,,ii  #aai? ,,congress  #b;d ,session   
,s4 #eada  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #bh1 #bjbf,mr4   
,b5net introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to improve !      
notice & review proc$ure ) respect to   
multi-ye> bans on claim+ cr$its4  #a4   
,notice & review ) respect to multi-ye> 
bans on claim+ cr$its  7a7 ,notice  7#a7
 ,9 g5]al ,section #fbab7;a7 ( !        
,int]nal ,rev5ue ,code ( #aihf is       
am5d$-- 7,a7 by /rik+ ,if ! & ins]t+ !  
foll[+3  7#a7 ,notice ,if !  1  7,b7 by 
/rik+ ,su* notice %all include a notice 
& ins]t+ ! foll[+3  7#b7 ,matt]s includ$
 ,su* notice %all include-- 7,a7 a      
notice  1  7,c7 by /rik+ ! p]iod at !   
end ( ! second s5t5ce & ins]t+ 1 &1 &   
7,d7 by add+ at ! end ! foll[+ new      
subp>agraph3  7,b7 9 any case 9 :i* su* 
defici5cy = a taxable ye> is            
attributable to ! d5ial ( a cr$it "u    
section #bd1 #be;,a1 or #cb1 a /atem5t--

 7i7 id5tify+ ! cr$it or cr$its :i* are 
d5i$ & provid+ ! gr\nds = ea* su* d5ial1
  7ii7 in=m+ ! taxpay] t1 unless ! d5ial
 is ov]turn$ on appeal1 ! taxpay] w n be
 able to claim su* cr$it = any subsequ5t
 taxable ye> unless ! taxpay] provides  
in=mation requir$ by ! ,secret>y to     
demon/rate eligibility = ! cr$it1 &     
7iii7 9 any case 9 :i* ! ,secret>y has  
made a det]m9ation to impose a          
disall[ance p]iod "u section            
#bd7;g77#a71 #be;,a7b77#d77;,a71 or     
#cb7k77#a71 provid+ ! gr\nds = su*      
disall[ance p]iod 7& ! l5g? ( !         
disall[ance p]iod unless ov]turn$ on    
appeal74  4  7#b7 ,effective date ,!    
am5dm5ts made by ?is subsection %all    
apply to notices mail$ #cf mon?s aft] ! 
date ( enactm5t ( ?is ,act4  7b7        
,au?ority ( ! tax c\rt  7#a7 ,9 g5]al   
,section #fbad ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by r$esignat+    
subsection 7e7 z subsection 7f7 & by    
ins]t+ aft] subsection 7d7 ! foll[+ new 
subsection3  7e7 ,jurisdiction ) respect

 to multi-,ye> bans ) respect to c]ta9  
cr$its  7#a7 ,9 g5]al ,! ,tax ,c\rt %all
 h jurisdiction-- 7,a7 to r$et]m9e !    
imposition ( any disall[ance p]iod )    
respect to any cr$it "u section #bd1    
#be;,a1 or #cb = ! taxable ye> 9 :i* su*
 disall[ance p]iod 0 impos$ if !        
defici5cy relates to su* taxable ye>1 & 
7,b7 to det]m9e :e!r any su* disall[ance
 p]iod %\ld be impos$ if claim !re= is  
ass]t$ by ! ,secret>y 9 ! answ] or an   
am5d$ answ] fil$ 9 accordance ) ! rules 
( ! ,tax ,c\rt4  7#b7 ,disall[ance p]iod
 ,= purposes ( ?is subsection1 ! t]m    
disall[ance p]iod has ! mean+ giv5 su*  
t]m "u section #fgea7;d74  4  7#b7      
,effective date ,! am5dm5ts made by ?is 
subsection apply to petitions fil$ on or
 aft] ! date ( enactm5t ( ?is ,act4     
7#c7 ,transition rule = review (        
previ\sly impos$ disall[ance p]iods     
7,a7 ,9 g5]al ,9 ! case ( any defici5cy 
:i* is attributable to an entry on !    
return claim+ a cr$it "u section #bd1   
#be;,a1 or #cb ( ! ,int]nal ,rev5ue     

,code ( #aihf = a taxable ye> 9 a       
disall[ance p]iod describ$ 9 subp>agraph
 7,b71 ! ,tax ,c\rt %all h jurisdiction 
to r$et]m9e :e!r ! disall[ance p]iod 0  
prop]ly impos$4  7,b7 ,disall[ance p]iod
 describ$ ,a disall[ance p]iod is       
describ$ 9 ?is subp>agraph if ! notice (
 ! defici5cy "u section #fbab ( su*     
,code = ! taxable ye> ) respect to :i* !
 det]m9ation to impose ! disall[ance    
p]iod 0 made-- 7i7 did n include !      
gr\nds = su* disall[ance p]iod1 &  7ii7 
0 mail$ be=e ! date t is #cf mon?s aft] 
! date ( ! enactm5t ( ?is ,act4  7,c7   
,disall[ance p]iod ,= purposes ( ?is    
p>agraph1 ! t]m disall[ance p]iod has ! 
mean+ giv5 su* t]m "u section #fgea7;d7 
( ! ,int]nal ,rev5ue ,code ( #aihf 7z   
add$ by ?is ,act74  7,d7 ,refunds       
,not)/&+ section #feab7;b77#a7 ( !      
,int]nal ,rev5ue ,code ( #aihf1 9 ! case
 ( a petition ) respect to a disall[ance
 p]iod describ$ 9 subp>agraph 7,b71 !   
,tax ,c\rt %all h jurisdiction to       
det]m9e ! am\nt ( an ov]paym5t = any    

taxable ye> 9 ! disall[ance p]iod1 & su*
 am\nt %all1 not)/&+ section #feaa1 :5 !
 decision ( ! ,tax ,c\rt has become     
f9al1 be cr$it$ or refund$ to ! taxpay]4
 ,if a notice ( appeal 9 respect ( !    
decision ( ! ,tax ,c\rt is fil$ "u      
section #gdhc ( su* ,code1 ! ,secret>y (
 ! ,treasury 7or ! ,secret>y's delegate7
 is au?oriz$ to refund or cr$it !       
ov]paym5t det]m9$ by ! ,tax ,c\rt to !  
ext5t ! ov]paym5t is n conte/$ on       
appeal4  7c7 ,burd5 ( production  7#a7  
,9 g5]al ,section #gdia7;c7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$-- 7,a7  
by /rik+ ,not)/&+ & ins]t+ ! foll[+3    
7#a7 ,9 g5]al ,not)/&+  4  7,b7 by /rik+
 ) respect to ! liability & ins]t+ )    
respect to-- 7,a7 ! liability  1  7,c7  
by /rik+ ! p]iod aft] title & ins]t+ 1  
&1  7,d7 by add+ at ! end ! foll[+ new  
p>agraph3  7,a7 ! application ( any     
disall[ance p]iod 7z def9$ 9 section    
#fgea7;d77 to any individual4  1 &  7,e7
 by add+ at ! end ! foll[+ new p>agraph3
  7#b7 ,/&>d ( pro( = c]ta9 disall[ance 

p]iods ,9 ! case ( any c\rt proce$+ )   
respect to any disall[ance p]iod        
describ$ 9 section #bd7;g77#a77;,b77i71 
#be;,a7b77#d77;,a77ii77,i71 or          
#cb7k77#a77;,b77i71 ! /&>d ( pro( %all  
be ! same /&>d z requir$ 9 a proce$+ "u 
section #gded7;a74  4  7#b7 ,effective  
date ,! am5dm5ts made by ?is subsection 
%all apply to c\rt proce$+s beg9n+ aft] 
! date t is #cf mon?s aft] ! date ( !   
enactm5t ( ?is ,act 9 connection )      
disall[ance p]iods 7z def9$ 9 section   
#fgea7;d7 ( ! ,int]nal ,rev5ue ,code (  
#aihf1 z add$ by ?is ,act7 det]m9$ aft] 
su* date4  7d7 ,modification (          
disall[ance p]iod  7#a7 ,*ild tax cr$it 
,section #bd7;g77#a7 ( ! ,int]nal       
,rev5ue ,code ( #aihf is am5d$-- 7,a7 9 
subp>agraph 7,b71 by /rik+ = :i* !re 0 a
 f9al det]m9ation t ! taxpay]'s claim ( 
cr$it "u ?is section 0 ea* place x      
appe>s 9 clauses 7i7 & 7ii7 & ins]t+ =  
:i* a notice ( defici5cy has be5 s5t "u 
section #fbab7;a7 :i* notifies ! taxpay]
 t ! taxpay]'s claim ( cr$it "u ?is     

section 0 d5i$1 or a det]m9ation t has  
become f9al "u section #gdha has be5    
made by ! ,tax ,c\rt to d5y su* claim11 
&  7,b7 by add+ at ! end ! foll[+ new   
subp>agraph3  7,c7 ,all[ance ( previ\sly
 d5i$ cr$its aft] ,tax ,c\rt            
consid]ation ,not)/&+ subp>agraphs 7,a7 
& 7,b71 a taxable ye> %all n be treat$ z
 a taxable ye> 9 ! disall[ance p]iod if 
! ,tax ,c\rt det]m9es t ! disall[ance   
p]iod 0 n prop]ly impos$ = su* ye>      
pursuant to section #fbad7;e74  4  7#b7 
,am]ican opportunity tax cr$it ,section 
#be;,a7b77#d77;,a7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$-- 7,a7 9 clause  
7ii71 by /rik+ = :i* !re 0 a f9al       
det]m9ation t ! taxpay]'s claim ( !     
,am]ican ,opportunity ,cr$it "u ?is     
section 0 ea* place x appe>s 9          
subclauses 7,i7 & 7,,ii7 & ins]t+ = :i* 
a notice ( defici5cy has be5 s5t "u     
section #fbab7;a7 :i* notifies ! taxpay]
 t ! taxpay]'s claim ( cr$it "u ?is     
section 0 d5i$1 or a det]m9ation t has  
become f9al "u section #gdha has be5    

made by ! ,tax ,c\rt to d5y su* claim11 
&  7,b7 by add+ at ! end ! foll[+ new   
clause3  7iii7 ,all[ance ( previ\sly    
d5i$ cr$its aft] ,tax ,c\rt consid]ation
 ,not)/&+ clauses 7i7 & 7ii71 a taxable 
ye> %all n be treat$ z a taxable ye> 9 !
 disall[ance p]iod if ! ,tax ,c\rt      
det]m9es t ! disall[ance p]iod 0 n      
prop]ly impos$ = su* ye> pursuant to    
section #fbad7;e74  4  7#c7 ,e>n$ income
 tax cr$it ,section #cb7k77#a7 ( !      
,int]nal ,rev5ue ,code ( #aihf is       
am5d$-- 7,a7 9 subp>agraph 7,b71 by     
/rik+ = :i* !re 0 a f9al det]m9ation t !
 taxpay]'s claim ( cr$it "u ?is section 
0 ea* place x appe>s 9 clauses 7i7 &    
7ii7 & ins]t+ = :i* a notice ( defici5cy
 has be5 s5t "u section #fbab7;a7 :i*   
notifies ! taxpay] t ! taxpay]'s claim (
 cr$it "u ?is section 0 d5i$1 or a      
det]m9ation t has become f9al "u section
 #gdha has be5 made by ! ,tax ,c\rt to  
d5y su* claim11 &  7,b7 by add+ at ! end
 ! foll[+ new subp>agraph3  7,c7        
,all[ance ( previ\sly d5i$ cr$its aft]  

,tax ,c\rt consid]ation ,not)/&+        
subp>agraphs 7,a7 & 7,b71 a taxable ye> 
%all n be treat$ z a taxable ye> 9 !    
disall[ance p]iod if ! ,tax ,c\rt       
det]m9es t ! disall[ance p]iod 0 n      
prop]ly impos$ = su* ye> pursuant to    
section #fbad7;e74  4  7#d7 ,susp5sion (
 runn+ ( limitations p]iod fil+ ( a     
claim = cr$it or refund ,section        
#feaa7;d7 ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ by add+ at ! end ! foll[+
 new p>agraph3  7#i7 ,special rules     
relat+ to disall[ance p]iods ,! runn+ ( 
! p]iods describ$ 9 subsections 7a7 &   
7b77#b7 ) respect to any claim = a cr$it
 all[$ "u section #bd1 #be;,a1 or #cb = 
any taxable ye> 9 a disall[ance p]iod 7z
 def9$ 9 section #fgea7;d77 %all be     
susp5d$ dur+ any p]iod 9 :i* !          
imposition ( su* disall[ance p]iod is   
p5d+ be=e ! ,tax ,c\rt4  4  7#e7        
,effective date  7,a7 ,9 g5]al ,!       
am5dm5ts made by p>agraphs 7#a71 7#b71 &
 7#c7 %all apply to-- 7i7 taxable ye>s  
beg9n+ aft] ! date t is #cf mon?s aft] !

 date ( ! enactm5t ( ?is ,act1 &  7ii7  
disall[ance p]iods 7z def9$ 9 section   
#fgea7;d7 ( ! ,int]nal ,rev5ue ,code (  
#aihf1 z add$ by ?is ,act7 9 taxable    
ye>s beg9n+ on or be=e su* date if !    
notice ( defici5cy = ! taxable ye> )    
respect to :i* ! det]m9ation to impose  
su* disall[ance p]iod 0 made 0 s5t aft] 
su* date4  7,b7 ,susp5sion ( runn+ (    
limitations p]iod ,! am5dm5t made by    
p>agraph 7#d7 %all apply to petitions   
fil$ aft] ! date ( ! enactm5t ( ?is     
,act4