I

104TH CONGRESS

2D SESSION H. R. 3529

To amend the Internal Revenue Code of 1986 to allow an individual who

is entitled to receive child support a refundable credit equal to the

amount of unpaid child support and to increase the tax liability of

the individual required to pay such support by the amount of the unpaid

child support.

IN THE HOUSE OF REPRESENTATIVES

MAY 23, 1996

Ms. LOFGREN 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 allow an

individual who is entitled to receive child support a refundable credit equal to the amount of unpaid child

support and to increase the tax liability of the individual

required to pay such support by the amount of the

unpaid child support.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Single Parent Protec5 tion Act of 1996’’.
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1 SEC. 2. TREATMENT OF UNPAID CHILD SUPPORT.

2 (a) IN GENERAL.—Subpart C of part IV of sub3 chapter A of chapter 1 of the Internal Revenue Code of

4 1986 (relating to refundable credits) is amended by redes5 ignating section 35 as section 36 and by inserting after

6 section 34 the following new section:

7 ‘‘SEC. 35. UNPAID CHILD SUPPORT.

8 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli9 gible individual, there shall be allowed as a credit against

10 the tax imposed by this subtitle for the taxable year an

11 amount equal to the unpaid child support of such individ12 ual for such year.

13 ‘‘(b) DEFINITIONS.—For purposes of this section—

14 ‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible

15 individual’ means any individual—

16 ‘‘(A) who is entitled to receive child sup17 port payments during the taxable year, and

18 ‘‘(B) who, as of the close of such taxable

19 year, has not received all of the child support

20 payments to which such individual is entitled

21 for such year.

22 ‘‘(2) UNPAID CHILD SUPPORT.—The term ‘un23 paid child support’ means, with respect to an indi24 vidual for any taxable year, the excess of—
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1 ‘‘(A) the aggregate child support payments

2 such individual is entitled to receive during

3 such year, over

4 ‘‘(B) the child support payments such indi5 vidual received during such year.

6 ‘‘(3) CHILD SUPPORT PAYMENT.—

7 ‘‘(A) IN GENERAL.—The term ‘child sup8 port payment’ means, with respect to any tax9 able year—

10 ‘‘(i) any periodic payment of a fixed

11 amount, or

12 ‘‘(ii) any payment of a medical or

13 educational expense, insurance premium,

14 or other similar item,

15 which is required to be paid to the taxpayer

16 during such taxable year by an individual under

17 a support instrument for the support of any

18 child of such individual.

19 ‘‘(B) COORDINATION WITH AFDC.—The

20 term ‘child support payment’ shall not include

21 any payment the right to which has been as22 signed to a State under section 402(a)(26) of

23 the Social Security Act.

24 ‘‘(c) TAXPAYER REQUIRED TO IDENTIFY INDIVID25 UAL REQUIRED TO PAY SUPPORT.—No credit shall be al-
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1 lowed under this section for a taxable year unless the tax2 payer includes on the return for such year the name and

3 TIN on each individual required to make support pay4 ments to the taxpayer during such taxable year.

5 ‘‘(d) INCREASE IN TAX OF INDIVIDUAL FAILING TO

6 MAKE REQUIRED SUPPORT PAYMENTS.—

7 ‘‘(1) IN GENERAL.—If credit is allowed under

8 this section for any taxable year with respect to un9 paid support payments, the tax imposed by this

10 chapter of the individual failing to make such pay11 ment (for such individual’s taxable year which be12 gins in the calendar year in which the taxable year

13 of the taxpayer begins) shall be increased by the

14 amount of such credit.

15 ‘‘(2) NO CREDITS AGAINST TAX, ETC.—Any in16 crease in tax under this subsection shall not be

17 treated as a tax imposed by this chapter for pur18 poses of determining—

19 ‘‘(A) the amount of any other credit under

20 this part, or

21 ‘‘(B) the minimum tax under section 55.’’

22 (b) CONFORMING AMENDMENTS.—

23 (1) Paragraph (2) of section 1324(b) of title

24 31, United States Code, is amended by inserting be25 fore the period ‘‘or from section 35 of such Code’’.
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1 (2) The table of sections for subpart C of part

2 IV of subchapter A of chapter 1 is amended by

3 striking the item relating to section 35 and inserting

4 the following new items:

‘‘Sec. 35. Unpaid child support.

‘‘Sec. 36. Overpayments of tax.’’

5 (c) EFFECTIVE DATE.—The amendments made by

6 this section shall apply to taxable years beginning after

7 December 31, 1995.

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