,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #dfc  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,janu>y #ae1          
#bjbe,mrs4 ,sykes introduc$ ! foll[+    
bill2 :i* 0 ref]r$ to ! ,committee on   
,ways & ,means  ,a ,,bill  ,to am5d !   
,int]nal ,rev5ue ,code ( #aihf to exp& !
 e>n$ income & *ild tax cr$its1 & = o!r 
purposes4  #a4 ,%ort title2 table (     
cont5ts  7a7 ,%ort title ,?is ,act may  
be cit$ z ! ,l[] ,y\r ,taxes ,act4  7b7 
,table ( cont5ts ,! table ( cont5ts (   
?is ,act is z foll[s3 ,sec4 #a4 ,%ort   
title2 table ( cont5ts4,sec4 #b4 ,s5se (
 ,congress4,sec4 #c4 ,expansion ( e>n$  
income tax cr$it4,sec4 #d4 ,paym5ts to  
taxpay]s det]m9$ by treat+ ,/ate        
non-refundable e>n$ income tax cr$its z 
refundable4,sec4 #e4 ,e/abli%m5t (      
refundable *ild tax cr$it ) mon?ly      
advance paym5t4,sec4 #f4 ,capital ga9s  
rates n applicable to c]ta9 high income 
taxpay]s4,sec4 #g4 ,increase 9 rates (  
c]ta9 corporate taxes4  #b4 ,s5se (     
,congress ,x is ! s5se ( ,congress t !  

net rev5ue d]iv$ f ?is ,act %\ld be us$ 
to r$uce ! national deficit1 to ! ext5t 
!re(1 & !reaft] to r$uce ! national     
debt4  #c4 ,expansion ( e>n$ income tax 
cr$it  7a7 ,cr$it p]c5tage ,! table     
conta9$ 9 section #cb7;b77#a7 ( !       
,int]nal ,rev5ue ,code ( #aihf is       
am5d$-- 7#a7 by /rik+ #cd & ins]t+ #fh1 
7#b7 by /rik+ #dj & ins]t+ #hj1  7#c7 by
 /rik+ #de & ins]t+ #ij1 &  7#d7 by     
/rik+ #g4fe 9 ! column ) ! head+ ,!     
cr$it p]c5tage is3 & ins]t+ #ce4  7b7   
,phase\t p]c5tage ,! table conta9$ 9    
section #cb7;b77#a7 ( su* ,code is      
am5d$-- 7#a7 by /rik+ #ae4ih & ins]t+   
#g1  7#b7 by /rik+ #ba4jf bo? places x  
appe>s & ins]t+ #aj1 &  7#c7 by /rik+   
#g4fe 9 ! column ) ! head+ ,! phase\t   
p]c5tage is3 & ins]t+ #g4  7c7 ,e>n$    
income am\nt ,! table conta9$ 9 section 
#cb7;b77#b77;,a7 ( su* ,code is am5d$-- 
7#a7 by /rik+ #f1ccj & ins]t+ #ai1jjj1  
7#b7 by /rik+ #h1hij & ins]t+ #bg1jjj1 &
  7#c7 by /rik+ #d1bbj & ins]t+ #ae1jjj4
  7d7 ,phase\t am\nt  7#a7 ,9 g5]al ,!  

table conta9$ 9 section #cb7;b77#b77;,a7
 ( su* ,code is am5d$-- 7,a7 by /rik+   
#aa1faj bo? places x appe>s & ins]t+    
#cj1jjj1 &  7,b7 by /rik+ #e1bhj &      
ins]t+ #ae1jjj4  7#b7 ,jo9t returns     
,section #cb7;b77#b77;,b7 ( su* ,code is
 am5d$ by /rik+ det]m9$ "u subp>agraph  
7,a7 %all be increas$ by #e1jjj & ins]t+
 twice ! am\nt det]m9$ "u subp>agraph   
7,a74  7#c7 ,inflation adju/m5t ,section
 #cb7;j7 ( su* ,code is am5d$ to read z 
foll[s3  7j7 ,inflation adju/m5ts  7#a7 
,e>n$ income & phase\t am\nts  7,a7 ,9  
g5]al ,9 ! case ( any taxable ye> beg9n+
 aft] #bjbf1 ea* ( ! doll> am\nts 9     
subsection 7b77#b77;,a7 %all be increas$
 by an am\nt equal to-- 7i7 su* doll>   
am\nt1 multipli$ by  7ii7 ! ,,gdp       
adju/m5t det]m9$ "u subp>agraph 7,b7 = !
 cal5d> ye> 9 :i* ! taxable ye> beg9s4  
7,b7 ,,gdp adju/m5t ,= purposes ( ?is   
p>agraph1 ! t]m ,,gdp adju/m5t = any    
cal5d> ye> is ! p]c5tage 7if any7 by    
:i*-- 7i7 ! p] capita nom9al gross      
dome/ic product = ! prec$+ cal5d> ye> 7z

 det]m9$ by ! ,secret>y71 exce$s  7ii7 !
 p] capita nom9al gross dome/ic product 
= cal5d> ye> #bjbe 7z det]m9$ by !      
,secret>y74  7,c7 ,r\nd+ ,if any doll>  
am\nt 9 subsection 7b77#b77;,a71 aft]   
any increase "u subp>agraph 7,a71 is n a
 multiple ( #aj1 su* doll> am\nt %all be
 r\nd$ to ! ne>e/ multiple ( #aj4  7#b7 
,excessive inve/m5t income  7,a7 ,9     
g5]al ,9 ! case ( any taxable ye> beg9n+
 aft] #bjba1 ! doll> am\nt 9 subsection 
7i77#a7 %all be increas$ by an am\nt    
equal to-- 7i7 su* doll> am\nt1         
multipli$ by  7ii7 ! co/-(-liv+ adju/m5t
 det]m9$ "u section #a7;f77#c7 = !      
cal5d> ye> 9 :i* ! taxable ye> beg9s1   
det]m9$ by sub/itut+ cal5d> ye> #bjbj = 
cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 
!re(4  7,b7 ,r\nd+ ,if ! doll> am\nt 9  
subsection 7i77#a71 aft] any increase "u
 subp>agraph 7,a71 is n a multiple (    
#ej1 su* doll> am\nt %all be r\nd$ to ! 
next l[e/ multiple ( #ej4  4  7e7 ,age  
limitations ,section                    
#cb7;c77#a77;,a77ii77,,ii7 ( su* ,code  

is am5d$ by /rik+ has atta9$ age #be b n
 atta9$ age #fe & ins]t+ has atta9$ age 
#ah4  7f7 ,notification ( taxpay]s by   
,treasury ( pot5tial eligibility = !    
e>n$ income tax cr$it  7#a7 ,9 g5]al ,) 
respect to taxable ye>s beg9n+ 9 cal5d> 
ye>s aft] #bjbe1 ! ,secret>y %all       
e/abli% a program to notify 7:e!r by    
electronic means or o!rwise7 specifi$   
individuals t su* individuals may be    
eligible = ! e>n$ income tax cr$it4     
7#b7 ,specifi$ individual ,= purposes ( 
?is subsection1 ! t]m specifi$          
individual means any individual :o--    
7,a7 bas$ on in=mation available to !   
,secret>y relat$ to ! taxable ye> or !  
prec$+ taxable ye>1 ! ,secret>y det]m9es
 is likely to be eligible = ! e>n$      
income tax cr$it1 &  7,b7 ei!r-- 7i7    
fil$ a return ( tax = su* taxable ye> & 
did n claim ! e>n$ income tax cr$it1 or 
7ii7 did n 7z ( su* det]m9ation7 file a 
return ( tax = su* taxable ye>4  7#c7   
,secret>y ,= purposes ( ?is subsection1 
! t]m ,secret>y means ! ,secret>y ( !   

,treasury or ! ,secret>y's delegate4    
7g7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
beg9n+ aft] ,decemb] #ca1 #bjbe4  #d4   
,paym5ts to taxpay]s det]m9$ by treat+  
,/ate non-refundable e>n$ income tax    
cr$its z refundable  7a7 ,9 g5]al ,!    
,secret>y %all e/abli% a program = mak+ 
annual paym5ts to eligible individuals  
equal to ! ,/ate refundable e>n$ income 
tax cr$it equival5cy am\nt ) respect to 
taxable ye>s beg9n+ 9 cal5d> ye>s aft]  
#bjbe4  7b7 ,eligible individual ,=     
purposes ( ?is section-- 7#a7 ,9 g5]al  
,! t]m eligible individual means any    
individual :o is eligible =1 & claims1 a
 non-refundable e>n$ income tax cr$it = 
a taxable ye> beg9n+ aft] ,decemb] #ca1 
#bjbe1 "u ! income tax laws ( an        
eligible ,/ate4  7#b7 ,eligible ,/ate ,!
 t]m eligible ,/ate means any ,/ate if--
 7,a7 ! ,secret>y det]m9es t su* ,/ates 
has 9 effect1 z ( ! date ( ! enactm5t ( 
?is ,act1 a non-refundable e>n$ income  
tax cr$it1 &  7,b7 su* ,/ate ent]s into 

an agreem5t ) ! ,secret>y to provide !  
,secret>y su* in=mation z ! ,secret>y   
may require to adm9i/] ?is section4     
7#c7 ,non-refundable e>n$ income tax    
cr$it  7,a7 ,9 g5]al ,! t]m             
non-refundable e>n$ income tax cr$it    
means1 ) respect to any ,/ate1 a cr$it  
aga9/ ! income tax impos$ by su* ,/ate  
:i* ! ,secret>y has det]m9$ is bas$ on !
 e>n$ income ( ! taxpay] & :i* is limit$
 to ! tax liability ( su* taxpay]4  7,b7
 ,treatm5t ( c]ta9 cr$it modifications  
,a cr$it %all n be treat$ z a           
non-refundable e>n$ income tax cr$it =  
any taxable ye> if ! ,secret>y det]m9es 
t su* cr$it z 9 effect = su* taxable ye>
 has be5 modifi$ 7relative to su* cr$it 
z 9 effect on ! date ( ! enactm5t ( ?is 
,act7 9 a mann] :i* sugge/s t a         
significant purpose ( su* modification 0
 to increase ! am\nt ( paym5ts made "u  
?is section4  7,c7 ,treatm5t ( cr$its   
s*$ul$ to t]m9ate ,a cr$it %all n be    
treat$ z non-refundable e>n$ income tax 
cr$it = any taxable ye> if su* cr$it 0 n

 s*$ul$ to be 9 effect = su* taxable ye>
 "u ! income tax laws ( ! ,/ate z 9     
effect on ! date ( ! enactm5t ( ?is     
,act4  7c7 ,/ate refundable e>n$ income 
tax cr$it equival5cy am\nt ,= purposes (
 ?is section1 ! t]m ,/ate refundable    
e>n$ income tax cr$it equival5cy am\nt  
means1 ) respect to any individual = any
 taxable ye>1 ! am\nt det]m9$ by !      
,secret>y z be+ ! excess 7if any7 (--   
7#a7 ! am\nt ( ! non-refundable e>n$    
income tax cr$it :i* w\ld h be5 all[$ to
 su* individual = su* taxable ye> if su*
 cr$it 7 n limit$ bas$ on ! tax         
liability ( ! taxpay]1 ov]  7#b7 ! am\nt
 by :i* su* individual's ,/ate income   
tax liability w\ld increase if su* cr$it
 7 n all[$ 7det]m9$ aft] tak+ into      
acc\nt all o!r income tax cr$its o!r ?an
 income tax cr$its :i* con/itute cr$its 
= ! paym5t ( tax74  7d7 ,paym5ts treat$ 
9 same mann] z refundable income tax    
cr$its ,except z o!rwise provid$ by !   
,secret>y1 ! program e/abli%$ "u        
subsection 7a7 %all effectuate ! paym5ts

 describ$ !re9 by deem+ ! am\nt ( su*   
paym5t z a paym5t ( ,f$]al income tax = 
purposes ( ! ,int]nal ,rev5ue ,code (   
#aihf4 ,any ov]paym5t ( tax attributable
 to su* deem$ paym5t %all be refund$ by 
! ,secret>y z soon z practicable4 ,=    
purposes ( section #acbd ( title #ca1   
,unit$ ,/ates ,code1 any su* refund %all
 be treat$ 9 ! same mann] z a refund due
 f a cr$it provision ref]r$ to 9        
subsection 7b77#b7 ( su* section4  7e7  
,secret>y ,= purposes ( ?is section1 !  
t]m ,secret>y means ! ,secret>y ( !     
,treasury or ! ,secret>y's delegate4    
#e4 ,e/abli%m5t ( refundable *ild tax   
cr$it ) mon?ly advance paym5t  7a7 ,9   
g5]al ,subp>t ,a ( "p ,,iv ( sub*apt] ,a
 ( *apt] #a ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by ins]t+ aft] section  
#bd ! foll[+ new sections3  #bd;,a4     
,mon?ly *ild tax cr$it  7a7 ,all[ance ( 
cr$it ,!re %all be all[$ z a cr$it aga9/
 ! tax impos$ by ?is *apt] = ! taxable  
ye> ! sum ( ! mon?ly specifi$ *ild      
all[ances det]m9$ ) respect to ! taxpay]

 "u subsection 7b7 = ea* cal5d> mon?    
dur+ su* taxable ye>4  7b7 ,mon?ly      
specifi$ *ild all[ance  7#a7 ,9 g5]al ,=
 purposes ( ?is section1 ! t]m mon?ly   
specifi$ *ild all[ance means1 ) respect 
to any taxpay] = any cal5d> mon?1 ! sum 
(-- 7,a7 #cjj1 ) respect to ea* specifi$
 *ild ( su* taxpay] :o w 7z ( ! close ( 
su* mon?7 h atta9$ age #f1 plus  7,b7   
#cej1 ) respect to ea* specifi$ *ild (  
su* taxpay] :o w n 7z ( ! close ( su*   
mon?7 h atta9$ age #f4  7#b7            
,limitations bas$ on modifi$ adju/$     
gross income  7,a7 ,initial r$uction ,! 
mon?ly specifi$ *ild all[ance o!rwise   
det]m9$ "u p>agraph 7#a7 ) respect to   
any taxpay] = any cal5d> mon? %all be   
r$uc$ 7b n bel[ z]o7 by #a_/ab ( #e     
p]c5t ( ! excess 7if any7 ( ! taxpay]'s 
modifi$ adju/$ gross income = !         
applicable taxable ye> ov] ! initial    
?re%old am\nt 9 effect = su* applicable 
taxable ye>4  7,b7 ,limitation on       
initial r$uction ,9 ! case ( any cal5d> 
mon? beg9n+ be=e ,janu>y #a1 #bjbf1 !   

am\nt ( ! r$uction "u subp>agraph 7,a7  
%all n exce$ ! less] (-- 7i7 ! excess   
7if any7 (-- 7,i7 ! mon?ly specifi$ *ild
 all[ance ) respect to ! taxpay] = su*  
cal5d> mon? 7det]m9$ )\t reg>d to ?is   
p>agraph71 ov]  7,,ii7 ! am\nt :i* w\ld 
be det]m9$ "u subclause 7,i7 if ! doll> 
am\nts 9 effect "u subp>agraphs 7,a7 &  
7,b7 ( p>agraph 7#a7 7 ea* equal to     
#aff4fg1 or  7ii7 #a_/ab ( #e p]c5t ( ! 
excess ( ! second>y ?re%old am\nt ov] ! 
initial ?re%old am\nt4  7,c7 ,second>y  
r$uction ,9 ! case ( any cal5d> mon?    
beg9n+ be=e ,janu>y #a1 #bjbf1 ! mon?ly 
specifi$ *ild all[ance o!rwise det]m9$  
"u p>agraph 7#a7 ) respect to any       
taxpay] = su* cal5d> mon? 7det]m9$ aft] 
! application ( subp>agraphs 7,a7 &     
7,b77 %all be r$uc$ 7b n bel[ z]o7 by   
#a_/ab ( #e p]c5t ( ! excess 7if any7 ( 
! taxpay]'s modifi$ adju/$ gross income 
= ! applicable taxable ye> ov] !        
second>y ?re%old am\nt4  7,d7           
,def9itions relat$ to limitations bas$  
on modifi$ adju/$ gross income ,=       

purposes ( ?is p>agraph-- 7i7 ,initial  
?re%old am\nt ,! t]m initial ?re%old    
am\nt means-- 7,i7 #aej1jjj1 9 ! case ( 
a jo9t return or surviv+ sp\se 7z def9$ 
9 section #b7;a771  7,,ii7 #a_/b ! doll>
 am\nt 9 effect "u subclause 7,i71 9 !  
case ( a m>ri$ individual fil+ a sep>ate
 return1 &  7,,iii7 #aab1ejj1 9 any o!r 
case4  7ii7 ,second>y ?re%old am\nt ,!  
t]m second>y ?re%old am\nt means-- 7,i7 
#djj1jjj1 9 ! case ( a jo9t return or   
surviv+ sp\se 7z def9$ 9 section        
#b7;a771  7,,ii7 #cjj1jjj1 9 ! case ( a 
head ( h\sehold 7z def9$ 9 section      
#b7;b771 &  7,,iii7 #bjj1jjj1 9 any o!r 
case4  7iii7 ,applicable taxable ye> ,! 
t]m applicable taxable ye> means1 )     
respect to any taxable ye> = :i* ! cr$it
 "u ?is section is det]m9$-- 7,i7 su*   
taxable ye>1 or  7,,ii7 if ! taxpay]    
elects ! application ( ?is subclause 7at
 su* "t & 9 su* =m & mann] z ! ,secret>y
 may provide71 ! prec$+ taxable ye> or !
 second prec$+ taxable ye> 7z specifi$ 9
 su* election74  7iv7 ,modifi$ adju/$   

gross income ,! t]m modifi$ adju/$ gross
 income means adju/$ gross income       
increas$ by any am\nt exclud$ f gross   
income "u section #iaa1 #ica1 or #icc4  
7#c7 ,inflation adju/m5ts  7,a7 ,mon?ly 
specifi$ *ild all[ance ,9 ! case ( any  
mon? beg9n+ aft] ,decemb] #ca1 #bjbe1   
ea* doll> am\nt 9 p>agraph 7#a7 %all be 
increas$ by an am\nt equal to-- 7i7 su* 
doll> am\nt1 multipli$ by--  7ii7 !     
p]c5tage 7if any7 by :i*-- 7,i7 ! ,,cpi 
7z def9$ 9 section #a7;f77#d77 = !      
cal5d> ye> prec$+ ! cal5d> ye> 9 :i* su*
 mon? beg9s1 exce$s  7,,ii7 ! ,,cpi 7z s
 def9$7 = cal5d> ye> #bjbj4  7,b7       
,initial ?re%old am\nt ,9 ! case ( any  
taxable ye> beg9n+ aft] ,decemb] #ca1   
#bjbe1 ! doll> am\nts 9 subclauses 7,i7 
& 7,,iii7 ( p>agraph 7#b77;,d77i7 %all  
ea* be increas$ by an am\nt equal to--  
7i7 su* doll> am\nt1 multipli$ by  7ii7 
! p]c5tage 7if any7 :i* w\ld be det]m9$ 
"u subp>agraph 7,a77ii7 if subclause    
7,,ii7 !re( 7 appli$ by sub/itut+ #bjbb 
= #bjbj4  7,c7 ,r\nd+  7i7 ,mon?ly      

specifi$ *ild all[ance ,any increase "u 
subp>agraph 7,a7 :i* is n a multiple (  
#aj %all be r\nd$ to ! ne>e/ multiple ( 
#aj4  7ii7 ,initial ?re%old am\nt ,any  
increase "u subp>agraph 7,b7 :i* is n a 
multiple ( #e1jjj %all be r\nd$ to !    
ne>e/ multiple ( #e1jjj4  7c7 ,specifi$ 
*ild ,= purposes ( ?is section-- 7#a7 ,9
 g5]al ,! t]m specifi$ *ild means1 )    
respect to any taxpay] = any cal5d>     
mon?1 an individual-- 7,a7 :o has ! same
 pr9cipal place ( abode z ! taxpay] = m 
?an "o-half ( su* mon?1  7,b7 :o is     
y\ng] ?an ! taxpay] & w n1 z ( ! close (
 su* mon?1 h atta9$ age #ah1  7,c7 :o   
receives c>e f ! taxpay] dur+ su* mon? t
 is n comp5sat$1  7,d7 :o is n ! sp\se (
 ! taxpay] at any "t dur+ su* mon?1 &   
7,e7 :o ei!r-- 7i7 is a citiz51         
national1 or resid5t ( ! ,unit$ ,/ates1 
or  7ii7 if ! taxpay] is a citiz5 or    
national ( ! ,unit$ ,/ates1 su*         
individual is describ$ 9 section        
#aeb7;f77#a77;,b7 ) respect to su*      
taxpay]4  7#b7 ,c]ta9 individuals       

ineligible ,9 ! case ( an individual :o 
is a specifi$ *ild ) respect to ano!r   
taxpay] = any cal5d> mon?1 su*          
individual %all be treat$ = su* cal5d>  
mon? z hav+ no specifi$ *ildr54  7#c7   
,c>e f ! taxpay]  7,a7 ,9 g5]al ,except 
z o!rwise provid$ by ! ,secret>y1 :e!r  
any individual receives c>e f ! taxpay] 
7)9 ! mean+ ( p>agraph 7#a77;,c77 %all  
be det]m9$ on ! basis ( facts &         
circum/ances ) respect to ! foll[+      
factors3 7i7 ,! sup]vision provid$ by ! 
taxpay] reg>d+ ! daily activities & ne$s
 ( ! individual4  7ii7 ,! ma9t5ance by !
 taxpay] ( a secure environm5t at :i* ! 
individual resides4  7iii7 ,! provision 
or arrangem5t by ! taxpay] (1 &         
transportation by ! taxpay] to1 m$ical  
c>e at regul> int]vals & z requir$ = !  
individual4  7iv7 ,! involvem5t by !    
taxpay] 91 & f9ancial & o!r support by !
 taxpay] =1 educational or simil>       
activities ( ! individual4  7v7 ,any o!r
 factor t ! ,secret>y det]m9es to be    
appropriate to det]m9e :e!r ! individual

 receives c>e f ! taxpay]4  7,b7        
,det]m9ation ( :e!r c>e is comp5sat$ ,= 
purposes ( det]m9+ if c>e is comp5sat$  
)9 ! mean+ ( p>agraph 7#a77;,c71        
comp5sation f ! ,f$]al ,gov]nm5t1 a     
,/ate or local gov]nm5t1 a ,tribal      
gov]nm5t1 or any possession ( ! ,unit$  
,/ates %all n be tak5 into acc\nt4  7#d7
 ,application ( tie-break] rules  7,a7  
,9 g5]al ,except z provid$ 9 subp>agraph
 7,d71 if any individual w\ld 7b = ?is  
p>agraph7 be a specifi$ *ild ( #b or m  
taxpay]s = any mon?1 su* individual %all
 be treat$ z ! specifi$ *ild only ( !   
taxpay] :o is-- 7i7 ! p>5t ( !          
individual 7or1 if su* individual w\ld  
7b = ?is p>agraph7 be a specifi$ *ild ( 
#b or m p>5ts ( ! individual = su* mon?1
 ! p>5t ( ! individual det]m9$ "u       
subp>agraph 7,b771  7ii7 if ! individual
 is n a specifi$ *ild ( any p>5t ( !    
individual 7det]m9$ )\t reg>d to ?is    
p>agraph71 ! specifi$ relative ( !      
individual ) ! highe/ adju/$ gross      
income = ! taxable ye> :i* includes su* 

mon?1 or  7iii7 if ! individual is nei!r
 a specifi$ *ild ( any p>5t ( !         
individual nor a specifi$ *ild ( any    
specifi$ relative ( ! individual 79 bo? 
cases det]m9$ )\t reg>d to ?is          
p>agraph71 ! taxpay] ) ! highe/ adju/$  
gross income = ! taxable ye> :i*        
includes su* mon?4  7,b7 ,tie-break]    
among p>5ts ,if any individual w\ld 7b =
 ?is p>agraph7 be ! specifi$ *ild ( #b  
or m p>5ts ( ! individual = any mon?1   
su* *ild %all be treat$ only z !        
specifi$ *ild (-- 7i7 ! p>5t ) :om !    
*ild resid$ = ! longe/ p]iod ( "t dur+  
su* mon?1 or  7ii7 if ! *ild resides )  
bo? p>5ts = ! same am\nt ( "t dur+ su*  
mon?1 ! p>5t ) ! highe/ adju/$ gross    
income = ! taxable ye> :i* includes su* 
mon?4  7,c7 ,specifi$ relative ,=       
purposes ( ?is p>agraph1 ! t]m specifi$ 
relative means an individual :o is-- 7i7
 an ance/or ( a p>5t ( ! specifi$ *ild1 
7ii7 a bro!r or si/] ( a p>5t ( !       
specifi$ *ild1 or  7iii7 a bro!r1 si/]1 
/epbro!r1 or /epsi/] ( ! specifi$ *ild4 

7,d7 ,c]ta9 p>5ts or specifi$ relatives 
n tak5 into acc\nt ,?is p>agraph %all be
 appli$ )\t reg>d to any p>5t or        
specifi$ relative ( an individual = any 
mon? if-- 7i7 su* p>5t or specifi$      
relative elects to h su* individual n be
 treat$ z a specifi$ *ild ( su* p>5t or 
specifi$ relative = su* mon?1  7ii7 9 ! 
case ( a p>5t ( su* individual1 ! adju/$
 gross income ( ! taxpay] 7) respect to 
:om su* individual w\ld be treat$ z a   
specifi$ *ild aft] application ( ?is    
subp>agraph7 = ! taxable ye> :i*        
includes su* mon? is high] ?an ! highe/ 
adju/$ gross income ( any p>5t ( !      
individual = any taxable ye> :i*        
includes su* mon? 7det]m9$ )\t reg>d to 
any p>5t ) respect to :om su* individual
 is n a specifi$ *ild1 det]m9$ )\t reg>d
 to subp>agraphs 7,a7 & 7,b7 & aft]     
application ( ?is subp>agraph71 &  7iii7
 9 ! case ( a specifi$ relative ( su*   
individual1 ! adju/$ gross income ( !   
taxpay] 7) respect to :om su* individual
 w\ld be treat$ z a specifi$ *ild aft]  

application ( ?is subp>agraph7 = !      
taxable ye> :i* includes su* mon? is    
high] ?an ! highe/ adju/$ gross income (
 any p>5t & any specifi$ relative ( !   
individual = any taxable ye> :i*        
includes su* mon? 7det]m9$ )\t reg>d to 
any p>5t & any specifi$ relative )      
respect to :om su* individual is n a    
specifi$ *ild1 det]m9$ )\t reg>d to     
subp>agraphs 7,a7 & 7,b7 & aft]         
application ( ?is subp>agraph74  7,e7   
,treatm5t ( jo9t returns ,= purposes (  
?is p>agraph1 ) respect to any mon?1 !  
adju/$ gross income ( ea* p]son :o files
 a jo9t return = ! taxable ye> :i*      
includes su* mon? is ! total adju/$     
gross income %[n on ! jo9t return = !   
taxable ye>4  7,f7 ,p>5t ,except z      
o!rwise provid$ by ! ,secret>y1 ! t]m   
p>5t %all h ! same mean+ z :5 us$ 9     
section #aeb7;c77#d74  7#e7 ,treatm5t ( 
tempor>y abs5ces ,except z provid$ 9    
regulations or o!r guidance issu$ by !  
,secret>y1 = purposes ( ?is subsection--
 7,a7 ,9 g5]al ,9 ! case ( any          

individual's tempor>y abs5ce f su*      
individual's pr9cipal place ( abode1 ea*
 day compos+ ! tempor>y abs5ce %all--   
7i7 be treat$ z a day at su*            
individual's pr9cipal place ( abode1    
7ii7 be treat$ z satisfy+ ! c>e         
requirem5t describ$ 9 p>agraph 7#a77;,c7
 = ea* day describ$ 9 clause 7i71 &     
7iii7 n be treat$ z a day at any o!r    
location4  7,b7 ,tempor>y abs5ce ,=     
purposes ( subp>agraph 7,a71 an abs5ce  
%all be treat$ z tempor>y if-- 7i7 !    
individual w\ld h resid$ at ! place (   
abode b = ! abs5ce1 &  7ii7 "u ! facts &
 circum/ances1 x is reasonable to assume
 t ! individual w return to reside at ! 
place ( abode4  7#f7 ,special rule =    
divorc$ p>5ts1 etc ,rules simil> to !   
rules section #aeb7;e7 %all apply =     
purposes ( ?is subsection4  7#g7        
,eligibility det]m9$ on basis (         
presumptive eligibility  7,a7 ,9 g5]al  
,if a p]iod ( presumptive eligibility is
 e/abli%$ "u section #gebg;,b7c7 = any  
individual ) respect to any taxpay]--   

7i7 su* individual %all be treat$ z !   
specifi$ *ild ( su* taxpay] = any mon? 9
 su* p]iod ( presumptive eligibility1 & 
7ii7 su* individual %all n be treat$ z !
 specifi$ *ild ( any o!r taxpay] )      
respect to :om a p]iod ( presumptive    
eligibility has n be5 e/abli%$ = any su*
 mon?4  7,b7 ,ability ( cr$it claimants 
to e/abli% presumptive eligibility ,no?+
 9 section #gebg;,b7c7 %all be int]pret$
 to preclude a taxpay] f e/abli%+ a     
p]iod ( presumptive eligibility 7includ+
 any su* p]iod describ$ 9 section       
#gebg;,b7c77#b77;,d77 ) respect to any  
specifi$ *ild = purposes ( ?is section  
solely because su* taxpay] affirmatively
 elects n to receive mon?ly advance *ild
 paym5ts "u section #gebg;,b4  7d7      
,cr$it refundable ,if ! taxpay] 79 !    
case ( a jo9t return1 ei!r sp\se7 has a 
pr9cipal place ( abode 7det]m9$ z       
provid$ 9 section #cb7 9 ! ,unit$ ,/ates
 or ,pu]to ,rico = m ?an "o-half ( any  
cal5d> mon? dur+ ! taxable ye>1 s mu* ( 
! cr$it o!rwise all[$ "u subsection 7a7 

z is attributable to mon?ly specifi$    
*ild all[ances ) respect to any su*     
cal5d> mon? %all be all[$ "u subp>t ,c  
7& n all[$ "u ?is subp>t74  7e7         
,id5tification requirem5ts  7#a7        
,qualify+ *ild id5tification requirem5t 
,no cr$it %all be all[$ "u ?is section  
to a taxpay] ) respect to any qualify+  
*ild unless ! taxpay] includes ! "n &   
taxpay] id5tification numb] ( su*       
qualify+ *ild on ! return ( tax = !     
taxable ye> & su* taxpay] id5tification 
numb] 0 issu$ on or be=e ! due date =   
fil+ su* return4  7#b7 ,taxpay]         
id5tification requirem5t ,no cr$it %all 
be all[$ "u ?is section if ! taxpay]    
id5tification numb] ( ! taxpay] 0 issu$ 
aft] ! due date = fil+ ! return = !     
taxable ye>4  7f7 ,re/rictions on       
taxpay]s :o improp]ly claim$ cr$it or   
improp]ly receiv$ mon?ly advance *ild   
paym5t  7#a7 ,taxpay]s mak+ prior       
fraudul5t or reckless claims  7,a7 ,9   
g5]al ,no cr$it %all be all[$ "u ?is    
section = any taxable ye> 7& no paym5t  

%all be made "u section #gebg;,b = any  
mon?7 9 ! disall[ance p]iod4  7,b7      
,disall[ance p]iod ,= purposes (        
subp>agraph 7,a71 ! disall[ance p]iod   
is-- 7i7 ! p]iod ( #aj taxable ye>s aft]
 ! mo/ rec5t taxable ye> = :i* !re 0 a  
f9al det]m9ation t ! taxpay]'s claim (  
cr$it "u ?is section or section #bd 7or 
paym5t receiv$ "u section #gebg;,a or   
#gebg;,b7 0 due to fraud1  7ii7 ! p]iod 
( #b taxable ye>s aft] ! mo/ rec5t      
taxable ye> = :i* !re 0 a f9al          
det]m9ation t ! taxpay]'s claim ( cr$it 
"u ?is section or section #bd 7or paym5t
 receiv$ "u section #gebg;,a or         
#gebg;,b7 0 due to reckless or          
int5tional disreg>d ( rules &           
regulations 7b n due to fraud71 &  7iii7
 9 addition to any p]iod det]m9$ "u     
clause 7i7 or 7ii7 7z ! case may be71 ! 
p]iod beg9n+ on ! date ( ! f9al         
det]m9ation describ$ 9 su* clause & end+
 ) ! beg9n+ ( ! p]iod describ$ 9 su*    
clause4  7#b7 ,taxpay]s mak+ improp]    
prior claims ,9 ! case ( a taxpay] :o is

 d5i$ cr$it "u ?is section or section   
#bd = any taxable ye> z a result ( !    
defici5cy proc$ures "u sub*apt] ,b (    
*apt] #fc1 no cr$it %all be all[$ "u ?is
 section = any subsequ5t taxable ye> 7& 
no paym5t %all be made "u section       
#gebg;,b = any subsequ5t mon?7 unless ! 
taxpay] provides su* in=mation z !      
,secret>y may require to demon/rate     
eligibility = su* cr$it4  7#c7          
,coord9ation ) possessions ( ! ,unit$   
,/ates ,= purposes ( ?is subsection1 a  
taxpay]'s claim ( cr$it "u ?is section  
or section #bd 7or paym5t receiv$ "u    
section #gebg;,a or section #gebg;,b7   
includes a claim ( cr$it "u ?is section 
or section #bd ( ! income tax law ( any 
jurisdiction o!r ?an ! ,unit$ ,/ates 7or
 simil> paym5t receiv$ "u section       
#gebg;,a or section #gebg;,b ( su*      
income tax law71 & a claim made or a    
paym5t receiv$ f ,am]ican ,samoa        
pursuant to a plan describ$ 9 subsection
 7i77#c77;,b7 or section                
#bd7k77#c77;,b74  7g7 ,reconciliation ( 

cr$it & mon?ly advance *ild paym5ts     
7#a7 ,9 g5]al ,! am\nt o!rwise det]m9$  
"u subsection 7a7 ) respect to any      
taxpay] = any taxable ye> %all be r$uc$ 
7b n bel[ z]o7 by ! aggregate am\nt (   
paym5ts made "u section #gebg;,b to su* 
taxpay] = "o or m cal5d> mon?s 9 su*    
taxable ye>4 ,any failure to s r$uce !  
cr$it %all be treat$ z aris+ out ( a    
ma!matical or cl]ical error & assess$   
accord+ to section #fbac7;b77#a74  7#b7 
,recapture ( excess advance paym5ts 9   
c]ta9 circum/ances ,9 ! case ( a taxpay]
 describ$ 9 p>agraph 7#c7 = any taxable 
ye>1 ! tax impos$ by ?is *apt] = su*    
taxable ye> %all be increas$ by ! excess
 7if any7 (-- 7,a7 ! aggregate am\nt (  
paym5ts made to ! taxpay] "u section    
#gebg;,b = "o or m cal5d> mon?s 9 su*   
taxable ye>1 ov]  7,b7 ! am\nt det]m9$  
"u subsection 7a7 ) respect to ! taxpay]
 = su* taxable ye> 7)\t reg>d to        
p>agraph 7#a7 ( ?is subsection74  7#c7  
,taxpay]s subject to recapture  7,a7    
,fraud or reckless or int5tional        

disreg>d ( rules & regulations ,a       
taxpay] is describ$ 9 ?is p>agraph )    
respect to any taxable ye> if !         
,secret>y det]m9es t ! am\nt describ$ 9 
p>agraph 7#b77;,a7 ) respect to !       
taxpay] = su* taxable ye> 0 det]m9$ on !
 basis ( fraud or a reckless or         
int5tional disreg>d ( rules &           
regulations4  7,b7 ,und]/atem5t (       
income2 *anges 9 fil+ /atus ,if ! am\nt 
describ$ 9 p>agraph 7#b77;,a7 ) respect 
to ! taxpay] = ! taxable ye> 0 det]m9$  
on ! basis ( an am\nt ( ! taxpay]'s     
modifi$ adju/$ gross income :i* 0 less  
?an ! taxpay]'s modifi$ adju/$ gross    
income = ! applicable taxable ye> 7z    
def9$ 9 subsection 7b77-- 7i7 su*       
taxpay] %all be treat$ z describ$ 9 ?is 
p>agraph1 &  7ii7 ! increase det]m9$ "u 
p>agraph 7#b7 by reason ( ?is           
subp>agraph %all n exce$ ! excess (--   
7,i7 ! am\nt describ$ 9 p>agraph        
7#b77;,a71 ov]  7,,ii7 ! am\nt :i* w\ld 
be s describ$ if ! paym5ts describ$ !re9
 _h be5 det]m9$ on ! basis ( ! taxpay]'s

 modifi$ adju/$ gross income = !        
applicable taxable ye> 7z def9$ 9       
subsection 7b774  ,a rule simil> to !   
rule ( ! prec$+ s5t5ce %all apply if !  
am\nt describ$ 9 p>agraph 7#b77;,a7 )   
respect to ! taxpay] = ! taxable ye> 0  
det]m9$ on ! basis ( a fil+ /atus ( !   
taxpay] :i* diff]s f ! taxpay]'s fil+   
/atus = ! applicable taxable ye> 7z s   
def9$74  7,c7 ,paym5ts made outside (   
p]iod ( presumptive eligibility ,if any 
paym5t describ$ 9 p>agraph 7#b77;,a7 )  
respect to ! taxpay] = ! taxable ye> 0  
made ) respect to a *ild = a mon? :i* 0 
n "p ( a p]iod ( presumptive eligibility
 e/abli%$ "u section #gebg;,b7c7 = su*  
*ild ) respect to su* taxpay]-- 7i7 su* 
taxpay] %all be treat$ z describ$ 9 ?is 
p>agraph1 &  7ii7 ! increase det]m9$ "u 
p>agraph 7#b7 by reason ( ?is           
subp>agraph %all n exce$ ! portion ( su*
 paym5t s made4  7,d7 ,c]ta9 paym5ts    
made aft] notice f ,secret>y ,if !      
,secret>y notifies a taxpay] "u section 
#gebg;,b7j77#b7 t su* taxpay] is subject

 to recapture ) respect to any paym5ts--
 7i7 su* taxpay] %all be treat$ z       
describ$ 9 ?is p>agraph1 &  7ii7 !      
increase det]m9$ "u p>agraph 7#b7 by    
reason ( ?is subp>agraph %all n exce$ ! 
aggregate am\nt ( su* paym5ts4  7,e7    
,taxpay]s mov+ to ano!r jurisdiction ,to
 m9imize ! am\nt ( advance paym5ts made 
"u section #gebg;,b to ineligible       
individuals1 ! ,secret>y %all issue     
regulations or o!r guidance = purposes (
 ?is p>agraph :i* apply ) respect to    
taxpay]s :o are describ$ 9 section      
#gebg;,b7b77#d7 ) respect to ! ref]5ce  
mon? b are n s describ$ ) respect to "o 
or m mon?s dur+ ! taxable ye> = :i*     
advance paym5ts "u section #gebg;,b are 
made4  7,f7 ,o!r circum/ances to prev5t 
abuse ,a taxpay] is describ$ 9 ?is      
p>agraph ) respect to any taxable ye>   
pursuant to regulations or o!r guidance 
( ! ,secret>y describ+ o!r recapture    
circum/ances to facilitate !            
adm9i/ration & en=cem5t by ! ,secret>y (
 section #gebg;,b to m9imize ! am\nt (  

advance paym5ts made "u section #gebg;,b
 to ineligible individuals & to prev5t  
abuse4  7#d7 ,jo9t returns ,except z    
o!rwise provid$ by ! ,secret>y1 9 ! case
 ( an advance paym5t made "u section    
#gebg;,b ) respect to a jo9t return1    
half ( su* paym5t %all be treat$ z hav+ 
be5 made to ea* individual fil+ su*     
return4  7#e7 ,coord9ation ) possessions
 ( ! ,unit$ ,/ates ,= purposes ( ?is    
subsection1 paym5ts made "u section     
#gebg;,b include paym5ts made by any    
jurisdiction o!r ?an ! ,unit$ ,/ates "u 
section #gebg;,b ( ! income tax law (   
su* jurisdiction1 & advance paym5ts made
 by ,am]ican ,samoa pursuant to a plan  
describ$ 9 subsection 7h77#c77;,b74 ,any
 increase 9 tax impos$ on a taxpay] by  
reason ( p>agraph 7#b7 ( ! income tax   
law ( a jurisdiction o!r ?an ! ,unit$   
,/ates %all be consid]$ to r$uce !      
aggregate am\nt ( paym5ts made to su*   
taxpay] by su* jurisdiction4 ,9 c>ry+   
out ?is section1 ! ,secret>y %all       
coord9ate ) ea* possession ( ! ,unit$   

,/ates to prev5t any application ( ?is  
p>agraph t is inconsi/5t ) ! purposes ( 
?is subsection4  7h7 ,application (     
cr$it 9 possessions  7#a7 ,mirror code  
possessions  7,a7 ,9 g5]al ,! ,secret>y 
%all pay to ea* possession ( ! ,unit$   
,/ates ) a mirror code tax sy/em am\nts 
equal to ! loss 7if any7 to t possession
 by reason ( ! application ( ?is section
 7det]m9$ )\t reg>d to ?is subsection7 )
 respect to taxable ye>s beg9n+ 9 cal5d>
 ye>s aft] #bjbe4 ,su* am\nts %all be   
det]m9$ by ! ,secret>y bas$ on in=mation
 provid$ by ! gov]nm5t ( ! respective   
possession4  7,b7 ,coord9ation ) cr$it  
all[$ aga9/ ,unit$ ,/ates income taxes  
,no cr$it %all be all[$ "u ?is section =
 any taxable ye> to any individual to   
:om a cr$it is all[able aga9/ taxes     
impos$ by a possession ( ! ,unit$ ,/ates
 ) a mirror code tax sy/em by reason ( !
 application ( ?is section 9 su*        
possession = su* taxable ye>4  7,c7     
,mirror code tax sy/em ,= purposes ( ?is
 p>agraph1 ! t]m mirror code tax sy/em  

means1 ) respect to any possession ( !  
,unit$ ,/ates1 ! income tax sy/em ( su* 
possession if ! income tax liability ( !
 resid5ts ( su* possession "u su* sy/em 
is det]m9$ by ref]5ce to ! income tax   
laws ( ! ,unit$ ,/ates z if su*         
possession 7 ! ,unit$ ,/ates4  7#b7     
,cross ref]5ces relat$ to application ( 
cr$it to resid5ts ( ,pu]to ,rico  7,a7  
,= application ( refundable cr$it to    
resid5ts ( ,pu]to ,rico1 see subsection 
7d74  7,b7 ,= application ( advance     
paym5t to resid5ts ( ,pu]to ,rico1 see  
section #gebg;,b7b77#d74  7#c7 ,am]ican 
,samoa  7,a7 ,9 g5]al ,! ,secret>y %all 
pay to ,am]ican ,samoa am\nts e/imat$ by
 ! ,secret>y z be+ equal to ! aggregate 
b5efits t w\ld h be5 provid$ to resid5ts
 ( ,am]ican ,samoa by reason ( !        
application ( ?is section = taxable ye>s
 beg9n+ 9 cal5d> ye>s aft] #bjbe if !   
provisions ( ?is section _h be5 9 effect
 9 ,am]ican ,samoa 7appli$ z if ,am]ican
 ,samoa 7 ! ,unit$ ,/ates & )\t reg>d to
 ! application ( ?is section to resid5ts

 ( ,pu]to ,rico "u subsection 7d774     
7,b7 ,di/ribution requirem5t            
,subp>agraph 7,a7 %all n apply unless   
,am]ican ,samoa has a plan1 :i* has be5 
approv$ by ! ,secret>y1 "u :i* ,am]ican 
,samoa w promptly di/ribute su* paym5ts 
to its resid5ts4  7,c7 ,coord9ation )   
cr$it all[$ aga9/ ,unit$ ,/ates income  
taxes  7i7 ,9 g5]al ,9 ! case ( a       
taxable ye> ) respect to :i* a plan is  
approv$ "u subp>agraph 7,b71 ?is section
 7o!r ?an ?is subsection7 %all n apply  
to any individual eligible = a          
di/ribution "u su* plan4  7ii7          
,application ( section 9 ev5t ( abs5ce (
 approv$ plan ,9 ! case ( a taxable ye> 
) respect to :i* a plan is n approv$ "u 
subp>agraph 7,b71 subsection 7d7 %all be
 appli$ by sub/itut+ 1 ,pu]to ,rico1 or 
,am]ican ,samoa = or ,pu]to ,rico4  7#d7
 ,treatm5t ( paym5ts ,= purposes (      
section #acbd ( title #ca1 ,unit$ ,/ates
 ,code1 ! paym5ts "u ?is subsection %all
 be treat$ 9 ! same mann] z a refund due
 f a cr$it provision ref]r$ to 9        

subsection 7b77#b7 ( su* section4  7i7  
,regulations ,! ,secret>y %all issue su*
 regulations or o!r guidance z !        
,secret>y det]m9es necess>y or          
appropriate to c>ry out ! purposes ( ?is
 section1 includ+ regulations or o!r    
guidance-- 7#a7 = det]m9+ :e!r an       
individual receives c>e f a taxpay] =   
purposes ( subsection 7c77#a71 &  7#b7  
to coord9ate or modify ! application (  
?is section & sections #bd1 #gebg;,a1 & 
#gebg;,b 9 ! case ( any taxpay]-- 7,a7  
^: taxable ye> is o!r ?an a cal5d> ye>1 
7,b7 ^: fil+ /atus = a taxable ye> is   
diff]5t f ! /atus us$ = det]m9+ "o or m 
mon?ly paym5ts "u section #gebg;,b dur+ 
su* taxable ye>1 or  7,c7 ^: pr9cipal   
place ( abode = any mon? is diff]5t f ! 
pr9cipal place ( abode us$ = det]m9+ !  
mon?ly paym5t "u section #gebg;,b = su* 
mon?4  #bd;,b4 ,cr$it = c]ta9 o!r       
dep5d5ts  7a7 ,9 g5]al ,!re %all be     
all[$ z a cr$it aga9/ ! tax impos$ by   
?is *apt] = ! taxable ye> an am\nt equal
 to #ejj ) respect to ea* specifi$      

dep5d5t ( su* taxpay] = su* taxable ye>4
  7b7 ,limitation bas$ on modifi$ adju/$
 gross income  7#a7 ,9 g5]al ,! am\nt ( 
! cr$it all[able "u subsection 7a7 %all 
be r$uc$ 7b n bel[ z]o7 by #ej = ea*    
#a1jjj 7or fraction !re(7 by :i* !      
taxpay]'s modifi$ adju/$ gross income   
exce$s ! ?re%old am\nt4  7#b7 ,?re%old  
am\nt ,= purposes ( ?is subsection1 !   
t]m ?re%old am\nt means-- 7,a7 #djj1jjj1
 9 ! case ( a jo9t return or surviv+    
sp\se 7z def9$ 9 section #b7;a771  7,b7 
#cjj1jjj1 9 ! case ( a head ( h\sehold  
7z def9$ 9 section #b7;b771 &  7,c7     
#bjj1jjj1 9 any o!r case4  7#c7 ,modifi$
 adju/$ gross income ,= purposes ( ?is  
subsection1 ! t]m modifi$ adju/$ gross  
income means adju/$ gross income        
increas$ by any am\nt exclud$ f gross   
income "u section #iaa1 #ica1 or #icc4  
7c7 ,specifi$ dep5d5t ,= purposes ( ?is 
section1 ! t]m specifi$ dep5d5t means1 )
 respect to any taxpay] = any taxable   
ye>1 any dep5d5t ( su* taxpay] = su*    
taxable ye> unless su* dep5d5t-- 7#a7 is

 a specifi$ *ild ( ! taxpay]1 or any o!r
 taxpay]1 = any mon? dur+ su* taxable   
ye>1 or  7#b7 w\ld n be a dep5d5t if    
subp>agraph 7,a7 ( section #aeb7;b77#c7 
7 appli$ )\t reg>d to all t foll[s      
resid5t ( ! ,unit$ ,/ates4  7d7         
,id5tification requirem5ts ,rules simil>
 to ! rules ( section #bd;,a7e7 %all    
apply = purposes ( ?is section4  7e7    
,taxable ye> mu/ be full taxable ye>    
,except 9 ! case ( a taxable ye> clos$  
by reason ( ! dea? ( ! taxpay]1 no cr$it
 %all be all[able "u ?is section 9 !    
case ( a taxable ye> cov]+ a p]iod (    
less ?an #ab mon?s4  7f7 ,regulations ,!
 ,secret>y %all issue su* regulations or
 o!r guidance z ! ,secret>y det]m9es    
necess>y or appropriate to c>ry out !   
purposes ( ?is section4  4  7b7 ,mon?ly 
paym5t ( *ild tax cr$it ,*apt] #gg ( su*
 ,code is am5d$ by ins]t+ aft] section  
#gebg;,a ! foll[+ new section3          
#gebg;,b4 ,mon?ly paym5ts ( *ild tax    
cr$it  7a7 ,9 g5]al ,! ,secret>y %all   
e/abli% a program = mak+ paym5ts to     

taxpay]s ) respect to ea* cal5d> mon?   
equal to ! mon?ly advance *ild paym5t   
det]m9$ ) respect to su* taxpay] = su*  
mon?4  7b7 ,mon?ly advance *ild paym5t  
,= purposes ( ?is section & except z    
o!rwise provid$ 9 ?is section1 ! t]m    
mon?ly advance *ild paym5t means1 )     
respect to any taxpay] = any cal5d>     
mon?1 ! am\nt 7if any7 :i* is e/imat$ by
 ! ,secret>y z be+ equal to ! mon?ly    
specifi$ *ild all[ance :i* w\ld be      
det]m9$ "u section #bd;,a7b7 ) respect  
to su* taxpay] = su* cal5d> mon? if--   
7#a7 unless det]m9$ by ! ,secret>y bas$ 
on any in=mation kn[n to ! ,secret>y1 ! 
only specifi$ *ildr5 ( su* taxpay] = su*
 cal5d> mon? are ! specifi$ *ildr5 ( su*
 taxpay] = ! ref]5ce mon?1  7#b7 unless 
det]m9$ by ! ,secret>y bas$ on any      
in=mation kn[n to ! ,secret>y1 ! ages ( 
su* *ildr5 7& ! /atus ( su* *ildr5 z    
specifi$ *ildr57 are det]m9$ = su*      
cal5d> mon? by tak+ into acc\nt !       
passage ( "t s9ce su* ref]5ce mon?1     
7#c7 ! limitations ( section            

#bd;,a7b77#b7 7 appli$ ) respect to !   
ref]5ce taxable ye> r ?an ) respect to !
 applicable taxable ye>1 &  7#d7 unless 
det]m9$ by ! ,secret>y bas$ on any      
in=mation kn[n to ! ,secret>y1 no mon?ly
 specifi$ *ild all[ance 7 det]m9$ )     
respect to su* taxpay] = su* cal5d> mon?
 unless ! taxpay] 79 ! case ( a jo9t    
return1 ei!r sp\se7 has a pr9cipal place
 ( abode 7det]m9$ z provid$ 9 section   
#cb7 9 ! ,unit$ ,/ates or ,pu]to ,rico =
 m ?an "o-half ( ! ref]5ce mon?4  7c7   
,presumptive eligibility  7#a7 ,9 g5]al 
,an individual %all be treat$ z a       
specifi$ *ild ( a taxpay] = purposes (  
det]m9+ any mon?ly advance *ild paym5t  
"u ?is section only if su* mon? is "p ( 
! p]iod ( presumptive eligibility       
det]m9$ by ! ,secret>y "u ?is subsection
 ) respect to su* specifi$ *ild & su*   
taxpay] 7det]m9$ by treat+ ! mon?       
describ$ 9 subclause 7,i7 ( p>agraph    
7#b77;,a77ii7 z be+ ! fir/ mon? beg9n+  
aft] ! det]m9ation describ$ 9 su*       
subclause74  7#b7 ,p]iod ( presumptive  

eligibility ,= purposes ( ?is section-- 
7,a7 ,9 g5]al ,except z o!rwise provid$ 
by ! ,secret>y1 ! t]m p]iod (           
presumptive eligibility means ! p]iod-- 
7i7 beg9n+ ) ! mon? = :i* presumptive   
eligibility is e/abli%$1 &  7ii7 end+ ) 
! e>lie/ (-- 7,i7 ! beg9n+ ( ! mon?     
describ$ 9 clause 7i7 if ! ,secret>y    
det]m9es t ! taxpay] committ$ fraud or  
int5tionally disreg>d$ rules or         
regulations 9 e/abli%+ or ma9ta9+       
presumptive eligibility1  7,,ii7 9 !    
case ( any notification f ! ,secret>y t 
! p]iod ( presumptive eligibility has   
be5 t]m9at$ or susp5d$ by reason ( any  
"q reg>d+ eligibility ( ! taxpay] =     
mon?ly advance *ild paym5ts ) respect to
 su* *ild1 ! mon? specifi$ 9 su* notice 
z ! mon? on :i* su* t]m9ation or        
susp5sion beg9s1 &  7,,iii7 ! mon?      
foll[+ any failure ( ! taxpay] to make !
 requir$ annual r5ewal ( presumptive    
eligibility by su* date z ! ,secret>y   
may provide4  7,b7 ,e/abli%+ presumptive
 eligibility ,a taxpay] %all e/abli%    

presumptive eligibility ) respect to any
 specifi$ *ild = any mon? at su* "t & 9 
su* mann] z ! ,secret>y may provide4    
,except z o!rwise provid$ by !          
,secret>y1 9 ord] to e/abli% a p]iod (  
presumptive eligibility ! taxpay] mu/   
express a reasonable expectation & int5t
 t ! taxpay] w cont9ue to be eligible ) 
respect to su* specifi$ *ild = at lea/ !
 two mon?s foll[+ ! mon? = :i*          
presumptive eligibility is to be        
e/abli%$4  7,c7 ,me?od ( e/abli%+       
presumptive eligibility ,! ,secret>y    
%all ensure in=mation to e/abli%        
presumptive eligibility "u ?is p>agraph 
may be provid$ on ! return ( tax = !    
taxable ye> end+ be=e ! cal5d> ye> :i*  
includes ! mon? = :i* su* eligibility is
 to be e/abli%$1 ?r\gh ! on-l9e portal  
describ$ 9 subsection 7e71 or 9 su* o!r 
mann] z ! ,secret>y may provide4  7,d7  
,inclusion ( automatic grace p]iods &   
p]iods ( h>d%ip ,! p]iod ( presumptive  
eligibility %all include any p]iod to   
:i* p>agraph 7#a7 or 7#b7 ( subsection  

7g7 applies4  7,e7 ,automatic           
eligibility = bir? ( *ild ,! ,secret>y  
%all issue regulations or o!r guidance  
to e/abli% proc$ures pursuant to :i*1 to
 ! maximum ext5t adm9i/ratively         
practicable-- 7i7 a p>5t ( a *ild born  
dur+ a cal5d> mon? %all be treat$ z     
automatically e/abli%+ presumptive      
eligibility ) respect to su* *ild1  7ii7
 ! p]iod ( su* automatic presumptive    
eligibility is det]m9$1 &  7iii7 ! fir/ 
mon?ly advance *ild paym5t ) respect to 
su* *ild is increas$ to prop]ly take    
into acc\nt ! mon?s 9 ! p]iod ( su*     
automatic presumptive eligibility :i*   
prec$e su* paym5t4  7,f7 ,presumptive   
eligibility bas$ on c]ta9 gov]nm5t      
programs ,! ,secret>y %all issue        
regulations or o!r guidance to e/abli%  
proc$ures "u :i*-- 7i7 bas$ on in=mation
 provid$ to ! ,secret>y by "o or m      
gov]nm5t entities1 a p>5t or specifi$   
relative ( a *ild is treat$ z           
automatically e/abli%+ presumptive      
eligibility ) respect to su* *ild1 &    

7ii7 ! p]iod = :i* su* automatic        
presumptive eligibility is det]m9$      
7includ+ any additional circum/ances "u 
:i* su* p]iod w t]m9ate74  7,g7         
,coord9ation ) presumption ,= purposes (
 det]m9+ ! /atus ( any individual z a   
specifi$ *ild = purposes ( det]m9+      
presumptive eligibility ) respect to any
 p]iod1 section #bd;,a7c7 %all be appli$
 )\t reg>d to p>agraph 7#g7 !re(4  7#c7 
,notice ( t]m9ation ( presumptive       
eligibility by reason ( failure to make 
annual r5ewal ,if a taxpay]'s p]iod (   
presumptive eligibility ) respect to any
 specifi$ *ild t]m9ates by reason (     
p>agraph 7#b77;,a77ii77,,iii71 !        
,secret>y %all provide ! taxpay] a      
writt5 notice ( su* t]m9ation4  7d7     
,det]m9ation ( ref]5ce mon? & ref]5ce   
taxable ye> ,= purposes ( ?is section-- 
7#a7 ,ref]5ce mon? ,! t]m ref]5ce mon?  
means1 ) respect to any taxpay] = any   
cal5d> mon?1 ! mo/ rec5t (-- 7,a7 9 !   
case ( a taxpay] :o fil$ a return ( tax 
= ! la/ taxable ye> end+ be=e su* cal5d>

 mon?1 ! la/ mon? ( su* taxable ye>1    
7,b7 9 ! case ( a taxpay] :o fil$ a     
return ( tax = ! taxable ye> prec$+ !   
taxable ye> describ$ 9 subp>agraph 7,a71
 ! la/ mon? ( su* prec$+ taxable ye>1 & 
7,c7 9 ! case ( a taxpay] :o provides1  
?r\gh a specifi$ alt]native me*anism1   
in=mation :i* is suffici5t to e/imate ! 
taxpay]'s mon?ly advance *ild paym5t =  
su* mon?4  7#b7 ,ref]5ce taxable ye> ,! 
t]m ref]5ce taxable ye> means1 ) respect
 to any taxpay] = any cal5d> mon?1 ! mo/
 rec5t (-- 7,a7 ! taxable ye> describ$ 9
 subp>agraph 7,a7 or 7,b7 ( p>agraph    
7#a71 or  7,b7 9 ! case ( a taxpay] :o  
provides1 ?r\gh a specifi$ alt]native   
me*anism1 in=mation :i* is suffici5t to 
e/imate ! taxpay]'s modifi$ adju/$ gross
 income = ! taxable ye> :i* includes su*
 mon?1 su* taxable ye>4  7#c7           
,availability ( in=mation ,any mon? or  
ye> ref]r$ to 9 subp>agraph 7,a71 7,b71 
or 7,c7 ( p>agraph 7#a7 or subp>agraph  
7,a7 or 7,b7 ( p>agraph 7#b7 %all n be  
tak5 into acc\nt 9 det]m9+ ! ref]5ce    

mon? or ref]5ce taxable ye> ) respect to
 any cal5d> mon? unless all relevant    
in=mation ) respect to su* mon? or ye>  
is available to ! ,secret>y & !         
,secret>y has adequate "t to make       
e/imates "u ?is section on ! basis ( su*
 in=mation be=e ! beg9n+ ( su* cal5d>   
mon?4  7#d7 ,treatm5t ( insuffici5t     
in=mation ,except z o!rwise provid$ by !
 ,secret>y-- 7,a7 if a taxpay] is n     
describ$ 9 subp>agraph 7,a71 7,b71 or   
7,c7 ( p>agraph 7#a7 ) respect to any   
cal5d> mon?1 ! mon?ly advance *ild      
paym5t ) respect to su* taxpay] = su*   
cal5d> mon? %all be treat$ z z]o unless 
! ,secret>y det]m9es t ! ,secret>y c    
make ! e/imate describ$ 9 subsection 7b7
 on ! basis ( in=mation kn[n to !       
,secret>y :i* ! ,secret>y det]m9es is   
reasonably reliable1 &  7,b7 if !       
taxpay] is n describ$ 9 p>agraph        
7#a77;,c7 & ! in=mation on ! return (   
tax ref]r$ to 9 subp>agraph 7,a7 or 7,b7
 ( p>agraph 7#a7 does n e/abli% ! /atus 
( ! taxpay] 79 ! case ( a jo9t return1  

ei!r sp\se7 z hav+ a pr9cipal place (   
abode 7det]m9$ z provid$ 9 section #cb7 
9 ! ,unit$ ,/ates or ,pu]to ,rico = m   
?an "o-half ( ! ref]5ce mon?1 !         
,secret>y %all det]m9e su* /atus bas$ on
 in=mation kn[n to ! ,secret>y4  7#e7   
,transition rule ,9 any case ) respect  
to :i* section #bd;,a 0 n 9 effect = !  
taxable ye> describ$ 9 subp>agraph 7,a71
 7,b71 or 7,c7 ( p>agraph 7#a7 7:i*ev]  
is applicable71 subsection 7b77#a7 %all 
be appli$ by sub/itut+ ! qualify+ *ildr5
 ( su* taxpay] = ! taxable ye> :i*      
includes ! ref]5ce mon? = ! specifi$    
*ildr5 ( su* taxpay] = ! ref]5ce mon?4  
7e7 ,on-,l9e in=mation portal2 specifi$ 
alt]native me*anisms  7#a7 ,on-l9e      
in=mation portal ,! ,secret>y %all      
e/abli% an on-l9e portal :i* all[s      
taxpay]s to-- 7,a7 subject to su*       
re/rictions z ! ,secret>y may provide1  
elect to beg9 or cease receiv+ paym5ts  
"u ?is section1 &  7,b7 provide         
in=mation to ! ,secret>y :i* is relevant
 9 det]m9+ ! mon?ly advance *ild paym5t 

& ! taxpay]'s eligibility = su* paym5t1 
includ+ in=mation reg>d+-- 7i7 ! numb] (
 ! taxpay]'s specifi$ *ildr51 includ+ by
 reason ( ! bir? ( a *ild1  7ii7 !      
taxpay]'s m>ital /atus1  7iii7 !        
taxpay]'s modifi$ adju/$ gross income1  
7iv7 ! taxpay]'s pr9cipal place ( abode1
 &  7v7 any o!r factor :i* ! ,secret>y  
may provide4  7#b7 ,specifi$ alt]native 
me*anism ,= purposes ( ?is section1 !   
t]m specifi$ alt]native me*anism means !
 on-l9e portal e/abli%$ "u p>agraph     
7#a71 ! on-l9e portal e/abli%$ "u       
section #gebg;,a1 & any o!r me*anism or 
me?od e/abli%$ by ! ,secret>y to all[   
taxpay]s to provide ! in=mation describ$
 9 p>agraph 7#a7 7includ+ 9 connection )
 ! fil+ ( any return ( tax74  7#c7      
,availability 9 multiple languages ,!   
,secret>y %all ensure t ! on-l9e portal 
describ$ 9 p>agraph 7#a7 is available 9 
multiple languages4  7f7 ,specifi$ *ild 
( m ?an #a taxpay]  7#a7 ,9 g5]al ,9 !  
ev5t t 7)\t reg>d to ?is p>agraph7 a    
p]iod ( presumptive eligibility )       

respect to ! same specifi$ *ild w\ld    
exi/ = m ?an #a taxpay] at ! same "t--  
7,a7 except z o!rwise provid$ 9 ?is     
section or by ! ,secret>y1 a p]iod (    
presumptive eligibility %all exi/ only  
respect to ! taxpay] ) ! mo/ rec5t      
ref]5ce mon?1  7,b7 ! ,secret>y %all    
e/abli% proc$ures "u :i* ! ,secret>y    
exp$iti\sly adjudicates taxpay]s'       
compet+ claims ( presumptive eligibility
 ) respect to ! same *ild1 &  7,c7 !    
,secret>y %all notify any taxpay] ( !   
t]m9ation ( a p]iod ( presumptive       
eligibility pursuant to ?is subsection4 
7#b7 ,provisions relat$ to adjudication 
7,a7 ,exp$it$ process2 appeals ,!       
proc$ures e/abli%$ "u p>agraph 7#a77;,b7
 %all include-- 7i7 an exp$it$ process =
 taxpay]s :o meet su* requirem5ts z !   
,secret>y may e/abli% = su* exp$it$     
process1 &  7ii7 proc$ures = adjudicat+ 
an appeal ( an adv]se decision4  7,b7   
,in=mation receipt & coord9ation ,!     
,secret>y may ent] into agreem5ts to    
receive in=mation f1 & o!rwise coord9ate

 )-- 7i7 ,f$]al ag5cies 7includ+ !      
,social ,security ,adm9i/ration & !     
,dep>tm5t ( ,agriculture71  7ii7 any    
,/ate1 local gov]nm5t1 ,tribal gov]nm5t1
 or possession ( ! ,unit$ ,/ates1 &     
7iii7 any o!r individual or entity t !  
,secret>y det]m9es to be appropriate =  
purposes ( adjudicat+ a compet+ claim   
describ$ 9 p>agraph 7#a74  7,c7         
,adjudication n treat$ z assessm5t ,an  
adjudication "u ! proc$ures e/abli%$ "u 
p>agraph 7#a77;,b7 7includ+ !           
adjudication ( any appeal7 %all n be    
treat$ z an assessm5t describ$ 9 section
 #fbja4  7,d7 ,adjudication n treat$ z  
inspection ( taxpay]'s books ( acc\nt ,!
 inspection ( a taxpay]'s books ( acc\nt
 9 connection ) any adjudication "u !   
proc$ures e/abli%$ "u p>agraph 7#a77;,b7
 7includ+ ! adjudication ( any appeal7  
%all n be treat$ z an exam9ation or     
inspection ( a taxpay]'s books ( acc\nt 
= purposes ( section #gfje7;b74  7#c7   
,retroactive paym5ts ,if1 pursuant to ! 
proc$ures e/abli%$ "u p>agraph          

7#a77;,b71 ! ,secret>y det]m9es t a *ild
 is a specifi$ *ild ( a taxpay] & !     
,secret>y did n make paym5ts to su*     
taxpay] ) respect to su* *ild = any     
portion ( ! p]iod dur+ :i* ! det]m9ation
 0 made1 ! ,secret>y may make a "o-"t   
paym5t to ! taxpay] ) respect to :i* su*
 *ild is ! specifi$ *ild 9 an am\nt     
equal to ! aggregate am\nt by :i* !     
mon?ly advance *ild paym5ts to su*      
taxpay] w\ld h increas$ dur+ su* p]iod  
if su* det]m9ation _h be5 made          
imm$iately4  7#d7 ,recapture ( paym5ts  
,if1 pursuant to ! proc$ures e/abli%$ "u
 p>agraph 7#a77;,b71 ! ,secret>y makes  
paym5ts ) respect to ! *ild dur+ ! p]iod
 dur+ :i* ! det]m9ation is made-- 7,a7 !
 ,secret>y %all provide ea* taxpay] :i* 
receives su* paym5ts notice t su*       
paym5ts may be subject to recapture1 &  
7,b7 ^u mak+ su* det]m9ation1 !         
,secret>y %all det]m9e on ! basis ( !   
facts & circum/ances ( ea* su* taxpay]  
:e!r any su* paym5ts %\ld be subject to 
recapture & %all s notify ea* su*       

taxpay]4  7g7 ,rules relat$ to grace    
p]iods & h>d%ips  7#a7 ,automatic grace 
p]iod  7,a7 ,9 g5]al ,not)/&+ subsection
 7f71 9 ! case ( any failure or delay 9 
e/abli%+ a p]iod ( presumptive          
eligibility ) respect to :i* ! taxpay]  
elects ! application ( ?is subp>agraph1 
cr$it "u section #bd;,a or retroactive  
paym5t "u ?is section 7simil> to !      
paym5t describ$ 9 subsection 7f77#c77   
%all be all[$ or made ) respect to s mu*
 ( ! p]iod ( su* failure or delay z does
 n exce$ #c mon?s4 ,! prec$+ s5t5ce %all
 n apply if ! ,secret>y det]m9es t su*  
failure or delay 0 due to fraud or      
reckless or int5tional disreg>d ( rules 
& regulations4  7,b7 ,limitation        
,subp>agraph 7,a7 %all n apply ) respect
 to any taxpay] m ?an once dur+ any     
#cf-mon? p]iod4  7#b7 ,h>d%ip ,not)/&+  
subsection 7f71 if ! ,secret>y det]m9es 
t a failure or delay 9 e/abli%+ a p]iod 
( presumptive eligibility ) respect to  
any specifi$ *ild 0 due to dome/ic      
viol5ce1 s]i\s illness1 natural disa/]1 

or any o!r h>d%ip1 cr$it "u section     
#bd;,a or retroactive paym5t "u ?is     
section 7simil> to ! paym5t describ$ 9  
subsection 7f77#c77 %all be all[$ or    
made ) respect to s mu* ( ! p]iod ( su* 
failure or delay z does n exce$ #f      
mon?s4  7h7 ,provisions relat$ to =m1   
mann]1 & treatm5t ( paym5ts  7#a7       
,application ( electronic funds paym5t  
requirem5t ,! paym5ts made by !         
,secret>y "u subsection 7a7 %all be made
 by electronic funds transf] to ! same  
ext5t & 9 ! same mann] z if su* paym5ts 
7 ,f$]al paym5ts n made "u ?is title4   
7#b7 ,deliv]y ( paym5ts ,not)/&+ any o!r
 provision ( law1 ! ,secret>y may c]tify
 & disburse refunds payable "u ?is      
section electronically to-- 7,a7 any    
acc\nt to :i* ! payee au?oriz$1 on or   
aft] ,janu>y #a1 #bjbe1 ! deliv]y ( a   
refund ( taxes "u ?is title or ( a      
,f$]al paym5t 7z def9$ 9 section #cccb (
 title #ca1 ,unit$ ,/ates ,code71  7,b7 
any acc\nt belong+ to a payee f :i* t   
individual1 on or aft] ,janu>y #a1      

#bjbe1 made a paym5t ( taxes "u ?is     
title1 or  7,c7 any ,treasury-sponsor$  
acc\nt 7z def9$ 9 section #bjh4b ( title
 #ca1 ,code ( ,f$]al ,regulations74     
7#c7 ,waiv] ( c]ta9 rules ,not)/&+      
section #ccbe ( title #ca1 ,unit$ ,/ates
 ,code1 or any o!r provision ( law1 )   
respect to any paym5t ( a refund "u ?is 
section1 a disburs+ (ficial 9 !         
executive bran* ( ! ,unit$ ,/ates       
,gov]nm5t may modify paym5t in=mation   
receiv$ f an (fic] or employee describ$ 
9 section #ccbe7;a77#a77;,b7 ( su* title
 = ! purpose ( facilitat+ ! accurate &  
effici5t deliv]y ( su* paym5t4 ,except 9
 cases ( fraud or reckless neglect1 no  
liability "u section #ccbe1 #cebg1      
#cebh1 or #cebi ( title #ca1 ,unit$     
,/ates ,code1 %all be impos$ ) respect  
to paym5ts made "u ?is p>agraph4  7#d7  
,exception f r$uction or (fset ,any     
applicable paym5t 7z def9$ 9 p>agraph   
7#e77;,e77iii77 %all n be-- 7,a7 subject
 to r$uction or (fset pursuant to       
section #cgaf or #cgbj;,a ( title #ca1  

,unit$ ,/ates ,code1  7,b7 subject to   
r$uction or (fset pursuant to subsection
 7c71 7d71 7e71 or 7f7 ( section #fdjb1 
or  7,c7 r$uc$ or (fset by o!r assess$  
,f$]al taxes t w\ld o!rwise be subject  
to levy or collection4  7#e7 ,assignm5t 
( b5efits  7,a7 ,9 g5]al ,! "r ( any    
p]son to any applicable paym5t %all n be
 transf]able or assignable1 at law or 9 
equity1 & no applicable paym5t %all be  
subject to1 execution1 levy1 atta*m5t1  
g>ni%m5t1 or o!r legal process1 or !    
op]ation ( any bankruptcy or insolv5cy  
law4  7,b7 ,encod+ ( paym5ts ,9 ! case (
 an applicable paym5t describ$ 9        
subp>agraph 7,e77iii77,i7 t is paid     
electronically by direct deposit ?r\gh !
 ,automat$ ,cle>+ ,h\se 7,,a*7 network1 
! ,secret>y ( ! ,treasury 7or !         
,secret>y's delegate7 %all-- 7i7 issue !
 paym5t us+ a unique id5tifi] t is      
reasonably suffici5t to all[ a f9ancial 
in/itution to id5tify ! paym5t z an     
applicable paym5t1 &  7ii7 fur!r encode 
! paym5t pursuant to ! same             

specifications z requir$ = a b5efit     
paym5t def9$ 9 section #bab4c ( title   
#ca1 ,code ( ,f$]al ,regulations4  7,c7 
,g>ni%m5t  7i7 ,encod$ paym5ts ,9 ! case
 ( a g>ni%m5t ord] t applies to an      
acc\nt t has receiv$ an applicable      
paym5t t is encod$ z provid$ 9          
subp>agraph 7,b71 a f9ancial in/itution 
%all foll[ ! requirem5ts & proc$ures set
 =? 9 "p #bab ( title #ca1 ,code (      
,f$]al ,regulations1 except-- 7,i7      
not)/&+ section #bab4d ( title #ca1     
,code ( ,f$]al ,regulations 7& except z 
provid$ 9 subclause 7,,ii771 a f9ancial 
in/itution %all n fail to foll[ !       
proc$ures ( sections #bab4e & #bab4f (  
su* title ) respect to a g>ni%m5t ord]  
m]ely because su* ord] has atta*$1 or   
includes1 a notice ( "r to g>ni% f$]al  
b5efits issu$ by a ,/ate *ild support   
en=cem5t ag5cy1 &  7,,ii7 a f9ancial    
in/itution %all n1 ) reg>d to any       
applicable paym5t1 be requir$ to provide
 ! notice ref]5c$ 9 sections #bab4f &   
#bab4g ( title #ca1 ,code ( ,f$]al      

,regulations4  7ii7 ,o!r paym5ts ,9 !   
case ( a g>ni%m5t ord] 7o!r ?an an ord] 
t has be5 s]v$ by ! ,unit$ ,/ates7 t has
 be5 receiv$ by a f9ancial in/itution & 
t applies to an acc\nt into :i* an      
applicable paym5t t has n be5 encod$ z  
provid$ 9 subp>agraph 7,b7 has be5      
deposit$ electronically on any date dur+
 ! lookback p]iod or into :i* an        
applicable paym5t t has be5 deposit$ by 
*eck on any date 9 ! lookback p]iod1 !  
f9ancial in/itution1 ^u ! reque/ ( !    
acc\nt hold]1 %all treat ! am\nt ( !    
funds 9 ! acc\nt at ! "t ( ! reque/1 up 
to ! am\nt ( ! applicable paym5t 79     
addition to any am\nts o!rwise protect$ 
"u "p #bab ( title #ca1 ,code ( ,f$]al  
,regulations71 z exempt f a g>ni%m5t    
ord] )\t requir+ ! cons5t ( ! p>ty s]v+ 
! g>ni%m5t ord] or ! judgm5t cr$itor4   
7iii7 ,liability ,a f9ancial in/itution 
t acts 9 good fai? 9 reliance on clauses
 7i7 or 7ii7 %all n be subject to       
liability or regulatory action "u any   
,f$]al or ,/ate law1 regulation1 c\rt or

 o!r ord]1 or regulatory int]pretation =
 actions conc]n+ any applicable paym5ts4
  7,d7 ,no reclamation rights ,?is      
p>agraph %all n alt] ! /atus (          
applicable paym5ts z tax refunds or o!r 
nonb5efit paym5ts = purpose ( any       
reclamation rights ( ! ,dep>tm5t ( !    
,treasury or ! ,int]nal ,rev5ue ,s]vice 
z p] "p #baj ( title #ca1 ,code ( ,f$]al
 ,regulations4  7,e7 ,def9itions ,=     
purposes ( ?is p>agraph-- 7i7 ,acc\nt   
hold] ,! t]m acc\nt hold] means a       
natural p]son ^: "n appe>s 9 a f9ancial 
in/itution's records z ! direct or      
b5eficial own] ( an acc\nt4  7ii7       
,acc\nt review ,! t]m acc\nt review     
means ! process ( exam9+ deposits 9 an  
acc\nt to det]m9e if an applicable      
paym5t has be5 deposit$ into ! acc\nt   
dur+ ! lookback p]iod4 ,! f9ancial      
in/itution %all p]=m ! acc\nt review    
foll[+ ! proc$ures outl9$ 9 section     
#bab4e ( title #ca1 ,code ( ,f$]al      
,regulations & 9 accordance ) !         
requirem5ts ( section #bab4f ( title    

#ca1 ,code ( ,f$]al ,regulations4  7iii7
 ,applicable paym5t ,! t]m applicable   
paym5t means-- 7,i7 any paym5t made to  
an individual "u ?is section 7o!r ?an   
any paym5t made pursuant to p>agraph    
7#f771  7,,ii7 any advance paym5t made  
by a possession ( ! ,unit$ ,/ates ) a   
mirror code tax sy/em 7z def9$ 9 section
 #bd7;h77 pursuant to an election "u    
p>agraph 7#f77;,b7 :i* corresponds to a 
paym5t describ$ 9 subclause 7,i71 &     
7,,iii7 any advance paym5t made by      
,am]ican ,samoa pursuant to a program = 
mak+ su* paym5ts :i* is describ$ 9      
p>agraph 7#f77;,c77ii74  7iv7 ,g>ni%m5t 
,! t]m g>ni%m5t means execution1 levy1  
atta*m5t1 g>ni%m5t1 or o!r legal        
process4  7v7 ,g>ni%m5t ord] ,! t]m     
g>ni%m5t ord] means a writ1 ord]1       
notice1 summons1 judgm5t1 levy1 or      
simil> writt5 in/ruction issu$ by a     
c\rt1 a ,/ate or ,/ate ag5cy1 a         
municipality or municipal corporation1  
or a ,/ate *ild support en=cem5t ag5cy1 
includ+ a li5 aris+ by op]ation ( law = 

ov]due *ild support or an ord] to freeze
 ! assets 9 an acc\nt1 to effect a      
g>ni%m5t aga9/ a debtor4  7vi7 ,lookback
 p]iod ,! t]m lookback p]iod means !    
two-mon? p]iod t beg9s on ! date prec$+ 
! date ( acc\nt review & ends on !      
correspond+ date ( ! mon? two mon?s     
e>li]1 or on ! la/ date ( ! mon? two    
mon?s e>li] if ! correspond+ date does n
 exi/4  7#f7 ,application ( advance     
paym5ts 9 ! possessions ( ! unit$ /ates 
7,a7 ,pu]to ,rico  7i7 ,= application ( 
*ild tax cr$it to resid5ts ( ,pu]to     
,rico1 see section #bd;,a7d74  7ii7 ,=  
application ( mon?ly advance *ild       
paym5ts to resid5ts ( ,pu]to ,rico1 see 
subsection 7b77#d74  7,b7 ,mirror code  
possessions ,9 ! case ( any possession (
 ! ,unit$ ,/ates ) a mirror code tax    
sy/em 7z def9$ 9 section                
#bd;,a7h77#a77;,c771 ?is section %all n 
be treat$ z "p ( ! income tax laws ( !  
,unit$ ,/ates = purposes ( det]m9+ !    
income tax law ( su* possession unless  
su* possession elects to h ?is section  

be s treat$4  7,c7 ,adm9i/rative exp5ses
 ( advance paym5ts  7i7 ,mirror code    
possessions ,9 ! case ( any possession  
describ$ 9 subp>agraph 7,b7 :i* makes ! 
election describ$ 9 su* subp>agraph1 !  
am\nt o!rwise paid by ! ,secret>y to su*
 possession "u section                  
#bd;,a7h77#a77;,a7 ) respect to taxable 
ye>s beg9n+ 9 #bjbf1 #bjbg1 & #bjbh %all
 ea* be increas$ by #cjj1jjj if su*     
possession has a plan1 :i* has be5      
approv$ by ! ,secret>y1 = mak+ mon?ly   
advance *ild paym5ts consi/5t ) su*     
election4  7ii7 ,am]ican ,samoa ,! am\nt
 o!rwise paid by ! ,secret>y to ,am]ican
 ,samoa "u subp>agraph 7,a7 ( section   
#bd;,a7h77#c7 ) respect to taxable ye>s 
beg9n+ 9 #bjbf1 #bjbg1 & #bjbh %all ea* 
be increas$ by #cjj1jjj if ! plan       
describ$ 9 subp>agraph 7,b7 ( su*       
section includes a program1 :i* has be5 
approv$ by ! ,secret>y1 = mak+ mon?ly   
advance *ild paym5ts "u rules simil> to 
! rules ( ?is section4  7iii7 ,tim+ (   
paym5t ,! ,secret>y may pay1 ^u ! reque/

 ( ! possession ( ! ,unit$ ,/ates to :i*
 ! paym5t is to be made1 ! am\nt ( !    
increase det]m9$ "u clause 7i7 or 7ii71 
respectively1 imm$iately ^u approval ( !
 plan ) respect to :i* su* paym5t       
relates4  7i7 ,application ( c]ta9      
def9itions & rules applicable to *ild   
tax cr$it  7#a7 ,def9itions ,except z   
o!rwise provid$ 9 ?is section1 t]ms us$ 
9 ?is section :i* are also us$ 9 section
 #bd;,a %all h ! same respective mean+s 
z :5 us$ 9 section #bd;,a4  7#b7        
,treatm5t ( c]ta9 dea?s ,a *ild %all n  
be tak5 into acc\nt 9 det]m9+ ! mon?ly  
advance *ild paym5t = any cal5d> mon? if
 ! dea? ( su* *ild be=e ! end ( su* mon?
 is kn[n to ! ,secret>y z ( date on :i* 
! ,secret>y e/imates su* paym5t4  7#c7  
,id5tification requirem5ts ,rules simil>
 to ! rules :i* apply "u section        
#bd;,a7e7 %all apply = purposes ( ?is   
section except t su* rules %all apply ) 
respect to ! return ( tax = ! ref]5ce   
taxable ye> or1 9 ! case ( in=mation    
provid$ ?r\gh a specifi$ alt]native     

me*anism1 ) respect to ! in=mation      
provid$ ?r\gh su* me*anism4  7#d7       
,re/rictions on taxpay]s :o improp]ly   
claim$ cr$it or receiv$ mon?ly advance  
*ild paym5ts ,= re/rictions on taxpay]s 
:o improp]ly claim$ cr$it or receiv$    
mon?ly advance *ild paym5ts1 see section
 #bd;,a7f74  7j7 ,notice ( ,paym5ts     
7#a7 ,9 g5]al ,n lat] ?an ,janu>y #ca ( 
! cal5d> ye> foll[+ any cal5d> ye> dur+ 
:i* ! ,secret>y makes "o or m paym5ts to
 any taxpay] "u ?is section1 ! ,secret>y
 %all provide su* taxpay] ) a writt5    
notice :i* includes-- 7,a7 ! taxpay]'s  
taxpay] id5tity 7z def9$ 9 section      
#fajc7;b77#f771  7,b7 ! aggregate am\nt 
( su* paym5ts made to su* taxpay] dur+  
su* cal5d> ye>1 &  7,c7 su* o!r         
in=mation z ! ,secret>y det]m9es        
appropriate4  7#b7 ,c]ta9 paym5ts       
subject to recapture ,9 ! case ( any    
paym5ts made to a taxpay] :i* !         
,secret>y has det]m9$ are subject to    
recapture1 ! notice provid$ "u p>agraph 
7#a7 to su* taxpay] %all include ! am\nt

 ( su* paym5ts4  7k7 ,notification (    
c]ta9 ev5ts ,) respect to any taxpay]   
receiv+ mon?ly advance *ild paym5ts "u  
?is section ) respect to any specifi$   
*ild1 ! ,secret>y %all1 to ! maximum    
ext5t practicable1 provide reasonable   
advance notice ( ea* ( ! foll[+3 7#a7   
,any mon? ) respect to :i* su* mon?ly   
advance *ild paym5t w increase 7relative
 to ! prec$+ mon?7 by reason ( an       
inflation adju/m5t "u section           
#bd;,a7b77#c77;,a74  7#b7 ,any mon? )   
respect to :i* su* mon?ly advance *ild  
paym5t w be r$uc$ 7relative to ! prec$+ 
mon?7 by reason ( su* *ild ceas+ to be a
 specifi$ *ild by reason ( atta9+ age   
#ah4  7#c7 ,9 ! case ( a taxpay] ) a    
specifi$ *ild describ$ 9 section        
#bd;,a7b77#a77;,a71 any mon? ) respect  
to :i* su* mon?ly advance *ild paym5t w 
be r$uc$ by reason ( su* *ild atta9+ age
 #f4  7l7 ,regulations ,! ,secret>y %all
 issue su* regulations or o!r guidance z
 ! ,secret>y det]m9es necess>y or       
appropriate to c>ry out ! purposes ( ?is

 section4  4  7c7 ,t]m9ation ( annual   
*ild tax cr$it ,section #bd ( su* ,code 
is am5d$ by add+ at ! end ! foll[+ new  
subsection3  7l7 ,t]m9ation ,?is section
 %all n apply to 7& no paym5t %all be   
made "u subsection 7k7 ) respect to7 any
 taxable ye> beg9n+ aft] ,decemb] #ca1  
#bjbe4  4  7d7 ,disclosure ( in=mation  
relat+ to advance paym5t ( *ild tax     
cr$it ,section #fajc7;e7 ( su* ,code is 
am5d$ by add+ at ! end ! foll[+ new     
p>agraph3  7#ab7 ,disclosure ( in=mation
 relat+ to advance paym5t ( *ild tax    
cr$it  7,a7 ,jo9t fil]s ,9 ! case ( an  
individual to :om ! ,secret>y makes     
paym5ts "u section #gebg;,a or :o is    
eligible = mon?ly advance *ild paym5ts  
"u section #gebg;,b1 if ! ref]5ce       
taxable ye> 7z def9$ 9 section          
#gebg;,a7b77#b7 or #gebg;,b7d77#b71 z ! 
case may be7 t ! ,secret>y uses to      
calculate su* paym5ts is a ye> = :i* !  
individual fil$ an income tax return    
jo9tly ) ano!r individual1 ! ,secret>y  
may disclose to su* individual any      

in=mation :i* is relevant 9 det]m9+ !   
paym5t "u section #gebg;,a1 or ! mon?ly 
advance *ild paym5t "u section #gebg;,b1
 & ! individual's eligibility = su*     
paym5t1 includ+ in=mation reg>d+ any ( !
 foll[+3 7i7 ,! numb] ( specifi$ *ildr51
 includ+ by reason ( ! bir? ( a *ild4   
7ii7 ,! "n & ,,t9 ( specifi$ *ildr54    
7iii7 ,m>ital /atus4  7iv7 ,modifi$     
adju/$ gross income4  7v7 ,pr9cipal     
place ( abode4  7vi7 ,any o!r factor :i*
 ! ,secret>y may provide pursuant to    
section #gebg;,a7c7 or #gebg;,b7e74     
7,b7 ,compet+ claimants ,9 ! case ( an  
individual :o has a compet+ claim (     
presumptive eligibility ) respect to a  
specifi$ *ild "u section                
#gebg;,b7f77#a71 ! ,secret>y may        
disclose to su* individual return       
in=mation provid$ by ano!r individual :o
 has a compet+ claim ( presumptive      
eligibility ) respect to ! same specifi$
 *ild 9 ! c\rse ( ! ,secret>y's         
adjudication ( t compet+ claim1 z well z
 any o!r in=mation consid]$ by !        

,secret>y ) respect to t compet+ claim4 
,su* in=mation %all be limit$ to ! items
 specifi$ 9 subp>agraph 7,a7 & ! foll[+3
 7i7 ,in=mation receiv$ "u any agreem5ts
 or coord9ation ! ,secret>y ent]$ into  
)-- 7,i7 any ,/ate1 local gov]nm5t1     
,tribal gov]nm5t1 or possession ( !     
,unit$ ,/ates1 or  7,,ii7 any o!r       
individual or entity t ! ,secret>y      
det]m9es to be appropriate = purposes ( 
adjudicat+ a compet+ claim4  7ii7       
,in=mation consid]$ by ! ,secret>y ab\t 
:]e & ) :om ! specifi$ *ild resid$4     
7iii7 ,in=mation consid]$ by ! ,secret>y
 ab\t exp5ditures made by ! claimants to
 ! ext5t su* paym5ts relate to ! compet+
 claim4  4  7e7 ,con=m+ am5dm5ts  7#a7  
,section #bf7;b77#b7 ( su* ,code is     
am5d$ by /rik+ & at ! end ( subp>agraph 
7,y71 by /rik+ ! p]iod at ! end (       
subp>agraph 7,z7 & ins]t+ 1 &1 & by add+
 at ! end ! foll[+ new subp>agraph3     
7,,aa7 section #bd;,a7g77#b7 7relat+ to 
recapture ( c]ta9 mon?ly advance *ild   
paym5ts74  4  7#b7 ,section             

#aeb7;f77#f77;,b77ii7 ( su* ,code is    
am5d$ to read z foll[s3  7ii7 ! cr$its  
"u sections #bd1 #bd;,a1 & #bd;,b & !   
paym5ts "u sections #gebg;,a & #gebg;,b1
  4  7#c7 ,section #cdjb7;f77#a77;,c7 ( 
su* ,code is am5d$ by ins]t+ or section 
#bd;,a 7det]m9$ aft] application (      
subsection 7g7 !re(7 aft] section #bd   
7det]m9$ aft] application ( subsection  
7j7 !re(74  7#d7 ,section               
#fajc7l77#ac77;,a77v7 ( su* ,code is    
am5d$ by ins]t or section #bd;,a1 z !   
case may be aft] section #bd4  7#e7     
,section #fbaa7;b77#d77;,a7 ( su* ,code 
is am5d$ by ins]t+ #bd;,a by reason (   
subsection 7d7 !re(1 aft] #bd by reason 
( subsections 7d7 & 7i77#a7 !re(14  7#f7
 ,section #fbac7;g77#b77;,i7 ( su* ,code
 is am5d$ by ins]t+ or section #bd;,a7e7
 7relat+ to mon?ly *ild tax cr$it7 aft] 
section #bd7;e7 7relat+ to *ild tax     
cr$it74  7#g7 ,section #fbac7;g77#b77,l7
 ( su* ,code is am5d$ by ins]t+ #bd;,a1 
aft] #bd14  7#h7 ,section               
#fbac7;g77#b77,p7 ( su* ,code is am5d$--

 7,a7 by ins]t+ or #bd;,a7f77#b7 aft]   
section #bd7;g77#b71  7,b7 by ins]t+ or 
#bd;,a aft] "u section #bd1 &  7,c7 by  
/rik+ subsection 7g77#a7 !re( & ins]t+  
section #bd7;g77#a7 or section          
#bd;,a7f77#a71 respectively4  7#i7      
,section #ffie7;g77#b7 ( su* ,code is   
am5d$ by ins]t+ #bd;,a1 aft] #bd14      
7#aj7 ,p>agraph 7#b7 ( section #acbd7;b7
 ( title #ca1 ,unit$ ,/ates ,code1 z    
am5d$ by ! prec$+ provisions ( ?is ,act1
 is am5d$-- 7,a7 by ins]t+ #bd;,a1 aft] 
#bd11 &  7,b7 by ins]t+ #gebg;,b1 aft]  
#gebg;,a14  7#aa7 ,! table ( sections = 
subp>t ,a ( "p ,,iv ( sub*apt] ,a (     
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by ins]t+ aft] ! item    
relat+ to section #bd ! foll[+ new      
items3  ,sec4 #bd;,a4 ,mon?ly *ild tax  
cr$it4,sec4 #bd;,b4 ,cr$it = c]ta9 o!r  
dep5d5ts4  4  7#ab7 ,! table ( sections 
= *apt] #gg ( su* ,code is am5d$ by     
ins]t+ aft] ! item relat+ to section    
#gebg;,a ! foll[+ new item3  ,sec4      
#gebg;,b4 ,mon?ly paym5ts ( *ild tax    

cr$it4  4  7f7 ,effective dates  7#a7 ,9
 g5]al ,except z o!rwise provid$ 9 ?is  
subsection1 ! am5dm5ts made by ?is      
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjbe4  7#b7  
,mon?ly advance *ild paym5ts ,! am5dm5ts
 made by subsection 7b7 %all apply to   
cal5d> mon?s beg9n+ aft] ,decemb] #ca1  
#bjbe4  7#c7 ,in=mation disclosure ,!   
am5dm5t made by subsection 7d7 %all take
 effect on ! date ( ! enactm5t ( ?is    
,act4  #f4 ,capital ga9s rates n        
applicable to c]ta9 high income taxpay]s
  7a7 ,9 g5]al ,section #a7;h77#a7 ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ & ! taxable income ( su*      
taxpay] = su* taxable ye> does n exce$  
#a1jjj1jjj 7half su* am\nt 9 ! case ( a 
m>ri$ individual fil+ a sep>ate return7 
aft] ,if a taxpay] has a net capital ga9
 = any taxable ye>4  7b7 ,inflation     
adju/m5t ,section #a7;h7 ( su* ,code is 
am5d$ by add+ at ! end ! foll[+ new     
p>agraph3  7#ab7 ,inflation adju/m5t    
7,a7 ,9 g5]al ,9 ! case ( any taxable   

ye> beg9n+ aft] #bjbf1 ! #a1jjj1jjj     
am\nt 9 p>agraph 7#a7 %all be increas$  
by an am\nt equal to-- 7i7 su* doll>    
am\nt1 multipli$ by  7ii7 ! co/-(-liv+  
adju/m5t det]m9$ "u section #a7;f77#c7 =
 ! cal5d> ye> 9 :i* ! taxable ye> beg9s1
 det]m9$ by sub/itut+ cal5d> ye> #bjbe =
 cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7
 !re(4  7,b7 ,r\nd+ ,if any increase "u 
subp>agraph 7,a7 is n a multiple ( #ej1 
su* doll> am\nt %all be r\nd$ to ! next 
l[e/ multiple ( #ej4  4  7c7 ,effective 
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft]  
,decemb] #ca1 #bjbe4  #g4 ,increase 9   
rates ( c]ta9 corporate taxes  7a7      
,corporate income tax rate ,section     
#aa7;b7 ( ! ,int]nal ,rev5ue ,code (    
#aihf is am5d$ by /rik+ #ba p]c5t &     
ins]t+ #bh p]c5t4  7b7 ,rate ( tax on   
repur*ase ( corporate /ock ,section     
#deja7;a7 ( su* ,code is am5d$ by /rik+ 
#a p]c5t & ins]t+ #d p]c5t4  7c7        
,corporate alt]native m9imum tax rate   
,section #ee7;b77#b77;,a77i7 ( su* ,code

 is am5d$ to read z foll[s3  7i7 ! sum  
(-- 7,i7 #ae p]c5t ( s mu* ( ! adju/$   
f9ancial /atem5t income 7z def9$ 9      
section #ef;,a7 z does n exce$          
#e1jjj1jjj1jjj1 plus  7,,ii7 #be p]c5t (
 s mu* ( su* adju/$ f9ancial /atem5t    
income z exce$s #e1jjj1jjj1jjj1  4  7d7 
,effective dates ,! am5dm5ts made by ?is
 section %all apply to taxable ye>s     
beg9n+ aft] ,decemb] #ca1 #bjbe4