Title: Pay Victims Not Prisoners Act
Policy area: Taxation

Summary:
Pay Victims Not Prisoners Act
This bill prohibits payment of any amount of the 2021 recovery rebate to federal prisoners convicted of a crime or confined due to insanity or a finding that the prisoner is a sexually dangerous person or a sexual predator.
The bill requires (1) the disclosure of certain prisoner tax return information to the Department of Justice for purposes of making restitution to crime victims, and (2) the payment of judgments issued against prisoners using rebate amounts.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8353 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 8353

    To amend the Internal Revenue Code of 1986 to make incarcerated 
   taxpayers ineligible for recovery rebates, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 13, 2022

   Mr. Budd introduced the following bill; which was referred to the 
 Committee on Ways and Means, and in addition to the Committee on the 
 Judiciary, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to make incarcerated 
   taxpayers ineligible for recovery rebates, 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 ``Pay Victims Not Prisoners Act''.

SEC. 2. INCARCERATED TAXPAYERS MADE INELIGIBLE FOR 2021 RECOVERY REBATE 
              CREDITS.

    (a) 2021 Recovery Rebates.--Section 6428B of the Internal Revenue 
Code of 1986 is amended by redesignating subsections (h) and (i) as 
subsections (i) and (j), respectively, by striking ``subsection 
(h)(1)'' each place it appears and inserting ``subsection (i)(1)'', and 
by inserting after subsection (g) the following new subsection:
    ``(h) Special Rules With Respect to Prisoners.--
            ``(1) Disallowance of credit.--
                    ``(A) In general.--Subject to subparagraph (B), no 
                credit shall be allowed under subsection (a) to an 
                eligible individual who is, for each day during 
                calendar year 2021, described in clause (i), (ii), or 
                (iii) of section 202(x)(1)(A) of the Social Security 
                Act (42 U.S.C. 402(x)(1)(A)).
                    ``(B) Joint return.--In the case of a joint return 
                where 1 spouse is described in subparagraph (A), 
                subsection (g) shall be applied by treating such spouse 
                as having failed to include the valid identification 
                number of such spouse on the return of tax for the 
                taxable year.
            ``(2) Denial of advance refund or credit.--No refund or 
        credit shall be made or allowed under subsection (f) with 
        respect to any individual whom the Secretary has knowledge is, 
        at the time of any determination made pursuant to paragraph (3) 
        of such subsection, described in clause (i), (ii), or (iii) of 
        section 202(x)(1)(A) of the Social Security Act.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2020.

SEC. 3. DISCLOSURE OF CERTAIN PRISONER TAX RETURN INFORMATION TO 
              DEPARTMENT OF JUSTICE.

    (a) In General.--Section 6103(l) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(23) Disclosure of return information to department of 
        justice to carry out the pay victims not prisoners act.--
                    ``(A) In general.--The Secretary shall, upon 
                written request from the Attorney General, disclose to 
                officers, employees, and contractors of the Department 
                of Justice the return information of a taxpayer whose 
                prisoner commissary account may be subject to 
                adjustment under section 4 of the Pay Victims Not 
                Prisoners Act. Such return information shall be limited 
                to--
                            ``(i) taxpayer identity information with 
                        respect to such taxpayer, and
                            ``(ii) with respect to the refundable 
                        credit under section 6428B--
                                    ``(I) the amount of the refundable 
                                credit allowed to such taxpayer under 
                                such section,
                                    ``(II) verification of whether such 
                                refundable credit was disbursed 
                                electronically or via paper check,
                                    ``(III) if such refundable credit 
                                was disbursed electronically, 
                                verification of the account to which 
                                such refund was disbursed,
                                    ``(IV) the date on which such 
                                refund was disbursed, and
                                    ``(V) if applicable, the fact that 
                                there was no refund disbursed to such 
                                taxpayer with respect to such 
                                section.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to disclosures made after the date of the enactment of this Act.

SEC. 4. PAYMENT OF OUTSTANDING JUDGMENTS AGAINST FEDERAL PRISONERS 
              USING 2021 RECOVERY REBATE CREDITS.

    (a) Identification of Prisoners Who Received 2021 Recovery Rebate 
Credits.--Not later than 90 days after the date of enactment of this 
Act, the Attorney General shall identify--
            (1) the Federal prisoners who received a disbursement of a 
        refundable credit under section 6428B of the Internal Revenue 
        Code of 1986, which was disbursed to the prisoner's commissary 
        account; and
            (2) of the Federal prisoners identified under paragraph 
        (1), the prisoners who owe money pursuant to a judgment issued 
        by a Federal court.
    (b) Payment of Outstanding Judgments.--Not later than 90 days after 
the date of enactment of this Act, the Attorney General shall make 
payments on any judgment described in subsection (a)(2) using amounts 
remaining in the prisoner's commissary account from the disbursement 
described in subsection (a)(1).
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