which there was a final determination that 
the taxpayer’s claim of credit under this 
section was due to fraud, and 
‘‘(ii) 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 credit under this 
section was due to reckless or intentional 
disregard of rules and regulations (but not 
due to fraud). 
‘‘(2) TAXPAYERS
MAKING
IMPROPER
PRIOR 
CLAIMS.—In the case of a taxpayer who is denied 
credit under this section for any taxable year as a 
result of the deficiency procedures under subchapter 
B of chapter 63, no credit shall be allowed under 
this section for any subsequent taxable year unless 
the taxpayer provides such information as the Sec-
retary may require to demonstrate eligibility for 
such credit.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 6211(b)(4) of the Internal 
Revenue Code of 1986 is amended by inserting 
‘‘36C,’’ after ‘‘36B,’’. 
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(B) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘25E,’’ 
after ‘‘25A,’’. 
(C) The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of the In-
ternal Revenue Code of 1986 is amended by in-
serting after the item relating to section 36B 
the following new item: 
‘‘Sec. 36C. Foster care tax credit.’’. 
(b) INFORMATION RETURNS RELATING TO FOSTER 
CHILD PLACEMENT.— 
(1) IN GENERAL.—Subpart A of part III of 
subchapter A of chapter 61 of the Internal Revenue 
Code of 1986 is amended by inserting after section 
6039J the following new section: 
‘‘SEC. 6039K. INFORMATION REPORTING WITH RESPECT TO 
FOSTER CHILD PLACEMENT. 
‘‘(a) IN GENERAL.—Every authorized placement 
agency and court which places a qualifying foster child 
with a person during a calendar year shall, at such time 
as the Secretary shall prescribe, make a return described 
in subsection (b). 
‘‘(b) FORM AND MANNER OF RETURN.—A return is 
described in this subsection if such return— 
‘‘(1) is in such form as the Secretary may pre-
scribe, and 
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‘‘(2) contains, with respect to each qualifying 
foster child placed during the calendar year— 
‘‘(A) the name, address, and TIN of each 
individual with whom such qualifying foster 
child was placed, 
‘‘(B) the name of the qualifying foster 
child, and 
‘‘(C) the dates during which such place-
ment occurred. 
‘‘(c) STATEMENTS TO BE FURNISHED TO FOSTER 
PARENTS.— 
‘‘(1) IN GENERAL.—Every person required to 
make a return under subsection (a) shall furnish to 
each individual whose name is required to be set 
forth under subsection (b)(2)(A) a written statement 
showing— 
‘‘(A) the name and address of the person 
required to make such return and the phone 
number of the information contact for such per-
son, and 
‘‘(B) the information required to be shown 
on the return with respect to such individual. 
‘‘(2) TIME
FOR
FURNISHING
STATEMENTS.— 
The written statement required under paragraph (1) 
shall be furnished on or before January 31 of the 
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year following the calendar year for which the return 
under subsection (a) was required to be made. 
‘‘(d) QUALIFYING FOSTER CHILD.—For purposes of 
this section, the term ‘qualifying foster child’ has the 
meaning given such term under section 36C(c)(2).’’. 
(2) ASSESSABLE PENALTIES.— 
(A) Section 6724(d)(1)(B) of such Code is 
amended by striking ‘‘or’’ at the end of clause 
(xxv), by striking ‘‘and’’ at the end of clause 
(xxvi) and inserting ‘‘or’’, and by inserting after 
clause (xxvi) the following new clause: 
‘‘(xxvii) section 6039K (relating to in-
formation returns with respect to foster 
child placement),’’. 
(B) Section 6724(d)(2) of such Code is 
amended by redesignating the second subpara-
graph (JJ) as subparagraph (KK), by striking 
‘‘or’’ at the end of subparagraph (II), by strik-
ing the period at the end of the first subpara-
graph (JJ), by striking the period at the end of 
subparagraph (KK) (as so redesignated) and 
inserting a comma, and by inserting after such 
subparagraph (KK) the following new subpara-
graph: 
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‘‘(LL) section 6039K(c) (relating to state-
ments with respect to foster child placement).’’. 
(3) CLERICAL AMENDMENT.—The table of sec-
tions of subpart A of part III of subchapter A of 
chapter 61 of such Code is amended by inserting 
after the item relating to section 6039J the fol-
lowing new item: 
‘‘Sec. 6039K. Information reporting with respect to foster child placement.’’. 
(c) ELECTION NOT TO TAKE CHILD TAX CREDIT.— 
Section 24(h)(4) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new sub-
paragraph: 
‘‘(D) ELECTION NOT TO TAKE CREDIT.— 
A taxpayer may elect not to have this para-
graph apply with respect to any dependent of 
the taxpayer to whom a credit would otherwise 
be allowed by reason of subparagraph (A). In 
any case in which a taxpayer makes an election 
under this subparagraph, the credit allowed 
under this section shall be treated as not al-
lowed with respect to such dependent.’’. 
(d) APPLICATION OF TAX RETURN PREPARER DUE 
DILIGENCE PENALTY.—Section 6695(g) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘or 32’’ 
and inserting ‘‘32, or 36C’’. 
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(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar months beginning after 
December 31, 2024, in taxable years beginning after such 
date. 
(f) EDUCATION.— 
(1) IN GENERAL.—The Secretary of Health and 
Human Services (or the Secretary’s delegate), in co-
ordination with the Secretary of the Treasury or 
such Secretary’s delegate, shall identify provisions in 
the Internal Revenue Code of 1986 that can be used 
by or can benefit foster families, and shall increase 
outreach efforts to provide information and edu-
cational materials regarding such provisions to State 
and Indian tribal foster care agencies and to foster 
families. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated such sums 
as necessary for the purposes of carrying out para-
graph (1). 
SEC. 3. STUDY AND REPORT ON EMERGENCY AND SHORT- 
TERM FOSTER PLACEMENTS. 
(a) STUDY.—The Secretary of Health and Human 
services, in coordination with the Secretary of the Treas-
ury (or the Secretary’s delegate), shall conduct a study 
on— 
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(1) the costs and financial burdens on foster 
families who experience multiple emergency and 
short-term foster placements annually; and 
(2) challenges to verifying and documenting the 
placement of children in emergency and short-term 
placement. 
For purposes of this subsection, a short-term placement 
is a placement that lasts less than 1 week. 
(b) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Secretary of Health and 
Human Services shall submit to Congress a report on the 
study conducted under subsection (a). 
Æ 
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