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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Payments for the Peo-
ple Act’’. 
SEC. 2. ADDITIONAL RECOVERY REBATES TO INDIVIDUALS. 
(a) IN GENERAL.—Subchapter B of chapter 65 of the 
Internal Revenue Code of 1986 is amended by inserting 
after section 6428 the following new section: 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
‘‘SEC. 6428A. ADDITIONAL RECOVERY REBATES TO INDIVID-
UALS. 
‘‘(a) IN GENERAL.—On each applicable date, each el-
igible individual shall be allowed a credit against the tax 
imposed by subtitle A for the applicable taxable year in 
an amount equal to the additional rebate amount deter-
mined for each quarter in such taxable year. 
‘‘(b) APPLICABLE DATE.—For purposes of this sec-
tion, the term ‘applicable date’ means the first day of the 
month after the date of the enactment of this section and 
on the first day of every third month thereafter— 
‘‘(1) during the period— 
‘‘(A) beginning on the date of the enact-
ment of this section, and 
‘‘(B) ending in the month beginning after 
any quarter for which the 3-month average na-
tional total unemployment rate is less than 5.5 
percent and has decreased for the last two 
months, or 
‘‘(2) during any subsequent period— 
‘‘(A) beginning in the month beginning 
after any quarter for which the 3-month aver-
age national total unemployment rate is greater 
than 5.5 percent, and 
‘‘(B) ending in the month beginning after 
any quarter for which the 3-month average na-
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
tional total unemployment rate is less than 5.5 
percent and has decreased for the last two 
months. 
‘‘(c) ADDITIONAL REBATE AMOUNT.—For purposes 
of this section, the term ‘additional rebate amount’ means, 
with respect to any taxpayer— 
‘‘(1) with respect to a quarter in which the 3- 
month average national total unemployment rate is 
8.5% or higher— 
‘‘(A) $2,000 ($4,000 in the case of a joint 
return), plus 
‘‘(B) $2,000 multiplied by the number of 
dependents of the taxpayer for such taxable 
year, 
‘‘(2) with respect to any quarter in which the 
3-month average national total unemployment rate 
is less than 8.5% but greater than or equal to 
7.0%— 
‘‘(A) $1,500 ($3,000 in the case of a joint 
return), plus 
‘‘(B) $1,500 multiplied by the number of 
dependents of the taxpayer for such taxable 
year, 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(3) with respect to any quarter in which the 
3-month average national total unemployment rate 
less than 7.0% but greater than or equal to 5.5%— 
‘‘(A) $1,000 ($2,000 in the case of a joint 
return), plus 
‘‘(B) $1,000 multiplied by the number of 
dependents of the taxpayer for such taxable 
year, 
‘‘(4) with respect to any quarter in which the 
3-month average national total unemployment rate 
is less than 5.5%, $0. 
‘‘(d) ELIGIBLE INDIVIDUAL.—For purposes of this 
section, the term ‘eligible individual’ means, with respect 
to the applicable taxable year, any individual other than— 
‘‘(1) any nonresident alien individual, 
‘‘(2) any individual with respect to whom a de-
duction under section 151 is allowable to another 
taxpayer for a taxable year beginning in the cal-
endar year in which the individual’s taxable year be-
gins, and 
‘‘(3) an estate or trust. 
‘‘(e) LIMITATION BASED ON MODIFIED ADJUSTED 
GROSS INCOME.—The amount of the credit allowed by 
subsection (a) with respect to an applicable taxable year 
(determined without regard to this subsection and sub-
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
section (g)) shall be reduced (but not below zero) by 5 
percent of so much of the taxpayer’s modified adjusted 
gross income in such taxable year as exceeds— 
‘‘(1) $150,000 in the case of a joint return or 
a surviving spouse (as defined in section 2(a)), 
‘‘(2) $112,500 in the case of a head of house-
hold (as defined in section 2(b)), and 
‘‘(3) $75,000 in any other case. 
‘‘(f) DEFINITIONS AND SPECIAL RULES.— 
‘‘(1) APPLICABLE
TAXABLE
YEAR.—For pur-
poses of this section, the term ‘applicable taxable 
year’ means the taxable year ending in the calendar 
year preceding the date on which a credit under sub-
section (a) is allowed. 
‘‘(2) MODIFIED
ADJUSTED
GROSS
INCOME.— 
For purposes of this section, the term ‘modified ad-
justed gross income’ means adjusted gross income 
determined without regard to sections 911, 931, and 
933. 
‘‘(3) 
NATIONAL
TOTAL
UNEMPLOYMENT 
RATE.—For purposes of this section, the term ‘na-
tional total unemployment rate’ means the rate de-
termined in the most recently available unemploy-
ment data release published by the Bureau of Labor 
Statistics of the Department of Labor. 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(4) DEPENDENT DEFINED.—For purposes of 
this section, the term ‘dependent’ has the meaning 
given such term in section 152. 
‘‘(5) CREDIT TREATED AS REFUNDABLE.—The 
credit allowed by subsection (a) shall be treated as 
allowed by subpart C of part IV of subchapter A of 
chapter 1. 
‘‘(6) 
IDENTIFICATION
NUMBER
REQUIRE-
MENT.— 
‘‘(A) IN GENERAL.—The credit amount de-
termined under subsection (c) shall be treated 
as being zero unless the taxpayer includes the 
TIN (as defined in section 7701(a)(41)) of the 
taxpayer on the return of tax for the taxable 
year. 
‘‘(B) JOINT RETURNS.—In the case of a 
joint return, the credit amount determined 
under subsection (c) shall be treated as being— 
‘‘(i) zero if the TIN of neither spouse 
is included on the return of tax for the 
taxable year, and 
‘‘(ii) the amount calculated for a sin-
gle filer, if the TIN of only one spouse is 
so included. 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(C) DEPENDENTS.—A dependent shall 
not be taken into account under subsection 
(a)(2) unless the TIN of such dependent is in-
cluded on the return of tax for the taxable year. 
‘‘(D) SPECIAL
RULE
FOR
MEMBERS
OF 
THE ARMED FORCES.—Paragraph (1) shall not 
apply to a joint return where at least 1 spouse 
was a member of the Armed Forces of the 
United States at any time during the applicable 
taxable year. 
‘‘(E) COORDINATION
WITH
CERTAIN
AD-
VANCE PAYMENTS.—In the case of any payment 
made pursuant to subsection (h)(5)(A)(ii), a 
TIN shall be treated for purposes of this para-
graph as included on the taxpayer’s return of 
tax if such TIN is provided pursuant to such 
subsection. 
‘‘(g) COORDINATION WITH ADVANCE REFUNDS OF 
CREDIT.— 
‘‘(1) REDUCTION OF REFUNDABLE CREDIT.— 
The amount of the credit which would (but for this 
paragraph) be allowable under subsection (a) shall 
be reduced (but not below zero) by the aggregate re-
funds and credits made or allowed to the taxpayer 
(or any dependent of the taxpayer) under subsection 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
(h). Any failure to so reduce the credit shall be 
treated as arising out of a mathematical or clerical 
error and assessed according to section 6213(b)(1). 
‘‘(2) JOINT RETURNS.—In the case of a refund 
or credit made or allowed under subsection (h) with 
respect to a joint return, half of such refund or cred-
it shall be treated as having been made or allowed 
to each individual filing such return. 
‘‘(h) ADVANCE REFUNDS AND CREDITS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (5), 
each individual who was an eligible individual in an 
applicable taxable year shall be treated as having 
made a payment against the tax imposed by chapter 
1 for such taxable year in an amount equal to the 
advance refund amount for such taxable year. 
‘‘(2) ADVANCE
REFUND
AMOUNT.—For pur-
poses of paragraph (1), the advance refund amount 
is the amount that would have been allowed as a 
credit under this section for such taxable year if this 
section (other than subsection (f) and this sub-
section) had applied to such taxable year. 
‘‘(3) TIMING AND MANNER OF PAYMENTS.— 
‘‘(A) TIMING.—The Secretary shall, sub-
ject to the provisions of this title, refund or 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
credit any overpayment attributable to this sec-
tion as rapidly as possible. 
‘‘(B) DELIVERY OF PAYMENTS.—Notwith-
standing any other provision of law, the Sec-
retary may certify and disburse refunds payable 
under this section— 
‘‘(i) electronically to any account to 
which the payee authorized, on or after 
January 1, 2018, the delivery of a refund 
of taxes under this title or of a Federal 
payment (as defined in section 3332 of 
title 31, United States Code), 
‘‘(ii) to a Direct Express prepaid debit 
card, or 
‘‘(iii) in the event that electronic dis-
bursement or Direct Express payment is 
not possible, through such other means as 
are determined appropriate by the Sec-
retary, including through the use of stored 
value cards and online payment systems. 
‘‘(C) WAIVER OF CERTAIN RULES.—Not-
withstanding section 3325 of title 31, United 
States Code, or any other provision of law, with 
respect to any payment of a refund under this 
subsection, a disbursing official in the executive 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
branch of the United States Government may 
modify payment information received from an 
officer 
or 
employee 
described 
in 
section 
3325(a)(1)(B) of such title for the purpose of 
facilitating the accurate and efficient delivery of 
such payment. Except in cases of fraud or reck-
less neglect, no liability under section 3325, 
3527, 3528, or 3529 of title 31, United States 
Code, shall be imposed with respect to pay-
ments made under this subparagraph. 
‘‘(4) NO INTEREST.—No interest shall be al-
lowed on any overpayment attributable to this sec-
tion. 
‘‘(5) APPLICATION
TO
INDIVIDUALS
WHO
DO 
NOT FILE A RETURN OF TAX FOR APPLICABLE TAX 
YEAR.— 
‘‘(A) IN GENERAL.—In the case of an indi-
vidual who, at the time of any determination 
made pursuant to paragraph (3), has not filed 
a tax return for an applicable tax year de-
scribed in paragraph (1), the Secretary shall— 
‘‘(i) apply paragraph (1) by sub-
stituting the taxable year preceding the ap-
plicable taxable year, or 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(ii) in the case of an individual who 
has not filed a tax return for the taxable 
year described in clause (i), determine the 
advance refund amount with respect to 
such individual on the basis of information 
with respect to such individual which— 
‘‘(I) in the case of a specified so-
cial security beneficiary or a specified 
supplemental security income recipi-
ent, is provided by the Commissioner 
of Social Security, 
‘‘(II) in the case of a specified 
railroad retirement beneficiary, is pro-
vided by the Railroad Retirement 
Board, 
‘‘(III) in the case of a specified 
veterans beneficiary, is provided by 
the Secretary of Veterans Affairs (in 
coordination with, and with the assist-
ance of, the Commissioner of Social 
Security if appropriate), and 
‘‘(IV) in the case of any other in-
dividual, is determined using aggre-
gate payment information provided by 
the employer of such individual, in-
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
cluding information provided on Form 
W–2 or Form 1099. 
‘‘(B) SPECIFIED SOCIAL SECURITY BENE-
FICIARY.—For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘speci-
fied social security beneficiary’ means any 
individual who, for the last month that 
ends prior to the date of enactment of this 
section, is entitled to any monthly insur-
ance benefit payable under title II of the 
Social Security Act (42 U.S.C. 401 et 
seq.), including payments made pursuant 
to sections 202(d), 223(g), and 223(i)(7) 
of such Act. 
‘‘(ii) EXCEPTION.—Such term shall 
not include any individual if such benefit is 
not payable for such month by reason of 
section 202(x) of the Social Security Act 
(42 U.S.C. 402(x)) or section 1129A of 
such Act (42 U.S.C. 1320a–8a). 
‘‘(C) SPECIFIED SUPPLEMENTAL SECURITY 
INCOME
RECIPIENT.—For purposes of this 
paragraph— 
‘‘(i) IN GENERAL.—The term ‘speci-
fied supplemental security income recipi-
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
ent’ means any individual who, for the last 
month that ends prior to the date of enact-
ment of this section, is eligible for a 
monthly benefit payable under title XVI of 
the Social Security Act (42 U.S.C. 1381 et 
seq.) (other than a benefit to an individual 
described in section 1611(e)(1)(B) of such 
Act (42 U.S.C. 1382(e)(1)(B))), includ-
ing— 
‘‘(I) payments made pursuant to 
section 1614(a)(3)(C) of such Act (42 
U.S.C. 1382c(a)(3)(C)), 
‘‘(II) payments made pursuant to 
section 1619(a) (42 U.S.C. 1382h) or 
subsection (a)(4), (a)(7), or (p)(7) of 
section 1631 (42 U.S.C. 1383) of 
such Act, and 
‘‘(III) State supplementary pay-
ments of the type referred to in sec-
tion 1616(a) of such Act (42 U.S.C. 
1382e(a)) (or payments of the type 
described in section 212(a) of Public 
Law 93–66) which are paid by the 
Commissioner under an agreement re-
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
ferred to in such section 1616(a) (or 
section 212(a) of Public Law 93–66). 
‘‘(ii) EXCEPTION.—Such term shall 
not include any individual if such monthly 
benefit is not payable for such month by 
reason of subsection (e)(1)(A) or (e)(4) of 
section 1611 (42 U.S.C. 1382) or section 
1129A of such Act (42 U.S.C. 1320a–8a). 
‘‘(D) SPECIFIED
RAILROAD
RETIREMENT 
BENEFICIARY.—For purposes of this para-
graph, the term ‘specified railroad retirement 
beneficiary’ means any individual who, for the 
last month that ends prior to the date of enact-
ment of this section, is entitled to a monthly 
annuity or pension payment payable (without 
regard to section 5(a)(ii) of the Railroad Retire-
ment Act of 1974 (45 U.S.C. 231d(a)(ii))) 
under— 
‘‘(i) section 2(a)(1) of such Act (45 
U.S.C. 231a(a)(1)), 
‘‘(ii) section 2(c) of such Act (45 
U.S.C. 231a(c)), 
‘‘(iii) section 2(d)(1) of such Act (45 
U.S.C. 231a(d)(1)), or 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(iv) section 7(b)(2) of such Act (45 
U.S.C. 231f(b)(2)) with respect to any of 
the benefit payments described in subpara-
graph (C)(i). 
‘‘(E) 
SPECIFIED
VETERANS
BENE-
FICIARY.—For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘speci-
fied veterans beneficiary’ means any indi-
vidual who, for the last month that ends 
prior to the date of enactment of this sec-
tion, is entitled to a compensation or pen-
sion payment payable under— 
‘‘(I) section 1110, 1117, 1121, 
1131, 1141, or 1151 of title 38, 
United States Code, 
‘‘(II) section 1310, 1312, 1313, 
1315, 1316, or 1318 of title 38, 
United States Code, 
‘‘(III) section 1513, 1521, 1533, 
1536, 1537, 1541, 1542, or 1562 of 
title 38, United States Code, or 
‘‘(IV) section 1805, 1815, or 
1821 of title 38, United States Code, 
to a veteran, surviving spouse, child, or 
parent as described in paragraph (2), (3), 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
(4)(A)(ii), or (5) of section 101, title 38, 
United States Code. 
‘‘(ii) EXCEPTION.—Such term shall 
not include any individual if such com-
pensation or pension payment is not pay-
able, or was reduced, for such month by 
reason of section 1505, 5313, or 5313B of 
title 38, United States Code. 
‘‘(F) SUBSEQUENT DETERMINATIONS AND 
REDETERMINATIONS
NOT
TAKEN
INTO
AC-
COUNT.—For purposes of this section, any indi-
vidual’s status as a specified social security ben-
eficiary, a specified supplemental security in-
come recipient, a specified railroad retirement 
beneficiary, or a specified veterans beneficiary 
shall be unaffected by any determination or re-
determination of any entitlement to, or eligi-
bility for, any benefit, payment, or compensa-
tion, if such determination or redetermination 
occurs after the last month that ends prior to 
the date of enactment of this section. 
‘‘(G) PAYMENT TO REPRESENTATIVE PAY-
EES AND FIDUCIARIES.— 
‘‘(i) IN
GENERAL.—If the benefit, 
payment, or compensation referred to in 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
subparagraph (C)(i), (D)(i), (E), or (F)(i) 
with respect to any specified individual is 
paid to a representative payee or fiduciary, 
payment by the Secretary under paragraph 
(3) with respect to such specified indi-
vidual shall be made to such individual’s 
representative payee or fiduciary and the 
entire payment shall be used only for the 
benefit of the individual who is entitled to 
the payment. 
‘‘(ii) APPLICATION OF ENFORCEMENT 
PROVISIONS.— 
‘‘(I) In the case of a payment de-
scribed in clause (i) which is made 
with respect to a specified social secu-
rity beneficiary or a specified supple-
mental security income recipient, sec-
tion 1129(a)(3) of the Social Security 
Act (42 U.S.C. 1320a–8(a)(3)) shall 
apply to such payment in the same 
manner as such section applies to a 
payment under title II or XVI of such 
Act. 
‘‘(II) In the case of a payment 
described in clause (i) which is made 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
with respect to a specified railroad re-
tirement beneficiary, section 13 of the 
Railroad Retirement Act (45 U.S.C. 
231l) shall apply to such payment in 
the same manner as such section ap-
plies to a payment under such Act. 
‘‘(III) In the case of a payment 
described in clause (i) which is made 
with respect to a specified veterans 
beneficiary, sections 5502, 6106, and 
6108 of title 38, United States Code, 
shall apply to such payment in the 
same manner as such sections apply 
to a payment under such title. 
‘‘(6) NOTICE TO TAXPAYER.—Not later than 15 
days after the date on which the Secretary distrib-
uted any payment to an eligible taxpayer pursuant 
to this subsection, notice shall be sent by mail to 
such taxpayer’s last known address. Such notice 
shall indicate the method by which such payment 
was made, the amount of such payment, and a 
phone number for the appropriate point of contact 
at the Internal Revenue Service to report any error 
with respect to such payment. 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(i) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary 
or appropriate to carry out the purposes of this section, 
including— 
‘‘(1) regulations or other guidance providing 
taxpayers the opportunity to provide the Secretary 
information sufficient to allow the Secretary to make 
payments to such taxpayers under subsection (h) 
(including the determination of the amount of such 
payment) if such information is not otherwise avail-
able to the Secretary, and 
‘‘(2) regulations or other guidance providing for 
the proper treatment of joint returns and taxpayers 
with dependents to ensure that an individual is not 
taken into account more than once in determining 
the amount of any credit under subsection (a) and 
any credit or refund under subsection (h).’’. 
(b) TREATMENT OF CERTAIN POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary of the Treas-
ury shall pay to each possession of the United States 
which has a mirror code tax system amounts equal 
to the loss (if any) to that possession by reason of 
the amendments made by this section. Such 
amounts shall be determined by the Secretary of the 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
Treasury based on information provided by the gov-
ernment of the respective possession. 
(2) PAYMENTS TO OTHER POSSESSIONS.—The 
Secretary of the Treasury shall pay to each posses-
sion of the United States which does not have a mir-
ror code tax system amounts estimated by the Sec-
retary of the Treasury as being equal to the aggre-
gate benefits (if any) that would have been provided 
to residents of such possession by reason of the 
amendments made by this section if a mirror code 
tax system had been in effect in such possession. 
The preceding sentence shall not apply unless the re-
spective possession has a plan, which has been ap-
proved by the Secretary of the Treasury, under 
which such possession will promptly distribute such 
payments to its residents. 
(3) COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—No cred-
it shall be allowed against United States income 
taxes under section 6428A of the Internal Revenue 
Code of 1986 (as added by this section), nor shall 
any credit or refund be made or allowed under sub-
section (h) of such section, to any person— 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
(A) to whom a credit is allowed against 
taxes imposed by the possession by reason of 
the amendments made by this section, or 
(B) who is eligible for a payment under a 
plan described in paragraph (2). 
(4) MIRROR CODE TAX SYSTEM.—For purposes 
of this subsection, the term ‘‘mirror code tax sys-
tem’’ means, with respect to any possession of the 
United States, the income tax system of such posses-
sion if the income tax liability of the residents of 
such possession under such system is determined by 
reference to the income tax laws of the United 
States as if such possession were the United States. 
(c) ADMINISTRATIVE PROVISIONS.— 
(1) 
DEFINITION
OF
DEFICIENCY.—Section 
6211(b)(4)(A) of the Internal Revenue Code of 1986 
is amended by striking ‘‘and 6428’’ and inserting 
‘‘6428, and 6428A’’. 
(2) MATHEMATICAL OR CLERICAL ERROR AU-
THORITY.—Section 6213(g)(2) of such Code is 
amended— 
(A) by inserting ‘‘or section 6428A (relat-
ing to additional recovery rebates to individ-
uals)’’ before the comma at the end of subpara-
graph (H), and 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
(B) by striking ‘‘or 6428’’ in subparagraph 
(L) and inserting ‘‘6428, or 6428A’’. 
(3) EXCEPTION
FROM
REDUCTION
OR
OFF-
SET.—Any credit or refund allowed or made to any 
individual by reason of section 6428A of the Internal 
Revenue Code of 1986 (as added by this section) or 
by reason of subsection (b) of this section shall not 
be— 
(A) subject to reduction or offset pursuant 
to section 3716 or 3720A of title 31, United 
States Code, 
(B) subject to reduction or offset pursuant 
to subsection (c), (d), (e), or (f) of section 6402 
of the Internal Revenue Code of 1986, or 
(C) reduced or offset by other assessed 
Federal taxes that would otherwise be subject 
to levy or collection. 
(4) ASSIGNMENT OF BENEFITS.— 
(A) IN
GENERAL.—Any applicable pay-
ment shall not be subject to transfer, assign-
ment, execution, levy, attachment, garnishment, 
or other legal process, or the operation of any 
bankruptcy or insolvency law, to the same ex-
tent as payments described in section 207 of 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
the Social Security Act (42 U.S.C. 407) without 
regard to subsection (b) thereof. 
(B) ENCODING OF PAYMENTS.—As soon as 
practicable after the date of the enactment of 
the paragraph, the Secretary of the Treasury 
shall encode applicable payments that are paid 
electronically to any account— 
(i) with a unique identifier that is rea-
sonably sufficient to allow a financial insti-
tution to identify the payment as a pay-
ment protected under subparagraph (A), 
and 
(ii) pursuant to the same specifica-
tions as required for a benefit payment to 
which part 212 of title 31, Code of Federal 
regulations applies. 
(C) GARNISHMENT.— 
(i) ENCODED
PAYMENTS.—Upon re-
ceipt of a garnishment order that applies 
to an account that has received an applica-
ble payment that is encoded as provided in 
subparagraph (B), a financial institution 
shall follow the requirements and proce-
dures set forth in part 212 of title 31, 
Code of Federal Regulations. This para-
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
graph shall not alter the status of pay-
ments as tax refunds or other nonbenefit 
payments for purposes of any reclamation 
rights of the Department of the Treasury 
or the Internal Revenue Service as per 
part 210 of title 31 of the Code of Federal 
Regulations. 
(ii) OTHER PAYMENTS.—If a financial 
institution receives a garnishment order 
(other than an order that has been served 
by the United States) that applies to an 
account into which an applicable payment 
that has not been encoded as provided in 
subparagraph (B) has been deposited on 
any date in the prior 60 days (including 
any date before the date of the enactment 
of this paragraph), the financial institu-
tion, upon the request of the account hold-
er or for purposes of complying in good 
faith with a State order, State law, court 
order, or interpretation by a State Attor-
ney General relating to garnishment order, 
may, but is not required to, treat the 
amount of the payment as exempt under 
law from garnishment without requiring 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
the account holder to assert any right of 
garnishment exemption or requiring the 
consent of the judgment creditor. 
(iii) LIABILITY.—A financial institu-
tion that complies in good faith with clause 
(i) or that acts in good faith in reliance on 
clause (ii) shall not be liable under any 
Federal or State law, regulation, or court 
or other order to a creditor that initiates 
an order for any protected amounts, to an 
account holder for any frozen amounts or 
garnishment order applied. 
(D) DEFINITIONS.—For purposes of this 
paragraph— 
(i) ACCOUNT
HOLDER.—The term 
‘‘account holder’’ means a natural person 
against whom a garnishment order is 
issued and whose name appears in a finan-
cial institution’s records. 
(ii) 
APPLICABLE
PAYMENT.—The 
term ‘‘applicable payment’’ means any pay-
ment of credit or refund by reason of sec-
tion 6428 of such Code (as so added) or by 
reason of subsection (c) of this section. 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
(iii) GARNISHMENT.—The term ‘‘gar-
nishment’’ means execution, levy, attach-
ment, garnishment, or other legal process. 
(iv) 
GARNISHMENT
ORDER.—The 
term ‘‘garnishment order’’ means a writ, 
order, notice, summons, judgment, levy, or 
similar written instruction issued by a 
court, a State or State agency, a munici-
pality or municipal corporation, or a State 
child support enforcement agency, includ-
ing a lien arising by operation of law for 
overdue child support or an order to freeze 
the assets in an account, to effect a gar-
nishment against a debtor. 
(5) TREATMENT OF CREDIT AND ADVANCE PAY-
MENTS.—For purposes of section 1324 of title 31, 
United States Code, any credit under section 
6428A(a) of the Internal Revenue Code of 1986, any 
credit or refund under section 6428A(h) of such 
Code, and any payment under subsection (b) of this 
section, shall be treated in the same manner as a re-
fund due from a credit provision referred to in sub-
section (b)(2) of such section 1324. 
(6) AGENCY INFORMATION SHARING AND AS-
SISTANCE.—The Commissioner of Social Security, 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
the Railroad Retirement Board, and the Secretary of 
Veterans Affairs shall each provide the Secretary of 
the Treasury (or the Secretary’s delegate) such in-
formation and assistance as the Secretary of the 
Treasury (or the Secretary’s delegate) may require 
for purposes of making payments under section 
6428A(g) of the Internal Revenue Code of 1986 to 
individuals described in paragraph (5)(A)(ii) thereof. 
(7) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter B of chapter 65 of the Internal 
Revenue Code of 1986 is amended by inserting after 
the item relating to section 6428 the following new 
item: 
‘‘Sec. 6428A. Additional recovery rebates to individuals.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 3. REFUND OF BALANCE OWED WITH RESPECT TO 
CERTAIN DEPENDENTS. 
In the case of any taxpayer with respect to whom a 
partial refund or credit was made or allowed before the 
date of the enactment of this Act under subsection (f) of 
section 6428 of the Internal Revenue Code of 1986 and 
for whom a balance is owed with respect to a dependent, 
the Secretary shall, before December 31, 2020, certify and 
disburse the balance of such refund electronically to any 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS
account to which the payee authorized, on or after Janu-
ary 1, 2018, the delivery of a refund of taxes or of a Fed-
eral payment (as defined in section 3332 of title 31, 
United States Code). 
Æ 
VerDate Sep 11 2014 
18:04 Sep 05, 2020
Jkt 099200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6301
E:\BILLS\H7960.IH
H7960
pbinns on DSKJLVW7X2PROD with BILLS