Coronavirus Assistance for American Families Act

I 117TH CONGRESS 1ST SESSION H. R. 795 To amend the Internal Revenue Code of 1986 to provide supplementary 2021 recovery rebates to eligible individuals. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 4, 2021 Ms. BLUNT ROCHESTER (for herself and Mr. MCKINLEY) 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 provide supplementary 2021 recovery rebates to eligible individuals. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Coronavirus Assistance 4 for American Families Act’’. 5 SEC. 2. SUPPLEMENTARY 2021 RECOVERY REBATES FOR IN- 6 DIVIDUALS. 7 (a) IN GENERAL.—Subchapter B of chapter 65 of 8 subtitle F of the Internal Revenue Code of 1986 is amend- 9 VerDate Sep 11 2014 17:32 Feb 24, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H795.IH H795 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 795 IH ed by inserting after section 6428A the following new sec- 1 tion: 2 ‘‘SEC. 6428B. SUPPLEMENTARY 2021 RECOVERY REBATES 3 FOR INDIVIDUALS. 4 ‘‘(a) IN GENERAL.—In addition to the credit allowed 5 under section 6428A, in the case of an eligible individual, 6 there shall be allowed as a credit against the tax imposed 7 by subtitle A for the first taxable year beginning in 2021 8 an amount equal to the sum of— 9 ‘‘(1) $1,400 ($2,800 in the case of eligible indi- 10 viduals filing a joint return), plus 11 ‘‘(2) an amount equal to the product of $1,400 12 multiplied by the number of dependents (as defined 13 in section 152(a)) of the taxpayer. 14 ‘‘(b) TREATMENT OF CREDIT.—The credit allowed by 15 subsection (a) shall be treated as allowed by subpart C 16 of part IV of subchapter A of chapter 1. 17 ‘‘(c) LIMITATION BASED ON ADJUSTED GROSS IN- 18 COME.—The amount of the credit allowed by subsection 19 (a) (determined without regard to this subsection and sub- 20 section (e)) shall be reduced (but not below zero) by 5 21 percent of so much of the taxpayer’s adjusted gross in- 22 come as exceeds— 23 ‘‘(1) $150,000 in the case of a joint return, 24 VerDate Sep 11 2014 17:32 Feb 24, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H795.IH H795 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 795 IH ‘‘(2) $112,500 in the case of a head of house- 1 hold, and 2 ‘‘(3) $75,000 in the case of a taxpayer not de- 3 scribed in paragraph (1) or (2). 4 ‘‘(d) ELIGIBLE INDIVIDUAL.—For purposes of this 5 section, the term ‘eligible individual’ means any individual 6 other than— 7 ‘‘(1) any nonresident alien individual, 8 ‘‘(2) any individual with respect to whom a de- 9 duction under section 151 is allowable to another 10 taxpayer for a taxable year beginning in the cal- 11 endar year in which the individual’s taxable year be- 12 gins, and 13 ‘‘(3) an estate or trust. 14 ‘‘(e) COORDINATION WITH ADVANCE REFUNDS OF 15 CREDIT.— 16 ‘‘(1) IN GENERAL.—The amount of credit 17 which would (but for this paragraph) be allowable 18 under this section shall be reduced (but not below 19 zero) by the aggregate refunds and credits made or 20 allowed to the taxpayer under subsection (f). Any 21 failure to so reduce the credit shall be treated as 22 arising out of a mathematical or clerical error and 23 assessed according to section 6213(b)(1). 24 VerDate Sep 11 2014 17:32 Feb 24, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H795.IH H795 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 795 IH ‘‘(2) JOINT RETURNS.—In the case of a refund 1 or credit made or allowed under subsection (f) with 2 respect to a joint return, half of such refund or cred- 3 it shall be treated as having been made or allowed 4 to each individual filing such return. 5 ‘‘(f) ADVANCE REFUNDS AND CREDITS.— 6 ‘‘(1) IN GENERAL.—Subject to paragraph (5), 7 each individual who was an eligible individual for 8 such individual’s first taxable year beginning in 9 2020 shall be treated as having made a payment 10 against the tax imposed by chapter 1 for such tax- 11 able year in an amount equal to the advance refund 12 amount for such taxable year. 13 ‘‘(2) ADVANCE REFUND AMOUNT.—For pur- 14 poses of paragraph (1), the advance refund amount 15 is the amount that would have been allowed as a 16 credit under this section for such taxable year if this 17 section (other than subsection (e) and this sub- 18 section) had applied to such taxable year. 19 ‘‘(3) TIMING AND MANNER OF PAYMENTS.— 20 ‘‘(A) TIMING.—The Secretary shall, sub- 21 ject to the provisions of this title, refund or 22 credit any overpayment attributable to this sec- 23 tion as rapidly as possible. No refund or credit 24 VerDate Sep 11 2014 17:32 Feb 24, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H795.IH H795 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 795 IH shall be made or allowed under this subsection 1 after April 15, 2022. 2 ‘‘(B) DELIVERY OF PAYMENTS.—Notwith- 3 standing any other provision of law, the Sec- 4 retary may certify and disburse refunds payable 5 under this subsection electronically to any ac- 6 count to which the payee authorized, on or after 7 January 1, 2018, the delivery of a refund of 8 taxes under this title or of a Federal payment 9 (as defined in section 3332 of title 31, United 10 States Code). 11 ‘‘(C) WAIVER OF CERTAIN RULES.—Not- 12 withstanding section 3325 of title 31, United 13 States Code, or any other provision of law, with 14 respect to any payment of a refund under this 15 subsection, a disbursing official in the executive 16 branch of the United States Government may 17 modify payment information received from an 18 officer or employee described in section 19 3325(a)(1)(B) of such title for the purpose of 20 facilitating the accurate and efficient delivery of 21 such payment. Except in cases of fraud or reck- 22 less neglect, no liability under sections 3325, 23 3527, 3528, or 3529 of title 31, United States 24 VerDate Sep 11 2014 17:32 Feb 24, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H795.IH H795 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 795 IH Code, shall be imposed with respect to pay- 1 ments made under this subparagraph. 2 ‘‘(4) NO INTEREST.—No interest shall be al- 3 lowed on any overpayment attributable to this sec- 4 tion. 5 ‘‘(5) ALTERNATE TAXABLE YEAR.—In the case 6 of an individual who, at the time of any determina- 7 tion made pursuant to paragraph (3), has not filed 8 a tax return for the year described in paragraph (1), 9 the Secretary may— 10 ‘‘(A) apply such paragraph by substituting 11 ‘2019’ for ‘2020’, and 12 ‘‘(B) if the individual has not filed a tax 13 return for such individual’s first taxable year 14 beginning in 2018, use information with respect 15 to such individual for calendar year 2019 pro- 16 vided in— 17 ‘‘(i) Form SSA–1099, Social Security 18 Benefit Statement, or 19 ‘‘(ii) Form RRB–1099, Social Secu- 20 rity Equivalent Benefit Statement. 21 ‘‘(6) NOTICE TO TAXPAYER.—Not later than 15 22 days after the date on which the Secretary distrib- 23 uted any payment to an eligible taxpayer pursuant 24 to this subsection, notice shall be sent by mail to 25 VerDate Sep 11 2014 17:32 Feb 24, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H795.IH H795 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 795 IH such taxpayer’s last known address. Such notice 1 shall indicate the method by which such payment 2 was made, the amount of such payment, and a 3 phone number for the appropriate point of contact 4 at the Internal Revenue Service to report any failure 5 to receive such payment. 6 ‘‘(g) IDENTIFICATION NUMBER REQUIREMENT.— 7 ‘‘(1) IN GENERAL.—In the case of any taxpayer 8 who does not include the valid identification number 9 of such taxpayer on the return of tax for the taxable 10 year, subsection (a)(1) shall be applied by sub- 11 stituting ‘$0’ for ‘$1,400’. 12 ‘‘(2) JOINT RETURNS.—In the case of a joint 13 return— 14 ‘‘(A) if the valid identification number of 15 only 1 spouse is included on the return of tax 16 for the taxable year— 17 ‘‘(i) subsection (a)(1) shall be applied 18 by substituting ‘$1,400’ for ‘$2,800’, and 19 ‘‘(ii) subsection (c)(1) shall be applied 20 by substituting ‘$75,000’ for ‘$150,000’, 21 or 22 ‘‘(B) if the valid identification number of 23 neither spouse is included on the return of tax 24 VerDate Sep 11 2014 17:32 Feb 24, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H795.IH H795 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 795 IH for the taxable year, subsection (a)(1) shall be 1 applied by substituting ‘$0’ for ‘$2,800’. 2 ‘‘(3) DEPENDENT.—A dependent of a taxpayer 3 shall not be taken into account under subsection 4 (a)(2) unless— 5 ‘‘(A) the taxpayer includes the valid identi- 6 fication number of such taxpayer (or, in the 7 case of a joint return, the valid identification 8 number of at least 1 spouse) on the return of 9 tax for the taxable year, and 10 ‘‘(B) the valid identification number of 11 such dependent is included on the return of tax 12 for the taxable year. 13 ‘‘(4) VALID IDENTIFICATION NUMBER.— 14 ‘‘(A) IN GENERAL.—For purposes of this 15 subsection, the term ‘valid identification num- 16 ber’ means a social security number (as such 17 term is defined in section 24(h)(7)). 18 ‘‘(B) ADOPTION TAXPAYER IDENTIFICA- 19 TION NUMBER.—For purposes of paragraph 20 (3)(B), in the case of a dependent who is adopt- 21 ed or placed for adoption, the term ‘valid identi- 22 fication number’ shall include the adoption tax- 23 payer identification number of such dependent. 24 VerDate Sep 11 2014 17:32 Feb 24, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H795.IH H795 pamtmann on DSKBC07HB2PROD with BILLS 9 •HR 795 IH ‘‘(5) SPECIAL RULE FOR MEMBERS OF THE 1 ARMED FORCES.—Paragraph (2) shall not apply in 2 the case where at least 1 spouse was a member of 3 the Armed Forces of the United States at any time 4 during the taxable year and the valid identification 5 number of at least 1 spouse is included on the re- 6 turn of tax for the taxable year. 7 ‘‘(6) MATHEMATICAL OR CLERICAL ERROR AU- 8 THORITY.—Any omission of a correct valid identi- 9 fication number required under this subsection shall 10 be treated as a mathematical or clerical error for 11 purposes of applying section 6213(g)(2) to such 12 omission. 13 ‘‘(h) REGULATIONS.—The Secretary shall prescribe 14 such regulations or other guidance as may be necessary 15 to carry out the purposes of this section, including any 16 such measures as are deemed appropriate to avoid allow- 17 ing multiple credits or rebates to a taxpayer.’’. 18 (b) DEFINITION OF DEFICIENCY.—Section 19 6211(b)(4)(A) of the Internal Revenue Code of 1986 is 20 amended by striking ‘‘6428, and 6428A’’ and inserting 21 ‘‘6428, 6428A, and 6428B’’. 22 (c) TREATMENT OF POSSESSIONS.—Rules similar to 23 the rules of subsection (c) of section 2201 of the CARES 24 VerDate Sep 11 2014 17:32 Feb 24, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H795.IH H795 pamtmann on DSKBC07HB2PROD with BILLS 10 •HR 795 IH Act (Public Law 116–136) shall apply for purposes of this 1 section. 2 (d) EXCEPTION FROM REDUCTION OR OFFSET.— 3 Any credit or refund allowed or made to any individual 4 by reason of section 6428B of the Internal Revenue Code 5 of 1986 (as added by this section) or by reason of sub- 6 section (c) of this section shall not be— 7 (1) subject to reduction or offset pursuant to 8 section 3716 or 3720A of title 31, United States 9 Code, 10 (2) subject to reduction or offset pursuant to 11 subsection (d), (e), or (f) of section 6402 of the In- 12 ternal Revenue Code of 1986, or 13 (3) reduced or offset by other assessed Federal 14 taxes that would otherwise be subject to levy or col- 15 lection. 16 (e) PUBLIC AWARENESS CAMPAIGN.—The Secretary 17 of the Treasury (or the Secretary’s delegate) shall conduct 18 a public awareness campaign, in coordination with the 19 Commissioner of Social Security and the heads of other 20 relevant Federal agencies, to provide information regard- 21 ing the availability of the credit and rebate allowed under 22 section 6428B of the Internal Revenue Code of 1986 (as 23 added by this section), including information with respect 24 VerDate Sep 11 2014 17:32 Feb 24, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H795.IH H795 pamtmann on DSKBC07HB2PROD with BILLS 11 •HR 795 IH to individuals who may not have filed a tax return for tax- 1 able year 2019 or 2020. 2 (f) CONFORMING AMENDMENTS.— 3 (1) Paragraph (2) of section 1324(b) of title 4 31, United States Code, is amended by inserting 5 ‘‘6428B,’’ after ‘‘6428A,’’. 6 (2) The table of sections for subchapter B of 7 chapter 65 of subtitle F of the Internal Revenue 8 Code of 1986 is amended by inserting after the item 9 relating to section 6428A the following: 10 ‘‘Sec. 6428B. Supplementary 2021 Recovery Rebates for individuals.’’. Æ VerDate Sep 11 2014 17:32 Feb 24, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6301 E:\BILLS\H795.IH H795 pamtmann on DSKBC07HB2PROD with BILLS