S. 2139Senate109th Congress (2005-2007)In Committee

Earned Income Tax Credit Simplification Act of 2005

Introduced December 16, 2005

Legislative Activity

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

December 16, 2005

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SenateIntro Referral

Introduced in Senate

December 16, 2005

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S13809-13810)

December 16, 2005

SenateIntro Referral

Read twice and referred to the Committee on Finance.

December 16, 2005

Floor Debate

14 members

What members said about S. 2139 on the floor

6 Republicans8 Democrats
John McCain
Sen. John McCainR-AZ · Dec 16, 2005

Mr. President, today I introduce legislation to provide greater transparency into the process of influencing our Government and ensure greater accountability among public officials. The legislation…

Hillary Rodham Clinton
Sen. Hillary Rodham ClintonD-NY · Dec 16, 2005

Mr. President, I rise today to introduce a bill to help parents protect their children against violent and sexual media. In rising, I stand with the parents and children of New York and of the…

Orrin G. Hatch
Sen. Orrin G. HatchR-UT · Dec 16, 2005

Mr. President, joined by my friend from Kansas, Senator Brownback, I am today introducing the Protecting Children from Sexual Exploitation Act of 2005. This bill will strengthen an important tool for…

Jon S. Corzine
Sen. Jon S. CorzineD-NJ · Dec 16, 2005

Mr. President, I rise to in support of the End Racial Profiling Act a bill being introduced today by Senators Feingold, Obama and myself. This bill addresses an issue that is critical to the people…

John D. Rockefeller IV
Sen. John D. Rockefeller IVD-WV · Dec 16, 2005

Mr. President, the massive devastation inflicted upon our southern States by hurricanes Katrina, Rita, and Wilma reminded all Americans how important it is that the Federal Government be able to…

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Russell D. Feingold
Sen. Russell D. FeingoldD-WI · Dec 16, 2005

Mr. President, today I will introduce the End Racial Profiling Act of 2005. I am proud to be joined again by my friend from New Jersey, Senator Corzine, and a number of other cosponsors. It is…

Mike Crapo
Sen. Mike CrapoR-ID · Dec 16, 2005

Mr. President, I am pleased to introduce a bill today to formally convey title a portion of the American Falls Reservoir District from the Bureau of Reclamation to the National Park Service. The…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Dec 16, 2005

Mr. President, I join in echoing the comments of the Senator from Connecticut about what we just heard from the Senator from Arizona. He has really touched an important issue. There is no doubt in my…

Barack Obama
Sen. Barack ObamaD-IL · Dec 16, 2005

Mr. President, I rise today, on behalf of Senator Brownback, Senator Durbin, and Senator DeWine to introduce the Democratic Republic of the Congo Relief, Security and Democracy Promotion Act. As we…

Gordon H. Smith
Sen. Gordon H. SmithR-OR · Dec 16, 2005

Mr. President, I rise today with Senators Kohl and DeWine to introduce the Manufacturing Technology Competitiveness Act of 2005. The manufacturing sector is a critical component of our economy and an…

Chuck Grassley
Sen. Chuck GrassleyR-IA · Dec 16, 2005

Mr. President, I rise to re-introduce the Fair Contracts for Growers Act of 2005. This bill would simply give farmers a choice of venues to resolve disputes associated with agricultural contracts.…

Sam Brownback
Sen. Sam BrownbackR-KS · Dec 16, 2005

Mr. President, I applaud my colleague from Utah for helping lead the fight against child pornography. This is an issue upon which all Senators can unite, and it is a battle we must not lose.…

Joseph I. Lieberman
Sen. Joseph I. LiebermanD-CT · Dec 16, 2005

Mr. President, I thank the Chair. Mr. President, I came to the floor to thank my friend from Arizona not just for the legislation he has just introduced but for his characteristically courageous…

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John D. Rockefeller IV
Sen. John D. Rockefeller IVD-WV · Dec 16, 2005

Mr. President, today I am pleased to introduce the Earned Income Tax Credit Simplification Act. This legislation will greatly improve one of our Nation's most important antipoverty programs and…

Max Baucus
Sen. Max BaucusD-MT · Dec 16, 2005

Mr. President, I am here to introduce bill to provide a 6-month extension of the Nation's largely successful welfare program. It is known as the Temporary Assistance for Needy Families Program, or

Bill Text

Latest available legislative text

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Introduced in SenateIssued December 16, 2005

II

109th CONGRESS

1st Session

S. 2139

IN THE SENATE OF THE UNITED STATES

December 16, 2005

Mr. Rockefeller (for himself and Ms. Snowe) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to simplify the earned income tax credit eligibility requirements regarding filing status, presence of children, investment income, and work and immigrant status.

1.

Short title

This Act may be cited as the Earned Income Tax Credit Simplification Act of 2005.

2.

Modification of abandoned spouse rule

(a)

In general

Section 32(c)(1) of the Internal Revenue Code of 1986 (relating to eligible individual) is amended by adding at the end the following new paragraph:

(H)

Certain married individuals living apart

For purposes of this section, an individual who—

(i)

is married (within the meaning of section 7703(a)) and files a separate return for the taxable year,

(ii)

lives with a qualifying child of the individual for more than one-half of such taxable year, and

(iii)

during the last 6 months of such taxable year, does not have the same principal place of abode as the individual’s spouse, shall not be considered as married.

.

(b)

Conforming amendments

(1)

The last sentence of section 32(c)(1)(A) of the Internal Revenue Code of 1986 is amended by striking section 7703 and inserting section 7703(a).

(2)

Section 32(d) of such Code is amended by striking In the case of an individual who is married (within the meaning of section 7703) and inserting In the case of an individual who is married (within the meaning of section 7703(a)) and is not described in subsection (c)(1)(H).

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2005.

3.

Simplification of rules regarding presence of qualifying child

(a)

Taxpayer eligible for credit for worker without qualifying child if qualifying child claimed by another member of family

Section 32(c)(1) of the Internal Revenue Code of 1986 (relating to eligible individual), as amended by this Act, is amended by adding at the end the following new paragraph:

(I)

Taxpayer eligible for credit for worker without qualifying child if qualifying child claimed by another member of family

(i)

General rule

Except as provided in clause (ii), in the case of 2 or more eligible individuals who may claim for such taxable year the same individual as a qualifying child, if such individual is claimed as a qualifying child by such an eligible individual, then any other such eligible individual who does not make such a claim of such child or of any other qualifying child may be considered an eligible individual without a qualifying child for purposes of the credit allowed under this section for such taxable year.

(ii)

Exception if qualifying child claimed by parent

If an individual is claimed as a qualifying child for any taxable year by an eligible individual who is a parent of such child, then no other parent of such child who does not make such a claim of such child or of any other qualifying child may be considered an eligible individual without a qualifying child for purposes of the credit allowed under this section for such taxable year.

.

(b)

Taxpayer eligible for credit for worker without qualifying child if qualifying children do not have valid social security number

Subparagraph (G) of section 32(c)(1) of the Internal Revenue Code of 1986 is amended to read as follows:

(G)

Individuals who do not include tin, etc., of any qualifying child

In the case of any eligible individual who has one or more qualifying children, if no qualifying child of such individual is taken into account under subsection (b) by reason of paragraph (3)(D), for purposes of the credit allowed under this section, such individual may be considered an eligible individual without a qualifying child.

.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2005.

4.

Elimination of disqualified investment income test

(a)

In general

Section 32 of the Internal Revenue Code of 1986 is amended by striking subsection (i).

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2005.

5.

Definition of valid taxpayer identification number for earned income credit

(a)

In general

Section 32(m) of the Internal Revenue Code of 1986 is amended to read as follows:

(m)

Identification numbers

(1)

In general

Solely for purposes of subsections (c)(1)(E) and (c)(3)(D), a taxpayer identification number means a social security number assigned by the Social Security Administration.

(2)

Limitation

(A)

In general

To be eligible for a credit under this section, the return of tax for the taxable year must clearly indicate that any alien with earned income possesses a social security number assigned by the Social Security Administration which is authorized for employment purposes.

(B)

Joint returns

When a married couple files a joint return, and one spouse’s social security number is authorized for employment and the other spouse’s social security number is not authorized for employment purposes, a credit under this section is only available if the return of tax for the taxable year clearly indicates that the earned income is attributable only to the spouse whose social security number is authorized for employment purposes.

.

(b)

Effective date

The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2005.

(c)

Notice requirements

(1)

In general

The Secretary of the Treasury shall make reasonable efforts to provide at least 3 months advance notification to households likely to be affected by the amendment made by subsection (a) so that individuals eligible to obtain an employment-authorized social security number may understand what action is needed to preserve their eligibility for the earned income credit under section 32 of the Internal Revenue Code of 1986.

(2)

Response if conditions not satisfied

If a taxpayer appears to be otherwise eligible for the earned income credit under section 32 of such Code but has not satisfied the conditions of subsection (m)(2) of such section, the Secretary of the Treasury shall send a mathematical or clerical error notice under section 6213(b)(1) of such Code informing the taxpayer of the actions needed to establish eligibility for such credit and of the option of filing an amended tax return if eligibility for such credit cannot be established within the response period for such mathematical or clerical error notice.