H.R. 3901 – Reading Mode

111th CONGRESS

1st Session

H. R. 3901

IN THE HOUSE OF REPRESENTATIVES

October 22, 2009

Mr. Lewis of Georgia (for himself, Mr. Boustany, Mr. Pascrell, Mr. Crowley, and Ms. Titus) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to enhance the administration of, and reduce fraud related to, the first-time homebuyer tax credit, and for other purposes.

Short title

This Act may be cited as the Homebuyer Tax Credit Improvement Act of 2009.

Provisions to enhance the administration of the first-time homebuyer tax credit

(a)

Age limitation

(1)

In general

Subsection (b) of section 36 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(3)

Age limitation

No credit shall be allowed under subsection (a) with respect to the purchase of any residence unless the taxpayer has attained age 18 as of the date of such purchase. In the case of any taxpayer who is married (within the meaning of section 7703), the taxpayer shall be treated as meeting the age requirement of the preceding sentence if the taxpayer or the taxpayer’s spouse meets such age requirement.

(2)

Conforming amendment

Subsection (g) of section 36 of such Code is amended by striking subsections (c) and (f)(4)(D) and inserting subsection (b)(3), (c), and (f)(4)(D).

(b)

Documentation requirement

Subsection (d) of section 36 of such Code is amended by striking or at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting , or, and by adding at the end the following new paragraph:

(3)

the taxpayer fails to attach to the return of tax for such taxable year a properly executed copy of the settlement statement used to complete such purchase.

(c)

Restriction on married individual acquiring residence from family of spouse

Clause (i) of section 36(c)(3)(A) of such Code is amended by inserting (or, if married, such individual’s spouse) after person acquiring such property.

(d)

Certain errors with respect to the first-Time homebuyer tax credit treated as mathematical or clerical errors

Paragraph (2) of section 6213(g) of such Code is amended by striking and at the end of subparagraph (M), by striking the period at the end of subparagraph (N) and inserting , and, and by inserting after subparagraph (N) the following new subparagraph:

(O)

an entry on a return claiming the credit under section 36 if—

(i)

the Secretary obtains information from the person issuing the TIN of the taxpayer that indicates that the taxpayer does not meet the age requirement of section 36(b)(3),

(ii)

information provided to the Secretary by the taxpayer on an income tax return for at least one of the 2 preceding taxable years is inconsistent with eligibility for such credit, or

(iii)

the taxpayer fails to attach to the return the form described in section 36(d)(3).

(e)

Effective date

(1)

In general

Except as otherwise provided in this subsection, the amendments made by this section shall apply to purchases after the date of the enactment of this Act.

(2)

Documentation requirement

The amendments made by subsection (b) shall apply to returns for taxable years ending after the date of the enactment of this Act.

(3)

Treatment as mathematical and clerical errors

The amendments made by subsection (d) shall apply to returns for taxable years ending on or after April 9, 2008.

Certain tax return preparers required to file returns electronically

(a)

In general

Subsection (e) of section 6011 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(3)

Special rule for tax return preparers

(A)

In general

The Secretary shall require than any individual income tax return prepared by a tax return preparer be filed on magnetic media if—

(i)

such return is filed by such tax return preparer, and

(ii)

such tax return preparer is a specified tax return preparer for the calendar year during which such return is filed.

(B)

Specified tax return preparer

For purposes of this paragraph, the term specified tax return preparer means, with respect to any calendar year, any tax return preparer unless such preparer reasonably expects to file 100 or fewer individual income tax returns during such calendar year.

(C)

Individual income tax return

For purposes of this paragraph, the term individual income tax return means any return of the tax imposed by subtitle A on individuals, estates, or trusts.

(b)

Conforming amendment

Paragraph (1) of section 6011(e) of such Code is amended by striking The Secretary may not and inserting Except as provided in paragraph (3), the Secretary may not.

(c)

Effective date

The amendments made by this section shall apply to returns filed after December 31, 2010.