Monthly Economic Crisis Support Act

II 116TH CONGRESS 2D SESSION S. 3784 To amend the Internal Revenue Code of 1986 to provide monthly rebates to every individual residing in the United States during the COVID- 19 pandemic. IN THE SENATE OF THE UNITED STATES MAY 20, 2020 Ms. HARRIS (for herself, Mr. SANDERS, Mr. MARKEY, and Mrs. GILLIBRAND) 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 provide monthly rebates to every individual residing in the United States during the COVID-19 pandemic. 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 ‘‘Monthly Economic Cri- 4 sis Support Act’’. 5 VerDate Sep 11 2014 23:16 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3784.IS S3784 kjohnson on DSK79L0C42PROD with BILLS 2 •S 3784 IS SEC. 2. MONTHLY REBATES TO INDIVIDUALS DURING CO- 1 RONAVIRUS PANDEMIC. 2 (a) IN GENERAL.—Subchapter B of chapter 65 of the 3 Internal Revenue Code of 1986 is amended by inserting 4 after section 6428 the following new section: 5 ‘‘SEC. 6428A. MONTHLY REBATES TO INDIVIDUALS DURING 6 CORONAVIRUS PANDEMIC. 7 ‘‘(a) IN GENERAL.— 8 ‘‘(1) DETERMINATION OF REBATE AMOUNT.— 9 ‘‘(A) IN GENERAL.—On each applicable 10 date, an eligible individual shall be treated as 11 having made a payment against the tax im- 12 posed by chapter 1 for the applicable taxable 13 year in an amount equal to the sum of— 14 ‘‘(i) $2,000 ($4,000 in the case of eli- 15 gible individuals filing a joint return), plus 16 ‘‘(ii) an amount equal to the product 17 of $2,000 multiplied by the number of de- 18 pendents (as defined in section 152) of the 19 taxpayer. 20 ‘‘(B) LIMITATION WITH RESPECT TO DE- 21 PENDENTS.—The number of dependents of the 22 taxpayer which may be taken into account for 23 purposes of subparagraph (A)(ii) shall not ex- 24 ceed 3. 25 VerDate Sep 11 2014 23:16 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3784.IS S3784 kjohnson on DSK79L0C42PROD with BILLS 3 •S 3784 IS ‘‘(2) LIMITATION BASED ON ADJUSTED GROSS 1 INCOME.—The amount determined under paragraph 2 (1)(A) (determined without regard to this para- 3 graph) shall be reduced (but not below zero) by 10 4 percent of so much of the taxpayer’s adjusted gross 5 income as exceeds— 6 ‘‘(A) $200,000 in the case of a joint re- 7 turn, 8 ‘‘(B) $150,000 in the case of a head of 9 household, and 10 ‘‘(C) $100,000 in the case of a taxpayer 11 not described in subparagraph (A) or (B). 12 ‘‘(b) APPLICABLE DATE.—For purposes of this sec- 13 tion, the term ‘applicable date’ means the first day of any 14 month during the period— 15 ‘‘(1) beginning March 2020, and 16 ‘‘(2) ending on the third month beginning after 17 the date on which the Secretary of Health and 18 Human Services determines that the public health 19 emergency declared by such Secretary under section 20 319 of the Public Health Service Act (42 U.S.C. 21 247d) on January 31, 2020, with respect to COVID- 22 19, has ended. 23 ‘‘(c) OTHER DEFINITIONS.—For purposes of this 24 section— 25 VerDate Sep 11 2014 23:16 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3784.IS S3784 kjohnson on DSK79L0C42PROD with BILLS 4 •S 3784 IS ‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 1 individual’ means any individual other than— 2 ‘‘(A) any nonresident alien individual, 3 ‘‘(B) any individual with respect to whom 4 a deduction under section 151 is allowable to 5 another taxpayer for an applicable taxable year 6 beginning in the calendar year in which the in- 7 dividual’s taxable year begins, and 8 ‘‘(C) an estate or trust. 9 ‘‘(2) APPLICABLE TAXABLE YEAR.—The term 10 ‘applicable taxable year’ means the taxable year end- 11 ing in the calendar year preceding the date on which 12 the payment under subsection (a) is treated as 13 made. 14 ‘‘(d) OTHER RULES.— 15 ‘‘(1) TIMING AND MANNER OF PAYMENTS.— 16 ‘‘(A) TIMING.—The Secretary shall, sub- 17 ject to the provisions of this title, refund or 18 credit any overpayment attributable to this sec- 19 tion as rapidly as possible. 20 ‘‘(B) ALTERNATE INFORMATION.— 21 ‘‘(i) IN GENERAL.—For purposes of 22 disbursing refunds payable under this sub- 23 section to any eligible individual, if such 24 individual has not, as of any applicable 25 VerDate Sep 11 2014 23:16 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3784.IS S3784 kjohnson on DSK79L0C42PROD with BILLS 5 •S 3784 IS date, filed a tax return for the applicable 1 taxable year, the Secretary shall— 2 ‘‘(I) use return information with 3 respect to such individual for the tax- 4 able year preceding such applicable 5 taxable year, or 6 ‘‘(II) in the case of an individual 7 who has not filed a tax return for the 8 applicable year or the taxable year de- 9 scribed in subclause (I), use any ap- 10 plicable information provided by any 11 relevant Federal and State agencies. 12 ‘‘(ii) COORDINATION AND NOTIFICA- 13 TION.— 14 ‘‘(I) IN GENERAL.—For purposes 15 of clause (i)(II), the Secretary shall— 16 ‘‘(aa) coordinate with the 17 heads of relevant Federal and 18 State agencies to receive applica- 19 ble information with respect to 20 any individuals who may be eligi- 21 ble to receive a refund payment 22 pursuant to this section, and 23 ‘‘(bb) establish, in such form 24 and manner as is deemed appro- 25 VerDate Sep 11 2014 23:16 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3784.IS S3784 kjohnson on DSK79L0C42PROD with BILLS 6 •S 3784 IS priate by the Secretary, an alter- 1 native method of reporting infor- 2 mation necessary to determine 3 the amount of any refund pay- 4 ments for which such individuals 5 may be eligible, including meth- 6 ods specifically designed to iden- 7 tify and account for foster youth 8 and individuals experiencing 9 homelessness. 10 ‘‘(C) DELIVERY OF PAYMENTS.—Notwith- 11 standing any other provision of law, the Sec- 12 retary may certify and disburse refunds payable 13 under this subsection— 14 ‘‘(i) electronically to any account to 15 which the payee authorized, on or after 16 January 1, 2018, the delivery of a refund 17 of taxes under this title or of a Federal 18 payment (as defined in section 3332 of 19 title 31, United States Code), or 20 ‘‘(ii) through such other means as are 21 determined appropriate by the Secretary, 22 including through the use of stored value 23 cards and online payment systems. 24 VerDate Sep 11 2014 23:16 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3784.IS S3784 kjohnson on DSK79L0C42PROD with BILLS 7 •S 3784 IS ‘‘(D) WAIVER OF CERTAIN RULES.—Not- 1 withstanding section 3325 of title 31, United 2 States Code, or any other provision of law, with 3 respect to any payment of a refund under this 4 subsection, a disbursing official in the executive 5 branch of the United States Government may 6 modify payment information received from an 7 officer or employee described in section 8 3325(a)(1)(B) of such title for the purpose of 9 facilitating the accurate and efficient delivery of 10 such payment. Except in cases of fraud or reck- 11 less neglect, no liability under sections 3325, 12 3527, 3528, or 3529 of title 31, United States 13 Code, shall be imposed with respect to pay- 14 ments made under this subparagraph. 15 ‘‘(2) REDUCTION OF INITIAL PAYMENT.—With 16 respect to the initial payment of a refund to a tax- 17 payer which is made under this subsection, such 18 payment shall be reduced (but not below zero) by 19 the amount of any refund or credit made or allowed 20 to such taxpayer pursuant to subsection (f) of sec- 21 tion 6428. 22 ‘‘(3) NO INTEREST.—No interest shall be al- 23 lowed on any overpayment attributable to a payment 24 deemed made under this section. 25 VerDate Sep 11 2014 23:16 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3784.IS S3784 kjohnson on DSK79L0C42PROD with BILLS 8 •S 3784 IS ‘‘(4) NOTICE TO TAXPAYER.—Not later than 15 1 days after the date on which the Secretary distrib- 2 uted any payment to a taxpayer pursuant to this 3 section, notice shall be sent by mail to such tax- 4 payer’s last known address. Such notice shall indi- 5 cate the method by which such payment was made, 6 the amount of such payment, and a phone number 7 for the appropriate point of contact at the Internal 8 Revenue Service to report any failure to receive such 9 payment. 10 ‘‘(e) REGULATIONS.—The Secretary shall prescribe 11 such regulations or other guidance as may be necessary 12 to carry out the purposes of this section, including any 13 such measures as are deemed appropriate to avoid allow- 14 ing multiple payments to a taxpayer.’’. 15 (b) ADDITIONAL RULES.— 16 (1) TREATMENT OF POSSESSIONS.—Rules simi- 17 lar to the rules of subsection (c) of section 2201 of 18 the CARES Act (Public Law 116–136) shall apply 19 for purposes of section 6428A of such Code (as 20 added by subsection (a)). 21 (2) EXCEPTION FROM REDUCTION OR OFF- 22 SET.—Any credit or refund allowed or made to any 23 individual by reason of section 6428A of the Internal 24 Revenue Code of 1986 (as added by subsection (a)) 25 VerDate Sep 11 2014 23:16 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S3784.IS S3784 kjohnson on DSK79L0C42PROD with BILLS 9 •S 3784 IS or by reason of paragraph (1) of this subsection 1 shall not be— 2 (A) subject to reduction or offset pursuant 3 to section 3716 or 3720A of title 31, United 4 States Code; 5 (B) subject to reduction or offset pursuant 6 to subsection (c), (d), (e), or (f) of section 6402 7 of the Internal Revenue Code of 1986; or 8 (C) reduced or offset by other assessed 9 Federal taxes that would otherwise be subject 10 to levy or collection. 11 (3) PUBLIC AWARENESS CAMPAIGN.—Rules 12 similar to the rules of subsection (e) of section 2201 13 of the CARES Act shall apply for purposes of sec- 14 tion 6428A of such Code (as added by subsection 15 (a)). 16 (4) PROHIBITION ON GARNISHMENT.— 17 (A) DEFINITIONS.—In this paragraph, the 18 terms ‘‘financial institution’’, ‘‘freeze’’, ‘‘gar- 19 nish’’, and ‘‘garnishment order’’ have the mean- 20 ings given the terms in section 212.3 of title 21 31, Code of Federal Regulations, as in effect on 22 the date of enactment of this Act. 23 (B) PROHIBITION.—No financial institu- 24 tion may garnish or freeze any portion of a re- 25 VerDate Sep 11 2014 23:16 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3784.IS S3784 kjohnson on DSK79L0C42PROD with BILLS 10 •S 3784 IS fund made to any debtor by reason of section 1 6428A of the Internal Revenue Code of 1986 2 (as added by subsection (a)) or by reason of 3 paragraph (1) pursuant to a garnishment order. 4 (c) APPROPRIATIONS TO CARRY OUT REBATES.— 5 Immediately upon the enactment of this Act, out of any 6 money in the Treasury not otherwise appropriated, there 7 shall be appropriated $250,000,000 to the Department of 8 the Treasury to carry out the purposes of this section and 9 section 6428A of the Internal Revenue Code of 1986, to 10 remain available until expended. 11 (d) WAIVER OF FEES BY INSURED DEPOSITORY IN- 12 STITUTIONS.—No insured depository institution, as de- 13 fined in section 3 of the Federal Deposit Insurance Act 14 (12 U.S.C. 1813), may impose a fee on a person for cash- 15 ing any check for a refund payable under section 6428A 16 of the Internal Revenue Code of 1986 (as added by sub- 17 section (a)) or subsection (b)(1). 18 (e) CONFORMING AMENDMENTS.— 19 (1) Section 6211(b)(4)(A) of the Internal Rev- 20 enue Code of 1986 is amended by striking ‘‘and 21 6428’’ and inserting ‘‘6428, and 6428A’’. 22 (2) Paragraph (2) of section 1324(b) of title 23 31, United States Code, is amended by inserting 24 ‘‘6428A,’’ after ‘‘6428,’’. 25 VerDate Sep 11 2014 23:16 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S3784.IS S3784 kjohnson on DSK79L0C42PROD with BILLS 11 •S 3784 IS (3) The table of sections for subchapter B of 1 chapter 65 of subtitle F of the Internal Revenue 2 Code of 1986 is amended by inserting after the item 3 relating to section 6428 the following: 4 ‘‘Sec. 6428A. Monthly rebates to individuals during coronavirus pandemic.’’. Æ VerDate Sep 11 2014 23:16 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6301 E:\BILLS\S3784.IS S3784 kjohnson on DSK79L0C42PROD with BILLS