Title: Stopping Improper Payments to Foreigners Act
Policy area: Taxation

Summary:
Stopping Improper Payments to Foreigners Act
This bill disqualifies resident aliens holding a nonimmigrant visa from eligibility for 2020 recovery rebates provided by the Coronavirus Aid, Relief, and Economic Security Act or the CARES Act. Specifically, it requires the Department of Homeland Security (DHS) to notify the Internal Revenue Service of any individual who receives a nonimmigrant visa during the eligibility period for recovery rebates. DHS must deny visas to any resident aliens who fail to repay a recovery rebate for which they are ineligible.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4878 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 4878

  To recover economic impact payments made to holders of nonimmigrant 
                     visas, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             October 26 (legislative day, October 19), 2020

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

_______________________________________________________________________

                                 A BILL


 
  To recover economic impact payments made to holders of nonimmigrant 
                     visas, and for other purposes.

    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 ``Stopping Improper Payments to 
Foreigners Act''.

SEC. 2. MODIFICATION OF ELIGIBILITY RULES FOR ECONOMIC IMPACT PAYMENTS.

    (a) Prohibition on Eligibility for Certain Holders of Nonimmigrant 
Visas.--
            (1) Modification.--
                    (A) In general.--Section 6428(d) of the Internal 
                Revenue Code of 1986 is amended by striking ``and'' at 
                the end of paragraph (2), by striking the period at the 
                end of paragraph (3) and inserting ``, and'', and by 
                adding at the end the following new paragraph:
            ``(4) any resident alien individual holding a nonimmigrant 
        visa during the taxable year (other than such an individual who 
        was subsequently granted an immigrant visa before the last day 
        of such taxable year).''.
                    (B) Special rule for advanced refunds.--Section 
                6428(f)(2) is amended by inserting ``(determined by 
                substituting `the date of the enactment of this 
                section' for `the last day of such taxable year' in 
                subsection (d)(4))'' after ``taxable year''.
                    (C) Conforming amendment related to members of the 
                armed forces.--Section 6428(g)(3) is amended by 
                inserting ``and subsection (d)(4)'' after ``Paragraph 
                (1)(B)''.
            (2) Enforcement.--
                    (A) Information provided by department of homeland 
                security.--Upon the request of the Secretary, the 
                Secretary of Homeland Security shall identify for the 
                Secretary--
                            (i) whether an individual was granted a 
                        nonimmigrant visa for any period identified in 
                        such request, and
                            (ii) whether any individual described in 
                        clause (i) was subsequently granted an 
                        immigrant visa, and the date any such visa was 
                        granted.
                    (B) Limitation on use of information.--Any 
                information provided to the Secretary under 
                subparagraph (A) shall only be used by the Secretary to 
                determine eligibility for the credit allowed under 
                section 6428 of the Internal Revenue Code of 1986.
                    (C) Secretary.--For purposes of this paragraph, the 
                term ``Secretary'' means the Secretary of the Treasury 
                (or the Secretary's delegate).
    (b) Recovery of Economic Impact Payments.--
            (1) Review of previously paid advanced refund amounts.--The 
        Secretary of the Treasury (or the Secretary's delegate) shall--
                    (A) review payments of advanced refund amounts 
                allowed under section 6428(f) of the Internal Revenue 
                Code of 1986, and
                    (B) identify individuals described in section 
                6428(d)(4) to whom such payments were made.
            (2) Denial of issuance of visa.--
                    (A) In general.--Subchapter D of chapter 75 of the 
                Internal Revenue Code of 1986 is amended by adding at 
                the end the following new section:

``SEC. 7346. PROHIBITION OF VISA ISSUANCE IN CASE OF FAILURE TO REPAY 
              INELIGIBLE RECOVERY REBATE REFUNDS.

    ``(a) In General.--If the Secretary receives certification by the 
Commissioner of Internal Revenue that an individual has an unpaid 
ineligible recovery rebate refund, the Secretary shall transmit such 
certification to the Secretary of Homeland Security for action with 
respect to denial of a visa pursuant to section 210(a)(12)(F) of the 
Immigration and Nationality Act.
    ``(b) Unpaid Ineligible Recovery Rebate Refund.--For purposes of 
this section, the term `unpaid ineligible recovery rebate refund' means 
any amount treated as payment by an individual against the tax imposed 
by chapter 1 by reason of section 6428(f) if--
            ``(1) such individual was a resident alien individual 
        holding a nonimmigrant visa during the taxable year for which 
        payment is treated as having been made (other than an 
        individual subsequently granted an immigrant visa before the 
        date of the enactment of such section or an individual 
        described in section 6824(g)(3)), and
            ``(2) such individual has not repaid the amount of any 
        credit or refund as a result of such treatment.
    ``(c) Reversal of Certification.--
            ``(1) In general.--In the case of an individual with 
        respect to whom the Commissioner makes a certification under 
        subsection (a), the Commissioner shall notify the Secretary 
        (and the Secretary shall subsequently notify the Secretary of 
        Homeland Security) if such certification is found to be 
        erroneous or if the unpaid ineligible recovery rebate with 
        respect to such certification has been repaid.
            ``(2) Timing of notice.--The notification under paragraph 
        (1) shall be made as soon as practicable.
    ``(d) Contemporaneous Notice to Individual.--The Commissioner shall 
contemporaneously notify an individual of any certification under 
subsection (a), or any reversal of certification under subsection (c), 
with respect to such individual. Such notice shall include a 
description in simple and nontechnical terms of the right to bring a 
civil action under subsection (e).
    ``(e) Judicial Review of Certification.--
            ``(1) In general.--After the Commissioner notifies an 
        individual under subsection (d), the taxpayer may bring a civil 
        action against the United States in a district court of the 
        United States, or against the Commissioner in the Tax Court, to 
        determine whether the certification was erroneous or whether 
        the Commissioner has failed to reverse the certification. For 
        purposes of the preceding sentence, the court first acquiring 
        jurisdiction over such an action shall have sole jurisdiction.
            ``(2) Determination.--If the court determines that such 
        certification was erroneous, then the court may order the 
        Secretary to notify the Secretary of Homeland Security that 
        such certification was erroneous.
    ``(f) Delegation of Certification.--A certification under 
subsection (a) or reversal of certification under subsection (c) may 
only be delegated by the Commissioner of Internal Revenue to the Deputy 
Commissioner for Services and Enforcement, or the Commissioner of an 
operating division, of the Internal Revenue Service.''.
                    (B) Authority for information sharing.--
                            (i) In general.--Section 6103(k) of the 
                        Internal Revenue Code of 1986 is amended by 
                        adding at the end the following new paragraph:
            ``(15) Disclosure of return information to department of 
        homeland security for purposes of visa issuance prohibition 
        under section 7346.--
                    ``(A) In general.--The Secretary shall, upon 
                receiving a certification described in section 7346, 
                disclose to the Secretary of Homeland Security return 
                information with respect to a taxpayer who has an 
                unpaid ineligible recovery rebate refund described in 
                such section. Such return information shall be limited 
                to--
                            ``(i) the taxpayer identity information 
                        with respect to such taxpayer, and
                            ``(ii) the amount of such unpaid ineligible 
                        recovery rebate refund.
                    ``(B) Restriction on disclosure.--Return 
                information disclosed under subparagraph (A) may be 
                used by officers and employees of the Department of 
                Homeland Security for the purposes of, and to the 
                extent necessary in, carrying out the requirements of 
                section 210(a)(12)(F) of the Immigration and 
                Nationality Act.''.
                            (ii) Conforming amendment.--Paragraph (4) 
                        of section 6103(p) of such Code is amended by 
                        striking ``or (11)'' each place it appears in 
                        subparagraph (F)(ii) and in the matter 
                        preceding subparagraph (A) and inserting 
                        ``(11), or (15)''.
                    (C) Grounds for ineligibility.--Section 212(a)(10) 
                of the Immigration and Nationality Act (8 U.S.C. 
                1182(a)(10)) is amended by adding at the end the 
                following:
                    ``(F) Unpaid ineligible recovery rebate refund.--
                Any alien who has been certified by the Commissioner of 
                Internal Revenue (or designee) as having an unpaid 
                ineligible recovery rebate refund (as defined in 
                section 7346 of the Internal Revenue Code of 1986) and 
                has failed to reimburse the United States Treasury for 
                such debt is inadmissible.''.
                    (D) Clerical amendment.--The table of sections for 
                subchapter D of chapter 75 of the Internal Revenue Code 
                of 1986 is amended by adding at the end the following 
                new item:

``Sec. 7346. Prohibition of visa issuance in case of failure to repay 
                            ineligible recovery rebate refunds.''.
    (c) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        provisions of, and amendments made by, this section shall take 
        effect on the date of the enactment of this Act.
            (2) Eligibility.--The amendments made by subsection (a)(1) 
        shall take effect as if included in section 2201 of division B 
        of the CARES Act.
                                 <all>