Title: Emergency Direct Payments Act
Policy area: Taxation

Summary:
Emergency Direct Payments Act
This bill provides an additional recovery rebate (i.e., refundable tax credits) beginning in 2020 to individual taxpayers whose adjusted gross income does not exceed $75,000 ($150,000 for joint return filers). The increased amount is $1,200 per taxpayer ($2,400 for joint return filers) and $500 for each dependent of the taxpayer.
To be eligible for the increased rebate amount, a taxpayer must provide a valid identification number (i.e., Social Security account number). The bill allows an exemption from the identification requirement for members of the Armed Forces if at least one military spouse provides a valid identification number. It also provides for a qualified exemption for the recovery rebate from garnishments and other offsets.
The Department of the Treasury must conduct a public awareness campaign regarding the availability of the recovery rebate.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 5063 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 5063

   To amend the Internal Revenue Code of 1986 to provide additional 
                    recovery rebates to individuals.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 18, 2020

  Mr. Sanders introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to provide additional 
                    recovery rebates to individuals.

    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 ``Emergency Direct Payments Act''.

SEC. 2. ADDITIONAL RECOVERY REBATES FOR INDIVIDUALS.

    (a) In General.--Subchapter B of chapter 65 of subtitle F of the 
Internal Revenue Code of 1986 is amended by inserting after section 
6428 the following new section:

``SEC. 6428A. ADDITIONAL RECOVERY REBATES FOR INDIVIDUALS.

    ``(a) In General.--In the case of an eligible individual, there 
shall be allowed as a credit against the tax imposed by subtitle A for 
the first taxable year beginning in 2020 an amount equal to the sum 
of--
            ``(1) $1,200 ($2,400 in the case of eligible individuals 
        filing a joint return), plus
            ``(2) an amount equal to the product of $500 multiplied by 
        the number of dependents (as defined in section 152) of the 
        taxpayer.
    ``(b) Treatment of Credit.--The credit allowed by subsection (a) 
shall be treated as allowed by subpart C of part IV of subchapter A of 
chapter 1.
    ``(c) Limitation Based on Adjusted Gross Income.--The amount of the 
credit allowed by subsection (a) (determined without regard to this 
subsection and subsection (e)) shall be reduced (but not below zero) by 
5 percent of so much of the taxpayer's adjusted gross income as 
exceeds--
            ``(1) $150,000 in the case of a joint return,
            ``(2) $112,500 in the case of a head of household, and
            ``(3) $75,000 in the case of a taxpayer not described in 
        paragraph (1) or (2).
    ``(d) Eligible Individual.--For purposes of this section, the term 
`eligible individual' means any individual other than--
            ``(1) any nonresident alien individual,
            ``(2) any individual with respect to whom a deduction under 
        section 151 is allowable to another taxpayer for a taxable year 
        beginning in the calendar year in which the individual's 
        taxable year begins, and
            ``(3) an estate or trust.
    ``(e) Coordination With Advance Refunds of Credit.--
            ``(1) In general.--The amount of credit which would (but 
        for this paragraph) be allowable under this section shall be 
        reduced (but not below zero) by the aggregate refunds and 
        credits made or allowed to the taxpayer under subsection (f). 
        Any failure to so reduce the credit shall be treated as arising 
        out of a mathematical or clerical error and assessed according 
        to section 6213(b)(1).
            ``(2) Joint returns.--In the case of a refund or credit 
        made or allowed under subsection (f) with respect to a joint 
        return, half of such refund or credit shall be treated as 
        having been made or allowed to each individual filing such 
        return.
    ``(f) Advance Refunds and Credits.--
            ``(1) In general.--Subject to paragraph (5), each 
        individual who was an eligible individual for such individual's 
        first taxable year beginning in 2019 shall be treated as having 
        made a payment against the tax imposed by chapter 1 for such 
        taxable year in an amount equal to the advance refund amount 
        for such taxable year.
            ``(2) Advance refund amount.--For purposes of paragraph 
        (1), the advance refund amount is the amount that would have 
        been allowed as a credit under this section for such taxable 
        year if this section (other than subsection (e) and this 
        subsection) had applied to such taxable year.
            ``(3) Timing and manner of payments.--
                    ``(A) Timing.--The Secretary shall, subject to the 
                provisions of this title, refund or credit any 
                overpayment attributable to this section as rapidly as 
                possible. No refund or credit shall be made or allowed 
                under this subsection after December 31, 2021.
                    ``(B) Delivery of payments.--Notwithstanding any 
                other provision of law, the Secretary may certify and 
                disburse refunds payable under this subsection 
                electronically to any account to which the payee 
                authorized, on or after January 1, 2018, the delivery 
                of a refund of taxes under this title or of a Federal 
                payment (as defined in section 3332 of title 31, United 
                States Code).
                    ``(C) Waiver of certain rules.--Notwithstanding 
                section 3325 of title 31, United States Code, or any 
                other provision of law, with respect to any payment of 
                a refund under this subsection, a disbursing official 
                in the executive branch of the United States Government 
                may modify payment information received from an officer 
                or employee described in section 3325(a)(1)(B) of such 
                title for the purpose of facilitating the accurate and 
                efficient delivery of such payment. Except in cases of 
                fraud or reckless neglect, no liability under section 
                3325, 3527, 3528, or 3529 of title 31, United States 
                Code, shall be imposed with respect to payments made 
                under this subparagraph.
            ``(4) No interest.--No interest shall be allowed on any 
        overpayment attributable to this section.
            ``(5) Alternate taxable year.--In the case of an individual 
        who, at the time of any determination made pursuant to 
        paragraph (3), has not filed a tax return for the year 
        described in paragraph (1), the Secretary may--
                    ``(A) apply such paragraph by substituting `2018' 
                for `2019', and
                    ``(B) if the individual has not filed a tax return 
                for such individual's first taxable year beginning in 
                2018, use information with respect to such individual 
                for calendar year 2019 provided in--
                            ``(i) Form SSA-1099, Social Security 
                        Benefit Statement, or
                            ``(ii) Form RRB-1099, Social Security 
                        Equivalent Benefit Statement.
            ``(6) Payment to representative payees and fiduciaries.--
                    ``(A) In general.--In the case of any individual 
                for which payment information is provided to the 
                Secretary by the Commissioner of Social Security, the 
                Railroad Retirement Board, or the Secretary of Veterans 
                Affairs, the payment by the Secretary under paragraph 
                (3) with respect to such individual may be made to such 
                individual's representative payee or fiduciary and the 
                entire payment shall be--
                            ``(i) provided to the individual who is 
                        entitled to the payment, or
                            ``(ii) used only for the benefit of the 
                        individual who is entitled to the payment.
                    ``(B) Application of enforcement provisions.--
                            ``(i) In the case of a payment described in 
                        subparagraph (A) which is made with respect to 
                        a social security beneficiary or a supplemental 
                        security income recipient, section 1129(a)(3) 
                        of the Social Security Act (42 U.S.C. 1320a-
                        8(a)(3)) shall apply to such payment in the 
                        same manner as such section applies to a 
                        payment under title II or XVI of such Act.
                            ``(ii) In the case of a payment described 
                        in subparagraph (A) which is made with respect 
                        to a railroad retirement beneficiary, section 
                        13 of the Railroad Retirement Act (45 U.S.C. 
                        231l) shall apply to such payment in the same 
                        manner as such section applies to a payment 
                        under such Act.
                            ``(iii) In the case of a payment described 
                        in subparagraph (A) which is made with respect 
                        to a veterans beneficiary, sections 5502, 6106, 
                        and 6108 of title 38, United States Code, shall 
                        apply to such payment in the same manner as 
                        such sections apply to a payment under such 
                        title.
            ``(7) Notice to taxpayer.--Not later than 15 days after the 
        date on which the Secretary distributed any payment to an 
        eligible taxpayer pursuant to this subsection, notice shall be 
        sent by mail to such taxpayer's last known address. Such notice 
        shall indicate the method by which such payment was made, the 
        amount of such payment, and a phone number for the appropriate 
        point of contact at the Internal Revenue Service to report any 
        failure to receive such payment.
    ``(g) Identification Number Requirement.--
            ``(1) In general.--In the case of any taxpayer who does not 
        include the valid identification number of such taxpayer on the 
        return of tax for the taxable year, subsection (a)(1) shall be 
        applied by substituting `$0' for `$1,200'.
            ``(2) Joint returns.--In the case of a joint return--
                    ``(A) if the valid identification number of only 1 
                spouse is included on the return of tax for the taxable 
                year--
                            ``(i) subsection (a)(1) shall be applied by 
                        substituting `$1,200' for `$2,400', and
                            ``(ii) subsection (c)(1) shall be applied 
                        by substituting `$75,000' for `$150,000', or
                    ``(B) if the valid identification number of neither 
                spouse is included on the return of tax for the taxable 
                year, subsection (a)(1) shall be applied by 
                substituting `$0' for `$2,400'.
            ``(3) Dependent.--A dependent of a taxpayer shall not be 
        taken into account under subsection (a)(2) unless--
                    ``(A) the taxpayer includes the valid 
                identification number of such taxpayer (or, in the case 
                of a joint return, the valid identification number of 
                at least 1 spouse) on the return of tax for the taxable 
                year, and
                    ``(B) the valid identification number of such 
                dependent is included on the return of tax for the 
                taxable year.
            ``(4) Valid identification number.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `valid identification number' means a social 
                security number (as such term is defined in section 
                24(h)(7)).
                    ``(B) Adoption taxpayer identification number.--For 
                purposes of paragraph (3)(B), in the case of a 
                dependent who is adopted or placed for adoption, the 
                term `valid identification number' shall include the 
                adoption taxpayer identification number of such 
                dependent.
            ``(5) Special rule for members of the armed forces.--
        Paragraph (2) shall not apply in the case where at least 1 
        spouse was a member of the Armed Forces of the United States at 
        any time during the taxable year and the valid identification 
        number of at least 1 spouse is included on the return of tax 
        for the taxable year.
            ``(6) Mathematical or clerical error authority.--Any 
        omission of a correct valid identification number required 
        under this subsection shall be treated as a mathematical or 
        clerical error for purposes of applying section 6213(g)(2) to 
        such omission.
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as may be necessary to carry out the purposes of this 
section, including any such measures as are deemed appropriate to avoid 
allowing multiple credits or rebates to a taxpayer.''.
    (b) Administrative Amendments.--
            (1) Definition of deficiency.--Section 6211(b)(4)(A) of the 
        Internal Revenue Code of 1986 is amended by striking ``and 
        6428'' and inserting ``6428, and 6428A''.
            (2) Mathematical or clerical error authority.--Section 
        6213(g)(2)(L) of such Code is amended by striking ``or 6428'' 
        and inserting ``6428, or 6428A''.
    (c) Treatment of Possessions.--
            (1) Payments to possessions.--
                    (A) Mirror code possession.--The Secretary of the 
                Treasury shall pay to each possession of the United 
                States which has a mirror code tax system amounts equal 
                to the loss (if any) to that possession by reason of 
                the amendments made by this section. Such amounts shall 
                be determined by the Secretary of the Treasury based on 
                information provided by the government of the 
                respective possession.
                    (B) Other possessions.--The Secretary of the 
                Treasury shall pay to each possession of the United 
                States which does not have a mirror code tax system 
                amounts estimated by the Secretary of the Treasury as 
                being equal to the aggregate benefits (if any) that 
                would have been provided to residents of such 
                possession by reason of the amendments made by this 
                section if a mirror code tax system had been in effect 
                in such possession. The preceding sentence shall not 
                apply unless the respective possession has a plan, 
                which has been approved by the Secretary of the 
                Treasury, under which such possession will promptly 
                distribute such payments to its residents.
            (2) Coordination with credit allowed against united states 
        income taxes.--No credit shall be allowed against United States 
        income taxes under section 6428A of the Internal Revenue Code 
        of 1986 (as added by this section) to any person--
                    (A) to whom a credit is allowed against taxes 
                imposed by the possession by reason of the amendments 
                made by this section, or
                    (B) who is eligible for a payment under a plan 
                described in paragraph (1)(B).
            (3) Definitions and special rules.--
                    (A) Possession of the united states.--For purposes 
                of this subsection, the term ``possession of the United 
                States'' includes the Commonwealth of Puerto Rico and 
                the Commonwealth of the Northern Mariana Islands.
                    (B) Mirror code tax system.--For purposes of this 
                subsection, the term ``mirror code tax system'' means, 
                with respect to any possession of the United States, 
                the income tax system of such possession if the income 
                tax liability of the residents of such possession under 
                such system is determined by reference to the income 
                tax laws of the United States as if such possession 
                were the United States.
                    (C) Treatment of payments.--For purposes of section 
                1324 of title 31, United States Code, the payments 
                under this subsection shall be treated in the same 
                manner as a refund due from a credit provision referred 
                to in subsection (b)(2) of such section.
    (d) Exception From Reduction, Offset, Garnishment, Etc.--
            (1) In general.--Any credit or refund allowed or made to 
        any individual by reason of section 6428A of the Internal 
        Revenue Code of 1986 (as added by this section) or by reason of 
        subsection (c) of this section shall not be--
                    (A) subject to reduction or offset pursuant to 
                section 3716 or 3720A of title 31, United States Code,
                    (B) subject to reduction or offset pursuant to 
                subsection (d), (e), or (f) of section 6402 of the 
                Internal Revenue Code of 1986, or
                    (C) reduced or offset by other assessed Federal 
                taxes that would otherwise be subject to levy or 
                collection.
            (2) Assignment of benefits.--
                    (A) In general.--Any applicable payment shall not 
                be subject to transfer, assignment, execution, levy, 
                attachment, garnishment, or other legal process, or the 
                operation of any bankruptcy or insolvency law, to the 
                same extent as payments described in section 207 of the 
                Social Security Act (42 U.S.C. 407) without regard to 
                subsection (b) thereof.
                    (B) Encoding of payments.--As soon as practicable 
                after the date of the enactment of this paragraph, the 
                Secretary of the Treasury shall encode applicable 
                payments that are paid electronically to any account--
                            (i) with a unique identifier that is 
                        reasonably sufficient to allow a financial 
                        institution to identify the payment as a 
                        payment protected under subparagraph (A), and
                            (ii) pursuant to the same specifications as 
                        required for a benefit payment to which part 
                        212 of title 31, Code of Federal regulations 
                        applies.
                    (C) Garnishment.--
                            (i) Encoded payments.--Upon receipt of a 
                        garnishment order that applies to an account 
                        that has received an applicable payment that is 
                        encoded as provided in subparagraph (B), a 
                        financial institution shall follow the 
                        requirements and procedures set forth in part 
                        212 of title 31, Code of Federal Regulations. 
                        This paragraph shall not alter the status of 
                        payments as tax refunds or other nonbenefit 
                        payments for purpose of any reclamation rights 
                        of the Department of the Treasury or the 
                        Internal Revenue Service as per part 210 of 
                        title 31 of the Code of Federal Regulations.
                            (ii) Other payments.--If a financial 
                        institution receives a garnishment order (other 
                        than an order that has been served by the 
                        United States) that applies to an account into 
                        which an applicable payment that has not been 
                        encoded as provided in subparagraph (B) has 
                        been deposited on any date in the prior 60 days 
                        (including any date before the date of the 
                        enactment of this paragraph), the financial 
                        institution, upon the request of the account 
                        holder or for purposes of complying in good 
                        faith with a State order, State law, court 
                        order, or interpretation by a State Attorney 
                        General relating to garnishment order, may, but 
                        is not required to, treat the amount of the 
                        payment as exempt under law from garnishment 
                        without requiring the account holder to assert 
                        any right of garnishment exemption or requiring 
                        the consent of the judgment creditor.
                            (iii) Liability.--A financial institution 
                        that complies in good faith with clause (i) or 
                        that acts in good faith in reliance on clause 
                        (ii) shall not be liable under any Federal or 
                        State law, regulation, or court or other order 
                        to a creditor that initiates an order for any 
                        protected amounts, to an account holder for any 
                        frozen amounts or garnishment order applied.
                    (D) Definitions.--For purposes of this paragraph--
                            (i) Account holder.--The term ``account 
                        holder'' means a natural person against whom a 
                        garnishment order is issued and whose name 
                        appears in a financial institution's records.
                            (ii) Applicable payment.--The term 
                        ``applicable payment'' means any payment of 
                        credit or refund by reason of section 6428A of 
                        such Code (as so added) or by reason of 
                        subsection (c) of this section.
                            (iii) Garnishment.--The term 
                        ``garnishment'' means execution, levy, 
                        attachment, garnishment, or other legal 
                        process.
                            (iv) Garnishment order.--
                                    (I) In general.--The term 
                                ``garnishment order'' means a writ, 
                                order, notice, summons, judgment, levy, 
                                or similar written instruction issued 
                                by a court, a State or State agency, or 
                                a municipality or municipal 
                                corporation, including an order to 
                                freeze the assets in an account, to 
                                effect a garnishment against a debtor.
                                    (II) Exception for child support.--
                                The term ``garnishment order'' shall 
                                not include any writ, order, notice, 
                                summons, judgment, levy or other 
                                similar written instruction issued by a 
                                State child support enforcement agency.
                    (E) Exception for child support.--Nothing in this 
                subsection shall prevent or prejudice the enforcement 
                of any writ, order, notice, summons, judgment, levy or 
                other similar written instruction issued by a State 
                child support enforcement agency.
    (e) Public Awareness Campaign.--The Secretary of the Treasury (or 
the Secretary's delegate) shall conduct a public awareness campaign, in 
coordination with the Commissioner of Social Security and the heads of 
other relevant Federal agencies, to provide information regarding the 
availability of the credit and rebate allowed under section 6428A of 
the Internal Revenue Code of 1986 (as added by this section), including 
information with respect to individuals who may not have filed a tax 
return for taxable year 2018 or 2019.
    (f) Appropriations To Carry Out Rebates.--
            (1) In general.--Immediately upon the enactment of this 
        Act, the following sums are appropriated, out of any money in 
        the Treasury not otherwise appropriated, for the fiscal year 
        ending September 30, 2021:
                    (A) Department of the treasury.--
                            (i) For an additional amount for 
                        ``Department of the Treasury--Bureau of the 
                        Fiscal Service--Salaries and Expenses'', 
                        $78,650,000, to remain available until 
                        September 30, 2022.
                            (ii) For an additional amount for 
                        ``Department of the Treasury--Internal Revenue 
                        Service--Taxpayer Services'', $293,500,000, to 
                        remain available until September 30, 2022.
                            (iii) For an additional amount for 
                        ``Department of the Treasury--Internal Revenue 
                        Service--Operations Support'', $170,000,000, to 
                        remain available until September 30, 2022.
                            (iv) For an additional amount for 
                        ``Department of the Treasury--Internal Revenue 
                        Service--Enforcement'', $37,200,000, to remain 
                        available until September 30, 2022.
                Amounts made available in appropriations under clauses 
                (ii), (iii), and (iv) of this subparagraph may be 
                transferred between such appropriations upon the 
                advance notification of the Committees on 
                Appropriations of the House of Representatives and the 
                Senate. Such transfer authority is in addition to any 
                other transfer authority provided by law.
                    (B) Social security administration.--For an 
                additional amount for ``Social Security 
                Administration--Limitation on Administrative 
                Expenses'', $38,000,000, to remain available until 
                September 30, 2022.
            (2) Reports.--No later than 15 days after enactment of this 
        Act, the Secretary of the Treasury shall submit a plan to the 
        Committees on Appropriations of the House of Representatives 
        and the Senate detailing the expected use of the funds provided 
        by paragraph (1)(A). Beginning 90 days after enactment of this 
        Act, the Secretary of the Treasury shall submit a quarterly 
        report to the Committees on Appropriations of the House of 
        Representatives and the Senate detailing the actual expenditure 
        of funds provided by paragraph (1)(A) and the expected 
        expenditure of such funds in the subsequent quarter.
    (g) Conforming Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting ``6428A,'' after 
        ``6428,''.
            (2) The table of sections for subchapter B of chapter 65 of 
        subtitle F of the Internal Revenue Code of 1986 is amended by 
        inserting after the item relating to section 6428 the 
        following:

``Sec. 6428A. Additional recovery rebates for individuals.''.
                                 <all>