S.Amdt. 1398

1. Adds SEC. 3204. SOCIAL SECURITY NUMBER REQUIRED TO CLAIM THE REFUNDABLE PORTION OF THE CHILD TAX CREDIT on page 1448, between lines 5 and 6

   Adds a sectionPrinted page

   Inserted: SEC. 3204. SOCIAL SECURITY NUMBER REQUIRED TO CLAIM THE REFUNDABLE PORTION OF THE CHILD TAX CREDIT.

   Inserted: (a) In General.--Subsection (d) of section 24 of the Internal Revenue Code of 1986 is amended by inserting after paragraph (4) the following new paragraph:

   Inserted: "(5) Identification requirement with respect to taxpayer.--

   Inserted: "(A) In general.--Paragraph (1) shall not apply to any taxpayer for any taxable year unless the taxpayer includes the taxpayer's social security number on the return of tax for such taxable year.

   Inserted: "(B) Joint return.--In the case of a joint return, the requirement of subparagraph (A) shall be treated as met if the social security number of either spouse is included on such return.

   Inserted: "(C) Limitation.--Subparagraph (A) shall not apply to the extent the tentative minimum tax (as defined in section 55(b)(1)(A)) exceeds the credit allowed under section 32.".

   Inserted: (b) Omission Treated as Mathematical or Clerical Error.--Subparagraph (I) of section 6213(g)(2) of the Internal Revenue Code of 1986 is amended to read as follows:

   Inserted: "(I) an omission of a correct social security number required to be included on a return under section 24(d)(5) (relating to refundable portion of child tax credit), or a correct TIN required to be included on a return under section 24(e) (relating to child tax credit),".

   Inserted: (c) Conforming Amendment.--Subsection (e) of section 24 of the Internal Revenue Code of 1986 is amended by inserting "With Respect to Qualifying Children" after "Identification Requirement" in the heading thereof.

   Inserted: (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

   Inserted: SEC. 3205. RESTRICTIONS ON TAXPAYERS WHO IMPROPERLY CLAIMED REFUNDABLE PORTION OF THE CHILD TAX CREDIT IN PRIOR YEAR.

   Inserted: (a) In General.--Subsection (d) of section 24 of the Internal Revenue Code of 1986 is amended by inserting after paragraph (5) the following new paragraph:

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   Inserted: "(6) Restrictions on taxpayers who improperly claimed credit in prior year.--

   Inserted: "(A) Taxpayers making prior fraudulent or reckless claims.--

   Inserted: "(i) In general.--No credit shall be allowed under this subsection for any taxable year in the disallowance period.

   Inserted: "(ii) Disallowance period.--For purposes of clause (i), the disallowance period is--

   Inserted: "(I) the period of 10 taxable years after the most recent taxable year for which there was a final determination that the taxpayer's claim of credit under this subsection was due to fraud, and

   Inserted: "(II) the period of 2 taxable years after the most recent taxable year for which there was a final determination that the taxpayer's claim of credit under this subsection was due to reckless or intentional disregard of rules and regulations (but not due to fraud).

   Inserted: "(B) Taxpayers making improper prior claims.--In the case of a taxpayer who is denied credit under this subsection for any taxable year as a result of the deficiency procedures under subchapter B of chapter 63, no credit shall be allowed under this subsection for any subsequent taxable year unless the taxpayer provides such information as the Secretary may require to demonstrate eligibility for such credit.".

   Inserted: (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

   Inserted: SEC. 3206. CHECKLIST FOR PAID PREPARERS TO VERIFY ELIGIBILITY FOR REFUNDABLE PORTION OF THE CHILD TAX CREDIT; PENALTY FOR FAILURE TO MEET DUE DILIGENCE REQUIREMENTS.

   Inserted: (a) In General.--The Secretary of the Treasury (or the Secretary's delegate) shall prescribe a form (similar to Form 8867) which is required to be completed by paid income tax return preparers in connection with claims for the refundable portion of the child tax credit under section 24(d) of the Internal Revenue Code of 1986.

   Inserted: (b) Penalty.--Section 6695 of the Internal Revenue Code of 1986 (relating to other assessable penalties with respect to the preparation of tax returns for other persons) is amended by adding at the end the following new subsection:

   Inserted: "(h) Failure to Be Diligent in Determining Eligibility for Refundable Portion of Child Tax Credit.--Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with due diligence requirements imposed by the Secretary by regulations with respect to determining eligibility for, or the amount of, the credit allowable by section 24(d) shall pay a penalty of $500 for each such failure.".

   Inserted: (c) Effective Date.--The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

   Original wording

   On page 1448, between lines 5 and 6, insert the following:

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As printed