Sec. 201. Additional 2020 recovery rebates for individuals

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Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by inserting after section 6428 the following new section: In addition to the credit allowed under section 6428, 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— $1,200 ($2,400 in the case of eligible individuals filing a joint return), plus an amount equal to the product of $500 multiplied by the number of dependents (as defined in section 152(a)) of the taxpayer. The credit allowed by subsection

(a)shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1. 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— $150,000 in the case of a joint return, $112,500 in the case of a head of household, and $75,000 in the case of a taxpayer not described in paragraph

(1)or (2). For purposes of this section, the term eligible individual means any individual who is not described in paragraph

(2)and who was not deceased prior to January 1, 2020. An individual is described in this paragraph if such individual is— a nonresident alien individual, an 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, or an estate or trust. 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). 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. 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. 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. 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, 2020. 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 received or authorized, on or after January 1, 2018, a refund of taxes under this title or of a Federal payment (as defined in section 3332 of title 31, United States Code), any account belonging to a payee from which that individual, on or after January 1, 2018, made a payment of taxes under this title, or any Treasury-sponsored account (as defined in section 208.2 of title 31, Code of Federal Regulations). 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. No interest shall be allowed on any overpayment attributable to this section. 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— apply such paragraph by substituting 2018 for 2019 , use information with respect to such individual for calendar year 2019 provided in— Form SSA–1099, Social Security Benefit Statement, or Form RRB–1099, Social Security Equivalent Benefit Statement, or use information with respect to such individual which is provided by— in the case of a specified social security beneficiary or a specified supplemental security income recipient, the Commissioner of Social Security, in the case of a specified railroad retirement beneficiary, the Railroad Retirement Board, and in the case of a specified veterans beneficiary, the Secretary of Veterans Affairs (in coordination with, and with the assistance of, the Commissioner of Social Security if appropriate). For purposes of this paragraph, the term specified individual means any individual who is— a specified social security beneficiary, a specified supplemental security income recipient, a specified railroad retirement beneficiary, or a specified veterans beneficiary. For purposes of this paragraph, the term specified social security beneficiary means any individual who, for the last month that ends prior to the date of enactment of this section, is entitled to any monthly insurance benefit payable under title II of the Social Security Act ( 42 U.S.C. 401 et seq.), including payments made pursuant to sections 202(d), 223(g), and 223(i)(7) of such Act. For purposes of this paragraph, the term specified supplemental security income recipient means any individual who, for the last month that ends prior to the date of enactment of this section, is eligible for a monthly benefit payable under title XVI of the Social Security Act ( 42 U.S.C. 1381 et seq.) (other than a benefit to an individual described in section 1611(e)(1)(B) of such Act ( 42 U.S.C. 1382(e)(1)(B) ), including— payments made pursuant to section 1614(a)(3)(C) of such Act ( 42 U.S.C. 1382c(a)(3)(C) ), payments made pursuant to section 1619(a) ( 42 U.S.C. 1382h(a) ) or subsections (a)(4), (a)(7), or (p)(7) of section 1631 ( 42 U.S.C. 1383 ) of such Act, and State supplementary payments of the type referred to in section 1616(a) of such Act ( 42 U.S.C. 1382e(a) ) (or payments of the type described in section 212(a) of Public Law 93–66 ) which are paid by the Commissioner under an agreement referred to in such section 1616(a) (or section 212(a) of Public Law 93–66 ). For purposes of this paragraph, the term specified railroad retirement beneficiary means any individual who, for the last month that ends prior to the date of enactment of this section, is entitled to a monthly annuity or pension payment payable (without regard to section 5(a)(ii) of the Railroad Retirement Act of 1974 (45 U.S.C. 231d(a)(ii))) under— section 2(a)(1) of such Act ( 45 U.S.C. 231a(a)(1) ), section 2(c) of such Act ( 45 U.S.C. 231a(c) ), section 2(d)(1) of such Act ( 45 U.S.C. 231a(d)(1) ), or section 7(b)(2) of such Act ( 45 U.S.C. 231f(b)(2) ) with respect to any of the benefit payments described in subparagraph (C). For purposes of this paragraph, the term specified veterans beneficiary means any individual who, for the last month that ends prior to the date of enactment of this section, is entitled to a compensation or pension payment payable under— section 1110, 1117, 1121, 1131, 1141, or 1151 of title 38, United States Code, section 1310, 1312, 1313, 1315, 1316, or 1318 of title 38, United States Code, section 1513, 1521, 1533, 1536, 1537, 1541, 1542, or 1562 of title 38, United States Code, or section 1805, 1815, or 1821 of title 38, United States Code, to a veteran, surviving spouse, child, or parent as described in paragraph (2), (3), (4)(A)(ii), or

(5)of section 101, title 38, United States Code. For purposes of this section, any individual’s status as a specified social security beneficiary, a specified supplemental security income recipient, a specified railroad retirement beneficiary, or a specified veterans beneficiary shall be unaffected by any determination or redetermination of any entitlement to, or eligibility for, any benefit, payment, or compensation, if such determination or redetermination occurs after the last month that ends prior to the date of enactment of this section. If the benefit, payment, or compensation referred to in subparagraph (C), (D), (E), or

(F)with respect to any specified individual is paid to a representative payee or fiduciary, payment by the Secretary under paragraph

(3)with respect to such specified individual shall be made to such individual’s representative payee or fiduciary and the entire payment shall be used only for the benefit of the individual who is entitled to the payment. In the case of a payment described in clause

(i)which is made with respect to a specified social security beneficiary or a specified supplemental security income recipient, section 1129(a)(3) of the Social Security Act ( 42 U.S.C. 1320a–8(a)(3) ) shall apply to such payment in the same manner as such section applies to a payment under title II or XVI of such Act. In the case of a payment described in clause

(i)which is made with respect to a specified railroad retirement beneficiary, section 13 of the Railroad Retirement Act ( 45 U.S.C. 231l ) shall apply to such payment in the same manner as such section applies to a payment under such Act. In the case of a payment described in clause

(i)which is made with respect to a specified veterans beneficiary, sections 5502, 6106, and 6108 of title 38, United States Code, shall apply to such payment in the same manner as such sections apply to a payment under such title. Not later than 15 days after the date on which the Secretary distributed any payment to an eligible individual pursuant to this subsection, notice shall be sent by mail to such individual'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. 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— such individual's valid identification number, in the case of a joint return, the valid identification number of such individual's spouse, and in the case of any dependent taken into account under subsection (a)(2), the valid identification number of such dependent. 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)). For purposes of paragraph (1)(C), in the case of a dependent who is adopted or placed for adoption, the term valid identification number shall include the adoption taxpayer identification number of such dependent. 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). 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. Subject to subparagraph (B), no credit shall be allowed under subsection

(a)to an eligible individual who is, for each day during calendar year 2020, described in clause (i), (ii), (iii), (iv), or

(v)of section 202(x)(1)(A) of the Social Security Act ( 42 U.S.C. 402(x)(1)(A) ). In the case of eligible individuals filing a joint return where 1 spouse is described in subparagraph (A), subsection (a)(1) shall be applied by substituting $1,200 for $2,400 . 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), (iii), (iv), or

(v)of section 202(x)(1)(A) of the Social Security Act. 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. . Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended by striking and 6428 and inserting 6428, and 6428A . Rules similar to the rules of subsection

(c)of section 2201 of the CARES Act ( Public Law 116–136 ) shall apply for purposes of this section. 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— subject to reduction or offset pursuant to section 3716 or 3720A of title 31, United States Code, subject to reduction or offset pursuant to subsection (d), (e), or

(f)of section 6402 of the Internal Revenue Code of 1986, or reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection. The right of any person to any applicable payment shall not be transferable or assignable, at law or in equity, and no applicable payment shall be subject to, execution, levy, attachment, garnishment, or other legal process, or the operation of any bankruptcy or insolvency law. In the case of an applicable payment described in subparagraph (D)(iii)(I) that is paid electronically by direct deposit through the Automated Clearing House

(ACH)network, the Secretary of the Treasury (or the Secretary's delegate) shall— issue the payment using a unique identifier that is reasonably sufficient to allow a financial institution to identify the payment as an applicable payment, and further encode the payment pursuant to the same specifications as required for a benefit payment defined in section 212.3 of title 31, Code of Federal Regulations. In the case of a garnishment order that applies to an account that has received an applicable payment that is encoded as provided in subparagraph (B), a financial institution shall follow the requirements and procedures set forth in part 212 of title 31, Code of Federal Regulations, except a financial institution shall not, with regard to any applicable payment, be required to provide the notice referenced in sections 212.6 and 212.7 of title 31, Code of Federal Regulations. This paragraph shall not alter the status of applicable payments as tax refunds or other nonbenefit payments for purpose of any reclamation rights of the Department of the Treasury or the Internal Revenue Service as per part 210 of title 31 of the Code of Federal Regulations. If a financial institution receives a garnishment order, other than an order that has been served by the United States or an order that has been served by a Federal, State, or local child support enforcement agency, that has been received by a financial institution and that applies to an account into which an applicable payment that has not been encoded as provided in subparagraph

(B)has been deposited electronically or by an applicable payment that has been deposited by check on any date in the lookback period, the financial institution, upon the request of the account holder, shall treat the amount of the funds in the account at the time of the request, up to the amount of the applicable payment (in addition to any amounts otherwise protected under part 212 of title 31, Code of Federal Regulations), as exempt from a garnishment order without requiring the consent of the party serving the garnishment order or the judgment creditor. A financial institution that acts in good faith in reliance on clauses

(i)or

(ii)shall not be subject to liability or regulatory action under any Federal or State law, regulation, court or other order, or regulatory interpretation for actions concerning any applicable payments. For purposes of this paragraph— The term account holder means a natural person whose name appears in a financial institution’s records as the direct or beneficial owner of an account. The term account review means the process of examining deposits in an account to determine if an applicable payment has been deposited into the account during the lookback period. The financial institution shall perform the account review following the procedures outlined in section 212.5 of title 31, Code of Federal Regulations and in accordance with the requirements of section 212.6 of title 31, Code of Federal Regulations. The term applicable payment means— any advance refund amount paid pursuant to subsection

(f)of section 6428A of the Internal Revenue Code of 1986 (as so added), any payment made by a possession of the United States with a mirror code tax system (as defined in subsection

(c)of section 2201 of the CARES Act ( Public Law 116–136 )) pursuant to such subsection which corresponds to a payment described in subclause (I), and any payment made by a possession of the United States without a mirror code tax system (as so defined) pursuant to section 2201(c) of such Act. The term garnishment means execution, levy, attachment, garnishment, or other legal process. The term garnishment order means a writ, order, notice, summons, judgment, levy, or similar written instruction issued by a court, a State or State agency, a municipality or municipal corporation, or a State child support enforcement agency, including a lien arising by operation of law for overdue child support or an order to freeze the assets in an account, to effect a garnishment against a debtor. The term lookback period means the two month period that begins on the date preceding the date of account review and ends on the corresponding date of the month two months earlier, or on the last date of the month two months earlier if the corresponding date does not exist. 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. Immediately upon the enactment of this Act, the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2020: For an additional amount for Department of the Treasury—Internal Revenue Service—Taxpayer Services , $29,027,000, to remain available until September 30, 2021. For an additional amount for Department of the Treasury—Internal Revenue Service—Operations Support , $236,548,000, to remain available until September 30, 2021. For an additional amount for Department of the Treasury—Internal Revenue Service—Enforcement , $54,425,000, to remain available until September 30, 2021. Amounts made available in appropriations under this subparagraph may be transferred between such appropriations upon the advance notification of the Committees on Appropriations of the House of Representatives and the Senate. Such transfer authority is in addition to any other transfer authority provided by law. For an additional amount for Social Security Administration—Limitation on Administrative Expenses , $38,000,000, to remain available until September 30, 2021. No later than 15 days after enactment of this Act, the Secretary of the Treasury shall submit a plan to the Committees on Appropriations of the House of Representatives and the Senate detailing the expected use of the funds provided by paragraph (1)(A). Beginning 90 days after enactment of this Act, the Secretary of the Treasury shall submit a quarterly report to the Committees on Appropriations of the House of Representatives and the Senate detailing the actual expenditure of funds provided by paragraph (1)(A) and the expected expenditure of such funds in the subsequent quarter. Paragraph

(2)of section 1324(b) of title 31, United States Code, is amended by inserting “6428A,” after “6428,”. The table of sections for subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 6428 the following: Sec. 6428A. Additional 2020 Recovery Rebates for individuals. .

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