,i  #aah? ,,congress  #b;d ,session  ,h4
 ,r4 #igch  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,septemb] #bj1        
#bjbd,mr4 ,s*weik]t introduc$ ! foll[+  
bill2 :i* 0 ref]r$ to ! ,committee on   
,ways & ,means  ,a ,,bill  ,to increase 
! p5alties applicable to p]sons         
facilitate fraud ) respect to any       
,,covid-relat$ employee ret5tion cr$it1 
& = o!r purposes4  #a4 ,en=cem5t        
provisions ) respect to ,,covid-relat$  
employee ret5tion cr$its  7a7 ,increase 
9 assessable p5alty on ,,covid-,,ertc   
promot]s = aid+ & abett+ und]/atem5ts ( 
tax liability  7#a7 ,9 g5]al ,if any    
,,covid-,,ertc promot] is subject to    
p5alty "u section #fgja7;a7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf ) respect to any 
,,covid-,,ertc docum5t1 not)/&+         
p>agraphs 7#a7 & 7#b7 ( section         
#fgja7;b7 ( su* ,code1 ! am\nt ( !      
p5alty impos$ "u su* section #fgja7;a7  
%all be ! great] (-- 7,a7 #bjj1jjj      
7#aj1jjj1 9 ! case ( a natural p]son71  
or  7,b7 #ge p]c5t ( ! gross income     

d]iv$ 7or to be d]iv$7 by su* promot] ) 
respect to ! aid1 assi/ance1 or advice  
ref]r$ to 9 section #fgja7;a77#a7 ( su* 
,code ) respect to su* docum5t4  7#b7   
,no inf]5ce ,p>agraph 7#a7 %all n be    
con/ru$ to create any inf]5ce ) respect 
to ! prop] application ( ! k requirem5t 
( section #fgja7;a77#c7 ( ! ,int]nal    
,rev5ue ,code ( #aihf4  7b7 ,failure ,to
 comply ) due dilig5ce requirem5ts      
treat$ z k = purposes ( assessable      
p5alty = aid+ & abett+ und]/atem5t ( tax
 liability ,9 ! case ( any              
,,covid-,,ertc promot]1 ! k requirem5t (
 section #fgja7;a77#c7 ( ! ,int]nal     
,rev5ue ,code ( #aihf %all be treat$ z  
satisfi$ ) respect to any ,,covid-,,ertc
 docum5t ) respect to :i* su* promot]   
provid$ aid1 assi/ance1 or advice1 if   
su* promot] fails to comply ) ! due     
dilig5ce requirem5ts ref]r$ to 9        
subsection 7c77#a74  7c7 ,assessable    
p5alty = failure ,to comply ) due       
dilig5ce requirem5ts  7#a7 ,9 g5]al ,any
 ,,covid-,,ertc promot] :i* provides    

aid1 assi/ance1 or advice ) respect to  
any ,,covid-,,ertc docum5t & :i* fails  
to comply ) due dilig5ce requirem5ts    
impos$ by ! ,secret>y ) respect to      
det]m9+ eligibility =1 or ! am\nt (1 any
 ,,covid-relat$ employee ret5tion tax   
cr$it1 %all pay a p5alty ( #a1jjj = ea* 
su* failure4  7#b7 ,due dilig5ce        
requirem5ts ,except z o!rwise provid$ by
 ! ,secret>y1 ! due dilig5ce requirem5ts
 ref]r$ to 9 p>agraph 7#a7 %all be      
simil> to ! due dilig5ce requirem5ts    
impos$ "u section #ffie7;g74  7#c7      
,re/riction to docum5ts us$ 9 connection
 ) returns or claims = refund ,p>agraph 
7#a7 %all n apply ) respect to any      
,,covid-,,ertc docum5t unless su*       
docum5t con/itutes1 or relates to1 a    
return or claim = refund4  7#d7         
,treatm5t z assessable p5alty1 etc ,=   
purposes ( ! ,int]nal ,rev5ue ,code (   
#aihf1 ! p5alty impos$ "u p>agraph 7#a7 
%all be treat$ 9 ! same mann] z a p5alty
 impos$ "u section #ffie7;g74  7#e7     
,secret>y ,= purposes ( ?is subsection1 

! t]m ,secret>y means ! ,secret>y ( !   
,treasury or ! ,secret>y's delegate4    
7d7 ,assessable p5alties = failure ,to  
disclose in=mation1 ma9ta9 cli5t li/s1  
etc ,= purposes ( sections #faaa1 #faab1
 #fgjg & #fgjh ( ! ,int]nal ,rev5ue     
,code ( #aihf-- 7#a7 any ,,covid-relat$ 
employee ret5tion tax cr$it 7:e!r or n !
 taxpay] claims su* ,,covid-relat$      
employee ret5tion tax cr$it7 %all be    
treat$ z a li/$ transaction 7& z a      
reportable transaction7 ) respect to any
 ,,covid-,,ertc promot] if su* promot]  
provides any aid1 assi/ance1 or advice )
 respect to any ,,covid-,,ertc docum5t  
relat+ to su* ,,covid-relat$ employee   
ret5tion tax cr$it1 &  7#b7 su*         
,,covid-,,ertc promot] %all be treat$ z 
a mat]ial advisor ) respect to su*      
transaction4  7e7 ,,covid-,,ertc promot]
 ,= purposes ( ?is section-- 7#a7 ,9    
g5]al ,! t]m ,,covid-,,ertc promot]     
means1 ) respect to any ,,covid-,,ertc  
docum5t1 any p]son :i* provides aid1    
assi/ance1 or advice ) respect to su*   

docum5t if-- 7,a7 su* p]son *>ges or    
receives a fee = su* aid1 assi/ance1 or 
advice :i* is bas$ on ! am\nt ( ! refund
 or cr$it ) respect to su* docum5t &1 ) 
respect to su* p]son's taxable ye> 9 :i*
 su* p]son provid$ su* assi/ance or !   
prec$+ taxable ye>1 ! aggregate gross   
receipts ( su* p]son = aid1 assi/ance1 &
 advice ) respect to all ,,covid-,,ertc 
docum5ts exce$s #bj p]c5t ( ! gross     
receipts ( su* p]son = su* taxable ye>1 
or  7,b7 ) respect to su* p]son's       
taxable ye> 9 :i* su* p]son provid$ su* 
assi/ance or ! prec$+ taxable ye>-- 7i7 
! aggregate gross receipts ( su* p]son =
 aid1 assi/ance1 & advice ) respect to  
all ,,covid-,,ertc docum5ts exce$s #ej  
p]c5t ( ! gross receipts ( su* p]son =  
su* taxable ye>1 or  7ii7 bo?-- 7,i7 su*
 aggregate gross receipts exce$s #bj    
p]c5t ( ! gross receipts ( su* p]son =  
su* taxable ye>1 &  7,,ii7 ! aggregate  
gross receipts ( su* p]son = aid1       
assi/ance1 & advice ) respect to all    
,,covid-,,ertc docum5ts 7det]m9$ aft]   

application ( p>agraph 7#c77 exce$s     
#ejj1jjj4  7#b7 ,exception = c]tifi$    
pr(essional employ] organizations ,! t]m
 ,,covid-,,ertc promot] %all n include a
 c]tifi$ pr(essional employ]            
organization 7z def9$ 9 section #ggje74 
7#c7 ,aggregation rule ,= purposes (    
p>agraph 7#a77;,b77ii77,,ii71 all p]sons
 treat$ z a s+le employ] "u subsection  
7a7 or 7b7 ( section #eb ( ! ,int]nal   
,rev5ue ,code ( #aihf1 or subsection 7m7
 or 7o7 ( section #dad ( su* ,code1 %all
 be treat$ z #a p]son4  7#d7 ,%ort      
taxable ye>s ,9 ! case ( any taxable ye>
 ( less ?an #ab mon?s1 p>agraph 7#a7    
%all be appli$ ) respect to ! cal5d> ye>
 9 :i* su* taxable ye> beg9s 79 addition
 to apply+ to su* taxable ye>74  7f7    
,,covid-,,ertc docum5t ,= purposes ( ?is
 section1 ! t]m ,,covid-,,ertc docum5t  
means any return1 affidavit1 claim1 or  
o!r docum5t relat$ to any ,,covid-relat$
 employee ret5tion tax cr$it1 includ+   
any docum5t relat$ to eligibility =1 or 
! calculation or det]m9ation ( any am\nt

 directly relat$ to any ,,covid-relat$  
employee ret5tion tax cr$it4  7g7       
,,covid-,relat$ employee ret5tion tax   
cr$it ,= purposes ( ?is section1 ! t]m  
,,covid-relat$ employee ret5tion tax    
cr$it means-- 7#a7 any cr$it1 or advance
 paym5t1 "u section #cacd ( ! ,int]nal  
,rev5ue ,code ( #aihf1 &  7#b7 any      
cr$it1 or advance paym5t1 "u section    
#bcja ( ! ,,c>es ,act4  7h7 ,limitation 
on cr$it & refund ( ,,covid-,relat$     
employee ret5tion tax cr$its ,not)/&+   
section #feaa ( ! ,int]nal ,rev5ue ,code
 ( #aihf or any o!r provision ( law1 no 
cr$it or refund ( any ,,covid-relat$    
employee ret5tion tax cr$it %all be     
all[$ or made aft] ,janu>y #ca1 #bjbd1  
unless a claim = su* cr$it or refund is 
fil$ by ! taxpay] on or be=e su* date4  
7i7 ,am5dm5ts ,to ext5d limitation on   
assessm5t  7#a7 ,9 g5]al ,section       
#cacd7l7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ to read z foll[s3  7l7   
,ext5sion ( limitation on assessm5t     
7#a7 ,9 g5]al ,not)/&+ section #feja1 ! 

limitation on ! "t p]iod = ! assessm5t (
 any am\nt attributable to a cr$it      
claim$ "u ?is section %all n expire be=e
 ! date t is #f ye>s aft] ! late/ (--   
7,a7 ! date on :i* ! orig9al return :i* 
includes ! cal5d> qu>t] ) respect to :i*
 su* cr$it is det]m9$ is fil$1  7,b7 !  
date on :i* su* return is treat$ z fil$ 
"u section #feja7;b77#b71 or  7,c7 !    
date on :i* ! claim = cr$it or refund ) 
respect to su* cr$it is made4  7#b7     
,d$uction = wages tak5 into acc\nt 9    
det]m9+ improp]ly claim$ cr$it  7,a7 ,9 
g5]al ,not)/&+ section #feaa1 9 ! case (
 an assessm5t attributable to a cr$it   
claim$ "u ?is section1 ! limitation on !
 "t p]iod = cr$it or refund ( any am\nt 
attributable to a d$uction = improp]ly  
claim$ ,,ertc wages %all n expire be=e !
 "t p]iod = su* assessm5t expires "u    
p>agraph 7#a74  7,b7 ,improp]ly claim$  
,,ertc wages ,= purposes ( ?is p>agraph1
 ! t]m improp]ly claim$ ,,ertc wages    
means1 ) respect to an assessm5t        
attributable to a cr$it claim$ "u ?is   

section1 ! wages ) respect to :i* a     
d$uction w\ld n h be5 all[$ if ! portion
 ( ! cr$it to :i* su* assessm5t relates 
_h be5 prop]ly claim$4  4  7#b7         
,application to ,,c>es ,act cr$it       
,section #bcja ( ! ,,c>es ,act is am5d$ 
by add+ at ! end ! foll[+ new           
subsection3  7o7 ,ext5sion ( limitation 
on assessm5t  7#a7 ,9 g5]al ,not)/&+    
section #feja ( ! ,int]nal ,rev5ue ,code
 ( #aihf1 ! limitation on ! "t p]iod = !
 assessm5t ( any am\nt attributable to a
 cr$it claim$ "u ?is section %all n     
expire be=e ! date t is #f ye>s aft] !  
late/ (-- 7,a7 ! date on :i* ! orig9al  
return :i* includes ! cal5d> qu>t] )    
respect to :i* su* cr$it is det]m9$ is  
fil$1  7,b7 ! date on :i* su* return is 
treat$ z fil$ "u section #feja7;b77#b7 (
 su* ,code1 or  7,c7 ! date on :i* !    
claim = cr$it or refund ) respect to su*
 cr$it is made4  7#b7 ,d$uction = wages 
tak5 into acc\nt 9 det]m9+ improp]ly    
claim$ cr$it  7,a7 ,9 g5]al ,not)/&+    
section #feaa ( su* ,code1 9 ! case ( an

 assessm5t attributable to a cr$it      
claim$ "u ?is section1 ! limitation on !
 "t p]iod = cr$it or refund ( any am\nt 
attributable to a d$uction = improp]ly  
claim$ ,,ertc wages %all n expire be=e !
 "t p]iod = su* assessm5t expires "u    
p>agraph 7#a74  7,b7 ,improp]ly claim$  
,,ertc wages ,= purposes ( ?is p>agraph1
 ! t]m improp]ly claim$ ,,ertc wages    
means1 ) respect to an assessm5t        
attributable to a cr$it claim$ "u ?is   
section1 ! wages ) respect to :i* a     
d$uction w\ld n h be5 all[$ if ! portion
 ( ! cr$it to :i* su* assessm5t relates 
_h be5 prop]ly claim$4  4  7j7          
,effective dates  7#a7 ,9 g5]al ,except 
z o!rwise provid$ 9 ?is subsection1 !   
provisions ( ?is section %all apply to  
aid1 assi/ance1 & advice provid$ aft]   
,m>* #ab1 #bjbj4  7#b7 ,due dilig5ce    
requirem5ts ,subsections 7b7 & 7c7 %all 
apply to aid1 assi/ance1 & advice       
provid$ aft] ! date ( ! enactm5t ( ?is  
,act4  7#c7 ,limitation on cr$it &      
refund ( ,,covid-relat$ employee        

ret5tion tax cr$its ,subsection 7h7 %all
 apply to cr$its & refunds all[$ or made
 aft] ,janu>y #ca1 #bjbd4  7#d7         
,am5dm5ts to ext5d limitation on        
assessm5t ,! am5dm5ts made by subsection
 7i7 %all apply to assessm5ts made aft] 
! date ( ! enactm5t ( ?is ,act4  7k7    
,transition rule ) respect to           
requirem5ts ,to disclose in=mation1     
ma9ta9 cli5t li/s1 etc ,any return "u   
section #faaa ( ! ,int]nal ,rev5ue ,code
 ( #aihf1 or li/ "u section #faab ( su* 
,code1 requir$ by reason ( subsection   
7d7 ( ?is section to be fil$ or ma9ta9$1
 respectively1 ) respect to any aid1    
assi/ance1 or advice provid$ by a       
,,covid-,,ertc promot] ) respect to a   
,,covid-,,ertc docum5t be=e ! date ( !  
enactm5t ( ?is ,act1 %all n be requir$  
to be s fil$ or ma9ta9$ 7) respect to   
su* aid1 assi/ance or advice7 be=e !    
date :i* is #ij days aft] su* date4  7l7
 ,provisions n ,to be con/ru$ ,to create
 negative inf]5ces  7#a7 ,no inf]5ce )  
respect to application ( k requirem5t to

 pre-enactm5t conduct ( ,,covid-,,ertc  
promot]s1 etc ,subsection 7b7 %all n be 
con/ru$ to create any inf]5ce ) respect 
to ! prop] application ( section        
#fgja7;a77#c7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf ) respect to any aid1          
assi/ance1 or advice provid$ by any     
,,covid-,,ertc promot] on or be=e ! date
 ( ! enactm5t ( ?is ,act 7or ) respect  
to any o!r aid1 assi/ance1 or advice to 
:i* su* subsection does n apply74  7#b7 
,requirem5ts to disclose in=mation1     
ma9ta9 cli5t li/s1 etc ,subsections 7d7 
& 7k7 %all n be con/ru$ to create any   
inf]5ce ) respect to :e!r any           
,,covid-relat$ employee ret5tion tax    
cr$it is 7)\t reg>d to subsection 7d77 a
 li/$ transaction 7or reportable        
transaction7 ) respect to any           
,,covid-,,ertc promot]2 &1 = purposes ( 
subsection 7j71 a return or li/ %all n  
be treat$ z requir$ 7) respect to su*   
aid1 assi/ance1 or advice7 by reason (  
subsection 7d7 if su* return or li/ w\ld
 be s requir$ )\t reg>d to subsection   

7d74  7m7 ,regulations ,! ,secret>y 7z  
def9$ 9 subsection 7c77#e77 %all issue  
su* regulations or o!r guidance z may be
 necess>y or appropriate to c>ry out !  
purposes ( ?is section 7& ! am5dm5ts    
made by ?is section74