I 

116TH CONGRESS 

2D SESSION H. R. 7960 

To amend the Internal Revenue Code of 1986 to provide direct payments 

to individuals in response to the coronavirus pandemic, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 7, 2020 

Ms. DEAN (for herself and Mr. CARTWRIGHT) 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 provide 

direct payments to individuals in response to the 

coronavirus pandemic, and for other purposes. 

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 ‘‘Payments for the Peo5 ple Act’’. 

6 SEC. 2. ADDITIONAL RECOVERY REBATES TO INDIVIDUALS. 

7 (a) IN GENERAL.—Subchapter B of chapter 65 of the 

8 Internal Revenue Code of 1986 is amended by inserting 

9 after section 6428 the following new section: 


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1 ‘‘SEC. 6428A. ADDITIONAL RECOVERY REBATES TO INDIVID2 UALS. 

3 ‘‘(a) IN GENERAL.—On each applicable date, each el4 igible individual shall be allowed a credit against the tax 

5 imposed by subtitle A for the applicable taxable year in 

6 an amount equal to the additional rebate amount deter7 mined for each quarter in such taxable year. 

8 ‘‘(b) APPLICABLE DATE.—For purposes of this sec9 tion, the term ‘applicable date’ means the first day of the 

10 month after the date of the enactment of this section and 

11 on the first day of every third month thereafter— 

12 ‘‘(1) during the period— 

13 ‘‘(A) beginning on the date of the enact14 ment of this section, and 

15 ‘‘(B) ending in the month beginning after 

16 any quarter for which the 3-month average na17 tional total unemployment rate is less than 5.5 

18 percent and has decreased for the last two 

19 months, or 

20 ‘‘(2) during any subsequent period— 

21 ‘‘(A) beginning in the month beginning 

22 after any quarter for which the 3-month aver23 age national total unemployment rate is greater 

24 than 5.5 percent, and 

25 ‘‘(B) ending in the month beginning after 

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1 tional total unemployment rate is less than 5.5 

2 percent and has decreased for the last two 

3 months. 

4 ‘‘(c) ADDITIONAL REBATE AMOUNT.—For purposes 

5 of this section, the term ‘additional rebate amount’ means, 

6 with respect to any taxpayer— 

7 ‘‘(1) with respect to a quarter in which the 3- 

8 month average national total unemployment rate is 

9 8.5% or higher— 

10 ‘‘(A) $2,000 ($4,000 in the case of a joint 

11 return), plus 

12 ‘‘(B) $2,000 multiplied by the number of 

13 dependents of the taxpayer for such taxable 

14 year, 

15 ‘‘(2) with respect to any quarter in which the 

16 3-month average national total unemployment rate 

17 is less than 8.5% but greater than or equal to 

18 7.0%— 

19 ‘‘(A) $1,500 ($3,000 in the case of a joint 

20 return), plus 

21 ‘‘(B) $1,500 multiplied by the number of 

22 dependents of the taxpayer for such taxable 

23 year, 


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1 ‘‘(3) with respect to any quarter in which the 

2 3-month average national total unemployment rate 

3 less than 7.0% but greater than or equal to 5.5%— 

4 ‘‘(A) $1,000 ($2,000 in the case of a joint 

5 return), plus 

6 ‘‘(B) $1,000 multiplied by the number of 

7 dependents of the taxpayer for such taxable 

8 year, 

9 ‘‘(4) with respect to any quarter in which the 

10 3-month average national total unemployment rate 

11 is less than 5.5%, $0. 

12 ‘‘(d) ELIGIBLE INDIVIDUAL.—For purposes of this 

13 section, the term ‘eligible individual’ means, with respect 

14 to the applicable taxable year, any individual other than— 

15 ‘‘(1) any nonresident alien individual, 

16 ‘‘(2) any individual with respect to whom a de17 duction under section 151 is allowable to another 

18 taxpayer for a taxable year beginning in the cal19 endar year in which the individual’s taxable year be20 gins, and 

21 ‘‘(3) an estate or trust. 

22 ‘‘(e) LIMITATION BASED ON MODIFIED ADJUSTED

23 GROSS INCOME.—The amount of the credit allowed by 

24 subsection (a) with respect to an applicable taxable year 

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1 section (g)) shall be reduced (but not below zero) by 5 

2 percent of so much of the taxpayer’s modified adjusted 

3 gross income in such taxable year as exceeds— 

4 ‘‘(1) $150,000 in the case of a joint return or 

5 a surviving spouse (as defined in section 2(a)), 

6 ‘‘(2) $112,500 in the case of a head of house7 hold (as defined in section 2(b)), and 

8 ‘‘(3) $75,000 in any other case. 

9 ‘‘(f) DEFINITIONS AND SPECIAL RULES.— 

10 ‘‘(1) APPLICABLE TAXABLE YEAR.—For pur11 poses of this section, the term ‘applicable taxable 

12 year’ means the taxable year ending in the calendar 

13 year preceding the date on which a credit under sub14 section (a) is allowed. 

15 ‘‘(2) MODIFIED ADJUSTED GROSS INCOME.— 

16 For purposes of this section, the term ‘modified ad17 justed gross income’ means adjusted gross income 

18 determined without regard to sections 911, 931, and 

19 933. 

20 ‘‘(3) NATIONAL TOTAL UNEMPLOYMENT

21 RATE.—For purposes of this section, the term ‘na22 tional total unemployment rate’ means the rate de23 termined in the most recently available unemploy24 ment data release published by the Bureau of Labor 

25 Statistics of the Department of Labor. 


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1 ‘‘(4) DEPENDENT DEFINED.—For purposes of 

2 this section, the term ‘dependent’ has the meaning 

3 given such term in section 152. 

4 ‘‘(5) CREDIT TREATED AS REFUNDABLE.—The 

5 credit allowed by subsection (a) shall be treated as 

6 allowed by subpart C of part IV of subchapter A of 

7 chapter 1. 

8 ‘‘(6) IDENTIFICATION NUMBER REQUIRE9 MENT.— 

10 ‘‘(A) IN GENERAL.—The credit amount de11 termined under subsection (c) shall be treated 

12 as being zero unless the taxpayer includes the 

13 TIN (as defined in section 7701(a)(41)) of the 

14 taxpayer on the return of tax for the taxable 

15 year. 

16 ‘‘(B) JOINT RETURNS.—In the case of a 

17 joint return, the credit amount determined 

18 under subsection (c) shall be treated as being— 

19 ‘‘(i) zero if the TIN of neither spouse 

20 is included on the return of tax for the 

21 taxable year, and 

22 ‘‘(ii) the amount calculated for a sin23 gle filer, if the TIN of only one spouse is 

24 so included. 


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1 ‘‘(C) DEPENDENTS.—A dependent shall 

2 not be taken into account under subsection 

3 (a)(2) unless the TIN of such dependent is in4 cluded on the return of tax for the taxable year. 

5 ‘‘(D) SPECIAL RULE FOR MEMBERS OF

6 THE ARMED FORCES.—Paragraph (1) shall not 

7 apply to a joint return where at least 1 spouse 

8 was a member of the Armed Forces of the 

9 United States at any time during the applicable 

10 taxable year. 

11 ‘‘(E) COORDINATION WITH CERTAIN AD12 VANCE PAYMENTS.—In the case of any payment 

13 made pursuant to subsection (h)(5)(A)(ii), a 

14 TIN shall be treated for purposes of this para15 graph as included on the taxpayer’s return of 

16 tax if such TIN is provided pursuant to such 

17 subsection. 

18 ‘‘(g) COORDINATION WITH ADVANCE REFUNDS OF

19 CREDIT.— 

20 ‘‘(1) REDUCTION OF REFUNDABLE CREDIT.— 

21 The amount of the credit which would (but for this 

22 paragraph) be allowable under subsection (a) shall 

23 be reduced (but not below zero) by the aggregate re24 funds and credits made or allowed to the taxpayer 

25 (or any dependent of the taxpayer) under subsection 


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1 (h). Any failure to so reduce the credit shall be 

2 treated as arising out of a mathematical or clerical 

3 error and assessed according to section 6213(b)(1). 

4 ‘‘(2) JOINT RETURNS.—In the case of a refund 

5 or credit made or allowed under subsection (h) with 

6 respect to a joint return, half of such refund or cred7 it shall be treated as having been made or allowed 

8 to each individual filing such return. 

9 ‘‘(h) ADVANCE REFUNDS AND CREDITS.— 

10 ‘‘(1) IN GENERAL.—Subject to paragraph (5), 

11 each individual who was an eligible individual in an 

12 applicable taxable year shall be treated as having 

13 made a payment against the tax imposed by chapter 

14 1 for such taxable year in an amount equal to the 

15 advance refund amount for such taxable year. 

16 ‘‘(2) ADVANCE REFUND AMOUNT.—For pur17 poses of paragraph (1), the advance refund amount 

18 is the amount that would have been allowed as a 

19 credit under this section for such taxable year if this 

20 section (other than subsection (f) and this sub21 section) had applied to such taxable year. 

22 ‘‘(3) TIMING AND MANNER OF PAYMENTS.— 

23 ‘‘(A) TIMING.—The Secretary shall, sub24 ject to the provisions of this title, refund or 


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1 credit any overpayment attributable to this sec2 tion as rapidly as possible. 

3 ‘‘(B) DELIVERY OF PAYMENTS.—Notwith4 standing any other provision of law, the Sec5 retary may certify and disburse refunds payable 

6 under this section— 

7 ‘‘(i) electronically to any account to 

8 which the payee authorized, on or after 

9 January 1, 2018, the delivery of a refund 

10 of taxes under this title or of a Federal 

11 payment (as defined in section 3332 of 

12 title 31, United States Code), 

13 ‘‘(ii) to a Direct Express prepaid debit 

14 card, or 

15 ‘‘(iii) in the event that electronic dis16 bursement or Direct Express payment is 

17 not possible, through such other means as 

18 are determined appropriate by the Sec19 retary, including through the use of stored 

20 value cards and online payment systems. 

21 ‘‘(C) WAIVER OF CERTAIN RULES.—Not22 withstanding section 3325 of title 31, United 

23 States Code, or any other provision of law, with 

24 respect to any payment of a refund under this 

25 subsection, a disbursing official in the executive 


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1 branch of the United States Government may 

2 modify payment information received from an 

3 officer or employee described in section 

4 3325(a)(1)(B) of such title for the purpose of 

5 facilitating the accurate and efficient delivery of 

6 such payment. Except in cases of fraud or reck7 less neglect, no liability under section 3325, 

8 3527, 3528, or 3529 of title 31, United States 

9 Code, shall be imposed with respect to pay10 ments made under this subparagraph. 

11 ‘‘(4) NO INTEREST.—No interest shall be al12 lowed on any overpayment attributable to this sec13 tion. 

14 ‘‘(5) APPLICATION TO INDIVIDUALS WHO DO

15 NOT FILE A RETURN OF TAX FOR APPLICABLE TAX

16 YEAR.— 

17 ‘‘(A) IN GENERAL.—In the case of an indi18 vidual who, at the time of any determination 

19 made pursuant to paragraph (3), has not filed 

20 a tax return for an applicable tax year de21 scribed in paragraph (1), the Secretary shall— 

22 ‘‘(i) apply paragraph (1) by sub23 stituting the taxable year preceding the ap24 plicable taxable year, or 


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1 ‘‘(ii) in the case of an individual who 

2 has not filed a tax return for the taxable 

3 year described in clause (i), determine the 

4 advance refund amount with respect to 

5 such individual on the basis of information 

6 with respect to such individual which— 

7 ‘‘(I) in the case of a specified so8 cial security beneficiary or a specified 

9 supplemental security income recipi10 ent, is provided by the Commissioner 

11 of Social Security, 

12 ‘‘(II) in the case of a specified 

13 railroad retirement beneficiary, is pro14 vided by the Railroad Retirement 

15 Board, 

16 ‘‘(III) in the case of a specified 

17 veterans beneficiary, is provided by 

18 the Secretary of Veterans Affairs (in 

19 coordination with, and with the assist20 ance of, the Commissioner of Social 

21 Security if appropriate), and 

22 ‘‘(IV) in the case of any other in23 dividual, is determined using aggre24 gate payment information provided by 

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1 cluding information provided on Form 

2 W–2 or Form 1099. 

3 ‘‘(B) SPECIFIED SOCIAL SECURITY BENE4 FICIARY.—For purposes of this paragraph— 

5 ‘‘(i) IN GENERAL.—The term ‘speci6 fied social security beneficiary’ means any 

7 individual who, for the last month that 

8 ends prior to the date of enactment of this 

9 section, is entitled to any monthly insur10 ance benefit payable under title II of the 

11 Social Security Act (42 U.S.C. 401 et 

12 seq.), including payments made pursuant 

13 to sections 202(d), 223(g), and 223(i)(7) 

14 of such Act. 

15 ‘‘(ii) EXCEPTION.—Such term shall 

16 not include any individual if such benefit is 

17 not payable for such month by reason of 

18 section 202(x) of the Social Security Act 

19 (42 U.S.C. 402(x)) or section 1129A of 

20 such Act (42 U.S.C. 1320a–8a). 

21 ‘‘(C) SPECIFIED SUPPLEMENTAL SECURITY

22 INCOME RECIPIENT.—For purposes of this 

23 paragraph— 

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1 ent’ means any individual who, for the last 

2 month that ends prior to the date of enact3 ment of this section, is eligible for a 

4 monthly benefit payable under title XVI of 

5 the Social Security Act (42 U.S.C. 1381 et 

6 seq.) (other than a benefit to an individual 

7 described in section 1611(e)(1)(B) of such 

8 Act (42 U.S.C. 1382(e)(1)(B))), includ9 ing— 

10 ‘‘(I) payments made pursuant to 

11 section 1614(a)(3)(C) of such Act (42 

12 U.S.C. 1382c(a)(3)(C)), 

13 ‘‘(II) payments made pursuant to 

14 section 1619(a) (42 U.S.C. 1382h) or 

15 subsection (a)(4), (a)(7), or (p)(7) of 

16 section 1631 (42 U.S.C. 1383) of 

17 such Act, and 

18 ‘‘(III) State supplementary pay19 ments of the type referred to in sec20 tion 1616(a) of such Act (42 U.S.C. 

21 1382e(a)) (or payments of the type 

22 described in section 212(a) of Public 

23 Law 93–66) which are paid by the 

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1 ferred to in such section 1616(a) (or 

2 section 212(a) of Public Law 93–66). 

3 ‘‘(ii) EXCEPTION.—Such term shall 

4 not include any individual if such monthly 

5 benefit is not payable for such month by 

6 reason of subsection (e)(1)(A) or (e)(4) of 

7 section 1611 (42 U.S.C. 1382) or section 

8 1129A of such Act (42 U.S.C. 1320a–8a). 

9 ‘‘(D) SPECIFIED RAILROAD RETIREMENT

10 BENEFICIARY.—For purposes of this para11 graph, the term ‘specified railroad retirement 

12 beneficiary’ means any individual who, for the 

13 last month that ends prior to the date of enact14 ment of this section, is entitled to a monthly 

15 annuity or pension payment payable (without 

16 regard to section 5(a)(ii) of the Railroad Retire17 ment Act of 1974 (45 U.S.C. 231d(a)(ii))) 

18 under— 

19 ‘‘(i) section 2(a)(1) of such Act (45 

20 U.S.C. 231a(a)(1)), 

21 ‘‘(ii) section 2(c) of such Act (45 

22 U.S.C. 231a(c)), 

23 ‘‘(iii) section 2(d)(1) of such Act (45 

24 U.S.C. 231a(d)(1)), or 


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1 ‘‘(iv) section 7(b)(2) of such Act (45 

2 U.S.C. 231f(b)(2)) with respect to any of 

3 the benefit payments described in subpara4 graph (C)(i). 

5 ‘‘(E) SPECIFIED VETERANS BENE6 FICIARY.—For purposes of this paragraph— 

7 ‘‘(i) IN GENERAL.—The term ‘speci8 fied veterans beneficiary’ means any indi9 vidual who, for the last month that ends 

10 prior to the date of enactment of this sec11 tion, is entitled to a compensation or pen12 sion payment payable under— 

13 ‘‘(I) section 1110, 1117, 1121, 

14 1131, 1141, or 1151 of title 38, 

15 United States Code, 

16 ‘‘(II) section 1310, 1312, 1313, 

17 1315, 1316, or 1318 of title 38, 

18 United States Code, 

19 ‘‘(III) section 1513, 1521, 1533, 

20 1536, 1537, 1541, 1542, or 1562 of 

21 title 38, United States Code, or 

22 ‘‘(IV) section 1805, 1815, or 

23 1821 of title 38, United States Code, 

24 to a veteran, surviving spouse, child, or 

25 parent as described in paragraph (2), (3), 


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1 (4)(A)(ii), or (5) of section 101, title 38, 

2 United States Code. 

3 ‘‘(ii) EXCEPTION.—Such term shall 

4 not include any individual if such com5 pensation or pension payment is not pay6 able, or was reduced, for such month by 

7 reason of section 1505, 5313, or 5313B of 

8 title 38, United States Code. 

9 ‘‘(F) SUBSEQUENT DETERMINATIONS AND

10 REDETERMINATIONS NOT TAKEN INTO AC11 COUNT.—For purposes of this section, any indi12 vidual’s status as a specified social security ben13 eficiary, a specified supplemental security in14 come recipient, a specified railroad retirement 

15 beneficiary, or a specified veterans beneficiary 

16 shall be unaffected by any determination or re17 determination of any entitlement to, or eligi18 bility for, any benefit, payment, or compensa19 tion, if such determination or redetermination 

20 occurs after the last month that ends prior to 

21 the date of enactment of this section. 

22 ‘‘(G) PAYMENT TO REPRESENTATIVE PAY23 EES AND FIDUCIARIES.— 

24 ‘‘(i) IN GENERAL.—If the benefit, 

25 payment, or compensation referred to in 


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1 subparagraph (C)(i), (D)(i), (E), or (F)(i) 

2 with respect to any specified individual is 

3 paid to a representative payee or fiduciary, 

4 payment by the Secretary under paragraph 

5 (3) with respect to such specified indi6 vidual shall be made to such individual’s 

7 representative payee or fiduciary and the 

8 entire payment shall be used only for the 

9 benefit of the individual who is entitled to 

10 the payment. 

11 ‘‘(ii) APPLICATION OF ENFORCEMENT

12 PROVISIONS.— 

13 ‘‘(I) In the case of a payment de14 scribed in clause (i) which is made 

15 with respect to a specified social secu16 rity beneficiary or a specified supple17 mental security income recipient, sec18 tion 1129(a)(3) of the Social Security 

19 Act (42 U.S.C. 1320a–8(a)(3)) shall 

20 apply to such payment in the same 

21 manner as such section applies to a 

22 payment under title II or XVI of such 

23 Act. 

24 ‘‘(II) In the case of a payment 

25 described in clause (i) which is made 


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1 with respect to a specified railroad re2 tirement beneficiary, section 13 of the 

3 Railroad Retirement Act (45 U.S.C. 

4 231l) shall apply to such payment in 

5 the same manner as such section ap6 plies to a payment under such Act. 

7 ‘‘(III) In the case of a payment 

8 described in clause (i) which is made 

9 with respect to a specified veterans 

10 beneficiary, sections 5502, 6106, and 

11 6108 of title 38, United States Code, 

12 shall apply to such payment in the 

13 same manner as such sections apply 

14 to a payment under such title. 

15 ‘‘(6) NOTICE TO TAXPAYER.—Not later than 15 

16 days after the date on which the Secretary distrib17 uted any payment to an eligible taxpayer pursuant 

18 to this subsection, notice shall be sent by mail to 

19 such taxpayer’s last known address. Such notice 

20 shall indicate the method by which such payment 

21 was made, the amount of such payment, and a 

22 phone number for the appropriate point of contact 

23 at the Internal Revenue Service to report any error 

24 with respect to such payment. 


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1 ‘‘(i) REGULATIONS.—The Secretary shall prescribe 

2 such regulations or other guidance as may be necessary 

3 or appropriate to carry out the purposes of this section, 

4 including— 

5 ‘‘(1) regulations or other guidance providing 

6 taxpayers the opportunity to provide the Secretary 

7 information sufficient to allow the Secretary to make 

8 payments to such taxpayers under subsection (h) 

9 (including the determination of the amount of such 

10 payment) if such information is not otherwise avail11 able to the Secretary, and 

12 ‘‘(2) regulations or other guidance providing for 

13 the proper treatment of joint returns and taxpayers 

14 with dependents to ensure that an individual is not 

15 taken into account more than once in determining 

16 the amount of any credit under subsection (a) and 

17 any credit or refund under subsection (h).’’. 

18 (b) TREATMENT OF CERTAIN POSSESSIONS.— 

19 (1) PAYMENTS TO POSSESSIONS WITH MIRROR

20 CODE TAX SYSTEMS.—The Secretary of the Treas21 ury shall pay to each possession of the United States 

22 which has a mirror code tax system amounts equal 

23 to the loss (if any) to that possession by reason of 

24 the amendments made by this section. Such 

25 amounts shall be determined by the Secretary of the 


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1 Treasury based on information provided by the gov2 ernment of the respective possession. 

3 (2) PAYMENTS TO OTHER POSSESSIONS.—The 

4 Secretary of the Treasury shall pay to each posses5 sion of the United States which does not have a mir6 ror code tax system amounts estimated by the Sec7 retary of the Treasury as being equal to the aggre8 gate benefits (if any) that would have been provided 

9 to residents of such possession by reason of the 

10 amendments made by this section if a mirror code 

11 tax system had been in effect in such possession. 

12 The preceding sentence shall not apply unless the re13 spective possession has a plan, which has been ap14 proved by the Secretary of the Treasury, under 

15 which such possession will promptly distribute such 

16 payments to its residents. 

17 (3) COORDINATION WITH CREDIT ALLOWED

18 AGAINST UNITED STATES INCOME TAXES.—No cred19 it shall be allowed against United States income 

20 taxes under section 6428A of the Internal Revenue 

21 Code of 1986 (as added by this section), nor shall 

22 any credit or refund be made or allowed under sub23 section (h) of such section, to any person— 


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1 (A) to whom a credit is allowed against 

2 taxes imposed by the possession by reason of 

3 the amendments made by this section, or 

4 (B) who is eligible for a payment under a 

5 plan described in paragraph (2). 

6 (4) MIRROR CODE TAX SYSTEM.—For purposes 

7 of this subsection, the term ‘‘mirror code tax sys8 tem’’ means, with respect to any possession of the 

9 United States, the income tax system of such posses10 sion if the income tax liability of the residents of 

11 such possession under such system is determined by 

12 reference to the income tax laws of the United 

13 States as if such possession were the United States. 

14 (c) ADMINISTRATIVE PROVISIONS.— 

15 (1) DEFINITION OF DEFICIENCY.—Section 

16 6211(b)(4)(A) of the Internal Revenue Code of 1986 

17 is amended by striking ‘‘and 6428’’ and inserting 

18 ‘‘6428, and 6428A’’. 

19 (2) MATHEMATICAL OR CLERICAL ERROR AU20 THORITY.—Section 6213(g)(2) of such Code is 

21 amended— 

22 (A) by inserting ‘‘or section 6428A (relat23 ing to additional recovery rebates to individ24 uals)’’ before the comma at the end of subpara25 graph (H), and 


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1 (B) by striking ‘‘or 6428’’ in subparagraph 

2 (L) and inserting ‘‘6428, or 6428A’’. 

3 (3) EXCEPTION FROM REDUCTION OR OFF4 SET.—Any credit or refund allowed or made to any 

5 individual by reason of section 6428A of the Internal 

6 Revenue Code of 1986 (as added by this section) or 

7 by reason of subsection (b) of this section shall not 

8 be— 

9 (A) subject to reduction or offset pursuant 

10 to section 3716 or 3720A of title 31, United 

11 States Code, 

12 (B) subject to reduction or offset pursuant 

13 to subsection (c), (d), (e), or (f) of section 6402 

14 of the Internal Revenue Code of 1986, or 

15 (C) reduced or offset by other assessed 

16 Federal taxes that would otherwise be subject 

17 to levy or collection. 

18 (4) ASSIGNMENT OF BENEFITS.— 

19 (A) IN GENERAL.—Any applicable pay20 ment shall not be subject to transfer, assign21 ment, execution, levy, attachment, garnishment, 

22 or other legal process, or the operation of any 

23 bankruptcy or insolvency law, to the same ex24 tent as payments described in section 207 of 


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1 the Social Security Act (42 U.S.C. 407) without 

2 regard to subsection (b) thereof. 

3 (B) ENCODING OF PAYMENTS.—As soon as 

4 practicable after the date of the enactment of 

5 the paragraph, the Secretary of the Treasury 

6 shall encode applicable payments that are paid 

7 electronically to any account— 

8 (i) with a unique identifier that is rea9 sonably sufficient to allow a financial insti10 tution to identify the payment as a pay11 ment protected under subparagraph (A), 

12 and 

13 (ii) pursuant to the same specifica14 tions as required for a benefit payment to 

15 which part 212 of title 31, Code of Federal 

16 regulations applies. 

17 (C) GARNISHMENT.— 

18 (i) ENCODED PAYMENTS.—Upon re19 ceipt of a garnishment order that applies 

20 to an account that has received an applica21 ble payment that is encoded as provided in 

22 subparagraph (B), a financial institution 

23 shall follow the requirements and proce24 dures set forth in part 212 of title 31, 

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1 graph shall not alter the status of pay2 ments as tax refunds or other nonbenefit 

3 payments for purposes of any reclamation 

4 rights of the Department of the Treasury 

5 or the Internal Revenue Service as per 

6 part 210 of title 31 of the Code of Federal 

7 Regulations. 

8 (ii) OTHER PAYMENTS.—If a financial 

9 institution receives a garnishment order 

10 (other than an order that has been served 

11 by the United States) that applies to an 

12 account into which an applicable payment 

13 that has not been encoded as provided in 

14 subparagraph (B) has been deposited on 

15 any date in the prior 60 days (including 

16 any date before the date of the enactment 

17 of this paragraph), the financial institu18 tion, upon the request of the account hold19 er or for purposes of complying in good 

20 faith with a State order, State law, court 

21 order, or interpretation by a State Attor22 ney General relating to garnishment order, 

23 may, but is not required to, treat the 

24 amount of the payment as exempt under 

25 law from garnishment without requiring 


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1 the account holder to assert any right of 

2 garnishment exemption or requiring the 

3 consent of the judgment creditor. 

4 (iii) LIABILITY.—A financial institu5 tion that complies in good faith with clause 

6 (i) or that acts in good faith in reliance on 

7 clause (ii) shall not be liable under any 

8 Federal or State law, regulation, or court 

9 or other order to a creditor that initiates 

10 an order for any protected amounts, to an 

11 account holder for any frozen amounts or 

12 garnishment order applied. 

13 (D) DEFINITIONS.—For purposes of this 

14 paragraph— 

15 (i) ACCOUNT HOLDER.—The term 

16 ‘‘account holder’’ means a natural person 

17 against whom a garnishment order is 

18 issued and whose name appears in a finan19 cial institution’s records. 

20 (ii) APPLICABLE PAYMENT.—The 

21 term ‘‘applicable payment’’ means any pay22 ment of credit or refund by reason of sec23 tion 6428 of such Code (as so added) or by 

24 reason of subsection (c) of this section. 


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1 (iii) GARNISHMENT.—The term ‘‘gar2 nishment’’ means execution, levy, attach3 ment, garnishment, or other legal process. 

4 (iv) GARNISHMENT ORDER.—The 

5 term ‘‘garnishment order’’ means a writ, 

6 order, notice, summons, judgment, levy, or 

7 similar written instruction issued by a 

8 court, a State or State agency, a munici9 pality or municipal corporation, or a State 

10 child support enforcement agency, includ11 ing a lien arising by operation of law for 

12 overdue child support or an order to freeze 

13 the assets in an account, to effect a gar14 nishment against a debtor. 

15 (5) TREATMENT OF CREDIT AND ADVANCE PAY16 MENTS.—For purposes of section 1324 of title 31, 

17 United States Code, any credit under section 

18 6428A(a) of the Internal Revenue Code of 1986, any 

19 credit or refund under section 6428A(h) of such 

20 Code, and any payment under subsection (b) of this 

21 section, shall be treated in the same manner as a re22 fund due from a credit provision referred to in sub23 section (b)(2) of such section 1324. 

24 (6) AGENCY INFORMATION SHARING AND AS25 SISTANCE.—The Commissioner of Social Security, 


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1 the Railroad Retirement Board, and the Secretary of 

2 Veterans Affairs shall each provide the Secretary of 

3 the Treasury (or the Secretary’s delegate) such in4 formation and assistance as the Secretary of the 

5 Treasury (or the Secretary’s delegate) may require 

6 for purposes of making payments under section 

7 6428A(g) of the Internal Revenue Code of 1986 to 

8 individuals described in paragraph (5)(A)(ii) thereof. 

9 (7) CLERICAL AMENDMENT.—The table of sec10 tions for subchapter B of chapter 65 of the Internal 

11 Revenue Code of 1986 is amended by inserting after 

12 the item relating to section 6428 the following new 

13 item: 

‘‘Sec. 6428A. Additional recovery rebates to individuals.’’. 

14 (d) EFFECTIVE DATE.—The amendments made by 

15 this section shall take effect on the date of the enactment 

16 of this Act. 

17 SEC. 3. REFUND OF BALANCE OWED WITH RESPECT TO 

18 CERTAIN DEPENDENTS. 

19 In the case of any taxpayer with respect to whom a 

20 partial refund or credit was made or allowed before the 

21 date of the enactment of this Act under subsection (f) of 

22 section 6428 of the Internal Revenue Code of 1986 and 

23 for whom a balance is owed with respect to a dependent, 

24 the Secretary shall, before December 31, 2020, certify and 

25 disburse the balance of such refund electronically to any 


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1 account to which the payee authorized, on or after Janu2 ary 1, 2018, the delivery of a refund of taxes or of a Fed3 eral payment (as defined in section 3332 of title 31, 

4 United States Code). 

Æ 


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