deduct and withhold under chapter 24 an amount 
equal to the earned income advance amount. 
‘‘(e) SUBMISSION OF CERTIFICATE.— 
‘‘(1) EFFECTIVE PERIOD.—An eligibility certifi-
cate submitted to an employer at any time during 
the calendar year shall continue in effect with re-
spect to the employee during such calendar year 
until revoked by the employee or until another such 
certificate takes effect under this section. 
‘‘(2) REQUIREMENT
TO
REVOKE
CERTIFI-
CATE.—In the case of an employee who has sub-
mitted an eligibility certificate under this section and 
subsequently becomes ineligible for the credit pro-
vided under section 32 for the taxable year, the em-
ployee shall, not later than 10 days after becoming 
ineligible for such credit, submit to the employer a 
revocation of such certificate. 
‘‘(3) FORM AND CONTENTS OF CERTIFICATE.— 
Eligibility certificates shall be in such form and con-
tain such other information as the Secretary may by 
regulations prescribe. 
‘‘(f) TAXPAYERS MAKING PRIOR FRAUDULENT OR 
RECKLESS CLAIMS.— 
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‘‘(1) IN GENERAL.—No earned income advance 
amount shall be paid under this section for any tax-
able year in the disallowance period. 
‘‘(2) DISALLOWANCE PERIOD.—For purposes of 
paragraph (1), the disallowance period is— 
‘‘(A) 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 an earned income advance amount 
under this section was due to fraud, and 
‘‘(B) 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 an earned income advance amount 
under this section was due to reckless or inten-
tional disregard of rules and regulations (but 
not due to fraud). 
‘‘(g) TAXABLE
YEAR.—The term ‘taxable year’ 
means the last taxable year of the employee under subtitle 
A beginning in the calendar year in which the wages are 
paid. 
‘‘(h) IRS NOTIFICATION.—The Internal Revenue 
Service shall take such steps as may be appropriate to en-
sure that taxpayers who receive a refund of the credit 
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under section 32 are aware of the availability of earned 
income advance amounts under this section.’’. 
(b) COORDINATION WITH ADVANCE PAYMENTS.— 
Section 32 of the Internal Revenue Code of 1986 is 
amended by inserting after subsection (f) the following 
new subsection: 
‘‘(g) COORDINATION WITH ADVANCE PAYMENTS OF 
EARNED INCOME CREDIT.— 
‘‘(1) RECAPTURE OF ADVANCE PAYMENTS.—If 
any payment is made to the individual by an em-
ployer under section 3507 during any calendar year, 
then the tax imposed by this chapter for the individ-
ual’s last taxable year beginning in such calendar 
year shall be increased by the aggregate amount of 
such payments. 
‘‘(2) 
RECONCILIATION
OF
PAYMENTS
AD-
VANCED AND CREDIT ALLOWED.—Any increase in 
tax under paragraph (1) shall not be treated as tax 
imposed by this chapter for purposes of determining 
the amount of any credit (other than the credit al-
lowed by subsection (a)) allowable under this part.’’. 
(c) FILING REQUIREMENT.—Section 6012(a) of the 
Internal Revenue Code of 1986 is amended— 
(1) in paragraph (7), by striking ‘‘and’’ at the 
end, 
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(2) in paragraph (8), by adding ‘‘and’’ at the 
end, and 
(3) by inserting after paragraph (8) the fol-
lowing new paragraph: 
‘‘(9) Every individual who receives payments 
during the calendar year in which the taxable year 
begins under section 3507;’’. 
(d) RECEIPTS FOR EMPLOYEES.—Section 6051(a) of 
the Internal Revenue Code of 1986 is amended by insert-
ing after paragraph (6) the following new paragraph: 
‘‘(7) the total amount paid to the employee 
under section 3507 (relating to advance payment of 
earned income credit),’’. 
(e) CLERICAL AMENDMENT.—The table of sections 
for chapter 25 of subtitle C of the Internal Revenue Code 
of 1986 is amended by inserting after the item relating 
to section 3506 the following new item: 
‘‘Sec. 3507. Advance payment of earned income credit.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
Æ 
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