Emergency Direct Payments for Families and Workers Act of 2020

II 116TH CONGRESS 2D SESSION S. 4999 To amend the Internal Revenue Code of 1986 to provide additional recovery rebates to individuals. IN THE SENATE OF THE UNITED STATES DECEMBER 10, 2020 Mr. HAWLEY 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 additional recovery rebates to 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 ‘‘Emergency Direct Pay- 4 ments for Families and Workers Act of 2020’’. 5 SEC. 2. ADDITIONAL RECOVERY REBATES FOR INDIVID- 6 UALS. 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 18:13 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4999.IS S4999 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 4999 IS ed by inserting after section 6428 the following new sec- 1 tion: 2 ‘‘SEC. 6428A. ADDITIONAL RECOVERY REBATES FOR INDI- 3 VIDUALS. 4 ‘‘(a) IN GENERAL.—In the case of an eligible indi- 5 vidual, there shall be allowed as a credit against the tax 6 imposed by subtitle A for the first taxable year beginning 7 in 2020 an amount equal to the sum of— 8 ‘‘(1) $1,200 ($2,400 in the case of eligible indi- 9 viduals filing a joint return), plus 10 ‘‘(2) an amount equal to the product of $500 11 multiplied by the number of qualifying children 12 (within the meaning of section 24(c)) of the tax- 13 payer. 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 18:13 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4999.IS S4999 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 4999 IS ‘‘(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 18:13 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4999.IS S4999 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 4999 IS ‘‘(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 2019 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 18:13 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4999.IS S4999 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 4999 IS shall be made or allowed under this subsection 1 after December 31, 2021. 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 18:13 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4999.IS S4999 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 4999 IS 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 ‘2018’ for ‘2019’, 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 18:13 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4999.IS S4999 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 4999 IS 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.—No credit shall be allowed 8 under subsection (a) to an eligible individual who 9 does not include on the return of tax for the taxable 10 year— 11 ‘‘(A) such individual’s valid identification 12 number, 13 ‘‘(B) in the case of a joint return, the valid 14 identification number of such individual’s 15 spouse, and 16 ‘‘(C) in the case of any qualifying child 17 taken into account under subsection (a)(2), the 18 valid identification number of such qualifying 19 child. 20 ‘‘(2) VALID IDENTIFICATION NUMBER.— 21 ‘‘(A) IN GENERAL.—For purposes of para- 22 graph (1), the term ‘valid identification num- 23 ber’ means a social security number (as such 24 term is defined in section 24(h)(7)). 25 VerDate Sep 11 2014 18:13 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4999.IS S4999 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 4999 IS ‘‘(B) ADOPTION TAXPAYER IDENTIFICA- 1 TION NUMBER.—For purposes of paragraph 2 (1)(C), in the case of a qualifying child who is 3 adopted or placed for adoption, the term ‘valid 4 identification number’ shall include the adop- 5 tion taxpayer identification number of such 6 child. 7 ‘‘(3) SPECIAL RULE FOR MEMBERS OF THE 8 ARMED FORCES.—Paragraph (1)(B) shall not apply 9 in the case where at least 1 spouse was a member 10 of the Armed Forces of the United States at any 11 time during the taxable year and at least 1 spouse 12 satisfies paragraph (1)(A). 13 ‘‘(4) MATHEMATICAL OR CLERICAL ERROR AU- 14 THORITY.—Any omission of a correct valid identi- 15 fication number required under this subsection shall 16 be treated as a mathematical or clerical error for 17 purposes of applying section 6213(g)(2) to such 18 omission. 19 ‘‘(h) REGULATIONS.—The Secretary shall prescribe 20 such regulations or other guidance as may be necessary 21 to carry out the purposes of this section, including any 22 such measures as are deemed appropriate to avoid allow- 23 ing multiple credits or rebates to a taxpayer.’’. 24 (b) ADMINISTRATIVE AMENDMENTS.— 25 VerDate Sep 11 2014 18:13 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S4999.IS S4999 pamtmann on DSKBC07HB2PROD with BILLS 9 •S 4999 IS (1) DEFINITION OF DEFICIENCY.—Section 1 6211(b)(4)(A) of the Internal Revenue Code of 1986 2 is amended by striking ‘‘and 6428’’ and inserting 3 ‘‘6428, and 6428A’’. 4 (2) MATHEMATICAL OR CLERICAL ERROR AU- 5 THORITY.—Section 6213(g)(2)(L) of such Code is 6 amended by striking ‘‘or 6428’’ and inserting ‘‘6428, 7 or 6428A’’. 8 (c) TREATMENT OF POSSESSIONS.— 9 (1) PAYMENTS TO POSSESSIONS.— 10 (A) MIRROR CODE POSSESSION.—The Sec- 11 retary of the Treasury shall pay to each posses- 12 sion of the United States which has a mirror 13 code tax system amounts equal to the loss (if 14 any) to that possession by reason of the amend- 15 ments made by this section. Such amounts shall 16 be determined by the Secretary of the Treasury 17 based on information provided by the govern- 18 ment of the respective possession. 19 (B) OTHER POSSESSIONS.—The Secretary 20 of the Treasury shall pay to each possession of 21 the United States which does not have a mirror 22 code tax system amounts estimated by the Sec- 23 retary of the Treasury as being equal to the ag- 24 gregate benefits (if any) that would have been 25 VerDate Sep 11 2014 18:13 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4999.IS S4999 pamtmann on DSKBC07HB2PROD with BILLS 10 •S 4999 IS provided to residents of such possession by rea- 1 son of the amendments made by this section if 2 a mirror code tax system had been in effect in 3 such possession. The preceding sentence shall 4 not apply unless the respective possession has a 5 plan, which has been approved by the Secretary 6 of the Treasury, under which such possession 7 will promptly distribute such payments to its 8 residents. 9 (2) COORDINATION WITH CREDIT ALLOWED 10 AGAINST UNITED STATES INCOME TAXES.—No cred- 11 it shall be allowed against United States income 12 taxes under section 6428A of the Internal Revenue 13 Code of 1986 (as added by this section) to any per- 14 son— 15 (A) to whom a credit is allowed against 16 taxes imposed by the possession by reason of 17 the amendments made by this section, or 18 (B) who is eligible for a payment under a 19 plan described in paragraph (1)(B). 20 (3) DEFINITIONS AND SPECIAL RULES.— 21 (A) POSSESSION OF THE UNITED 22 STATES.—For purposes of this subsection, the 23 term ‘‘possession of the United States’’ includes 24 the Commonwealth of Puerto Rico and the 25 VerDate Sep 11 2014 18:13 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S4999.IS S4999 pamtmann on DSKBC07HB2PROD with BILLS 11 •S 4999 IS Commonwealth of the Northern Mariana Is- 1 lands. 2 (B) MIRROR CODE TAX SYSTEM.—For pur- 3 poses of this subsection, the term ‘‘mirror code 4 tax system’’ means, with respect to any posses- 5 sion of the United States, the income tax sys- 6 tem of such possession if the income tax liabil- 7 ity of the residents of such possession under 8 such system is determined by reference to the 9 income tax laws of the United States as if such 10 possession were the United States. 11 (C) TREATMENT OF PAYMENTS.—For pur- 12 poses of section 1324 of title 31, United States 13 Code, the payments under this subsection shall 14 be treated in the same manner as a refund due 15 from a credit provision referred to in subsection 16 (b)(2) of such section. 17 (d) EXCEPTION FROM REDUCTION OR OFFSET.— 18 Any credit or refund allowed or made to any individual 19 by reason of section 6428A of the Internal Revenue Code 20 of 1986 (as added by this section) or by reason of sub- 21 section (c) of this section shall not be— 22 (1) subject to reduction or offset pursuant to 23 section 3716 or 3720A of title 31, United States 24 Code, 25 VerDate Sep 11 2014 18:13 Dec 16, 2020 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S4999.IS S4999 pamtmann on DSKBC07HB2PROD with BILLS 12 •S 4999 IS (2) subject to reduction or offset pursuant to 1 subsection (d), (e), or (f) of section 6402 of the In- 2 ternal Revenue Code of 1986, or 3 (3) reduced or offset by other assessed Federal 4 taxes that would otherwise be subject to levy or col- 5 lection. 6 (e) PUBLIC AWARENESS CAMPAIGN.—The Secretary 7 of the Treasury (or the Secretary’s delegate) shall conduct 8 a public awareness campaign, in coordination with the 9 Commissioner of Social Security and the heads of other 10 relevant Federal agencies, to provide information regard- 11 ing the availability of the credit and rebate allowed under 12 section 6428A of the Internal Revenue Code of 1986 (as 13 added by this section), including information with respect 14 to individuals who may not have filed a tax return for tax- 15 able year 2018 or 2019. 16 (f) CONFORMING AMENDMENTS.— 17 (1) Paragraph (2) of section 1324(b) of title 18 31, United States Code, is amended by inserting 19 ‘‘6428A,’’ after ‘‘6428,’’. 20 (2) The table of sections for subchapter B of 21 chapter 65 of subtitle F of the Internal Revenue 22 Code of 1986 is amended by inserting after the item [Text truncated for display. 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