I 

113TH CONGRESS 

1ST SESSION H. R. 2716 

To amend the Internal Revenue Code of 1986 to provide for offsetting 

certain past-due local tax debts against income tax overpayments. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 17, 2013 

Mr. MORAN 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 

for offsetting certain past-due local tax debts against 

income tax overpayments. 

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

3 SECTION 1. OFFSETTING PAST-DUE, LEGALLY ENFORCE4 ABLE LOCAL TAX OBLIGATIONS. 

5 (a) IN GENERAL.—Subsection (e) of section 6402 of 

6 the Internal Revenue Code of 1986 is amended by adding 

7 at the end the following new paragraph: 

8 ‘‘(8) PAST-DUE, LEGALLY ENFORCEABLE LOCAL

9 TAX OBLIGATIONS.— 


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1 ‘‘(A) IN GENERAL.—A State may, on be2 half of a local government located within the 

3 State, submit a notice of past-due, legally en4 forceable local tax obligation for offset under 

5 this subsection. 

6 ‘‘(B) SPECIAL RULES.—Such submission 

7 and offset shall be made with respect to any 

8 past-due, legally enforceable local tax obligation 

9 under rules similar to the rules of this sub10 section, except— 

11 ‘‘(i) under paragraph (3)(A), any re12 duction attributable to a past-due, legally 

13 enforceable local tax obligation shall be 

14 made (in addition to reductions specified in 

15 such subparagraph) after the overpayment 

16 is reduced pursuant to— 

17 ‘‘(I) this subsection with respect 

18 to any past-due, legally enforceable 

19 State income tax obligation; and 

20 ‘‘(II) subsection (f) with respect 

21 to any covered unemployment com22 pensation debt; and 

23 ‘‘(ii) the local government on whose 

24 behalf a State is submitting shall certify to 

25 the State that the requirements of paraVerDate Mar 15 2010 21:53 Jul 18, 2013 Jkt 029200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2716.IH H2716

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1 graph (4) have been met by the local gov2 ernment. 

3 ‘‘(C) PAST-DUE, LEGALLY ENFORCEABLE

4 LOCAL TAX OBLIGATION.—For purposes of this 

5 subsection, the term ‘past-due, legally enforce6 able local tax obligation’ means any debt— 

7 ‘‘(i)(I) which resulted from a judg8 ment rendered by a court of competent ju9 risdiction, or a determination after an ad10 ministrative hearing, which has determined 

11 an amount of tax to be due to a local gov12 ernment; and 

13 ‘‘(II) which is no longer subject to ju14 dicial review; or 

15 ‘‘(ii) which resulted from a tax im16 posed by a local government which has 

17 been assessed but not collected, the time 

18 for redetermination of which has expired, 

19 and which has not been delinquent for 

20 more than 10 years. 

21 Such term shall not include any local income 

22 tax described in the second sentence of para23 graph (5). 

24 ‘‘(D) REGULATIONS.—The Secretary shall 

25 issue such regulations, and modify any such 


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1 regulations under paragraph (6), as may be 

2 necessary to carry out the purposes of this 

3 paragraph.’’. 

4 (b) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to refunds payable after the date 

6 of the enactment of this Act. 

Æ 


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