Title: Emergency Direct Payments for Families and Workers Act of 2020
Policy area: Taxation

Summary:
Emergency Direct Payments for Families and Workers Act of 2020
This bill allows individual taxpayers an additional 2020 recovery rebate in the form of a refundable income tax credit in the amount of $1,200 ($2,400 for joint returns). An additional $500 rebate is provided to each qualifying child of the taxpayer. A recovery rebate is a one-time stimulus payment made to eligible taxpayers in response to the COVID-19 (i.e., coronavirus disease 2019) public health emergency.
The amount of the recovery rebate is reduced by a specified percentage of the amount an individual's adjusted gross income exceeds $75,000 ($150,000 for joint returns).
Individual taxpayers and their children must have a valid identification number (i.e., Social Security account number) to claim a rebate.
The Department of the Treasury must conduct a public awareness campaign to inform taxpayers of the availability of the rebate.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4999 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 4999

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 10, 2020

  Mr. Hawley 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 for 
Families and Workers Act of 2020''.

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 qualifying children (within the meaning of 
        section 24(c)) 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 sections 
                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) 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.--No credit shall be allowed under 
        subsection (a) to an eligible individual who does not include 
        on the return of tax for the taxable year--
                    ``(A) such individual's valid identification 
                number,
                    ``(B) in the case of a joint return, the valid 
                identification number of such individual's spouse, and
                    ``(C) in the case of any qualifying child taken 
                into account under subsection (a)(2), the valid 
                identification number of such qualifying child.
            ``(2) Valid identification number.--
                    ``(A) In general.--For purposes of paragraph (1), 
                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 (1)(C), in the case of a 
                qualifying child who is adopted or placed for adoption, 
                the term `valid identification number' shall include 
                the adoption taxpayer identification number of such 
                child.
            ``(3) Special rule for members of the armed forces.--
        Paragraph (1)(B) 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 at least 1 spouse 
        satisfies paragraph (1)(A).
            ``(4) 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 or Offset.--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--
            (1) subject to reduction or offset pursuant to section 3716 
        or 3720A of title 31, United States Code,
            (2) subject to reduction or offset pursuant to subsection 
        (d), (e), or (f) of section 6402 of the Internal Revenue Code 
        of 1986, or
            (3) reduced or offset by other assessed Federal taxes that 
        would otherwise be subject to levy or collection.
    (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) 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>