Sec. 1105. Certain income disallowed for purposes of the earned income tax credit
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Section 32 is amended by adding at the end the following new subsection: If the earned income of a taxpayer claimed on a return for purposes of this section is not substantiated by statements or returns under sections 6051, 6052, 6041(a), or 6050W with respect to such taxpayer, the Secretary may require such taxpayer to provide books and records to substantiate such income, including for the purpose of preventing fraud. . Section 32(c)(2) is amended by adding at the end the following new subparagraph: In the case of a taxpayer with respect to which there is an inconsistency described in subsection
(n)who fails to substantiate such inconsistency to the satisfaction of the Secretary, the term earned income shall not include amounts to the extent of such inconsistency. . The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.