I 
111TH CONGRESS 
2D SESSION 
H. R. 5693 
To provide additional protections for recipients of the earned income tax 
credit and the child tax credit. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 1, 2010 
Ms. LEE of California (for herself, Ms. SCHAKOWSKY, Ms. NORTON, Mr. 
SERRANO, Mr. FILNER, Mr. STARK, Ms. WOOLSEY, Mr. ELLISON, and 
Mr. GRIJALVA) introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on Fi-
nancial Services, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To provide additional protections for recipients of the earned 
income tax credit and the child tax credit. 
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 ‘‘Taxpayer Abuse Pre-
vention Act’’. 
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SEC. 2. PREVENTION OF DIVERSION OF EARNED INCOME 
TAX CREDIT AND CHILD TAX CREDIT BENE-
FITS. 
(a) EARNED INCOME.—Section 32 of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subsection: 
‘‘(n) PREVENTION OF DIVERSION OF CREDIT BENE-
FITS.—The right of any individual to any future payment 
of the credit under this section shall not be transferable 
or assignable, at law or in equity, and such right or any 
moneys paid or payable under this section shall not be 
subject to any execution, levy, attachment, garnishment, 
offset, or other legal process except for any outstanding 
Federal obligation. Any waiver of the protections of this 
subsection shall be deemed null, void, and of no effect.’’. 
(b) CHILD TAX CREDIT.—Section 24 of such Code 
is amended by adding at the end the following new sub-
section: 
‘‘(g) PREVENTION OF DIVERSION OF CREDIT BENE-
FITS.—The right of any individual to any future payment 
of the credit under this section shall not be transferable 
or assignable, at law or in equity, and such right or any 
moneys paid or payable under this section shall not be 
subject to any execution, levy, attachment, garnishment, 
offset, or other legal process except for any outstanding 
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Federal obligation. Any waiver of the protections of this 
subsection shall be deemed null, void, and of no effect.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 3. PROHIBITION ON DEBT COLLECTION OFFSET. 
(a) IN GENERAL.—No person shall, directly or indi-
rectly, individually or in conjunction or in cooperation with 
another person, engage in the collection of an outstanding 
or delinquent debt for any creditor or assignee by means 
of soliciting the execution of, processing, receiving, or ac-
cepting an application or agreement for a refund anticipa-
tion loan or refund anticipation check that contains a pro-
vision permitting the creditor to repay, by offset or other 
means, an outstanding or delinquent debt for that creditor 
from the proceeds of the debtor’s Federal tax refund. 
(b) REFUND ANTICIPATION LOAN.—For purposes of 
subsection (a), the term ‘‘refund anticipation loan’’ means 
a loan of money or of any other thing of value to a tax-
payer because of the taxpayer’s anticipated receipt of a 
Federal tax refund. 
(c) EFFECTIVE DATE.—This section shall take effect 
on the date of the enactment of this Act. 
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