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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. OFFSETTING PAST-DUE, LEGALLY ENFORCE-
ABLE LOCAL TAX OBLIGATIONS. 
(a) IN GENERAL.—Subsection (e) of section 6402 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(8) PAST-DUE, LEGALLY ENFORCEABLE LOCAL 
TAX OBLIGATIONS.— 
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‘‘(A) IN GENERAL.—A State may, on be-
half of a local government located within the 
State, submit a notice of past-due, legally en-
forceable local tax obligation for offset under 
this subsection. 
‘‘(B) SPECIAL
RULES.—Such submission 
and offset shall be made with respect to any 
past-due, legally enforceable local tax obligation 
under rules similar to the rules of this sub-
section, except— 
‘‘(i) under paragraph (3)(A), any re-
duction attributable to a past-due, legally 
enforceable local tax obligation shall be 
made (in addition to reductions specified in 
such subparagraph) after the overpayment 
is reduced pursuant to— 
‘‘(I) this subsection with respect 
to any past-due, legally enforceable 
State income tax obligation; and 
‘‘(II) subsection (f) with respect 
to any covered unemployment com-
pensation debt; and 
‘‘(ii) the local government on whose 
behalf a State is submitting shall certify to 
the State that the requirements of para-
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graph (4) have been met by the local gov-
ernment. 
‘‘(C) PAST-DUE, LEGALLY ENFORCEABLE 
LOCAL TAX OBLIGATION.—For purposes of this 
subsection, the term ‘past-due, legally enforce-
able local tax obligation’ means any debt— 
‘‘(i)(I) which resulted from a judg-
ment rendered by a court of competent ju-
risdiction, or a determination after an ad-
ministrative hearing, which has determined 
an amount of tax to be due to a local gov-
ernment; and 
‘‘(II) which is no longer subject to ju-
dicial review; or 
‘‘(ii) which resulted from a tax im-
posed by a local government which has 
been assessed but not collected, the time 
for redetermination of which has expired, 
and which has not been delinquent for 
more than 10 years. 
Such term shall not include any local income 
tax described in the second sentence of para-
graph (5). 
‘‘(D) REGULATIONS.—The Secretary shall 
issue such regulations, and modify any such 
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regulations under paragraph (6), as may be 
necessary to carry out the purposes of this 
paragraph.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to refunds payable after the date 
of the enactment of this Act. 
Æ 
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