,i  #aaeth ,,congress  #ast ,session    
,h4 ,r4 #dbcc  ,,in ,,the ,,house ,,of  
,,representatives  ,november #b1        
#bjag,mr4 ,renacci 7for himself and ,mr4
 ,rice of ,south ,carolina7 introduced  
the following bill2 which was referred  
to the ,committee on ,ways and ,means   
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to prevent the  
fraudulent overreporting of income with 
respect to the earned income tax credit 
and the additional child tax credit4    
#a4 ,short title ,this ,act may be cited
 as the ,improper ,tax ,payments        
,reduction ,act of #bjag4  #b4          
,procedures to reduce improper claims of
 earned income credit  7a7              
,clarification regarding determination  
of self-,employment income which is     
treated as earned income ,section       
#cb7;c77#b77;,b7 of such ,code is       
amended by striking and at the end of   
clause 7v71 by striking the period at   
the end of clause 7vi7 and inserting 1  
and1 and by adding at the end the       

following new clause3  7vii7 in         
determining the taxpayer's net earnings 
from self-employment under subparagraph 
7,a77ii7 there shall not fail to be     
taken into account any deduction which  
is allowable to the taxpayer under this 
subtitle4  4  7b7 ,required quarterly   
reporting of wages of employees ,section
 #fjaa of the ,internal ,revenue ,code  
of #aihf is amended by adding at the end
 the following new subsection3  7i7     
,employer reporting of wages ,every     
person required to deduct and withhold  
from an employee a tax under section    
#caja or #cdjb shall include on each    
return or statement submitted with      
respect to such taxes1 the name and     
address of such employee and the amount 
of wages for such employee on which such
 tax was withheld4  4  7c7 ,effective   
date ,the amendments made by this       
section shall apply to taxable years    
ending after the date of the enactment  
of this ,act4  #c4 ,certain income      
disallowed for purposes of the earned   

income tax credit  7a7 ,substantiation  
requirement ,section #cb of the         
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new subsection3  7n7          
,inconsistent income reporting ,if the  
earned income of a taxpayer claimed on a
 return for purposes of this section is 
not substantiated by statements or      
returns under section #fjea1 #fjeb1     
#fjda7;a71 or #fjej7w7 with respect to  
such taxpayer1 the ,secretary may       
require such taxpayer to provide books  
and records to substantiate such income1
 including for the purpose of preventing
 fraud4  4  7b7 ,exclusion of           
unsubstantiated amount from earned      
income ,paragraph 7#b7 of section       
#cb7;c7 of the ,internal ,revenue ,code 
of #aihf is amended by adding at the end
 the following new subparagraph3  7,c7  
,exclusion ,in the case of a taxpayer   
with respect to which there is an       
inconsistency described in subsection   
7n7 who fails to substantiate such      

inconsistency to the satisfaction of the
 ,secretary1 the term earned income     
shall not include amounts to the extent 
of such inconsistency4  4  7c7          
,effective date ,the amendments made by 
this section shall apply to taxable     
years ending after the date of the      
enactment of this ,act4