‘‘SEC. 7524. COLLECTION OF CHILD SUPPORT.
‘‘(a) MONTHLY PAYMENTS BY INDIVIDUALS WITH
NO OR INSUFFICIENT WAGE WITHHOLDING FOR CHILD
SUPPORT.—
‘‘(1) IN GENERAL.—Each individual who has a
child support payment shortfall for any month shall
pay an amount equal to such shortfall to the Sec-
retary not later than the close of such month or
such earlier date specified by the Secretary.
‘‘(2) CHILD SUPPORT PAYMENT SHORTFALL.—
For purposes of this subsection, the term ‘child sup-
port payment shortfall’ means, with respect to any
month, an amount equal to the excess (if any) of—
‘‘(A) the amount of the applicable child
support obligation for such month, over
‘‘(B) the amount (if any) deducted and
withheld under section 3411 from the wages
paid to such individual during such month.
‘‘(3) CERTAIN
OBLIGATIONS
EXEMPT.—This
subsection shall not apply to a child support obliga-
tion if the order requiring payment of such obliga-
tion specifies that such obligation is exempt from the
requirements of this subsection.
‘‘(b) PAYMENTS OF ARREARAGES BY INDIVIDUALS
NO LONGER EXEMPT FROM WITHHOLDING OR MONTHLY
PAYMENTS.—
‘‘(1) IN GENERAL.—If—
‘‘(A) for any month ending with or within
the taxable year, a child support obligation was
exempt from section 3111 and subsection (a) of
this section,
‘‘(B) such obligation ceases to be so ex-
empt during such year, and
‘‘(C) such individual failed to pay the full
amount of such obligation for any month end-
ing with or within such year for which such ob-
ligation was so exempt,
then such individual shall pay (not later than the
date specified by the Secretary) an amount equal to
the excess of the full amount of such obligation for
the months referred to in subparagraph (A) over the
amount paid before such date under such obligation
for such months.
‘‘(2) DETERMINATION OF AMOUNT REQUIRED
TO
BE
PAID.—Subsection (d) shall apply to an
amount required to be paid under this subsection
only after the Secretary’s determination of such
amount (after a hearing on the record) becomes
final.
‘‘(c) RECONCILIATION OF CHILD SUPPORT OBLIGA-
TION AND PAYMENTS ON INCOME TAX RETURN.—
‘‘(1) IN GENERAL.—Each applicable child sup-
port obligation of any individual for months ending
with or within any taxable year shall be paid—
‘‘(A) not later than the last date (deter-
mined without regard to extensions) prescribed
for filing the individual’s return of tax imposed
by chapter 1 for such taxable year, and
‘‘(B)(i) if such return is filed not later
than such date, with such return, or
‘‘(ii) in any case not described in clause (i),
in such manner as the Secretary may by regula-
tions prescribe.
‘‘(2) OFFSET FOR WITHHELD CHILD SUPPORT,
ETC.—There shall be allowed as a credit against the
amount required to be paid under paragraph (1) by
an individual the sum of—
‘‘(A) the amount (if any) deducted and
withheld under section 3411 from the wages re-
ceived by such individual during the taxable
year,
‘‘(B) the amount (if any) paid by such in-
dividual under section 6654 by reason of sub-
section (f)(3) thereof for such taxable year,
‘‘(C) the amount (if any) paid by such in-
dividual under subsections (a) and (b) for such
taxable year, and
‘‘(D) in the case of an obligation which
was exempt from the requirements of section
3411 and subsection (a) of this section for only
a portion of the taxable year, the amount paid
(for such portion of the taxable year) by such
individual directly to the person to whom the
obligation is owed (or, if such person has as-
signed to a State the right to collect the obliga-
tion, the State).
‘‘(3) CREDIT OR REFUND FOR PAYMENTS IN
EXCESS OF ACTUAL OBLIGATION.—There shall be al-
lowed as a credit against the tax imposed by subtitle
A for the taxable year an amount equal to the excess
(if any) of—
‘‘(A) the aggregate of the amounts de-
scribed in subparagraphs (A), (B), (C), and (D)
of paragraph (2) for such taxable year, over
‘‘(B) the aggregate of the applicable child
support obligations of the taxpayer for such
taxable year.
The credit allowed by this paragraph shall be treated
for purposes of this title as allowed by subpart C of
part IV of subchapter A of chapter 1.
‘‘(d) FAILURE TO PAY AMOUNT OWING.—If an indi-
vidual fails to pay the full amount required to be paid
under subsection (a), (b), or (c) on or before due date for
such payment, the Secretary shall assess and collect the
unpaid amount in the same manner, with the same pow-
ers, and subject to the same limitations applicable to a
tax imposed by subtitle C the collection of which would
be jeopardized by delay.
‘‘(e) APPLICATION OF SECTION TO CHILD SUPPORT
ORDERS NOT INITIALLY SUBJECT TO SECTION.—
‘‘(1) IN GENERAL.—In the case of a child sup-
port obligation which becomes an applicable child
support obligation for any month after January
1996, the amount required to be paid under sub-
section (a) for the first such month shall be in-
creased by the excess (if any) of—
‘‘(A) the aggregate amount required to be
paid under such obligation for all months before
such month (including months in prior taxable
years), over