,i #aafth ,,congress #b;d ,session ,h4 ,r4 #gifj ,,in ,,the ,,house ,,of ,,representatives ,august #g1 #bjbj ,ms4 ,dean 7for herself and ,mr4 ,cartwright7 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 provide direct payments to individuals in response to the coronavirus pandemic1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,payments for the ,people ,act4 #b4 ,additional recovery rebates to individuals 7a7 ,in general ,subchapter ,b of chapter #fe of the ,internal ,revenue ,code of #aihf is amended by inserting after section #fdbh the following new section3 #fdbh;,a4 ,additional recovery rebates to individuals 7a7 ,in general ,on each applicable date1 each eligible individual shall be allowed a credit against the tax imposed by subtitle ,a for the applicable taxable year in an amount equal to the additional rebate amount determined for each quarter in such taxable year4 7b7 ,applicable date ,for purposes of this section1 the term applicable date means the first day of the month after the date of the enactment of this section and on the first day of every third month thereafter-- 7#a7 during the period-- 7,a7 beginning on the date of the enactment of this section1 and 7,b7 ending in the month beginning after any quarter for which the #c-month average national total unemployment rate is less than #e4e percent and has decreased for the last two months1 or 7#b7 during any subsequent period-- 7,a7 beginning in the month beginning after any quarter for which the #c-month average national total unemployment rate is greater than #e4e percent1 and 7,b7 ending in the month beginning after any quarter for which the #c-month average national total unemployment rate is less than #e4e percent and has decreased for the last two months4 7c7 ,additional rebate amount ,for purposes of this section1 the term additional rebate amount means1 with respect to any taxpayer-- 7#a7 with respect to a quarter in which the #c-month average national total unemployment rate is #h4e or higher-- 7,a7 #b1jjj 7#d1jjj in the case of a joint return71 plus 7,b7 #b1jjj multiplied by the number of dependents of the taxpayer for such taxable year1 7#b7 with respect to any quarter in which the #c-month average national total unemployment rate is less than #h4e but greater than or equal to #g4j-- 7,a7 #a1ejj 7#c1jjj in the case of a joint return71 plus 7,b7 #a1ejj multiplied by the number of dependents of the taxpayer for such taxable year1 7#c7 with respect to any quarter in which the #c-month average national total unemployment rate less than #g4j but greater than or equal to #e4e-- 7,a7 #a1jjj 7#b1jjj in the case of a joint return71 plus 7,b7 #a1jjj multiplied by the number of dependents of the taxpayer for such taxable year1 7#d7 with respect to any quarter in which the #c-month average national total unemployment rate is less than #e4e1 #j4 7d7 ,eligible individual ,for purposes of this section1 the term eligible individual means1 with respect to the applicable taxable year1 any individual other than-- 7#a7 any nonresident alien individual1 7#b7 any individual with respect to whom a deduction under section #aea is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins1 and 7#c7 an estate or trust4 7e7 ,limitation based on modified adjusted gross income ,the amount of the credit allowed by subsection 7a7 with respect to an applicable taxable year 7determined without regard to this subsection and subsection 7g77 shall be reduced 7but not below zero7 by #e percent of so much of the taxpayer's modified adjusted gross income in such taxable year as exceeds-- 7#a7 #aej1jjj in the case of a joint return or a surviving spouse 7as defined in section #b7;a771 7#b7 #aab1ejj in the case of a head of household 7as defined in section #b7;b771 and 7#c7 #ge1jjj in any other case4 7f7 ,definitions and special rules 7#a7 ,applicable taxable year ,for purposes of this section1 the term applicable taxable year means the taxable year ending in the calendar year preceding the date on which a credit under subsection 7a7 is allowed4 7#b7 ,modified adjusted gross income ,for purposes of this section1 the term modified adjusted gross income means adjusted gross income determined without regard to sections #iaa1 #ica1 and #icc4 7#c7 ,national total unemployment rate ,for purposes of this section1 the term national total unemployment rate means the rate determined in the most recently available unemployment data release published by the ,bureau of ,labor ,statistics of the ,department of ,labor4 7#d7 ,dependent defined ,for purposes of this section1 the term dependent has the meaning given such term in section #aeb4 7#e7 ,credit treated as refundable ,the credit allowed by subsection 7a7 shall be treated as allowed by subpart ,c of part ,,iv of subchapter ,a of chapter #a4 7#f7 ,identification number requirement 7,a7 ,in general ,the credit amount determined under subsection 7c7 shall be treated as being zero unless the taxpayer includes the ,,tin 7as defined in section #ggja7;a77#da77 of the taxpayer on the return of tax for the taxable year4 7,b7 ,joint returns ,in the case of a joint return1 the credit amount determined under subsection 7c7 shall be treated as being-- 7i7 zero if the ,,tin of neither spouse is included on the return of tax for the taxable year1 and 7ii7 the amount calculated for a single filer1 if the ,,tin of only one spouse is so included4 7,c7 ,dependents ,a dependent shall not be taken into account under subsection 7a77#b7 unless the ,,tin of such dependent is included on the return of tax for the taxable year4 7,d7 ,special rule for members of the armed forces ,paragraph 7#a7 shall not apply to a joint return where at least #a spouse was a member of the ,armed ,forces of the ,united ,states at any time during the applicable taxable year4 7,e7 ,coordination with certain advance payments ,in the case of any payment made pursuant to subsection 7h77#e77;,a77ii71 a ,,tin shall be treated for purposes of this paragraph as included on the taxpayer's return of tax if such ,,tin is provided pursuant to such subsection4 7g7 ,coordination with advance refunds of credit 7#a7 ,reduction of refundable credit ,the amount of the credit which would 7but for this paragraph7 be allowable under subsection 7a7 shall be reduced 7but not below zero7 by the aggregate refunds and credits made or allowed to the taxpayer 7or any dependent of the taxpayer7 under subsection 7h74 ,any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section #fbac7;b77#a74 7#b7 ,joint returns ,in the case of a refund or credit made or allowed under subsection 7h7 with respect to a joint return1 half of such refund or credit shall be treated as having been made or allowed to each individual filing such return4 7h7 ,advance refunds and credits 7#a7 ,in general ,subject to paragraph 7#e71 each individual who was an eligible individual in an applicable taxable year shall be treated as having made a payment against the tax imposed by chapter #a for such taxable year in an amount equal to the advance refund amount for such taxable year4 7#b7 ,advance refund amount ,for purposes of paragraph 7#a71 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 7other than subsection 7f7 and this subsection7 had applied to such taxable year4 7#c7 ,timing and manner of payments 7,a7 ,timing ,the ,secretary shall1 subject to the provisions of this title1 refund or credit any overpayment attributable to this section as rapidly as possible4 7,b7 ,delivery of payments ,notwithstanding any other provision of law1 the ,secretary may certify and disburse refunds payable under this section-- 7i7 electronically to any account to which the payee authorized1 on or after ,january #a1 #bjah1 the delivery of a refund of taxes under this title or of a ,federal payment 7as defined in section #cccb of title #ca1 ,united ,states ,code71 7ii7 to a ,direct ,express prepaid debit card1 or 7iii7 in the event that electronic disbursement or ,direct ,express payment is not possible1 through such other means as are determined appropriate by the ,secretary1 including through the use of stored value cards and online payment systems4 7,c7 ,waiver of certain rules ,notwithstanding section #ccbe of title #ca1 ,united ,states ,code1 or any other provision of law1 with respect to any payment of a refund under this subsection1 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 #ccbe7;a77#a77;,b7 of such title for the purpose of facilitating the accurate and efficient delivery of such payment4 ,except in cases of fraud or reckless neglect1 no liability under section #ccbe1 #cebg1 #cebh1 or #cebi of title #ca1 ,united ,states ,code1 shall be imposed with respect to payments made under this subparagraph4 7#d7 ,no interest ,no interest shall be allowed on any overpayment attributable to this section4 7#e7 ,application to individuals who do not file a return of tax for applicable tax year 7,a7 ,in general ,in the case of an individual who1 at the time of any determination made pursuant to paragraph 7#c71 has not filed a tax return for an applicable tax year described in paragraph 7#a71 the ,secretary shall-- 7i7 apply paragraph 7#a7 by substituting the taxable year preceding the applicable taxable year1 or 7ii7 in the case of an individual who has not filed a tax return for the taxable year described in clause 7i71 determine the advance refund amount with respect to such individual on the basis of information with respect to such individual which-- 7,i7 in the case of a specified social security beneficiary or a specified supplemental security income recipient1 is provided by the ,commissioner of ,social ,security1 7,,ii7 in the case of a specified railroad retirement beneficiary1 is provided by the ,railroad ,retirement ,board1 7,,iii7 in the case of a specified veterans beneficiary1 is provided by the ,secretary of ,veterans ,affairs 7in coordination with1 and with the assistance of1 the ,commissioner of ,social ,security if appropriate71 and 7,,iv7 in the case of any other individual1 is determined using aggregate payment information provided by the employer of such individual1 including information provided on ,form ,w-#b or ,form #ajii4 7,b7 ,specified social security beneficiary ,for purposes of this paragraph-- 7i7 ,in general ,the term specified social security beneficiary means any individual who1 for the last month that ends prior to the date of enactment of this section1 is entitled to any monthly insurance benefit payable under title ,,ii of the ,social ,security ,act 7#db ,u4,s4,c4 #dja et seq471 including payments made pursuant to sections #bjb7;d71 #bbc7;g71 and #bbc7;i77#g7 of such ,act4 7ii7 ,exception ,such term shall not include any individual if such benefit is not payable for such month by reason of section #bjb7x7 of the ,social ,security ,act 7#db ,u4,s4,c4 #djb7x77 or section #aabi;,a of such ,act 7#db ,u4,s4,c4 #acbj;a-#h;a74 7,c7 ,specified supplemental security income recipient ,for purposes of this paragraph-- 7i7 ,in general ,the term specified supplemental security income recipient means any individual who1 for the last month that ends prior to the date of enactment of this section1 is eligible for a monthly benefit payable under title ,,xvi of the ,social ,security ,act 7#db ,u4,s4,c4 #acha et seq47 7other than a benefit to an individual described in section #afaa7;e77#a77;,b7 of such ,act 7#db ,u4,s4,c4 #achb7;e77#a77;,b7771 including-- 7,i7 payments made pursuant to section #afad7;a77#c77;,c7 of such ,act 7#db ,u4,s4,c4 #achb;c7a77#c77;,c771 7,,ii7 payments made pursuant to section #afai7;a7 7#db ,u4,s4,c4 #achb;h7 or subsection 7a77#d71 7a77#g71 or 7p77#g7 of section #afca 7#db ,u4,s4,c4 #achc7 of such ,act1 and 7,,iii7 ,state supplementary payments of the type referred to in section #afaf7;a7 of such ,act 7#db ,u4,s4,c4 #achb;e7a77 7or payments of the type described in section #bab7;a7 of ,public ,law #ic-ff7 which are paid by the ,commissioner under an agreement referred to in such section #afaf7;a7 7or section #bab7;a7 of ,public ,law #ic-ff74 7ii7 ,exception ,such term shall not include any individual if such monthly benefit is not payable for such month by reason of subsection 7e77#a77;,a7 or 7e77#d7 of section #afaa 7#db ,u4,s4,c4 #achb7 or section #aabi;,a of such ,act 7#db ,u4,s4,c4 #acbj;a-#h;a74 7,d7 ,specified railroad retirement beneficiary ,for purposes of this paragraph1 the term specified railroad retirement beneficiary means any individual who1 for the last month that ends prior to the date of enactment of this section1 is entitled to a monthly annuity or pension payment payable 7without regard to section #e7;a77ii7 of the ,railroad ,retirement ,act of #aigd 7#de ,u4,s4,c4 #bca;d7a77ii777 under-- 7i7 section #b7;a77#a7 of such ,act 7#de ,u4,s4,c4 #bca;a7a77#a771 7ii7 section #b7;c7 of such ,act 7#de ,u4,s4,c4 #bca;a7c771 7iii7 section #b7;d77#a7 of such ,act 7#de ,u4,s4,c4 #bca;a7d77#a771 or 7iv7 section #g7;b77#b7 of such ,act 7#de ,u4,s4,c4 #bca;f7b77#b77 with respect to any of the benefit payments described in subparagraph 7,c77i74 7,e7 ,specified veterans beneficiary ,for purposes of this paragraph-- 7i7 ,in general ,the term specified veterans beneficiary means any individual who1 for the last month that ends prior to the date of enactment of this section1 is entitled to a compensation or pension payment payable under-- 7,i7 section #aaaj1 #aaag1 #aaba1 #aaca1 #aada1 or #aaea of title #ch1 ,united ,states ,code1 7,,ii7 section #acaj1 #acab1 #acac1 #acae1 #acaf1 or #acah of title #ch1 ,united ,states ,code1 7,,iii7 section #aeac1 #aeba1 #aecc1 #aecf1 #aecg1 #aeda1 #aedb1 or #aefb of title #ch1 ,united ,states ,code1 or 7,,iv7 section #ahje1 #ahae1 or #ahba of title #ch1 ,united ,states ,code1 to a veteran1 surviving spouse1 child1 or parent as described in paragraph 7#b71 7#c71 7#d77;,a77ii71 or 7#e7 of section #aja1 title #ch1 ,united ,states ,code4 7ii7 ,exception ,such term shall not include any individual if such compensation or pension payment is not payable1 or was reduced1 for such month by reason of section #aeje1 #ecac1 or #ecac;,b of title #ch1 ,united ,states ,code4 7,f7 ,subsequent determinations and redeterminations not taken into account ,for purposes of this section1 any individual's status as a specified social security beneficiary1 a specified supplemental security income recipient1 a specified railroad retirement beneficiary1 or a specified veterans beneficiary shall be unaffected by any determination or redetermination of any entitlement to1 or eligibility for1 any benefit1 payment1 or compensation1 if such determination or redetermination occurs after the last month that ends prior to the date of enactment of this section4 7,g7 ,payment to representative payees and fiduciaries 7i7 ,in general ,if the benefit1 payment1 or compensation referred to in subparagraph 7,c77i71 7,d77i71 7,e71 or 7,f77i7 with respect to any specified individual is paid to a representative payee or fiduciary1 payment by the ,secretary under paragraph 7#c7 with respect to such specified individual shall be made to such individual's representative payee or fiduciary and the entire payment shall be used only for the benefit of the individual who is entitled to the payment4 7ii7 ,application of enforcement provisions 7,i7 ,in the case of a payment described in clause 7i7 which is made with respect to a specified social security beneficiary or a specified supplemental security income recipient1 section #aabi7;a77#c7 of the ,social ,security ,act 7#db ,u4,s4,c4 #acbj;a-#h7;a77#c77 shall apply to such payment in the same manner as such section applies to a payment under title ,,ii or ,,xvi of such ,act4 7,,ii7 ,in the case of a payment described in clause 7i7 which is made with respect to a specified railroad retirement beneficiary1 section #ac of the ,railroad ,retirement ,act 7#de ,u4,s4,c4 #bcal7 shall apply to such payment in the same manner as such section applies to a payment under such ,act4 7,,iii7 ,in the case of a payment described in clause 7i7 which is made with respect to a specified veterans beneficiary1 sections #eejb1 #fajf1 and #fajh of title #ch1 ,united ,states ,code1 shall apply to such payment in the same manner as such sections apply to a payment under such title4 7#f7 ,notice to taxpayer ,not later than #ae days after the date on which the ,secretary distributed any payment to an eligible taxpayer pursuant to this subsection1 notice shall be sent by mail to such taxpayer's last known address4 ,such notice shall indicate the method by which such payment was made1 the amount of such payment1 and a phone number for the appropriate point of contact at the ,internal ,revenue ,service to report any error with respect to such payment4 7i7 ,regulations ,the ,secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section1 including-- 7#a7 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 7h7 7including the determination of the amount of such payment7 if such information is not otherwise available to the ,secretary1 and 7#b7 regulations or other guidance providing for the proper treatment of joint returns and taxpayers with dependents to ensure that an individual is not taken into account more than once in determining the amount of any credit under subsection 7a7 and any credit or refund under subsection 7h74 4 7b7 ,treatment of certain possessions 7#a7 ,payments to possessions with mirror code tax systems ,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 7if any7 to that possession by reason of the amendments made by this section4 ,such amounts shall be determined by the ,secretary of the ,treasury based on information provided by the government of the respective possession4 7#b7 ,payments to other possessions ,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 7if any7 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 possession4 ,the preceding sentence shall not apply unless the respective possession has a plan1 which has been approved by the ,secretary of the ,treasury1 under which such possession will promptly distribute such payments to its residents4 7#c7 ,coordination with credit allowed against ,united ,states income taxes ,no credit shall be allowed against ,united ,states income taxes under section #fdbh;,a of the ,internal ,revenue ,code of #aihf 7as added by this section71 nor shall any credit or refund be made or allowed under subsection 7h7 of such section1 to any person-- 7,a7 to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section1 or 7,b7 who is eligible for a payment under a plan described in paragraph 7#b74 7#d7 ,mirror code tax system ,for purposes of this subsection1 the term mirror code tax system means1 with respect to any possession of the ,united ,states1 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 ,states4 7c7 ,administrative provisions 7#a7 ,definition of deficiency ,section #fbaa7;b77#d77;,a7 of the ,internal ,revenue ,code of #aihf is amended by striking and #fdbh and inserting #fdbh1 and #fdbh;,a4 7#b7 ,mathematical or clerical error authority ,section #fbac7;g77#b7 of such ,code is amended-- 7,a7 by inserting or section #fdbh;,a 7relating to additional recovery rebates to individuals7 before the comma at the end of subparagraph 7,h71 and 7,b7 by striking or #fdbh in subparagraph 7,l7 and inserting #fdbh1 or #fdbh;,a4 7#c7 ,exception from reduction or offset ,any credit or refund allowed or made to any individual by reason of section #fdbh;,a of the ,internal ,revenue ,code of #aihf 7as added by this section7 or by reason of subsection 7b7 of this section shall not be-- 7,a7 subject to reduction or offset pursuant to section #cgaf or #cgbj;,a of title #ca1 ,united ,states ,code1 7,b7 subject to reduction or offset pursuant to subsection 7c71 7d71 7e71 or 7f7 of section #fdjb of the ,internal ,revenue ,code of #aihf1 or 7,c7 reduced or offset by other assessed ,federal taxes that would otherwise be subject to levy or collection4 7#d7 ,assignment of benefits 7,a7 ,in general ,any applicable payment shall not be subject to transfer1 assignment1 execution1 levy1 attachment1 garnishment1 or other legal process1 or the operation of any bankruptcy or insolvency law1 to the same extent as payments described in section #bjg of the ,social ,security ,act 7#db ,u4,s4,c4 #djg7 without regard to subsection 7b7 thereof4 7,b7 ,encoding of payments ,as soon as practicable after the date of the enactment of the paragraph1 the ,secretary of the ,treasury shall encode applicable payments that are paid electronically to any account-- 7i7 with a unique identifier that is reasonably sufficient to allow a financial institution to identify the payment as a payment protected under subparagraph 7,a71 and 7ii7 pursuant to the same specifications as required for a benefit payment to which part #bab of title #ca1 ,code of ,federal regulations applies4 7,c7 ,garnishment 7i7 ,encoded payments ,upon receipt of a garnishment order that applies to an account that has received an applicable payment that is encoded as provided in subparagraph 7,b71 a financial institution shall follow the requirements and procedures set forth in part #bab of title #ca1 ,code of ,federal ,regulations4 ,this paragraph shall not alter the status of payments as tax refunds or other nonbenefit payments for purposes of any reclamation rights of the ,department of the ,treasury or the ,internal ,revenue ,service as per part #baj of title #ca of the ,code of ,federal ,regulations4 7ii7 ,other payments ,if a financial institution receives a garnishment order 7other than an order that has been served by the ,united ,states7 that applies to an account into which an applicable payment that has not been encoded as provided in subparagraph 7,b7 has been deposited on any date in the prior #fj days 7including any date before the date of the enactment of this paragraph71 the financial institution1 upon the request of the account holder or for purposes of complying in good faith with a ,state order1 ,state law1 court order1 or interpretation by a ,state ,attorney ,general relating to garnishment order1 may1 but is not required to1 treat the amount of the payment as exempt under law from garnishment without requiring the account holder to assert any right of garnishment exemption or requiring the consent of the judgment creditor4 7iii7 ,liability ,a financial institution that complies in good faith with clause 7i7 or that acts in good faith in reliance on clause 7ii7 shall not be liable under any ,federal or ,state law1 regulation1 or court or other order to a creditor that initiates an order for any protected amounts1 to an account holder for any frozen amounts or garnishment order applied4 7,d7 ,definitions ,for purposes of this paragraph-- 7i7 ,account holder ,the term account holder means a natural person against whom a garnishment order is issued and whose name appears in a financial institution's records4 7ii7 ,applicable payment ,the term applicable payment means any payment of credit or refund by reason of section #fdbh of such ,code 7as so added7 or by reason of subsection 7c7 of this section4 7iii7 ,garnishment ,the term garnishment means execution1 levy1 attachment1 garnishment1 or other legal process4 7iv7 ,garnishment order ,the term garnishment order means a writ1 order1 notice1 summons1 judgment1 levy1 or similar written instruction issued by a court1 a ,state or ,state agency1 a municipality or municipal corporation1 or a ,state child support enforcement agency1 including a lien arising by operation of law for overdue child support or an order to freeze the assets in an account1 to effect a garnishment against a debtor4 7#e7 ,treatment of credit and advance payments ,for purposes of section #acbd of title #ca1 ,united ,states ,code1 any credit under section #fdbh;,a7a7 of the ,internal ,revenue ,code of #aihf1 any credit or refund under section #fdbh;,a7h7 of such ,code1 and any payment under subsection 7b7 of this section1 shall be treated in the same manner as a refund due from a credit provision referred to in subsection 7b77#b7 of such section #acbd4 7#f7 ,agency information sharing and assistance ,the ,commissioner of ,social ,security1 the ,railroad ,retirement ,board1 and the ,secretary of ,veterans ,affairs shall each provide the ,secretary of the ,treasury 7or the ,secretary's delegate7 such information and assistance as the ,secretary of the ,treasury 7or the ,secretary's delegate7 may require for purposes of making payments under section #fdbh;,a7g7 of the ,internal ,revenue ,code of #aihf to individuals described in paragraph 7#e77;,a77ii7 thereof4 7#g7 ,clerical amendment ,the table of sections for subchapter ,b of chapter #fe of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #fdbh the following new item3 ,sec4 #fdbh;,a4 ,additional recovery rebates to individuals4 4 7d7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act4 #c4 ,refund of balance owed with respect to certain dependents ,in the case of any taxpayer with respect to whom a partial refund or credit was made or allowed before the date of the enactment of this ,act under subsection 7f7 of section #fdbh of the ,internal ,revenue ,code of #aihf and for whom a balance is owed with respect to a dependent1 the ,secretary shall1 before ,december #ca1 #bjbj1 certify and disburse the balance of such refund electronically to any account to which the payee authorized1 on or after ,january #a1 #bjah1 the delivery of a refund of taxes or of a ,federal payment 7as defined in section #cccb of title #ca1 ,united ,states ,code74