Refundable Child Tax Credit Eligibility Verification Reform Act of 2015

To amend the Internal Revenue Code of 1986 to require individuals to include their social security numbers on the income tax return as a condition of claiming the refundable portion of the child tax credit, and for other purposes. 1. Short title This Act may be cited as the Refundable Child Tax Credit Eligibility Verification Reform Act of 2015 2. Social security number required to claim the refundable portion of the child tax credit (a) In general Section 24(d) (5) Identification requirement with respect to taxpayer and qualifying child (A) In general Paragraph (1) shall not apply to any taxpayer for any taxable year unless the taxpayer includes on the return of tax for such taxable year the taxpayer’s social security number. (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) Limitation Subparagraph (A) shall not apply to the extent the tentative minimum tax (as defined in section 55(b)(1)(A)) exceeds the credit allowed under section 32. . (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)(5) (relating to refundable portion of child tax credit), or a correct TIN under section 24(e) (relating to child tax credit), to be included on a return, . (c) Conforming amendment Section 24(e) of such Code is amended by inserting with respect to qualifying children Identification requirement (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2015. 3. Restrictions on taxpayers who improperly claimed refundable portion of the child tax credit in prior year (a) In general Section 24(d) (6) Restrictions on taxpayers who improperly claimed credit in prior year (A) Taxpayers making prior fraudulent or reckless claims (i) In general No credit shall be allowed under this subsection for any taxable year in the disallowance period. (ii) Disallowance period For purposes of clause (i), 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 subsection 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 subsection was due to reckless or intentional disregard of rules and regulations (but not due to fraud). (B) Taxpayers making improper prior claims In the case of a taxpayer who is denied credit under this subsection for any taxable year as a result of the deficiency procedures under subchapter B of chapter 63, no credit shall be allowed under this subsection for any subsequent taxable year unless the taxpayer provides such information as the Secretary may require to demonstrate eligibility for such credit. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2015. 4. Checklist for paid preparers to verify eligibility for refundable portion of the child tax credit; penalty for failure to meet due diligence requirements (a) In general The Secretary of the Treasury (or the Secretary’s delegate) shall prescribe section 24(d) (b) Penalty (1) In general Section 6695 (h) Failure To be diligent in determining eligibility for refundable portion of child tax credit Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with due diligence requirements imposed by the Secretary by regulations with respect to determining eligibility for, or the amount of, the credit allowable by section 24(d) shall pay a penalty of $500 for each such failure. . (2) Inflation adjustment Section 6695(h)(1) of such Code, as so redesignated, is amended— (A) by striking and (g) (g), and (h) (B) by striking determined by substituting determined by substituting for calendar year 1992 (A) except as provided in subparagraph (B), calendar year 2013 (B) in the case of the dollar amount under subsection (h), calendar year 2015 . (c) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2015. (2) Subsection (b)(2) The amendments made by subsection (b)(2) shall apply to returns or claims for refund filed in a calendar year beginning after December 31, 2016.

Summary: Refundable Child Tax Credit Eligibility Verification Reform Act of 2015 Amends the Internal Revenue Code, with respect to the child tax credit, to require taxpayers claiming such credit to provide their social security numbers on their tax returns. Prohibits taxpayers who improperly claimed such credit in a previous year from claiming such credit during a disallowance period of: (1) 2 years for claims made with reckless or intentional disregard of rules governing such credit, or (2) 10 years for fraudulent claims. Requires the Department of the Treasury to prescribe a form for completion by paid income tax preparers in connection with claims for the refundable portion of the child tax credit. Imposes a penalty on preparers who fail to comply with due diligence requirements for claiming the refundable portion of the credit.