SEC. 2. ANNUAL REPORTS TO CONGRESS REGARDING 
AUDIT RATES OF TAXPAYERS CLAIMING THE 
ADOPTION TAX CREDIT. 
(a) INITIAL REPORT IN 2023.— 
(1) IN GENERAL.—Not later than December 31, 
2023, the Secretary of the Treasury shall submit a 
written report to the Committee on Ways and Means 
of the House of Representatives and the Committee 
on Finance of the Senate comparing the auditing 
rate of individuals who claim the adoption tax credit 
to the auditing rate of comparable individuals who 
did not claim such credit. Such report shall include 
the following information stated separately with re-
spect to taxable years beginning in or with each of 
calendar years 2008 through 2019: 
(A) The auditing rate for individuals who 
claim the adoption tax credit for such taxable 
year, and such rate determined separately (for 
each such taxable year) for: 
(i) Each State (determined on the 
basis of mailing address). 
(ii) Joint returns. 
(iii) Returns other than joint returns. 
(B) The auditing rate for comparable indi-
viduals who did not claim the adoption tax 
credit for such taxable year, and such rate de-
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termined separately (for each such taxable) for 
each category described in clauses (i), (ii), and 
(iii) of subparagraph (A). 
(2) COMPARABLE
INDIVIDUAL.—For purposes 
of this subsection, the term ‘‘comparable individual’’ 
means, with respect to any taxable year, any indi-
vidual who files an income tax return for such tax-
able year and whose adjusted gross income (as de-
fined in section 23(b)(2)(B) of the Internal Revenue 
Code of 1986) for such taxable year does not exceed 
the dollar amount of adjusted gross income (as so 
defined) at which the adoption tax credit is reduced 
to zero for such taxable year. 
(b) ANNUAL REPORTS.— 
(1) FIRST ANNUAL REPORT IN 2024.—Not later 
than the close of calendar year 2024, the Secretary 
of the Treasury shall submit a written report to the 
Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of 
the Senate including the information described in 
subparagraphs (A) and (B) of subsection (a)(1) with 
respect to taxable years beginning in or with cal-
endar year 2020. 
(2) SUBSEQUENT ANNUAL REPORTS THROUGH 
2036.—With respect to each calendar year after 
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2024 and before 2037, paragraph (1) shall be ap-
plied by increasing ‘‘2024’’ and ‘‘2020’’ by the num-
ber of years equal to the excess of— 
(A) such calendar year, over 
(B) 2024. 
SEC. 3. REPORT TO CONGRESS REGARDING AUDITING 
PRACTICES FOR REFUNDABLE AND NON-
REFUNDABLE PERSONAL TAX CREDITS. 
(a) IN GENERAL.—Not later than December 31, 
2023, the Secretary of the Treasury shall submit a written 
report to the Committee on Ways and Means of the House 
of Representatives and the Committee on Finance of the 
Senate regarding audit practices of the Internal Revenue 
Service with respect to individuals who claim refundable 
credits and individuals who claim nonrefundable credits. 
Such report shall include— 
(1) a comparison (stated separately for various 
income categories) of the auditing rate for individ-
uals who claim one or more refundable credits (other 
than any credit which constitutes an overpayment of 
tax) and the auditing rate for individuals who claim 
one or more nonrefundable personal credits, and 
(2) a description of any policies or practices of 
the Internal Revenue Service which create, or which 
would tend to create, a discrepancy between the au-
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diting rates of the taxpayers described in paragraph 
(1). 
(b) PROTECTION
OF TAX ADMINISTRATION
AND 
PREVENTION OF FRAUD.—The description referred to in 
subsection (a)(2) shall be as detailed as possible without 
disclosing information which would impair tax administra-
tion or aid in the commission of fraud. 
Æ 
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