Sec. 201. Fee revenue rebates to individuals
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Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by inserting after section 6428B the following new section: In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the taxable year an amount equal to the rebate amount determined for such taxable year. For purposes of this section, the term rebate amount means, with respect to any taxpayer for any taxable year, the sum of— $800 ($1,600 in the case of a joint return), plus $300 multiplied by the number of dependents of the taxpayer for such taxable year.
For purposes of this section, the term eligible individual means any individual other than— any nonresident alien individual, any individual who is a dependent of another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and an estate or trust. The amount of the credit allowed by subsection
(a)(determined without regard to this subsection and subsection (f)) shall be reduced (but not below zero) by the amount which bears the same ratio to such credit (as so determined) as— the excess of— the taxpayer’s adjusted gross income for such taxable year, over $75,000, bears to $5,000. In the case of a joint return or a surviving spouse (as defined in section 2(a)), paragraph
(1)shall be applied by substituting $150,000 for $75,000 and $10,000 for $5,000 . In the case of a head of household (as defined in section 2(b)), paragraph
(1)shall be applied by substituting $112,500 for $75,000 and $7,500 for $5,000 . For purposes of this section, the term dependent has the meaning given such term by section 152. In the case of a return other than a joint return, the $800 amount in subsection (b)(1) shall be treated as being zero unless the taxpayer includes the valid identification number of the taxpayer on the return of tax for the taxable year. In the case of a joint return, the $1,600 amount in subsection (b)(1) shall be treated as being— $800 if the valid identification number of only 1 spouse is included on the return of tax for the taxable year, and zero if the valid identification number of neither spouse is so included. A dependent shall not be taken into account under subsection (b)(2) unless the valid identification number of such dependent is included on the return of tax for the taxable year. For purposes of this paragraph, the term valid identification number means a social security number issued to an individual by the Social Security Administration on or before the due date for filing the return for the taxable year. For purposes of subparagraph (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. Subparagraph
(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 the valid identification number of at least 1 spouse is included on the return of tax for the taxable year. In the case of any payment determined pursuant to subsection (g)(6), a valid identification number shall be treated for purposes of this paragraph as included on the taxpayer’s return of tax if such valid identification number is available to the Secretary as described in such subsection. Any omission of a correct valid identification number required under this paragraph shall be treated as a mathematical or clerical error for purposes of applying section 6213(g)(2) to such omission. The credit allowed by subsection
(a)shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1. In the case of a taxable year beginning after 2023, the dollar amounts in subsection
(b)and
(d)shall each be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting calendar year 2022 for calendar year 2016 in subparagraph (A)(ii) thereof. If any amount as increased under subparagraph
(A)is not a multiple of $1, such amount shall be rounded to the nearest whole dollar amount. The amount of the credit which would (but for this paragraph) be allowable under subsection
(a)shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer (or, except as otherwise provided by the Secretary, any dependent of the taxpayer) under subsection (g). 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). Except as otherwise provided by the Secretary, in the case of a refund or credit made or allowed under subsection
(g)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 paragraphs
(5)and (6), each individual who was an eligible individual for such individual’s first taxable year beginning in the calendar year which began 2 years prior to the beginning of the taxable year described in subsection
(a)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
(f)and this subsection) had applied to such taxable year. For purposes of determining the advance refund amount with respect to such taxable year— any individual who was deceased before the beginning of the taxable year described in subsection
(a)shall be treated for purposes of applying subsection (e)(2) in the same manner as if the valid identification number of such person was not included on the return of tax for such taxable year (except that subparagraph
(E)thereof shall not apply), notwithstanding clause (i), in the case of a joint return with respect to which only 1 spouse is deceased before the beginning of the taxable year described in subsection (a), such deceased spouse was a member of the Armed Forces of the United States at any time during the taxable year, and the valid identification number of such deceased spouse is included on the return of tax for the taxable year, the valid identification number of 1 (and only 1) spouse shall be treated as included on the return of tax for the taxable year for purposes of applying subsection (e)(2)(B) with respect to such joint return, and no amount shall be determined under subsection (e)(2) with respect to any dependent of the taxpayer if the taxpayer (both spouses in the case of a joint return) was deceased before the beginning of the taxable year described in subsection (a). The Secretary shall, subject to the provisions of this title, refund or credit any overpayment attributable to this subsection in the manner described in subparagraph (D). No refund or credit shall be made or allowed under this subsection after the end of the taxable year described in subsection (a). 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 of the calendar year described in paragraph (1), 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 of the calendar year described in paragraph (1), 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 section 3325, 3527, 3528, or 3529 of title 31, United States Code, shall be imposed with respect to payments made under this subparagraph. With respect to any refund payable under this subsection for any taxable year, the Secretary shall make 2 payments, each equal to 50 percent of such refund, to the payee— for the first payment, not later than 30 days before the beginning of such taxable year, and for the second payment, not later than 180 days after disbursement of the payment described in clause (i). No interest shall be allowed on any overpayment attributable to this subsection. In the case of any individual who, at the time of any determination made pursuant to paragraph (3), has filed a tax return for neither the year described in paragraph
(1)nor for the subsequent year, the Secretary may apply paragraph
(1)on the basis of information available to the Secretary and, on the basis of such information, may determine the advance refund amount with respect to such individual without regard to subsection (d). In the case of any payment determined pursuant to subparagraph (A), such payment may be made to an individual or organization serving as the eligible individual’s representative payee or fiduciary for a federal benefit program and the entire amount of such payment so made shall be used only for the benefit of the individual who is entitled to the payment. Solely for purposes of this subsection, a return of tax shall not be treated as filed until such return has been processed by the Internal Revenue Service. As soon as practicable after the date on which the Secretary distributed any payment to an eligible taxpayer pursuant to this subsection, notice shall be sent by mail to such taxpayer's last known address. Such notice shall indicate the method by which such payment was made, the amount of such payment, a phone number for an appropriate point of contact at the Internal Revenue Service to report any error with respect to such payment, and such other information as the Secretary determines appropriate. The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including— regulations or other guidance providing taxpayers the opportunity to provide the Secretary information sufficient to allow the Secretary to make payments to such taxpayers under subsection
(g)(including the determination of the amount of such payment) if such information is not otherwise available to the Secretary, and regulations or other guidance to ensure to the maximum extent administratively practicable that, in determining the amount of any credit under subsection
(a)and any credit or refund under subsection (g), an individual is not taken into account more than once, including by different taxpayers and including by reason of a change in joint return status or dependent status between the taxable year for which an advance refund amount is determined and the taxable year for which a credit under subsection
(a)is determined. The Secretary shall carry out a robust and comprehensive outreach program to ensure that all taxpayers described in subsection (h)(1) learn of their eligibility for the advance refunds and credits under subsection (g); are advised of the opportunity to receive such advance refunds and credits as provided under subsection (h)(1); and are provided assistance in applying for such advance refunds and credits. In conducting such outreach program, the Secretary shall coordinate with other government, State, and local agencies; federal partners; and community-based nonprofit organizations that regularly interface with such taxpayers. . The Secretary of the Treasury shall pay to each possession of the United States which has a mirror code tax system amounts equal to the loss (if any) to that possession by reason of the amendments made by this section. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession. The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits (if any) that would have been provided to residents of such possession by reason of the amendments made by this section if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply unless the respective possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to its residents. The Secretary of the Treasury shall pay to each possession of the United States to which the Secretary makes a payment under paragraph
(1)or
(2)an amount equal to the lesser of— the increase (if any) of the administrative expenses of such possession— in the case of a possession described in paragraph (1), by reason of the amendments made by this section, and in the case of a possession described in paragraph (2), by reason of carrying out the plan described in such paragraph, or $500,000 ($10,000,000 in the case of Puerto Rico). The amount described in subparagraph
(A)shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession. No credit shall be allowed against United States income taxes under section 6428C of the Internal Revenue Code of 1986 (as added by this section), nor shall any credit or refund be made or allowed under subsection
(g)of such section, to any person— to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section, or who is eligible for a payment under a plan described in paragraph (2). For purposes of this subsection, the term mirror code tax system means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. For purposes of section 1324 of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section. Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended by striking 6428A, and 6428B and inserting 6428A, 6428B, and 6428C . Any refund payable by reason of section 6428C(g) of the Internal Revenue Code of 1986 (as added by this section), or any such refund payable by reason of subsection
(b)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 (c), (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. Paragraph
(2)of section 1324(b) of title 31, United States Code, is amended by inserting 6428C, after 6428B, . 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 6428B the following new item: Sec. 6428C. Fee revenue rebates to individuals. . This section, and the amendments made by this section, shall apply to taxable years beginning after December 31, 2022.