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[House Report 114-476]
[From the U.S. Government Publishing Office]

114th Congress }                                            { Report
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                            { 114-476

======================================================================
 
 FUNDABLE CHILD TAX CREDIT ELIGIBILITY VERIFICATION REFORM ACT OF 2016

                                _______
                                

 March 23, 2016.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Brady of Texas, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 4722]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 4722) to amend the Internal Revenue Code of 1986 to 
require inclusion of the taxpayer's social security number to 
claim the refundable portion of the child tax credit, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
  I.  SUMMARY AND BACKGROUND..........................................2
 II.  EXPLANATION OF THE BILL.........................................3
          A. Social Security Number Required To Claim The 
              Refundable Child Tax Credit (sec. 1 of the bill and 
              sec. 24 of the Code)...............................     3
III.  VOTES OF THE COMMITTEE..........................................4
 IV.  BUDGET EFFECTS OF THE BILL......................................5
  V.  OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE.....10
 VI.  CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED..........11
VII.  DISSENTING VIEWS...............................................28

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Refundable Child Tax Credit 
Eligibility Verification Reform Act of 2016''.

SEC. 2. SOCIAL SECURITY NUMBER REQUIRED TO CLAIM THE REFUNDABLE PORTION 
                    OF THE CHILD TAX CREDIT.

  (a) In General.--Section 24(d) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new paragraph:
          ``(6) Identification requirement.--
                  ``(A) In general.--Paragraph (1) shall not apply to 
                any taxpayer for any taxable year unless the taxpayer 
                includes the taxpayer's social security number on the 
                return of tax for such taxable year.
                  ``(B) Joint returns.--In the case of a joint return, 
                the requirement of subparagraph (A) shall be treated as 
                met if the social security number of either spouse is 
                included on such return.
                  ``(C) Social security number.--For purposes of this 
                paragraph, the term `social security number' means a 
                social security number issued to an individual by the 
                Social Security Administration (other than a social 
                security number issued pursuant to subclause (II) (or 
                that portion of subclause (III) that relates to 
                subclause (II)) of section 205(c)(2)(B)(i) of the 
                Social Security Act).''.
  (b) Omissions Treated as Mathematical or Clerical Error.--Section 
6213(g)(2)(I) of such Code is amended to read as follows:
                  ``(I) an omission of a correct social security number 
                required under section 24(d)(6) (relating to refundable 
                portion of child tax credit), or a correct TIN required 
                under section 24(e) (relating to child tax credit), to 
                be included on a return,''.
  (c) Effective Date.--The amendments made by this section shall apply 
to taxable years beginning after December 31, 2015.

                       I. SUMMARY AND BACKGROUND

                         A. Purpose and Summary

    H.R. 4722, as reported by the Committee on Ways and Means, 
adds a Social Security number requirement to the refundable 
portion of the child tax credit.

                 B. Background and Need for Legislation

    While the Committee continues actively to pursue 
comprehensive tax reform as a critical means of promoting 
economic growth and job creation, the Committee also believes 
that it is important to eliminate waste, fraud, and abuse in 
the tax code. By adding an SSN requirement to the refundable 
portion of the child tax credit, H.R. 4722 ensures that 
improper payments of the refundable child tax credit to those 
not authorized to work in the United States will be minimized.

                         C. Legislative History

Background

    H.R. 4722 was introduced on March 10, 2016, and was 
referred to the Committee on Ways and Means.

Committee action

    The Committee on Ways and Means marked up H.R. 4722, the 
``Refundable Child Tax Credit Eligibility Verification Reform 
Act of 2016,'' on March 16, 2016, and ordered the bill, as 
amended, favorably reported (with a quorum being present).

Committee hearings

    Improper child tax credit payments to those without SSNs 
were discussed at an Oversight Subcommittee Hearing on Improper 
Payments in the Administration of Refundable Tax Credits on May 
25, 2011.

                      II. EXPLANATION OF THE BILL

 A. Social Security Number Required To Claim the Refundable Child Tax 
          Credit (sec. 1 of the bill and sec. 24 of the Code)

                              PRESENT LAW

    An individual may claim a tax credit for each qualifying 
child under the age of 17.\1\ The maximum amount of the credit 
per child is $1,000. A child who is not a citizen, national, or 
resident of the United States cannot be a qualifying child. The 
child tax credit is allowable against both the regular tax and 
the alternative minimum tax.
---------------------------------------------------------------------------
    \1\Sec. 24. Unless otherwise specified, all section references are 
made to the Internal Revenue Code of 1986, as amended.
---------------------------------------------------------------------------
    To the extent that the child tax credit cannot offset the 
taxpayer's tax liability (because the taxpayer's tax liability 
has otherwise been reduced to zero), the taxpayer may be 
eligible for an additional credit which is refundable. The 
additional credit (also known as the refundable child tax 
credit) is an amount equal to the greater of (1) 15 percent of 
the taxpayer's earned income in excess of $3,000, or (2) in the 
case of a family with three or more children, the amount by 
which the taxpayer's social security taxes exceed the earned 
income tax credit.
    Any individual filing a U.S. tax return is required to 
state his or her taxpayer identification number on such return. 
Generally, a taxpayer identification number is the individual's 
Social Security number (``SSN'').\2\ However, in the case of 
individuals who are not eligible to be issued an SSN, but who 
still have a tax filing obligation, the IRS issues IRS 
individual taxpayer identification numbers (``ITIN'') for use 
in connection with the individual's tax filing requirements.\3\ 
An individual who is eligible to receive an SSN may not obtain 
an ITIN for purposes of his or her tax filing obligations.\4\ 
An ITIN does not provide eligibility to work in the United 
States or claim Social Security benefits.
---------------------------------------------------------------------------
    \2\Sec. 6109(a).
    \3\Treas. Reg. Sec. 301.6109-1(d)(3)(i).
    \4\Treas. Reg. Sec. 301.6109-1(d)(3)(ii).
---------------------------------------------------------------------------
    No child tax credit is allowed to any taxpayer with respect 
to any qualifying child unless the taxpayer includes the name 
and the taxpayer identification number of the qualifying child 
on the return of tax for the taxable year. For these purposes, 
a taxpayer identification number may be either an SSN, an ITIN, 
or an IRS adoption taxpayer identification number (``ATIN'').

                           REASONS FOR CHANGE

    Given that the refundable portion of the child tax credit 
requires earned income as a condition of eligibility, the 
Committee believes that additional steps should be taken to 
ensure that those who cannot legally earn income in the United 
States cannot collect the refundable portion of this credit. 
The Committee observes that, in 1996, Congress enacted 
legislation making those without SSNs ineligible to receive the 
earned income tax credit, a similar refundable tax credit. The 
Committee believes that in order to prevent abuse in the 
refundable portion of the child tax credit--such as that 
identified in the Tax Inspector General for Tax 
Administration's report\5\--the SSN requirement should be 
extended to the refundable portion of the child tax credit as 
well.
---------------------------------------------------------------------------
    \5\Treasury Inspector General For Tax Administration, Individuals 
Who Are Not Authorized To Work In The United States Were Paid $4.2 
Billion In Refundable Credits, July 7, 2011.
---------------------------------------------------------------------------

                        EXPLANATION OF PROVISION

    The provision adds a requirement for a taxpayer to report 
an SSN (in the case of a joint return, the SSN of at least one 
spouse) on the tax return in order to claim the additional 
child tax credit. Thus, under the provision, a taxpayer whose 
taxpayer identification number is an ITIN (in the case of 
married taxpayers, where both taxpayers' identification numbers 
are ITINs) cannot claim the refundable child tax credit.

                             EFFECTIVE DATE

    The provision is effective for taxable years beginning 
after December 31, 2015.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the vote of the Committee on Ways and Means in its 
consideration of H.R. 4722, the ``Refundable Child Tax Credit 
Eligibility Verification Reform Act of 2016'' on March 16, 
2016.

                       MOTION TO REPORT THE BILL

    The bill, H.R. 4722, was ordered favorably reported to the 
House of Representatives as amended by a roll call vote of 21 
yeas to 15 nays (with a quorum being present). The vote was as 
follows:

 
----------------------------------------------------------------------------------------------------------------
         Representative             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady......................        X   ........  .........  Mr. Levin........  ........        X   .........
Mr. Johnson....................        X   ........  .........  Mr. Rangel.......  ........        X   .........
Mr. Nunes......................  ........  ........  .........  Mr. McDermott....  ........        X   .........
Mr. Tiberi.....................        X   ........  .........  Mr. Lewis........  ........        X   .........
Mr. Reichert...................        X   ........  .........  Mr. Neal.........  ........        X   .........
Mr. Boustany...................        X   ........  .........  Mr. Becerra......  ........        X   .........
Mr. Roskam.....................        X   ........  .........  Mr. Doggett......  ........        X   .........
Mr. Price......................  ........  ........  .........  Mr. Thompson.....  ........        X   .........
Mr. Buchanan...................  ........  ........  .........  Mr. Larson.......  ........        X   .........
Mr. Smith (NE).................        X   ........  .........  Mr. Blumenauer...  ........        X   .........
Ms. Jenkins....................        X   ........  .........  Mr. Kind.........  ........        X   .........
Mr. Paulsen....................        X   ........  .........  Mr. Pascrell.....  ........        X   .........
Mr. Marchant...................        X   ........  .........  Mr. Crowley......  ........        X   .........
Ms. Black......................        X   ........  .........  Mr. Davis........  ........        X   .........
Mr. Reed.......................        X   ........  .........  Ms. Sanchez......  ........        X   .........
Mr. Young......................        X   ........  .........
Mr. Kelly......................        X   ........  .........
Mr. Renacci....................        X   ........  .........
Mr. Meehan.....................        X   ........  .........
Ms. Noem.......................        X   ........  .........
Mr. Holding....................        X   ........  .........
Mr. Smith (MO).................        X   ........  .........
Mr. Dold.......................        X   ........  .........
Mr. Rice.......................        X   ........  .........
----------------------------------------------------------------------------------------------------------------

                     IV. BUDGET EFFECTS OF THE BILL

               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the bill, H.R. 4722, as 
reported.
    The bill, as reported, is estimated to have the following 
effect on Federal fiscal year budget receipts for the period 
2016-2026:

                                                                      FISCAL YEARS
                                                                  [Billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                    Item                      2016   2017    2018    2019    2020    2021    2022    2023    2024    2025    2026    2016-20    2016-26
--------------------------------------------------------------------------------------------------------------------------------------------------------
Require SSN of either taxpayer for              --     2.5     2.3     2.1     2.0     2.0     1.9     1.8     1.8     1.7     1.7       10.9       19.9
 refundable child credit\1\................
--------------------------------------------------------------------------------------------------------------------------------------------------------
NOTE: Details may not add to totals due to rounding.
\1\Estimate contains the following outlay effects:

 
                                              2016   2017    2018    2019    2020    2021    2022    2023    2024    2025    2026    2016-20    2016-26
 
Require SSN of either taxpayer for              --    -2.5    -2.3    -2.1    -2.0    -2.0    -1.9    -1.8    -1.8    -1.7    -1.7      -10.9      -19.9
 refundable child credit...................
 

    Pursuant to clause 8 of rule XIII of the Rules of the House 
of Representatives, the following statement is made by the 
Joint Committee on Taxation with respect to the provisions of 
the bill amending the Internal Revenue Code of 1986: the gross 
budgetary effect (before incorporating macroeconomic effects) 
in any fiscal year is less than 0.25 percent of the current 
projected gross domestic product of the United States for that 
fiscal year; therefore, the bill is not ``major legislation'' 
for purposes of requiring that the estimate include the 
budgetary effects of changes in economic output, employment, 
capital stock and other macroeconomic variables.

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new or increased budget authority. The 
Committee further states that there are no new or increased tax 
expenditures.

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBO, the following statement by CBO is 
provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 22, 2016.
Hon. Kevin Brady,
Chairman, Committee on Ways and Means, House of Representatives, 
        Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4722, the 
Refundable Child Tax Credit Eligibility Verification Reform Act 
of 2016.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Peter 
Huether.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 4722--Refundable Child Tax Credit Eligibility Verification Reform 
        Act of 2016

    H.R. 4722 would amend the Internal Revenue Code to require 
taxpayers to provide their Social Security Number (SSN) to 
claim the refundable portion of the child tax credit. Under 
current law, taxpayers who have either an individual taxpayer 
identification number or an SSN and include it on their income 
tax return can claim a tax credit of $1,000 for each of their 
qualifying children under the age of 17. If the credit exceeds 
the tax liability of the taxpayer, the excess may be refundable 
depending on the taxpayer's earnings, and the refunded portion 
is classified as an outlay in the federal budget.
    The staff of the Joint Committee on Taxation (JCT) 
estimates that the legislation would reduce outlays by $10.9 
billion over the 2016-2021 period and by $19.9 billion over the 
2016-2026 period. This bill would not affect revenues.
    The Statutory Pay-As-You-Go Act of 2010 establishes budget-
reporting and enforcement procedures for legislation affecting 
direct spending and revenues. Enacting H.R. 4722 would result 
in a reduction in outlays in each year beginning in 2017. The 
estimated decreases in the deficit are shown in the following 
table.

                              CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4722, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON WAYS AND MEANS ON MARCH 16, 2016.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             By fiscal year, in millions of dollars--
                                                                --------------------------------------------------------------------------------------------------------------------------------
                                                                  2016    2017      2018      2019      2020      2021      2022      2023      2024      2025      2026    2016-2021  2016-2026
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 NET DECREASE (-) IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact.................................      0    -2,512    -2,302    -2,130    -2,027    -1,955    -1,903    -1,849    -1,790    -1,741    -1,706    -10,926    -19,916
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Staff of the Joint Committee on Taxation.
Note: Components may not sum to total because of rounding.

    JCT estimates that enacting the bill would not increase net 
direct spending or on-budget deficits in any of the four 10-
year periods beginning in 2027.
    JCT has determined that the bill contains no 
intergovernmental mandates but would impose a private-sector 
mandate as defined in the Unfunded Mandates Reform Act (UMRA). 
Based on information provided by JCT, the cost of the private-
sector mandate would exceed the annual threshold established in 
UMRA for private-sector mandates ($157 million in 2016, 
adjusted annually for inflation) beginning in 2017.
    The CBO staff contact for this estimate is Peter Huether. 
The estimate was approved by Mark Booth, Unit Chief, Revenue 
Estimating.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE

          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives (relating to oversight findings), 
the Committee advises that it was as a result of the 
Committee's review of the provisions of H.R. 4722 that the 
Committee concluded that it is appropriate to report the bill, 
as amended, favorably to the House of Representatives with the 
recommendation that the bill do pass.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill contains no measure that authorizes funding, so no 
statement of general performance goals and objectives for which 
any measure authorizes funding is required.

              C. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
    The Committee has determined that the bill contains one 
private sector mandate: requiring those who claim the 
refundable child tax to credit enter a Social Security Number 
on their tax return. The Committee has determined that the bill 
does not impose a Federal intergovernmental mandate on State, 
local, or tribal governments.

                D. Applicability of House Rule XXI 5(b)

    Rule XXI 5(b) of the Rules of the House of Representatives 
provides, in part, that ``A bill or joint resolution, 
amendment, or conference report carrying a Federal income tax 
rate increase may not be considered as passed or agreed to 
unless so determined by a vote of not less than three-fifths of 
the Members voting, a quorum being present.'' The Committee has 
carefully reviewed the bill, and states that the bill does not 
involve any Federal income tax rate increases within the 
meaning of the rule.

                       E. Tax Complexity Analysis

    Section 4022(b) of the Internal Revenue Service 
Restructuring and Reform Act of 1998 (``IRS Reform Act'') 
requires the staff of the Joint Committee on Taxation (in 
consultation with the Internal Revenue Service and the Treasury 
Department) to provide a tax complexity analysis. The 
complexity analysis is required for all legislation reported by 
the Senate Committee on Finance, the House Committee on Ways 
and Means, or any committee of conference if the legislation 
includes a provision that directly or indirectly amends the 
Internal Revenue Code and has widespread applicability to 
individuals or small businesses.
    Pursuant to clause 3(h)(1) of rule XIII of the Rules of the 
House of Representatives, the staff of the Joint Committee on 
Taxation has determined that a complexity analysis is not 
required under section 4022(b) of the IRS Reform Act because 
the bill contains no provisions that amend the Internal Revenue 
Code and that have ``widespread applicability'' to individuals 
or small businesses, within the meaning of the rule.

  F. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                   G. Duplication of Federal Programs

    In compliance with Sec. 3(g)(2) of H. Res. 5 (114th 
Congress), the Committee states that no provision of the bill 
establishes or reauthorizes: (1) a program of the Federal 
Government known to be duplicative of another Federal program, 
(2) a program included in any report from the Government 
Accountability Office to Congress pursuant to section 21 of 
Public Law 111-139, or (3) a program related to a program 
identified in the most recent Catalog of Federal Domestic 
Assistance, published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169).

                 H. Disclosure of Directed Rule Makings

    In compliance with Sec. 3(i) of H. Res. 5 (114th Congress), 
the following statement is made concerning directed rule 
makings: The Committee estimates that the bill requires no 
directed rule makings within the meaning of such section.

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

  A. Text of Existing Law Amended or Repealed by the Bill, as Reported

    In compliance with clause 3(e)(1)(A) of rule XIII of the 
Rules of the House of Representatives, the text of each section 
proposed to be amended or repealed by the bill, as reported, is 
shown below:

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e)(1)(A) of rule XIII of the 
Rules of the House of Representatives, the text of each section 
proposed to be amended or repealed by the bill, as reported, is 
shown below:

                     INTERNAL REVENUE CODE OF 1986

           *       *       *       *       *       *       *
Subtitle A--Income Taxes

           *       *       *       *       *       *       *

CHAPTER 1--NORMAL TAXES AND SURTAXES

           *       *       *       *       *       *       *

Subchapter A--Determination of Tax Liability

           *       *       *       *       *       *       *

PART IV--CREDITS AGAINST TAX

           *       *       *       *       *       *       *

Subpart A--Nonrefundable Personal Credits

           *       *       *       *       *       *       *

SEC. 24. CHILD TAX CREDIT.

  (a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year 
with respect to each qualifying child of the taxpayer for which 
the taxpayer is allowed a deduction under section 151 an amount 
equal to $1,000.
  (b) Limitations.--
          (1) Limitation based on adjusted gross income.--The 
        amount of the credit allowable under subsection (a) 
        shall be reduced (but not below zero) by $50 for each 
        $1,000 (or fraction thereof) by which the taxpayer's 
        modified adjusted gross income exceeds the threshold 
        amount. For purposes of the preceding sentence, the 
        term ``modified adjusted gross income'' means adjusted 
        gross income increased by any amount excluded from 
        gross income under section 911, 931, or 933.
          (2) Threshold amount.--For purposes of paragraph (1), 
        the term ``threshold amount'' means--
                  (A) $110,000 in the case of a joint return,
                  (B) $75,000 in the case of an individual who 
                is not married, and
                  (C) $55,000 in the case of a married 
                individual filing a separate return.
        For purposes of this paragraph, marital status shall be 
        determined under section 7703.
  (c) Qualifying Child.--For purposes of this section--
          (1) In general.--The term ``qualifying child'' means 
        a qualifying child of the taxpayer (as defined in 
        section 152(c)) who has not attained age 17.
          (2) Exception for certain noncitizens.--The term 
        ``qualifying child'' shall not include any individual 
        who would not be a dependent if subparagraph (A) of 
        section 152(b)(3) were applied without regard to all 
        that follows ``resident of the United States''.
  (d) Portion of Credit Refundable.--
          (1) In general.--The aggregate credits allowed to a 
        taxpayer under subpart C shall be increased by the 
        lesser of--
                  (A) the credit which would be allowed under 
                this section without regard to this subsection 
                and the limitation under section 26(a) or
                  (B) the amount by which the aggregate amount 
                of credits allowed by this subpart (determined 
                without regard to this subsection) would 
                increase if the limitation imposed by section 
                26(a) were increased by the greater of--
                          (i) 15 percent of so much of the 
                        taxpayer's earned income (within the 
                        meaning of section 32) which is taken 
                        into account in computing taxable 
                        income for the taxable year as exceeds 
                        $3,000, or
                          (ii) in the case of a taxpayer with 3 
                        or more qualifying children, the excess 
                        (if any) of--
                                  (I) the taxpayer's social 
                                security taxes for the taxable 
                                year, over
                                  (II) the credit allowed under 
                                section 32 for the taxable 
                                year.
        The amount of the credit allowed under this subsection 
        shall not be treated as a credit allowed under this 
        subpart and shall reduce the amount of credit otherwise 
        allowable under subsection (a) without regard to 
        section 26(a). For purposes of subparagraph (B), any 
        amount excluded from gross income by reason of section 
        112 shall be treated as earned income which is taken 
        into account in computing taxable income for the 
        taxable year.
          (2) Social security taxes.--For purposes of paragraph 
        (1)--
                  (A) In general.--The term ``social security 
                taxes'' means, with respect to any taxpayer for 
                any taxable year--
                          (i) the amount of the taxes imposed 
                        by sections 3101 and 3201(a) on amounts 
                        received by the taxpayer during the 
                        calendar year in which the taxable year 
                        begins,
                          (ii) 50 percent of the taxes imposed 
                        by section 1401 on the self-employment 
                        income of the taxpayer for the taxable 
                        year, and
                          (iii) 50 percent of the taxes imposed 
                        by section 3211(a) on amounts received 
                        by the taxpayer during the calendar 
                        year in which the taxable year begins.
                  (B) Coordination with special refund of 
                social security taxes.--The term ``social 
                security taxes'' shall not include any taxes to 
                the extent the taxpayer is entitled to a 
                special refund of such taxes under section 
                6413(c).
                  (C) Special rule.--Any amounts paid pursuant 
                to an agreement under section 3121(l) (relating 
                to agreements entered into by American 
                employers with respect to foreign affiliates) 
                which are equivalent to the taxes referred to 
                in subparagraph (A)(i) shall be treated as 
                taxes referred to in such subparagraph.
          (5) Exception for taxpayers excluding foreign earned 
        income.--Paragraph (1) shall not apply to any taxpayer 
        for any taxable year if such taxpayer elects to exclude 
        any amount from gross income under section 911 for such 
        taxable year.
  (e) Identification Requirements.--
          (1) Qualifying child identification requirement.--No 
        credit shall be allowed under this section to a 
        taxpayer with respect to any qualifying child unless 
        the taxpayer includes the name and taxpayer 
        identification number of such qualifying child on the 
        return of tax for the taxable year and such taxpayer 
        identification number was issued on or before the due 
        date for filing such return.
          (2) Taxpayer identification requirement.--No credit 
        shall be allowed under this section if the identifying 
        number of the taxpayer was issued after the due date 
        for filing the return for the taxable year.
  (f) Taxable Year Must be Full Taxable Year.--Except in the 
case of a taxable year closed by reason of the death of the 
taxpayer, no credit shall be allowable under this section in 
the case of a taxable year covering a period of less than 12 
months.
  (g) Restrictions on Taxpayers Who Improperly Claimed Credit 
in Prior Year.--
          (1) Taxpayers making prior fraudulent or reckless 
        claims.--
                  (A) In general.--No credit shall be allowed 
                under this section for any taxable year in the 
                disallowance period.
                  (B) Disallowance period.--For purposes of 
                subparagraph (A), the disallowance period is--
                          (i) the period of 10 taxable years 
                        after the most recent taxable year for 
                        which there was a final determination 
                        that the taxpayer's claim of credit 
                        under this section was due to fraud, 
                        and
                          (ii) the period of 2 taxable years 
                        after the most recent taxable year for 
                        which there was a final determination 
                        that the taxpayer's claim of credit 
                        under this section was due to reckless 
                        or intentional disregard of rules and 
                        regulations (but not due to fraud).
          (2) Taxpayers making improper prior claims.--In the 
        case of a taxpayer who is denied credit under this 
        section for any taxable year as a result of the 
        deficiency procedures under subchapter B of chapter 63, 
        no credit shall be allowed under this section for any 
        subsequent taxable year unless the taxpayer provides 
        such information as the Secretary may require to 
        demonstrate eligibility for such credit.

           *       *       *       *       *       *       *

Subtitle F--Procedure and Administration

           *       *       *       *       *       *       *

CHAPTER 63--ASSESSMENT

           *       *       *       *       *       *       *

  Subchapter B--Deficiency Procedures in the Case of Income, Estate, 
Gift, and Certain Excise Taxes

           *       *       *       *       *       *       *

SEC. 6213. RESTRICTIONS APPLICABLE TO DEFICIENCIES; PETITION TO TAX 
                    COURT.

  (a) Time for Filing Petition and Restriction on Assessment.--
Within 90 days, or 150 days if the notice is addressed to a 
person outside the United States, after the notice of 
deficiency authorized in section 6212 is mailed (not counting 
Saturday, Sunday, or a legal holiday in the District of 
Columbia as the last day), the taxpayer may file a petition 
with the Tax Court for a redetermination of the deficiency. 
Except as otherwise provided in section 6851, 6852, or 6861 no 
assessment of a deficiency in respect of any tax imposed by 
subtitle A, or B, chapter 41, 42, 43, or 44 and no levy or 
proceeding in court for its collection shall be made, begun, or 
prosecuted until such notice has been mailed to the taxpayer, 
nor until the expiration of such 90-day or 150-day period, as 
the case may be, nor, if a petition has been filed with the Tax 
Court, until the decision of the Tax Court has become final. 
Notwithstanding the provisions of section 7421(a), the making 
of such assessment or the beginning of such proceeding or levy 
during the time such prohibition is in force may be enjoined by 
a proceeding in the proper court, including the Tax Court, and 
a refund may be ordered by such court of any amount collected 
within the period during which the Secretary is prohibited from 
collecting by levy or through a proceeding in court under the 
provisions of this subsection. The Tax Court shall have no 
jurisdiction to enjoin any action or proceeding or order any 
refund under this subsection unless a timely petition for a 
redetermination of the deficiency has been filed and then only 
in respect of the deficiency that is the subject of such 
petition. Any petition filed with the Tax Court on or before 
the last date specified for filing such petition by the 
Secretary in the notice of deficiency shall be treated as 
timely filed.
  (b) Exceptions to Restrictions on Assessment.--
          (1) Assessments arising out of mathematical or 
        clerical errors.--If the taxpayer is notified that, on 
        account of a mathematical or clerical error appearing 
        on the return, an amount of tax in excess of that shown 
        on the return is due, and that an assessment of the tax 
        has been or will be made on the basis of what would 
        have been the correct amount of tax but for the 
        mathematical or clerical error, such notice shall not 
        be considered as a notice of deficiency for the 
        purposes of subsection (a) (prohibiting assessment and 
        collection until notice of the deficiency has been 
        mailed), or of section 6212(c)(1) (restricting further 
        deficiency letters), or of section 6512(a) (prohibiting 
        credits or refunds after petition to the Tax Court), 
        and the taxpayer shall have no right to file a petition 
        with the Tax Court based on such notice, nor shall such 
        assessment or collection be prohibited by the 
        provisions of subsection (a) of this section. Each 
        notice under this paragraph shall set forth the error 
        alleged and an explanation thereof.
          (2) Abatement of assessment of mathematical or 
        clerical errors.--
                  (A) Request for abatement.--Notwithstanding 
                section 6404(b), a taxpayer may file with the 
                Secretary within 60 days after notice is sent 
                under paragraph (1) a request for an abatement 
                of any assessment specified in such notice, and 
                upon receipt of such request, the Secretary 
                shall abate the assessment. Any reassessment of 
                the tax with respect to which an abatement is 
                made under this subparagraph shall be subject 
                to the deficiency procedures prescribed by this 
                subchapter.
                  (B) Stay of collection.--In the case of any 
                assessment referred to in paragraph (1), 
                notwithstanding paragraph (1), no levy or 
                proceeding in court for the collection of such 
                assessment shall be made, begun, or prosecuted 
                during the period in which such assessment may 
                be abated under this paragraph.
          (3) Assessments arising out of tentative carryback or 
        refund adjustments.--If the Secretary determines that 
        the amount applied, credited, or refunded under section 
        6411 is in excess of the overassessment attributable to 
        the carryback or the amount described in section 
        1341(b)(1) with respect to which such amount was 
        applied, credited, or refunded, he may assess without 
        regard to the provisions of paragraph (2) the amount of 
        the excess as a deficiency as if it were due to a 
        mathematical or clerical error appearing on the return.
          (4) Assessment of amount paid.--Any amount paid as a 
        tax or in respect of a tax may be assessed upon the 
        receipt of such payment notwithstanding the provisions 
        of subsection (a). In any case where such amount is 
        paid after the mailing of a notice of deficiency under 
        section 6212, such payment shall not deprive the Tax 
        Court of jurisdiction over such deficiency determined 
        under section 6211 without regard to such assessment.
          (5) Certain orders of criminal restitution.--If the 
        taxpayer is notified that an assessment has been or 
        will be made pursuant to section 6201(a)(4)--
                  (A) such notice shall not be considered as a 
                notice of deficiency for the purposes of 
                subsection (a) (prohibiting assessment and 
                collection until notice of the deficiency has 
                been mailed), section 6212(c)(1) (restricting 
                further deficiency letters), or section 6512(a) 
                (prohibiting credits or refunds after petition 
                to the Tax Court), and
                  (B) subsection (a) shall not apply with 
                respect to the amount of such assessment.
  (c) Failure to File Petition.--If the taxpayer does not file 
a petition with the Tax Court within the time prescribed in 
subsection (a), the deficiency, notice of which has been mailed 
to the taxpayer, shall be assessed, and shall be paid upon 
notice and demand from the Secretary.
  (d) Waiver of Restrictions.--The taxpayer shall at any time 
(whether or not a notice of deficiency has been issued) have 
the right, by a signed notice in writing filed with the 
Secretary, to waive the restrictions provided in subsection (a) 
on the assessment and collection of the whole or any part of 
the deficiency.
  (e) Suspension of Filing Period for Certain Excise Taxes.--
The running of the time prescribed by subsection (a) for filing 
a petition in the Tax Court with respect to the taxes imposed 
by section 4941 (relating to taxes on self-dealing), 4942 
(relating to taxes on failure to distribute income), 4943 
(relating to taxes on excess business holdings), 4944 (relating 
to investments which jeopardize charitable purpose), 4945 
(relating to taxes on taxable expenditures), 4951 (relating to 
taxes on self-dealing), or 4952 (relating to taxes on taxable 
expenditures), 4955 (relating to taxes on political 
expenditures), 4958 (relating to private excess benefit), 4971 
(relating to excise taxes on failure to meet minimum funding 
standard), 4975 (relating to excise taxes on prohibited 
transactions) shall be suspended for any period during which 
the Secretary has extended the time allowed for making 
correction under section 4963(e).
  (f) Coordination With Title 11.--
          (1) Suspension of running of period for filing 
        petition in title 11 cases.--In any case under title 11 
        of the United States Code, the running of the time 
        prescribed by subsection (a) for filing a petition in 
        the Tax Court with respect to any deficiency shall be 
        suspended for the period during which the debtor is 
        prohibited by reason of such case from filing a 
        petition in the Tax Court with respect to such 
        deficiency, and for 60 days thereafter.
          (2) Certain action not taken into account.--For 
        purposes of the second and third sentences of 
        subsection (a), the filing of a proof of claim or 
        request for payment (or the taking of any other action) 
        in a case under title 11 of the United States Code 
        shall not be treated as action prohibited by such 
        second sentence.
  (g) Definitions.--For purposes of this section--
          (1) Return.--The term ``return'' includes any return, 
        statement, schedule, or list, and any amendment or 
        supplement thereto, filed with respect to any tax 
        imposed by subtitle A or B, or chapter 41, 42, 43, or 
        44.
          (2) Mathematical or clerical error.--The term 
        ``mathematical or clerical error'' means--
                  (A) an error in addition, subtraction, 
                multiplication, or division shown on any 
                return,
                  (B) an incorrect use of any table provided by 
                the Internal Revenue Service with respect to 
                any return if such incorrect use is apparent 
                from the existence of other information on the 
                return,
                  (C) an entry on a return of an item which is 
                inconsistent with another entry of the same or 
                another item on such return,
                  (D) an omission of information which is 
                required to be supplied on the return to 
                substantiate an entry on the return,
                  (E) an entry on a return of a deduction or 
                credit in an amount which exceeds a statutory 
                limit imposed by subtitle A or B, or chapter 
                41, 42, 43, or 44, if such limit is expressed--
                          (i) as a specified monetary amount, 
                        or
                          (ii) as a percentage, ratio, or 
                        fraction, and if the items entering 
                        into the application of such limit 
                        appear on such return,
                  (F) an omission of a correct taxpayer 
                identification number required under section 32 
                (relating to the earned income credit) to be 
                included on a return,
                  (G) an entry on a return claiming the credit 
                under section 32 with respect to net earnings 
                from self- employment described in section 
                32(c)(2)(A) to the extent the tax imposed by 
                section 1401 (relating to self-employment tax) 
                on such net earnings has not been paid,
                  (H) an omission of a correct TIN required 
                under section 21 (relating to expenses for 
                household and dependent care services necessary 
                for gainful employment) or section 151 
                (relating to allowance of deductions for 
                personal exemptions),
                  (I) an omission of a correct TIN required 
                under section 24(e) (relating to child tax 
                credit) to be included on a return,
                  (J) an omission of a correct TIN required 
                under section 5A(g)(1) (relating to higher 
                education tuition and related expenses) to be 
                included on a return,
                  (K) an omission of information required by 
                section 32(k)(2) (relating to taxpayers making 
                improper prior claims of earned income credit) 
                or an entry on the return claiming the credit 
                under section 32 for a taxable year for which 
                the credit is disallowed under subsection 
                (k)(1) thereof,
                  (L) the inclusion on a return of a TIN 
                required to be included on the return under 
                section 21, 24, or 32 if--
                          (i) such TIN is of an individual 
                        whose age affects the amount of the 
                        credit under such section, and
                          (ii) the computation of the credit on 
                        the return reflects the treatment of 
                        such individual as being of an age 
                        different from the individual's age 
                        based on such TIN,
                  (M) the entry on the return claiming the 
                credit under section 32 with respect to a child 
                if, according to the Federal Case Registry of 
                Child Support Orders established under section 
                453(h) of the Social Security Act, the taxpayer 
                is a noncustodial parent of such child,
                  (N) an omission of any increase required 
                under section 36(f) with respect to the 
                recapture of a credit allowed under section 36;
                  (O) the inclusion on a return of an 
                individual taxpayer identification number 
                issued under section 6109(i) which has expired, 
                been revoked by the Secretary, or is otherwise 
                invalid
                  (P) an omission of information required by 
                section 24(h)(2) or an entry on the return 
                claiming the credit under section 24 for a 
                taxable year for which the credit is disallowed 
                under subsection (h)(1) thereof, and
                  (Q) an omission of information required by 
                section 25A(i)(8)(B) or an entry on the return 
                claiming the credit determined under section 
                25A(i) for a taxable year for which the credit 
                is disallowed under paragraph (8)(A) thereof.
        A taxpayer shall be treated as having omitted a correct 
        TIN for purposes of the preceding sentence if 
        information provided by the taxpayer on the return with 
        respect to the individual whose TIN was provided 
        differs from the information the Secretary obtains from 
        the person issuing the TIN.
  (h) Cross References.--
          (1) For assessment as if a mathematical error on the 
        return, in the case of erroneous claims for income tax 
        prepayment credits, see section 6201(a)(3).
          (2) For assessments without regard to restrictions 
        imposed by this section in the case of--
                  (A) Recovery of foreign income taxes, see 
                section 905(c).
                  (B) Recovery of foreign estate tax, see 
                section 2016.
          (3) For provisions relating to application of this 
        subchapter in the case of certain partnership items, 
        etc., see section 6230(a).

           *       *       *       *       *       *       *

      B. Changes in Existing Law Proposed by the Bill, as Reported

    In compliance with clause 3(e)(1)(B) of rule XIII of the 
Rules of the House of Representatives, changes in existing law 
proposed by the bill, as reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italics, existing law in 
which no change is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e)(1)(B) of rule XIII of the 
Rules of the House of Representatives, changes in existing law 
made by the bill, as reported, are shown as follows (existing 
law proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                     INTERNAL REVENUE CODE OF 1986

           *       *       *       *       *       *       *
Subtitle A--Income Taxes

           *       *       *       *       *       *       *

CHAPTER 1--NORMAL TAXES AND SURTAXES

           *       *       *       *       *       *       *

Subchapter A--Determination of Tax Liability

           *       *       *       *       *       *       *

PART IV--CREDITS AGAINST TAX

           *       *       *       *       *       *       *

Subpart A--Nonrefundable Personal Credits

           *       *       *       *       *       *       *

SEC. 24. CHILD TAX CREDIT.

  (a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year 
with respect to each qualifying child of the taxpayer for which 
the taxpayer is allowed a deduction under section 151 an amount 
equal to $1,000.
  (b) Limitations.--
          (1) Limitation based on adjusted gross income.--The 
        amount of the credit allowable under subsection (a) 
        shall be reduced (but not below zero) by $50 for each 
        $1,000 (or fraction thereof) by which the taxpayer's 
        modified adjusted gross income exceeds the threshold 
        amount. For purposes of the preceding sentence, the 
        term ``modified adjusted gross income'' means adjusted 
        gross income increased by any amount excluded from 
        gross income under section 911, 931, or 933.
          (2) Threshold amount.--For purposes of paragraph (1), 
        the term ``threshold amount'' means--
                  (A) $110,000 in the case of a joint return,
                  (B) $75,000 in the case of an individual who 
                is not married, and
                  (C) $55,000 in the case of a married 
                individual filing a separate return.
        For purposes of this paragraph, marital status shall be 
        determined under section 7703.
  (c) Qualifying Child.--For purposes of this section--
          (1) In general.--The term ``qualifying child'' means 
        a qualifying child of the taxpayer (as defined in 
        section 152(c)) who has not attained age 17.
          (2) Exception for certain noncitizens.--The term 
        ``qualifying child'' shall not include any individual 
        who would not be a dependent if subparagraph (A) of 
        section 152(b)(3) were applied without regard to all 
        that follows ``resident of the United States''.
  (d) Portion of Credit Refundable.--
          (1) In general.--The aggregate credits allowed to a 
        taxpayer under subpart C shall be increased by the 
        lesser of--
                  (A) the credit which would be allowed under 
                this section without regard to this subsection 
                and the limitation under section 26(a) or
                  (B) the amount by which the aggregate amount 
                of credits allowed by this subpart (determined 
                without regard to this subsection) would 
                increase if the limitation imposed by section 
                26(a) were increased by the greater of--
                          (i) 15 percent of so much of the 
                        taxpayer's earned income (within the 
                        meaning of section 32) which is taken 
                        into account in computing taxable 
                        income for the taxable year as exceeds 
                        $3,000, or
                          (ii) in the case of a taxpayer with 3 
                        or more qualifying children, the excess 
                        (if any) of--
                                  (I) the taxpayer's social 
                                security taxes for the taxable 
                                year, over
                                  (II) the credit allowed under 
                                section 32 for the taxable 
                                year.
        The amount of the credit allowed under this subsection 
        shall not be treated as a credit allowed under this 
        subpart and shall reduce the amount of credit otherwise 
        allowable under subsection (a) without regard to 
        section 26(a). For purposes of subparagraph (B), any 
        amount excluded from gross income by reason of section 
        112 shall be treated as earned income which is taken 
        into account in computing taxable income for the 
        taxable year.
          (2) Social security taxes.--For purposes of paragraph 
        (1)--
                  (A) In general.--The term ``social security 
                taxes'' means, with respect to any taxpayer for 
                any taxable year--
                          (i) the amount of the taxes imposed 
                        by sections 3101 and 3201(a) on amounts 
                        received by the taxpayer during the 
                        calendar year in which the taxable year 
                        begins,
                          (ii) 50 percent of the taxes imposed 
                        by section 1401 on the self-employment 
                        income of the taxpayer for the taxable 
                        year, and
                          (iii) 50 percent of the taxes imposed 
                        by section 3211(a) on amounts received 
                        by the taxpayer during the calendar 
                        year in which the taxable year begins.
                  (B) Coordination with special refund of 
                social security taxes.--The term ``social 
                security taxes'' shall not include any taxes to 
                the extent the taxpayer is entitled to a 
                special refund of such taxes under section 
                6413(c).
                  (C) Special rule.--Any amounts paid pursuant 
                to an agreement under section 3121(l) (relating 
                to agreements entered into by American 
                employers with respect to foreign affiliates) 
                which are equivalent to the taxes referred to 
                in subparagraph (A)(i) shall be treated as 
                taxes referred to in such subparagraph.
          (5) Exception for taxpayers excluding foreign earned 
        income.--Paragraph (1) shall not apply to any taxpayer 
        for any taxable year if such taxpayer elects to exclude 
        any amount from gross income under section 911 for such 
        taxable year.
          (6) Identification requirement.--
                  (A) In general.--Paragraph (1) shall not 
                apply to any taxpayer for any taxable year 
                unless the taxpayer includes the taxpayer's 
                social security number on the return of tax for 
                such taxable year.
                  (B) Joint returns.--In the case of a joint 
                return, the requirement of subparagraph (A) 
                shall be treated as met if the social security 
                number of either spouse is included on such 
                return.
                  (C) Social security number.--For purposes of 
                this paragraph, the term ``social security 
                number'' means a social security number issued 
                to an individual by the Social Security 
                Administration (other than a social security 
                number issued pursuant to subclause (II) (or 
                that portion of subclause (III) that relates to 
                subclause (II)) of section 205(c)(2)(B)(i) of 
                the Social Security Act).
  (e) Identification Requirements.--
          (1) Qualifying child identification requirement.--No 
        credit shall be allowed under this section to a 
        taxpayer with respect to any qualifying child unless 
        the taxpayer includes the name and taxpayer 
        identification number of such qualifying child on the 
        return of tax for the taxable year and such taxpayer 
        identification number was issued on or before the due 
        date for filing such return.
          (2) Taxpayer identification requirement.--No credit 
        shall be allowed under this section if the identifying 
        number of the taxpayer was issued after the due date 
        for filing the return for the taxable year.
  (f) Taxable Year Must be Full Taxable Year.--Except in the 
case of a taxable year closed by reason of the death of the 
taxpayer, no credit shall be allowable under this section in 
the case of a taxable year covering a period of less than 12 
months.
  (g) Restrictions on Taxpayers Who Improperly Claimed Credit 
in Prior Year.--
          (1) Taxpayers making prior fraudulent or reckless 
        claims.--
                  (A) In general.--No credit shall be allowed 
                under this section for any taxable year in the 
                disallowance period.
                  (B) Disallowance period.--For purposes of 
                subparagraph (A), the disallowance period is--
                          (i) the period of 10 taxable years 
                        after the most recent taxable year for 
                        which there was a final determination 
                        that the taxpayer's claim of credit 
                        under this section was due to fraud, 
                        and
                          (ii) the period of 2 taxable years 
                        after the most recent taxable year for 
                        which there was a final determination 
                        that the taxpayer's claim of credit 
                        under this section was due to reckless 
                        or intentional disregard of rules and 
                        regulations (but not due to fraud).
          (2) Taxpayers making improper prior claims.--In the 
        case of a taxpayer who is denied credit under this 
        section for any taxable year as a result of the 
        deficiency procedures under subchapter B of chapter 63, 
        no credit shall be allowed under this section for any 
        subsequent taxable year unless the taxpayer provides 
        such information as the Secretary may require to 
        demonstrate eligibility for such credit.

           *       *       *       *       *       *       *

Subtitle F--Procedure and Administration

           *       *       *       *       *       *       *

CHAPTER 63--ASSESSMENT

           *       *       *       *       *       *       *

  Subchapter B--Deficiency Procedures in the Case of Income, Estate, 
Gift, and Certain Excise Taxes

           *       *       *       *       *       *       *

SEC. 6213. RESTRICTIONS APPLICABLE TO DEFICIENCIES; PETITION TO TAX 
                    COURT.

  (a) Time for Filing Petition and Restriction on Assessment.--
Within 90 days, or 150 days if the notice is addressed to a 
person outside the United States, after the notice of 
deficiency authorized in section 6212 is mailed (not counting 
Saturday, Sunday, or a legal holiday in the District of 
Columbia as the last day), the taxpayer may file a petition 
with the Tax Court for a redetermination of the deficiency. 
Except as otherwise provided in section 6851, 6852, or 6861 no 
assessment of a deficiency in respect of any tax imposed by 
subtitle A, or B, chapter 41, 42, 43, or 44 and no levy or 
proceeding in court for its collection shall be made, begun, or 
prosecuted until such notice has been mailed to the taxpayer, 
nor until the expiration of such 90-day or 150-day period, as 
the case may be, nor, if a petition has been filed with the Tax 
Court, until the decision of the Tax Court has become final. 
Notwithstanding the provisions of section 7421(a), the making 
of such assessment or the beginning of such proceeding or levy 
during the time such prohibition is in force may be enjoined by 
a proceeding in the proper court, including the Tax Court, and 
a refund may be ordered by such court of any amount collected 
within the period during which the Secretary is prohibited from 
collecting by levy or through a proceeding in court under the 
provisions of this subsection. The Tax Court shall have no 
jurisdiction to enjoin any action or proceeding or order any 
refund under this subsection unless a timely petition for a 
redetermination of the deficiency has been filed and then only 
in respect of the deficiency that is the subject of such 
petition. Any petition filed with the Tax Court on or before 
the last date specified for filing such petition by the 
Secretary in the notice of deficiency shall be treated as 
timely filed.
  (b) Exceptions to Restrictions on Assessment.--
          (1) Assessments arising out of mathematical or 
        clerical errors.--If the taxpayer is notified that, on 
        account of a mathematical or clerical error appearing 
        on the return, an amount of tax in excess of that shown 
        on the return is due, and that an assessment of the tax 
        has been or will be made on the basis of what would 
        have been the correct amount of tax but for the 
        mathematical or clerical error, such notice shall not 
        be considered as a notice of deficiency for the 
        purposes of subsection (a) (prohibiting assessment and 
        collection until notice of the deficiency has been 
        mailed), or of section 6212(c)(1) (restricting further 
        deficiency letters), or of section 6512(a) (prohibiting 
        credits or refunds after petition to the Tax Court), 
        and the taxpayer shall have no right to file a petition 
        with the Tax Court based on such notice, nor shall such 
        assessment or collection be prohibited by the 
        provisions of subsection (a) of this section. Each 
        notice under this paragraph shall set forth the error 
        alleged and an explanation thereof.
          (2) Abatement of assessment of mathematical or 
        clerical errors.--
                  (A) Request for abatement.--Notwithstanding 
                section 6404(b), a taxpayer may file with the 
                Secretary within 60 days after notice is sent 
                under paragraph (1) a request for an abatement 
                of any assessment specified in such notice, and 
                upon receipt of such request, the Secretary 
                shall abate the assessment. Any reassessment of 
                the tax with respect to which an abatement is 
                made under this subparagraph shall be subject 
                to the deficiency procedures prescribed by this 
                subchapter.
                  (B) Stay of collection.--In the case of any 
                assessment referred to in paragraph (1), 
                notwithstanding paragraph (1), no levy or 
                proceeding in court for the collection of such 
                assessment shall be made, begun, or prosecuted 
                during the period in which such assessment may 
                be abated under this paragraph.
          (3) Assessments arising out of tentative carryback or 
        refund adjustments.--If the Secretary determines that 
        the amount applied, credited, or refunded under section 
        6411 is in excess of the overassessment attributable to 
        the carryback or the amount described in section 
        1341(b)(1) with respect to which such amount was 
        applied, credited, or refunded, he may assess without 
        regard to the provisions of paragraph (2) the amount of 
        the excess as a deficiency as if it were due to a 
        mathematical or clerical error appearing on the return.
          (4) Assessment of amount paid.--Any amount paid as a 
        tax or in respect of a tax may be assessed upon the 
        receipt of such payment notwithstanding the provisions 
        of subsection (a). In any case where such amount is 
        paid after the mailing of a notice of deficiency under 
        section 6212, such payment shall not deprive the Tax 
        Court of jurisdiction over such deficiency determined 
        under section 6211 without regard to such assessment.
          (5) Certain orders of criminal restitution.--If the 
        taxpayer is notified that an assessment has been or 
        will be made pursuant to section 6201(a)(4)--
                  (A) such notice shall not be considered as a 
                notice of deficiency for the purposes of 
                subsection (a) (prohibiting assessment and 
                collection until notice of the deficiency has 
                been mailed), section 6212(c)(1) (restricting 
                further deficiency letters), or section 6512(a) 
                (prohibiting credits or refunds after petition 
                to the Tax Court), and
                  (B) subsection (a) shall not apply with 
                respect to the amount of such assessment.
  (c) Failure to File Petition.--If the taxpayer does not file 
a petition with the Tax Court within the time prescribed in 
subsection (a), the deficiency, notice of which has been mailed 
to the taxpayer, shall be assessed, and shall be paid upon 
notice and demand from the Secretary.
  (d) Waiver of Restrictions.--The taxpayer shall at any time 
(whether or not a notice of deficiency has been issued) have 
the right, by a signed notice in writing filed with the 
Secretary, to waive the restrictions provided in subsection (a) 
on the assessment and collection of the whole or any part of 
the deficiency.
  (e) Suspension of Filing Period for Certain Excise Taxes.--
The running of the time prescribed by subsection (a) for filing 
a petition in the Tax Court with respect to the taxes imposed 
by section 4941 (relating to taxes on self-dealing), 4942 
(relating to taxes on failure to distribute income), 4943 
(relating to taxes on excess business holdings), 4944 (relating 
to investments which jeopardize charitable purpose), 4945 
(relating to taxes on taxable expenditures), 4951 (relating to 
taxes on self-dealing), or 4952 (relating to taxes on taxable 
expenditures), 4955 (relating to taxes on political 
expenditures), 4958 (relating to private excess benefit), 4971 
(relating to excise taxes on failure to meet minimum funding 
standard), 4975 (relating to excise taxes on prohibited 
transactions) shall be suspended for any period during which 
the Secretary has extended the time allowed for making 
correction under section 4963(e).
  (f) Coordination With Title 11.--
          (1) Suspension of running of period for filing 
        petition in title 11 cases.--In any case under title 11 
        of the United States Code, the running of the time 
        prescribed by subsection (a) for filing a petition in 
        the Tax Court with respect to any deficiency shall be 
        suspended for the period during which the debtor is 
        prohibited by reason of such case from filing a 
        petition in the Tax Court with respect to such 
        deficiency, and for 60 days thereafter.
          (2) Certain action not taken into account.--For 
        purposes of the second and third sentences of 
        subsection (a), the filing of a proof of claim or 
        request for payment (or the taking of any other action) 
        in a case under title 11 of the United States Code 
        shall not be treated as action prohibited by such 
        second sentence.
  (g) Definitions.--For purposes of this section--
          (1) Return.--The term ``return'' includes any return, 
        statement, schedule, or list, and any amendment or 
        supplement thereto, filed with respect to any tax 
        imposed by subtitle A or B, or chapter 41, 42, 43, or 
        44.
          (2) Mathematical or clerical error.--The term 
        ``mathematical or clerical error'' means--
                  (A) an error in addition, subtraction, 
                multiplication, or division shown on any 
                return,
                  (B) an incorrect use of any table provided by 
                the Internal Revenue Service with respect to 
                any return if such incorrect use is apparent 
                from the existence of other information on the 
                return,
                  (C) an entry on a return of an item which is 
                inconsistent with another entry of the same or 
                another item on such return,
                  (D) an omission of information which is 
                required to be supplied on the return to 
                substantiate an entry on the return,
                  (E) an entry on a return of a deduction or 
                credit in an amount which exceeds a statutory 
                limit imposed by subtitle A or B, or chapter 
                41, 42, 43, or 44, if such limit is expressed--
                          (i) as a specified monetary amount, 
                        or
                          (ii) as a percentage, ratio, or 
                        fraction, and if the items entering 
                        into the application of such limit 
                        appear on such return,
                  (F) an omission of a correct taxpayer 
                identification number required under section 32 
                (relating to the earned income credit) to be 
                included on a return,
                  (G) an entry on a return claiming the credit 
                under section 32 with respect to net earnings 
                from self- employment described in section 
                32(c)(2)(A) to the extent the tax imposed by 
                section 1401 (relating to self-employment tax) 
                on such net earnings has not been paid,
                  (H) an omission of a correct TIN required 
                under section 21 (relating to expenses for 
                household and dependent care services necessary 
                for gainful employment) or section 151 
                (relating to allowance of deductions for 
                personal exemptions),
                  [(I) an omission of a correct TIN required 
                under section 24(e) (relating to child tax 
                credit) to be included on a return,]
                  (I) an omission of a correct social security 
                number required under section 24(d)(6) 
                (relating to refundable portion of child tax 
                credit), or a correct TIN required under 
                section 24(e) (relating to child tax credit), 
                to be included on a return,
                  (J) an omission of a correct TIN required 
                under section 5A(g)(1) (relating to higher 
                education tuition and related expenses) to be 
                included on a return,
                  (K) an omission of information required by 
                section 32(k)(2) (relating to taxpayers making 
                improper prior claims of earned income credit) 
                or an entry on the return claiming the credit 
                under section 32 for a taxable year for which 
                the credit is disallowed under subsection 
                (k)(1) thereof,
                  (L) the inclusion on a return of a TIN 
                required to be included on the return under 
                section 21, 24, or 32 if--
                          (i) such TIN is of an individual 
                        whose age affects the amount of the 
                        credit under such section, and
                          (ii) the computation of the credit on 
                        the return reflects the treatment of 
                        such individual as being of an age 
                        different from the individual's age 
                        based on such TIN,
                  (M) the entry on the return claiming the 
                credit under section 32 with respect to a child 
                if, according to the Federal Case Registry of 
                Child Support Orders established under section 
                453(h) of the Social Security Act, the taxpayer 
                is a noncustodial parent of such child,
                  (N) an omission of any increase required 
                under section 36(f) with respect to the 
                recapture of a credit allowed under section 36;
                  (O) the inclusion on a return of an 
                individual taxpayer identification number 
                issued under section 6109(i) which has expired, 
                been revoked by the Secretary, or is otherwise 
                invalid
                  (P) an omission of information required by 
                section 24(h)(2) or an entry on the return 
                claiming the credit under section 24 for a 
                taxable year for which the credit is disallowed 
                under subsection (h)(1) thereof, and
                  (Q) an omission of information required by 
                section 25A(i)(8)(B) or an entry on the return 
                claiming the credit determined under section 
                25A(i) for a taxable year for which the credit 
                is disallowed under paragraph (8)(A) thereof.
        A taxpayer shall be treated as having omitted a correct 
        TIN for purposes of the preceding sentence if 
        information provided by the taxpayer on the return with 
        respect to the individual whose TIN was provided 
        differs from the information the Secretary obtains from 
        the person issuing the TIN.
  (h) Cross References.--
          (1) For assessment as if a mathematical error on the 
        return, in the case of erroneous claims for income tax 
        prepayment credits, see section 6201(a)(3).
          (2) For assessments without regard to restrictions 
        imposed by this section in the case of--
                  (A) Recovery of foreign income taxes, see 
                section 905(c).
                  (B) Recovery of foreign estate tax, see 
                section 2016.
          (3) For provisions relating to application of this 
        subchapter in the case of certain partnership items, 
        etc., see section 6230(a).

           *       *       *       *       *       *       *

                         VII. DISSENTING VIEWS

    With the economy still recovering and hardworking Americans 
feeling left behind, we should be focusing in our Committee on 
proposals to grow the economy, create good-paying jobs, and 
strengthen the programs that reduce poverty and protect 
children and seniors, not tearing those very programs apart. 
This bill was part of a misguided effort to win support from 
extreme, right-wing Republicans for their party's budget 
resolution. Committee Democrats strongly oppose both this 
specific bill and the general tactic of appeasing hardliners by 
offering legislation that harms seniors, children, and 
Americans trying to work their way out of poverty and obtain 
health coverage for their families.
    The Committee Democrats unanimously opposed H.R. 4722 at 
the Committee mark up. This legislation would effectively 
eliminate the refundable portion of the Child Tax Credit for 
1.5 million low-income working families and 3 million children. 
The Child Tax Credit was first enacted in 1997, on a bipartisan 
basis, as a means of fighting poverty and easing the financial 
burden that families--particularly low income families--incur 
when they have children. Unfortunately, the Majority's position 
on helping low-income families with children has since changed, 
as the $19.6 billion in revenue estimated to be raised by this 
bill will come directly from these families--the very 
population the Child Tax Credit was designed to serve.
    We support proposals to reduce fraud, waste, and abuse. But 
this legislation serves only to limit a critical benefit to 
working low-income families with children. In 2013, more than 
35 million families claimed the Child Tax Credit, and more than 
20 million families claimed the Additional Child Tax Credit. 
The average adjusted gross income of families claiming this 
credit was about $22,400, nearly $1,000 below the federal 
poverty level. The average amount claimed was $1,300. If H.R. 
4722 is passed it would effectively push these working families 
and their children even further into poverty. Furthermore, the 
Joint Committee on Taxation estimates that this legislation 
will burden the neediest families. More than 70 percent of the 
impact will be felt by families making less than $33,900.
    We are concerned that this legislation would harm children 
who are United States citizens. More specifically, it would 
harm American children who are United States citizens living in 
immigrant families. In 2013, more than nine in ten children (95 
percent) claimed under the Child Tax Credit were United States 
citizens with 93 percent claiming the Additional Child Tax 
Credit.
    Even with the Child Tax Credit and other successful anti-
poverty tools, an unacceptable number of children in the United 
States live in poverty. After falling sharply in the 1990s, the 
child poverty rate has steadily increased over the last decade, 
although less than it would have without anti-poverty measures 
like the Child Tax Credit. Immigrant families and their 
children have been among those most affected by the rise. 
Today, more than one-quarter of children of immigrants live in 
poor families, and more than half live in low-income families.
    Furthermore, under H.R. 4722 Latino children would be the 
hardest hit. Forty percent of children living in poverty are 
Latino and 4.5 million of those live in mixed status families. 
Unlike the Earned Income Tax Credit that is designed to promote 
work, the Child Tax Credit is designed to fight child poverty 
and ensure the well-being of children. In 2013, the Child Tax 
Credit lifted 5 million children out of poverty. This 
legislation would reduce the effectiveness of the Child Tax 
Credit as an anti-poverty measure for more than three million 
children.
    There is no doubt that we need more revenue to maintain a 
functioning, effective government. But it seems that we should 
start by asking from those who have the most, not those who 
have the least. While Republicans say that they are interested 
in addressing poverty, they continue to bring forth bills such 
as H.R. 4722 that would cut or end programs like the Child Tax 
Credit that have kept millions of children out of poverty.
                                           Sander M. Levin,
                                                    Ranking Member.

                                  [all]
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