Protecting Adopting Families from Audits Act
Bill: H.R.9612 | Sponsor: Rep. Moore, Blake D. (R-UT)
Policy area: Taxation

Summary:
Protecting Adopting Families from Audits Act
This bill requires the Internal Revenue Service (IRS) to submit a written report to the congressional tax committees comparing the audit rate of individual taxpayers who claim the adoption tax credit to the audit rate of those taxpayers who do not claim such credit. The initial report must be submitted not later than the end of 2023 and then annually thereafter through 2036.
The IRS must also submit a written report regarding its audit practices for individuals who claim refundable and nonrefundable tax credits.

To direct the Secretary of the Treasury to report to Congress regarding 
audit rates of taxpayers claiming the adoption tax credit and regarding 
   the audit practices for refundable and nonrefundable personal tax 
                                credits.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting Adopting Families from 
Audits Act''.

SEC. 2. ANNUAL REPORTS TO CONGRESS REGARDING AUDIT RATES OF TAXPAYERS 
              CLAIMING THE ADOPTION TAX CREDIT.

    (a) Initial Report in 2023.--
            (1) In general.--Not later than December 31, 2023, the 
        Secretary of the Treasury shall submit a written report to the 
        Committee on Ways and Means of the House of Representatives and 
        the Committee on Finance of the Senate comparing the auditing 
        rate of individuals who claim the adoption tax credit to the 
        auditing rate of comparable individuals who did not claim such 
        credit. Such report shall include the following information 
        stated separately with respect to taxable years beginning in or 
        with each of calendar years 2008 through 2019:
                    (A) The auditing rate for individuals who claim the 
                adoption tax credit for such taxable year, and such 
                rate determined separately (for each such taxable year) 
                for:
                            (i) Each State (determined on the basis of 
                        mailing address).
                            (ii) Joint returns.
                            (iii) Returns other than joint returns.
                    (B) The auditing rate for comparable individuals 
                who did not claim the adoption tax credit for such 
                taxable year, and such rate determined separately (for 
                each such taxable) for each category described in 
                clauses (i), (ii), and (iii) of subparagraph (A).
            (2) Comparable individual.--For purposes of this 
        subsection, the term ``comparable individual'' means, with 
        respect to any taxable year, any individual who files an income 
        tax return for such taxable year and whose adjusted gross 
        income (as defined in section 23(b)(2)(B) of the Internal 
        Revenue Code of 1986) for such taxable year does not exceed the 
        dollar amount of adjusted gross income (as so defined) at which 
        the adoption tax credit is reduced to zero for such taxable 
        year.
    (b) Annual Reports.--
            (1) First annual report in 2024.--Not later than the close 
        of calendar year 2024, the Secretary of the Treasury shall 
        submit a written report to the Committee on Ways and Means of 
        the House of Representatives and the Committee on Finance of 
        the Senate including the information described in subparagraphs 
        (A) and (B) of subsection (a)(1) with respect to taxable years 
        beginning in or with calendar year 2020.
            (2) Subsequent annual reports through 2036.--With respect 
        to each calendar year after 2024 and before 2037, paragraph (1) 
        shall be applied by increasing ``2024'' and ``2020'' by the 
        number of years equal to the excess of--
                    (A) such calendar year, over
                    (B) 2024.

SEC. 3. REPORT TO CONGRESS REGARDING AUDITING PRACTICES FOR REFUNDABLE 
              AND NONREFUNDABLE PERSONAL TAX CREDITS.

    (a) In General.--Not later than December 31, 2023, the Secretary of 
the Treasury shall submit a written report to the Committee on Ways and 
Means of the House of Representatives and the Committee on Finance of 
the Senate regarding audit practices of the Internal Revenue Service 
with respect to individuals who claim refundable credits and 
individuals who claim nonrefundable credits. Such report shall 
include--
            (1) a comparison (stated separately for various income 
        categories) of the auditing rate for individuals who claim one 
        or more refundable credits (other than any credit which 
        constitutes an overpayment of tax) and the auditing rate for 
        individuals who claim one or more nonrefundable personal 
        credits, and
            (2) a description of any policies or practices of the 
        Internal Revenue Service which create, or which would tend to 
        create, a discrepancy between the auditing rates of the 
        taxpayers described in paragraph (1).
    (b) Protection of Tax Administration and Prevention of Fraud.--The 
description referred to in subsection (a)(2) shall be as detailed as 
possible without disclosing information which would impair tax 
administration or aid in the commission of fraud.
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