A bill to amend the Internal Revenue Code of 1986 to improve the process for providing refunds to taxpayers.

Key Points

• This bill helps people who are struggling with money keep their tax refunds. Right now, if someone owes the government money, the IRS can take their tax refund to pay off those old debts. This bill would stop that for people who are officially labeled as unable to pay their bills.
• The change specifically protects the Earned Income Tax Credit. This is a tax break for workers with low to moderate incomes. Under this plan, the IRS would have to send that credit money directly to the taxpayer instead of using it to cover past debts.
• To qualify, a person must be classified by the IRS as currently not collectible. This means the IRS has already looked at their finances and decided that paying their tax debt would make it impossible for them to cover basic living costs like food and rent.
• The goal is to make sure that the poorest families get the cash they need to survive. By making this process automatic, the bill removes the need for people to jump through extra hoops to get their money during a financial crisis.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.