I 

110TH CONGRESS 

2D SESSION H. R. 5172 

To amend the Internal Revenue Code of 1986 to provide recovery rebates 

to certain individuals receiving social security benefits. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 29, 2008 

Mr. DONNELLY (for himself, Mr. SMITH of New Jersey, Mr. ELLSWORTH, and 

Mr. BUCHANAN) 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 

recovery rebates to certain individuals receiving social 

security benefits. 

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 ‘‘Immediate Financial 

5 Assistance for America’s Seniors Act of 2008’’. 


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1 SEC. 2. 2008 RECOVERY REBATES FOR CERTAIN INDIVID2 UALS RECEIVING SOCIAL SECURITY BENE3 FITS. 

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

5 Internal Revenue Code of 1986 is amended by adding at 

6 the end the following new section: 

7 ‘‘SEC. 6431. 2008 RECOVERY REBATES FOR CERTAIN INDI8 VIDUALS RECEIVING SOCIAL SECURITY BEN9 EFITS. 

10 ‘‘(a) IN GENERAL.—In the case of an eligible indi11 vidual who is an eligible social security recipient, there 

12 shall be allowed as a credit against the tax imposed by 

13 subtitle A for the first taxable year beginning in 2008 an 

14 amount equal $300 ($600 in the case of a joint return). 

15 ‘‘(b) TREATMENT OF CREDIT.—The credit allowed by 

16 subsection (a) shall be treated as allowed by subpart C 

17 of part IV of subchapter A of chapter 1. 

18 ‘‘(c) LIMITATION BASED ON ADJUSTED GROSS IN19 COME.—The amount of the credit allowed by subsection 

20 (a) (determined without regard to this subsection and sub21 section (f)) shall be reduced (but not below zero) by 5 per22 cent of so much of the taxpayer’s adjusted gross income 

23 as exceeds $75,000 ($150,000 in the case of a joint re24 turn). 

25 ‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur26 poses of this section— 


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1 ‘‘(1) ELIGIBLE SOCIAL SECURITY RECIPIENT.— 

2 The term ‘eligible social security recipient’ means, 

3 with respect to any taxable year, any taxpayer 

4 who— 

5 ‘‘(A) received a social security benefit (as 

6 defined in section 86(d)) during such taxable 

7 year, and 

8 ‘‘(B) has earned income which is less than 

9 $3,000. 

10 ‘‘(2) ELIGIBLE INDIVIDUAL.—The term ‘eligible 

11 individual’ means any individual other than— 

12 ‘‘(A) any nonresident alien individual, 

13 ‘‘(B) any individual with respect to whom 

14 a deduction under section 151 is allowable to 

15 another taxpayer for a taxable year beginning 

16 in the calendar year in which the individual’s 

17 taxable year begins, and 

18 ‘‘(C) an estate or trust. 

19 ‘‘(3) EARNED INCOME.—The term ‘earned in20 come’ has the meaning set forth in section 32(c)(2) 

21 except that— 

22 ‘‘(A) subclause (II) of subparagraph 

23 (B)(vi) thereof shall be applied by substituting 

24 ‘January 1, 2009’ for ‘January 1, 2008’, and 


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1 ‘‘(B) such term shall not include net earn2 ings from self-employment which are not taken 

3 into account in computing taxable income. 

4 ‘‘(e) COORDINATION WITH ADVANCE REFUNDS OF

5 CREDIT.— 

6 ‘‘(1) IN GENERAL.—The amount of credit 

7 which would (but for this paragraph) be allowable 

8 under this section shall be reduced (but not below 

9 zero) by the aggregate refunds and credits made or 

10 allowed to the taxpayer under subsection (f). Any 

11 failure to so reduce the credit shall be treated as 

12 arising out of a mathematical or clerical error and 

13 assessed according to section 6213(b)(1). 

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

15 or credit made or allowed under subsection (f) with 

16 respect to a joint return, half of such refund or cred17 it shall be treated as having been made or allowed 

18 to each individual filing such return. 

19 ‘‘(f) ADVANCE REFUNDS AND CREDITS.— 

20 ‘‘(1) IN GENERAL.—Each individual who was 

21 an eligible individual for such individual’s first tax22 able year beginning in 2007 shall be treated as hav23 ing made a payment against the tax imposed by 

24 chapter 1 for such first taxable year in an amount 


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1 equal to the advance refund amount for such taxable 

2 year. 

3 ‘‘(2) ADVANCE REFUND AMOUNT.—For pur4 poses of paragraph (1), the advance refund amount 

5 is the amount that would have been allowed as a 

6 credit under this section for such first taxable year 

7 if this section (other than subsection (e) and this 

8 subsection) had applied to such taxable year. 

9 ‘‘(3) TIMING OF PAYMENTS.—The Secretary 

10 shall, subject to the provisions of this title, refund 

11 or credit any overpayment attributable to this sec12 tion as rapidly as possible. No refund or credit shall 

13 be made or allowed under this subsection after De14 cember 31, 2008. 

15 ‘‘(4) NO INTEREST.—No interest shall be al16 lowed on any overpayment attributable to this sec17 tion.’’. 

18 (b) TREATMENT OF POSSESSIONS.— 

19 (1) MIRROR CODE POSSESSION.—The Secretary 

20 of the Treasury shall make a payment to each pos21 session of the United States with a mirror code tax 

22 system in an amount equal to the loss to that pos23 session by reason of the amendments made by this 

24 section. Such amount shall be determined by the 


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1 Secretary of the Treasury based on information pro2 vided by the government of the respective possession. 

3 (2) OTHER POSSESSIONS.—The Secretary of 

4 the Treasury shall make a payment to each posses5 sion of the United States which does not have a mir6 ror code tax system in an amount estimated by the 

7 Secretary of the Treasury as being equal to the ag8 gregate benefits that would have been provided to 

9 residents of such possession by reason of the amend10 ments made by this section if a mirror code tax sys11 tem had been in effect in such possession. The pre12 ceding sentence shall not apply with respect to any 

13 possession of the United States unless such posses14 sion has a plan, which has been approved by the 

15 Secretary of the Treasury, under which such posses16 sion will promptly distribute such payment to the 

17 residents of such possession. 

18 (3) DEFINITIONS AND SPECIAL RULES.— 

19 (A) POSSESSION OF THE UNITED

20 STATES.—For purposes of this subsection, the 

21 term ‘‘possession of the United States’’ includes 

22 the Commonwealth of Puerto Rico and the 

23 Commonwealth of the Northern Mariana Is24 lands. 


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1 (B) MIRROR CODE TAX SYSTEM.—For pur2 poses of this subsection, the term ‘‘mirror code 

3 tax system’’ means, with respect to any posses4 sion of the United States, the income tax sys5 tem of such possession if the income tax liabil6 ity of the residents of such possession under 

7 such system is determined by reference to the 

8 income tax laws of the United States as if such 

9 possession were the United States. 

10 (C) TREATMENT OF PAYMENTS.—For pur11 poses of section 1324(b)(2) of title 31, United 

12 States Code, the payments under this sub13 section shall be treated in the same manner as 

14 a refund due from the credit allowed under sec15 tion 6431 of the Internal Revenue Code of 1986 

16 (as added by this section). 

17 (c) CONFORMING AMENDMENTS.— 

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

19 31, United States Code, is amended by inserting ‘‘or 

20 6431’’ after ‘‘section 35’’. 

21 (2) The table of contents for subchapter B of 

22 chapter 65 of the Internal Revenue Code of 1986 is 

23 amended by adding at the end the following new 

24 item: 


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‘‘Sec. 6431. 2008 recovery rebates for certain individuals receiving social security benefits.’’. 

Æ 


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