who is--
``(i) an ancestor of a parent of the
qualifying child,
``(ii) a brother or sister of a parent of
the qualifying child, or
``(iii) a brother, sister, stepbrother, or
stepsister of the qualifying child.
``(D) Certain parents or specified relatives not
taken into account.--This paragraph shall be applied
without regard to any parent or specified relative of
an individual for any month if--
``(i) such parent or specified relative
elects to have such individual not be treated
as a qualifying child of such parent or
specified relative for such month,
``(ii) in the case of a parent of such
individual, the adjusted gross income of the
taxpayer (with respect to whom such individual
would be treated as a qualifying child after
application of this subparagraph) for the
taxable year which includes such month is
higher than the highest adjusted gross income
of any parent of the individual for the taxable
year which includes such month (determined
without regard to any parent with respect to
whom such individual is not a qualifying child,
determined without regard to subparagraphs (A)
and (B) and after application of this
subparagraph), and
``(iii) in the case of a specified relative
of such individual, the adjusted gross income
of the taxpayer (with respect to whom such
individual would be treated as a qualifying
child after application of this subparagraph)
for the taxable year which includes such month
is higher than the highest adjusted gross
income of any parent and any specified relative
of the individual for the taxable year which
includes such month (determined without regard
to any parent and any specified relative with
respect to whom such individual is not a
qualifying child, determined without regard to
subparagraphs (A) and (B) and after application
of this subparagraph).
``(E) Treatment of joint returns.--For purposes of
this paragraph, the adjusted gross income of each
person who files a joint return for the taxable year is
the total adjusted gross income shown on the joint
return for the taxable year.
``(F) Parent.--Except as otherwise provided by the
Secretary, the term `parent' shall have the same
meaning as when used in section 152(c)(4).
``(6) Treatment of temporary absences.--Except as provided
in regulations or other guidance issued by the Secretary, for
purposes of this subsection--
``(A) In general.--In the case of any individual's
temporary absence from such individual's principal
place of abode, each day composing the temporary
absence shall--
``(i) be treated as a day at such
individual's principal place of abode,
``(ii) be treated as satisfying the care
requirement described in paragraph (2)(C) for
each day described in clause (i), and
``(iii) not be treated as a day at any
other location.
``(B) Temporary absence.--For purposes of
subparagraph (A), an absence shall be treated as
temporary if--
``(i) the individual would have resided at
the place of abode but for the absence, and
``(ii) under the facts and circumstances,
it is reasonable to assume that the individual
will return to reside at the place of abode.
``(7) Special rule for divorced parents, etc.--Rules
similar to the rules section 152(e) shall apply for purposes of
this subsection.
``(8) Eligibility determined on basis of presumptive
eligibility.--
``(A) In general.--If a period of presumptive
eligibility is established under section 7527A(i) for
any individual with respect to any taxpayer--
``(i) such individual shall be treated as
the qualifying child of such taxpayer for any
month in such period of presumptive
eligibility, and
``(ii) such individual shall not be treated
as the qualifying child of any other taxpayer
with respect to whom a period of presumptive
eligibility has not been established for any
such month.
``(B) Ability of credit claimants to establish
presumptive eligibility.--Nothing in section 7527A(i)
shall be interpreted to preclude a taxpayer from
establishing a period of presumptive eligibility
(including any such period described in section
7527A(i)(2)(D)) with respect to any qualifying child
for purposes of this section solely because such
taxpayer affirmatively elects not to receive monthly
payments under section 7527A.''.
(2) Conforming amendments.--
(A) Subsection (a) of section 24 of such Code, as
amended by this section, is further amended by striking
``for which the taxpayer is allowed a deduction under
section 151''.
(B) The second sentence of paragraph (26) of
section 501(c) of such Code is amended--
(i) by striking ``any qualifying child (as
defined in section 24(c))'' and inserting ``any
child'', and
(ii) by inserting before the period the
following: ``, but only in the case of a child
who is a qualifying child (as defined in
section 152(c)) of the individual who has not
attained age 17 and who would be a dependent if
subparagraph (A) of section 152(b)(3) were
applied without regard to all that follows
`resident of the United States'''.
(e) Fully Refundable Credit.--Subsection (d) of section 24 of the
Internal Revenue Code of 1986 is amended to read as follows:
``(d) Credit Refundable.--If the taxpayer (in the case of a joint
return, either spouse) has a principal place of abode (determined as
provided in section 32) in the United States or Puerto Rico for more
than \1/2\ of the taxable year, the credit otherwise allowed under
subsection (a) shall be allowed under subpart C (and not allowed under
this subpart).''.
(f) Restrictions on Taxpayers Who Improperly Claimed Credit or
Improperly Received Advance Payment.--
(1) In general.--Subparagraph (A) of section 24(g)(1) of
the Internal Revenue Code of 1986 is amended by striking ``this
section'' and inserting ``this section (and no payment shall be
made under section 7527A)''.
(2) Conforming amendments.--
(A) Subparagraph (B) of section 24(g)(1) of such
Code is amended--
(i) by striking ``this section'' both
places it appears and inserting ``this section
(or payment received under section 7527A)'',
(ii) by striking ``and'' at the end of
clause (i),
(iii) by striking the period at the end of
clause (ii) and inserting ``, and'', and
(iv) by adding at the end the following new
clause:
``(iii) in addition to any period
determined under clause (i) or (ii) (as the
case may be), the period beginning on the date
of the final determination described in such
clause and ending with the beginning of the
period described in such clause.''.
(B) Paragraph (2) of section 24(g) of such Code is
amended by striking ``no credit shall be allowed under
this section'' and inserting ``no credit shall be
allowed under this section (and no payment shall be
made under section 7527A)''.
(C) Subsection (g) of section 24 of such Code is
amended by adding at the end the following new
paragraph:
``(3) Coordination with possessions of the united states.--
For purposes of this subsection, a taxpayer's claim of credit
under this section (or payment received under section 7527A)
includes a claim of credit under this section of the income tax
law of any jurisdiction other than the United States (or
similar payment received under section 7527A of such income tax
law), and a claim made or a payment received from American
Samoa pursuant to a plan described in subsection (k)(3)(B).''.
(g) Monthly Advance Payment of Credit.--
(1) Recapture of excess advance payments in certain
circumstances.--Subsection (j) of section 24 of the Internal
Revenue Code of 1986 is amended--
(A) by striking subparagraph (B) of paragraph (2),
(B) by striking ``Excess advance payments.--'' and
all that follows through ``If'' and inserting ``Excess
advance payments.--In the case of a taxpayer described
in paragraph (3) for any taxable year, if'', and
(C) by adding at the end the following new
paragraphs:
``(3) Taxpayers subject to recapture.--
``(A) Fraud or reckless or intentional disregard of
rules and regulations.--A taxpayer is described in this
paragraph with respect to any taxable year if the
Secretary determines that the excess described in
paragraph (2) with respect to the taxpayer for such
taxable year was determined on the basis of fraud or a
reckless or intentional disregard of rules and
regulations.
``(B) Understatement of income; changes in filing
status.--If the excess described in paragraph (2) with
respect to the taxpayer for the taxable year was
determined on the basis of an amount of the taxpayer's
modified adjusted gross income which was less than the
taxpayer's modified adjusted gross income for the
applicable taxable year (as defined in subsection
(b))--
``(i) such taxpayer shall be treated as
described in this paragraph, and
``(ii) the increase determined under
paragraph (2) by reason of this subparagraph
shall not exceed the excess of--
``(I) the aggregate amount of
payments under section 7527A to the
taxpayer during the taxable year, over
``(II) the aggregate amount of
payments which would have been so made
if such payments had been determined on
the basis of the taxpayer's modified
adjusted gross income for the
applicable taxable year (as defined in
subsection (b)).
A rule similar to the rule of the preceding
sentence shall apply if the excess described in
paragraph (2) with respect to the taxpayer for
the taxable year was determined on the basis of
a filing status of the taxpayer which differs
from the taxpayer's filing status for the
applicable taxable year (as so defined).
``(C) Payments made outside of period of
presumptive eligibility.--If any payment described in
paragraph (2) with respect to the taxpayer for the
taxable year was made with respect to a child for a
month which was not part of a period of presumptive
eligibility established under section 7527A(i) for such
child with respect to such taxpayer--
``(i) such taxpayer shall be treated as
described in this paragraph, and
``(ii) the increase determined under
paragraph (2) by reason of this subparagraph
shall not exceed the portion of such payment so
made.
``(D) Certain payments made after notice from
secretary.--If the Secretary notifies a taxpayer under
section 7527A(d) that such taxpayer is subject to
recapture with respect to any payments--
``(i) such taxpayer shall be treated as
described in this paragraph, and
``(ii) the increase determined under
paragraph (2) by reason of this subparagraph
shall not exceed the aggregate amount of such
payments.
``(E) Taxpayers moving to another jurisdiction.--To
minimize the amount of advance payments made under
section 7527A to ineligible individuals, the Secretary
shall issue regulations or other guidance for purposes
of this paragraph which apply with respect to taxpayers
who are described in subsection (d) with respect to the
reference month but are not so described with respect
to 1 or more months during the taxable year for which
advance payments under section 7527A are made.
``(F) Other circumstances to prevent abuse.--A
taxpayer is described in this paragraph with respect to
any taxable year pursuant to regulations or other
guidance of the Secretary describing other recapture
circumstances to facilitate the administration and
enforcement by the Secretary of section 7527A to
minimize the amount of advance payments made under
section 7527A to ineligible individuals and to prevent
abuse.
``(4) Joint returns.--Except as otherwise provided by the
Secretary, in the case of an advance payment made under section
7527A with respect to a joint return, half of such payment
shall be treated as having been made to each individual filing
such return.
``(5) Coordination with possessions of the united states.--
For purposes of this subsection, payments made under section
7527A include payments made by any jurisdiction other than the
United States under section 7527A of the income tax law of such
jurisdiction, and advance payments made by American Samoa
pursuant to a plan described in subsection (k)(3)(B). Any
increase in tax imposed on a taxpayer by reason of paragraph
(2) of the income tax law of a jurisdiction other than the
United States shall be considered to reduce the aggregate
amount of payments made to such taxpayer by such jurisdiction.
In carrying out this section, the Secretary shall coordinate
with each possession of the United States to prevent any
application of this paragraph that is inconsistent with the
purposes of this subsection.''.
(h) Application of Credit in Possessions.--
(1) Puerto rico.--Paragraph (2) of subsection (k) of
section 24 of the Internal Revenue Code of 1986 is amended to
read as follows:
``(2) Cross references related to application of credit to
residents of puerto rico.--
``(A) For application of refundable credit to
residents of Puerto Rico, see subsection (d).
``(B) For application of advance payment to
residents of Puerto Rico, see section
7527A(b)(1)(A).''.
(2) American samoa.--Paragraph (3) of subsection (k) of
section 24 of the Internal Revenue Code of 1986 is amended--
(A) by striking ``subsection (i)(1)'' in
subparagraph (A) and inserting ``subsection (d)'',
(B) by striking subclause (II) of subparagraph
(C)(ii), and
(C) by striking ``under subparagraph (B)--'' and
all that follows through ``subsection (i)(1)'' in
subparagraph (C)(ii) and inserting ``under subparagraph
(B), subsection (d)''.
(i) Conforming Amendments.--Subsection (h) of section 24 of the
Internal Revenue Code of 1986 is amended--
(1) by striking paragraphs (2), (3), (5), and (6) and
redesignating paragraphs (4) and (7) as paragraphs (2) and (3),
respectively,
(2) by striking ``paragraphs (2) through (7)'' in paragraph
(1) and inserting ``paragraphs (2) and (3)'',
(3) by striking ``(after the application of paragraph
(2))'' in subparagraph (A) of paragraph (2), as so
redesignated, and
(4) by striking ``paragraph (7)'' in subparagraph (C) of
paragraph (2), as so redesignated, and inserting ``paragraph
(3)''.
(j) Regulations.--Section 24 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(l) Regulations.--The Secretary shall issue such regulations or
other guidance as the Secretary determines necessary or appropriate to
carry out the purposes of this section, including regulations or other
guidance--
``(1) for determining whether an individual receives care
from a taxpayer for purposes of subsection (c)(1), and
``(2) to coordinate or modify the application of this
section and section 7527A in the case of any taxpayer--
``(A) whose filing status for a taxable year is
different from the status used for determining one or
more monthly payments under section 7527A during such
taxable year, or
``(B) whose principal place of abode for any year
is different from the principal place of abode used for
determining the monthly payment under section 7527A for
such year.''.
(k) Monthly Advance Payment of Credit.--
(1) In general.--Subsection (a) of section 7527A of the
Internal Revenue Code of 1986 is amended by striking ``for
making periodic payments'' and all that follows and inserting
``for making monthly payments to taxpayers equal to the monthly
advance amount determined with respect to each such taxpayer
for months occurring during the taxable year.''.
(2) Monthly advance amount.--So much of subsection (b) of
section 7527A of such Code as precedes paragraph (4) thereof is
amended to read as follows:
``(b) Monthly Advance Amount.--For purposes of this section--
``(1) In general.--Except as otherwise provided in this
subsection, the term `monthly advance amount' means, with
respect to any taxpayer for any calendar month, the amount (if
any) which is estimated by the Secretary as being equal to the
portion of the amount which would be treated as allowed under
subpart C of part IV of subchapter A of chapter 1 for the
taxable year under section 24(d) by reason of such month being
a qualifying month if--
``(A) the status of the taxpayer as a taxpayer
described in section 24(d) is determined with respect
to the reference taxable year,
``(B) the taxpayer's modified adjusted gross income
for the taxable year is equal to the taxpayer's
modified adjusted gross income for the reference
taxable year,
``(C) unless otherwise determined by the Secretary
based on any information known to the Secretary, the
only qualifying children of such taxpayer for such
month are the qualifying children of such taxpayer for
the reference month, and
``(D) unless otherwise determined by the Secretary
based on any information known to the Secretary, the
ages of such children (and the status of such children
as qualifying children) are determined for such month
by taking into account the passage of time since such
reference month.
``(2) Reference taxable year; reference month.--
``(A) Reference taxable year.--Except as provided
in paragraph (3)(A), the term `reference taxable year'
means, with respect to any taxpayer for any calendar
month, the taxpayer's taxable year beginning in the
preceding calendar year or, in the case of a taxpayer
who did not file a return of tax for such taxable year,
the taxpayer's taxable year beginning in the second
preceding calendar year.
``(B) Reference month.--The term `reference month'
means, with respect to any taxpayer for any calendar
month, the most recent of--
``(i) the last month of the reference
taxable year, or
``(ii) the most recent calendar month, in
the case of a taxpayer who provides, through a
specified alternative mechanism, information
which is sufficient to estimate the taxpayer's
monthly advance amount for such month.
``(C) Availability of information.--Any month or
year referred to in subparagraph (A) or (B) shall not
be taken into account in determining the reference
month or reference taxable year with respect to any
calendar month unless all relevant information with
respect to such month or year is available to the
Secretary and the Secretary has adequate time to make
estimates under this section on the basis of such
information before the beginning of such calendar
month.
``(D) Treatment of insufficient information.--
Except as otherwise provided by the Secretary--
``(i) if a taxpayer is not described in
subparagraph (B)(ii) with respect to any
calendar month and did not file a return of tax
for either of the 2 taxable years described in
subparagraph (A) with respect to such month,
the monthly advance amount with respect to such
taxpayer for such calendar month shall be
treated as zero unless the Secretary determines
that the Secretary can make the estimate
described in paragraph (1) on the basis of
information known to the Secretary which the
Secretary determines is reasonably reliable,
and
``(ii) if the taxpayer is not described in
subparagraph (B)(ii) and the information on the
return of tax filed for either of the 2 taxable
years described in subparagraph (A) does not
establish the status of the taxpayer (in the
case of a joint return, either spouse) as
having a principal place of abode (determined
as provided in section 32) in the United States
or Puerto Rico for more than \1/2\ of the
reference month, the Secretary shall determine
such status based on information known to the
Secretary.
``(E) Specified alternative mechanism.--The term
`specified alternative mechanism' means the on-line
portal established under subsection (c) and any other
mechanism or method established by the Secretary to
allow taxpayers to provide the information described in
subsection (c)(1) (including in connection with the
filing of any return of tax).
``(3) Modifications during calendar year.--
``(A) In general.--The Secretary may modify, during
any taxable year, the monthly advance amount with
respect to any taxpayer for any month occurring during
such year to take into account--
``(i) a return of tax filed by such
taxpayer during such taxable year (and the
taxable year to which such return relates may
be taken into account as the reference taxable
year), and
``(ii) any other information provided by
the taxpayer to the Secretary which allows the
Secretary to determine payments under
subsection (a) which, in the aggregate during
any taxable year of the taxpayer, more closely
total the Secretary's estimate of the amount
treated as allowed under subpart C of part IV
of subchapter A of chapter 1 by reason of
section 24(d) for such taxable year of such
taxpayer.
``(B) Adjustment to reflect excess or deficit in
prior payments.--In the case of any modification of the
monthly advance amount under subparagraph (A), the
Secretary may adjust the amount of any monthly payment
made after the date of such modification to properly
take into account the amount by which any monthly
payment made before such date was greater than or less
than the amount that such payment would have been on
the basis of the monthly advance amount as so
modified.''.
(3) On-line information portal.--Subsection (c) of section
7527A of such Code is amended to read as follows:
``(c) On-Line Information Portal.--
``(1) In general.--The Secretary shall establish an on-line
portal which allows taxpayers to--
``(A) subject to such restrictions as the Secretary
may provide, elect to begin or cease receiving payments
under this section, and
``(B) provide information to the Secretary which is
relevant in determining the monthly advance amount (or
any modification under subsection (b)(3)(B) of such
monthly advance amount) and the taxpayer's eligibility
for payments under this section, including information
regarding--
``(i) the number of the taxpayer's
qualifying children, including a child born
during the taxable year,
``(ii) the taxpayer's marital status,
``(iii) the taxpayer's modified adjusted
gross income,
``(iv) the taxpayer's principal place of
abode, and
``(v) any other factor which the Secretary
may provide.
``(2) Availability in multiple languages.--The Secretary
shall ensure that the on-line portal described in paragraph (1)
is available in multiple languages.''.
(4) Application of advance payments in possessions.--
(A) Puerto rico.--Subparagraph (A) of section
7527A(e)(4) of such Code is amended to read as follows:
``(A) Puerto rico.--
``(i) For application of child tax credit
to residents of Puerto Rico, see section 24(d).
``(ii) For application of monthly advance
payments to residents of Puerto Rico, see
subsection (b)(1)(A).''.
(B) Conforming amendments.--Subparagraph (C) of
section 7527A(e)(4) of such Code is amended by striking
``with respect to taxable years beginning in 2021''
both places it appears in clauses (i) and (ii) and
inserting ``with respect to any taxable year''.
(5) Administrative provisions.--
(A) In general.--Subsection (e) of section 7527A of
such Code is amended by adding at the end the following
new paragraph:
``(5) Assignment of benefits.--
``(A) In general.--The right of any person to any
applicable payment shall not be transferable or
assignable, at law or in equity, and no applicable
payment shall be subject to, execution, levy,
attachment, garnishment, or other legal process, or the
operation of any bankruptcy or insolvency law.
``(B) Encoding of payments.--In the case of an
applicable payment described in subparagraph
(E)(iii)(I) that is paid electronically by direct
deposit through the Automated Clearing House (ACH)
network, the Secretary of the Treasury (or the
Secretary's delegate) shall--
``(i) issue the payment using a unique
identifier that is reasonably sufficient to
allow a financial institution to identify the
payment as an applicable payment, and
``(ii) further encode the payment pursuant
to the same specifications as required for a
benefit payment defined in section 212.3 of
title 31, Code of Federal Regulations.
``(C) Garnishment.--
``(i) Encoded payments.--In the case 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,
except--
``(I) notwithstanding section 212.4
of title 31, Code of Federal
Regulations (and except as provided in
subclause (II)), a financial
institution shall not fail to follow
the procedures of sections 212.5 and
212.6 of such title with respect to a
garnishment order merely because such
order has attached, or includes, a
notice of right to garnish federal
benefits issued by a State child
support enforcement agency, and
``(II) a financial institution
shall not, with regard to any
applicable payment, be required to
provide the notice referenced in
sections 212.6 and 212.7 of title 31,
Code of Federal Regulations.
``(ii) Other payments.--In the case of a
garnishment order (other than an order that has
been served by the United States) that has been
received by a financial institution and that
applies to an account into which an applicable
payment that has not been encoded as provided
in subparagraph (B) has been deposited
electronically on any date during the lookback
period or into which an applicable payment that
has been deposited by check on any date in the
lookback period, the financial institution,
upon the request of the account holder, shall
treat the amount of the funds in the account at
the time of the request, up to the amount of
the applicable payment (in addition to any
amounts otherwise protected under part 212 of
title 31, Code of Federal Regulations), as
exempt from a garnishment order without
requiring the consent of the party serving the
garnishment order or the judgment creditor.
``(iii) Liability.--A financial institution
that acts in good faith in reliance on clauses
(i) or (ii) shall not be subject to liability
or regulatory action under any Federal or State
law, regulation, court or other order, or
regulatory interpretation for actions
concerning any applicable payments.
``(D) No reclamation rights.--This paragraph shall
not alter the status of applicable payments as tax
refunds or other nonbenefit payments for purpose of any
reclamation rights of the Department of the Treasury or
the Internal Revenue Service as per part 210 of title
31, Code of Federal Regulations.
``(E) Definitions.--For purposes of this
paragraph--
``(i) Account holder.--The term `account
holder' means a natural person whose name
appears in a financial institution's records as
the direct or beneficial owner of an account.
``(ii) Account review.--The term `account
review' means the process of examining deposits
in an account to determine if an applicable
payment has been deposited into the account
during the lookback period. The financial
institution shall perform the account review
following the procedures outlined in section
212.5 of title 31, Code of Federal Regulations
and in accordance with the requirements of
section 212.6 of title 31, Code of Federal
Regulations.
``(iii) Applicable payment.--The term
`applicable payment' means--
``(I) any payment made to an
individual under this section (other
than any payment made pursuant to
paragraph (4)),
``(II) any advance payment made by
a possession of the United States with
a mirror code tax system (as defined in
section 24(k)) pursuant to an election
under paragraph (6)(B) which
corresponds to a payment described in
subclause (I), and
``(III) any advance payment made by
American Samoa pursuant to a program
for making such payments which is
described in paragraph (6)(C)(ii).
``(iv) Garnishment.--The term `garnishment'
means execution, levy, attachment, garnishment,
or other legal process.
``(v) Garnishment order.--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, a municipality or municipal
corporation, or a State child support
enforcement agency, including a lien arising by
operation of law for overdue child support or
an order to freeze the assets in an account, to
effect a garnishment against a debtor.
``(vi) Lookback period.--The term `lookback
period' means the two month period that begins
on the date preceding the date of account
review and ends on the corresponding date of
the month two months earlier, or on the last
date of the month two months earlier if the
corresponding date does not exist.''.
(B) Application of certain rules; extension.--
Subsection (f) of section 7527A of such Code is amended
to read as follows:
``(f) Application of Certain Definitions and Rules Applicable to
Child Tax Credit.--
``(1) Definitions.--Except as otherwise provided in this
section, terms used in this section which are also used in
section 24 shall have the same respective meanings as when used
in section 24.
``(2) Identification requirements.--Rules similar to the
rules which apply under subsections (e) and (h)(3) shall apply
for purposes of this section except that such rules shall apply
with respect to the return of tax for the reference taxable
year or, in the case of information provided through a
specified alternative mechanism, with respect to the
information provided through such mechanism.
``(3) Restrictions on taxpayers who improperly claimed
credit or received monthly advance child payments.--For
restrictions on taxpayers who improperly claimed credit or
received monthly advance child payments, see section 24(g).''.
(6) Notice rule.--Subsection (d) of section 7527A of such
Code is amended by adding at the end the following: ``In the
case of any payments made to a taxpayer which the Secretary has
determined are subject to recapture, the notice provided under
paragraph (1) to such taxpayer shall include the amount of such
payments.''.
(7) Notification of certain events.--Section 7527A of such
Code is amended by redesignating subsection (g) as subsection
(h) and by inserting after subsection (f) the following new
subsection:
``(k) Notification of Certain Events.--With respect to any taxpayer
receiving monthly payments under this section with respect to any
qualifying child, the Secretary shall, to the maximum extent
practicable, provide reasonable advance notice of each of the
following:
``(1) Any month with respect to which such monthly payment
will increase (relative to the preceding month) by reason of an
inflation adjustment under section 24(i).
``(2) Any month with respect to which such monthly payment
will be reduced (relative to the preceding month) by reason of
such child ceasing to be a qualifying child by reason of
attaining age 18 during the taxable year.
``(3) In the case of a taxpayer with a qualifying child to
whom the $300 amount under section 24(a) (as adjusted under
section 24(i)) applies, any month with respect to which such
monthly payment will be reduced by reason of such child
attaining age 6.''.
(8) Conforming amendment.--Subsection (h) of section 7527A
of such Code, as redesignated by paragraph (7), is amended by
striking ``subsections (i)(1) and (j)'' and inserting
``subsections (d) and (j)''.
(9) Presumptive eligibility.--Section 7527A of such Code,
as amended by paragraph (7), is further amended by adding at
the end the following new subsection:
``(i) Presumptive Eligibility.--
``(1) In general.--An individual shall be treated as a
qualifying child of a taxpayer for purposes of determining any
monthly payment under this section only if such month is part
of the period of presumptive eligibility determined by the
Secretary under this subsection with respect to such qualifying
child and such taxpayer (determined by treating the month
described in subclause (I) of paragraph (2)(A)(ii) as being the
first month beginning after the determination described in such
subclause).
``(2) Period of presumptive eligibility.--For purposes of
this section--
``(A) In general.--Except as otherwise provided by
the Secretary, the term `period of presumptive
eligibility' means the period--
``(i) beginning with the month for which
presumptive eligibility is established, and
``(ii) ending with the earliest of--
``(I) the beginning of the month
described in clause (i) if the
Secretary determines that the taxpayer
committed fraud or intentionally
disregarded rules or regulations in
establishing or maintaining presumptive
eligibility,
``(II) in the case of any
notification from the Secretary that
the period of presumptive eligibility
has been terminated or suspended by
reason of any question regarding
eligibility of the taxpayer for monthly
payments with respect to such child,
the month specified in such notice as
the month on which such termination or
suspension begins, and
``(III) the month following any
failure of the taxpayer to make the
required annual renewal of presumptive
eligibility by such date as the
Secretary may provide.
``(B) Establishing presumptive eligibility.--A
taxpayer shall establish presumptive eligibility with
respect to any qualifying child for any month at such
time and in such manner as the Secretary may provide.
Except as otherwise provided by the Secretary, in order
to establish a period of presumptive eligibility the
taxpayer must express a reasonable expectation and
intent that the taxpayer will continue to be eligible
with respect to such qualifying child for at least the
2 months following the month for which presumptive
eligibility is to be established.
``(C) Method of establishing presumptive
eligibility.--The Secretary shall ensure information to
establish presumptive eligibility under this paragraph
may be provided on the return of tax for the taxable
year ending before the calendar year which includes the
month for which such eligibility is to be established,
through the on-line portal described in subsection (c),
or in such other manner as the Secretary may provide.
``(D) Inclusion of automatic grace periods and
periods of hardship.--The period of presumptive
eligibility shall include any period to which
subparagraph (A) or (B) of paragraph (5) applies.
``(E) Eligibility for birth or death of child.--The
Secretary shall issue regulations or other guidance to
establish procedures pursuant to which, to the maximum
extent administratively practicable--
``(i) with respect to a child born during a
calendar month--
``(I) a parent of such child is
treated as automatically establishing
presumptive eligibility with respect to
such child,
``(II) the period of such automatic
presumptive eligibility is determined,
and
``(III) the first monthly payment
is adjusted to be equal to the sum of
the monthly advance amounts which would
have been paid with respect to the
child for months occurring during the
calendar year if the child had been
born in the preceding calendar year,
and
``(ii) with respect to a child who dies
during a calendar month--
``(I) the taxpayer with respect to
whom the child was a qualifying child
for the last month the child was alive
is treated as having established
presumptive eligibility with respect to
such child,
``(II) the period of such
presumptive eligibility ends with the
last day of the calendar year in which
the child died, and
``(III) the monthly payments for
the remainder of such calendar year are
determined and paid as if the child
were alive.
``(F) Presumptive eligibility based on certain
government programs.--The Secretary shall issue
regulations or other guidance to establish procedures
under which--
``(i) based on information provided to the
Secretary by 1 or more government entities, a
parent or specified relative of a child is
treated as automatically establishing
presumptive eligibility with respect to such
child, and
``(ii) the period for which such automatic
presumptive eligibility is determined
(including any additional circumstances under
which such period will terminate).
``(G) Coordination with presumption.--For purposes
of determining the status of any individual as a
qualifying child for purposes of determining
presumptive eligibility with respect to any period,
section 24(c) shall be applied without regard to
paragraph (8) thereof.
``(3) Notice of termination of presumptive eligibility by
reason of failure to make annual renewal.--If a taxpayer's
period of presumptive eligibility with respect to any
qualifying child terminates by reason of paragraph
(2)(A)(ii)(III), the Secretary shall provide the taxpayer a
written notice of such termination.
``(4) Qualifying child of more than 1 taxpayer.--
``(A) In general.--In the event that (without
regard to this subparagraph) a period of presumptive
eligibility with respect to the same qualifying child
would exist for more than 1 taxpayer at the same time--
``(i) except as otherwise provided in this
section or by the Secretary, a period of
presumptive eligibility shall exist only with
respect to the taxpayer with the most recent
reference taxable year,
``(ii) the Secretary shall establish
procedures under which the Secretary
expeditiously adjudicates taxpayers' competing
claims of presumptive eligibility with respect
to the same child, and
``(iii) the Secretary shall notify any
taxpayer of the termination of a period of
presumptive eligibility pursuant to this
paragraph.
``(B) Provisions related to adjudication.--
``(i) Expedited process; appeals.--The
procedures established under subparagraph
(A)(ii) shall include--
``(I) an expedited process for
taxpayers who meet such requirements as
the Secretary may establish for such
expedited process, and
``(II) procedures for adjudicating
an appeal of an adverse decision.
``(ii) Information receipt and
coordination.--The Secretary may enter into
agreements to receive information from, and
otherwise coordinate with--
``(I) Federal agencies (including
the Social Security Administration and
the Department of Agriculture),
``(II) any State, local government,
Tribal government, or possession of the
United States, and
``(III) any other individual or
entity that the Secretary determines to
be appropriate for purposes of
adjudicating a competing claim
described in subparagraph (A).
``(iii) Adjudication not treated as
assessment.--An adjudication under the
procedures established under subparagraph
(A)(ii) (including the adjudication of any
appeal) shall not be treated as an assessment
described in section 6201.
``(iv) Adjudication not treated as
inspection of taxpayer's books of account.--The
inspection of a taxpayer's books of account in
connection with any adjudication under the
procedures established under subparagraph
(A)(ii) (including the adjudication of any
appeal) shall not be treated as an examination
or inspection of a taxpayer's books of account
for purposes of section 7605(b).
``(C) Retroactive payments.--If, pursuant to the
procedures established under subparagraph (A)(ii), the
Secretary determines that a child is a qualifying child
of a taxpayer and the Secretary did not make payments
to such taxpayer with respect to such child for any
portion of the period during which the determination
was made, the Secretary may make a one-time payment to
the taxpayer with respect to which such child is the
qualifying child in an amount equal to the aggregate
amount by which the monthly payments to such taxpayer
would have increased during such period if such
determination had been made immediately.
``(D) Recapture of payments.--If, pursuant to the
procedures established under subparagraph (A)(ii), the
Secretary makes payments with respect to the child
during the period during which the determination is
made--
``(i) the Secretary shall provide each
taxpayer which receives such payments notice
that such payments may be subject to recapture,
and
``(ii) upon making such determination, the
Secretary shall determine on the basis of the
facts and circumstances of each such taxpayer
whether any such payments should be subject to
recapture and shall so notify each such
taxpayer.
``(5) Rules related to grace periods and hardships.--
``(A) Automatic grace period.--
``(i) In general.--Notwithstanding
paragraph (4), in the case of any failure or
delay in establishing a period of presumptive
eligibility with respect to which the taxpayer
elects the application of this clause, credit
under section 24 or retroactive payment under
this section (similar to the payment described
in paragraph (4)(C)) shall be allowed or made
with respect to so much of the period of such
failure or delay as does not exceed 3 months.
The preceding sentence shall not apply if the
Secretary determines that such failure or delay
was due to fraud or reckless or intentional
disregard of rules and regulations.
``(ii) Limitation.--Clause (i) shall not
apply with respect to any taxpayer more than
once during any 36-month period.
``(B) Hardship.--Notwithstanding paragraph (4), if
the Secretary determines that a failure or delay in
establishing a period of presumptive eligibility with
respect to any qualifying child was due to domestic
violence, serious illness, natural disaster, or any
other hardship, credit under section 24 or retroactive
payment under this section (similar to the payment
described in paragraph (4)(C)) shall be allowed or made
with respect to so much of the period of such failure
or delay as does not exceed 6 months.''.
(l) Disclosure of Information Relating to Advance Payment of Child
Tax Credit.--Section 6103(e) of the Internal Revenue Code of 1986 is
amended by adding at the end the following new paragraph:
``(12) Disclosure of information relating to advance
payment of child tax credit.--
``(A) Joint filers.--In the case of an individual
to whom the Secretary makes payments under section
7527A, if the reference taxable year (as defined in
section 7527A(b)(2)(A)) that the Secretary uses to
calculate such payments is a year for which the
individual filed an income tax return jointly with
another individual, the Secretary may disclose to such
individual any information which is relevant in
determining the payment under section 7527A and the
individual's eligibility for such payment, including
information regarding any of the following:
``(i) The number of qualifying children,
including a child born during the taxable year.
``(ii) The name and TIN of qualifying
children.
``(iii) Marital status.
``(iv) Modified adjusted gross income.
``(v) Principal place of abode.
``(vi) Any other factor which the Secretary
may provide pursuant to section 7527A(c).
``(B) Competing claimants.--In the case of an
individual who has a competing claim of presumptive
eligibility with respect to a qualifying child under
section 7527A(i)(4)(A), the Secretary may disclose to
such individual return information provided by another
individual who has a competing claim of presumptive
eligibility with respect to the same qualifying child
in the course of the Secretary's adjudication of that
competing claim, as well as any other information
considered by the Secretary with respect to that
competing claim. Such information shall be limited to
the items specified in subparagraph (A) and the
following:
``(i) Information received under any
agreements or coordination the Secretary
entered into with--
``(I) any State, local government,
Tribal government, or possession of the
United States, or
``(II) any other individual or
entity that the Secretary determines to
be appropriate for purposes of
adjudicating a competing claim.
``(ii) Information considered by the
Secretary about where and with whom the child
resided.
``(iii) Information considered by the
Secretary about expenditures made by the
claimants to the extent such payments relate to
the competing claim.''.
(m) Additional Conforming Amendments.--
(1) Section 6211(b)(4)(A) of such Code is amended by
striking ``subsections (d) and (i)(1)'' and inserting
``subsection (d)''.
(2) Section 6428(g)(3)(A) of such Code is amended by
striking ``24(h)(7)'' and inserting ``24(h)(3)''.
(3) Section 6428A(g)(4) of such Code is amended by striking
``24(h)(7)'' and inserting ``24(h)(3)''.
(n) Effective Dates.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2023.
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