Sec. 41104. Refund to Rainy Day Savings Program
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Not later than December 31, 2021, the Secretary of the Treasury or the Secretary’s delegate (referred to in this section as the Secretary ) shall establish and implement a program (referred to in this section as the Refund to Rainy Day Savings Program ) to allow a participating taxpayer, pursuant to the requirements established under this section, to defer payment on 20 percent of the amount which would otherwise be refunded to such taxpayer as an overpayment (as described in section 6401 of the Internal Revenue Code of 1986). Except as provided under subsection (c)(5), a participating taxpayer may elect to defer payment of the amount described in subsection
(a)and have such amount deposited in the Rainy Day Fund (as described in subsection (c)). The Secretary shall establish a fund, in such manner as the Secretary determines to be appropriate, to be known as the Rainy Day Fund , consisting of any amounts described in subsection
(a)on which payment has been deferred by participating taxpayers. Any amounts deposited in the Rainy Day Fund shall be invested by the Secretary, in coordination with the Bureau of the Fiscal Service of the Department of the Treasury, in United States Treasury bills issued under chapter 31 of title 31, United States Code, with maturities suitable for the needs of the Fund and selected so as to provide the highest return on investment for participating taxpayers. On the date that is 180 days after receipt of the individual income tax return of a participating taxpayer, the amounts in the Rainy Day Fund shall be made available to the Secretary to distribute to such taxpayer in an amount equal to the amount deferred by such taxpayer under subsection
(a)and any interest accrued on such amount (as determined under paragraph (4)). The amounts described in subparagraph
(A)shall be distributed to the bank account identified by the participating taxpayer under subsection (d)(3). The amount of interest accrued on the amount deferred by a participating taxpayer under subsection
(a)shall be determined by the Secretary, in coordination with the Bureau of the Fiscal Service of the Department of the Treasury, based upon the return on the investment of such amounts under paragraph (2). On any date during the period between the date which is 30 days after receipt by the Secretary of the individual income tax return of the participating taxpayer and October 15 of the applicable year, such taxpayer may elect to terminate the deferral of the amount described under subsection
(a)and receive a distribution from the Rainy Day Fund equal to such amount and any interest which has accrued on such amount up to that date. A participating taxpayer making an election under subparagraph
(A)must terminate deferral of the full amount described under subsection (a), and such amount shall be distributed to the bank account identified by the participating taxpayer under subsection (d)(3). For purposes of this section, the term participating taxpayer means a taxpayer who— has not requested or received an extension of the time for payment of taxes for such taxable year under section 6161 of the Internal Revenue Code of 1986; prior to the due date for filing the return of tax for such taxable year, elects to participate in the Refund to Rainy Day Savings Program; and provides the Secretary with a bank account number and any other financial information deemed necessary by the Secretary for purposes of paragraphs (3)(B) and (5)(B) of subsection (c). The Secretary shall ensure that the election to defer payment of the amount described in subsection
(a)may be claimed on Forms 1040, 1040A, and 1040EZ. The Secretary shall— design educational materials for taxpayers regarding financial savings and the Refund to Rainy Day Savings Program; publicly disseminate and distribute such materials during the first calendar quarter of each calendar year and following disbursement of amounts described in subsection (c)(3); and engage in outreach regarding the Refund to Rainy Day Savings Program to the Volunteer Income Tax Assistance program and paid tax preparers. The Secretary shall ensure that a participating taxpayer is able to electronically verify the status of the amount deferred by such taxpayer under subsection (a), including any interest accrued on such amount and the status of any distribution. Any amounts described in subsection
(a)which are distributed to a participating taxpayer, including any interest accrued on such amount, shall be treated in the same manner as any refund made to such taxpayer under section 32 of the Internal Revenue Code of 1986 for purposes of determining the eligibility of such taxpayer for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.