A bill to amend the Internal Revenue Code of 1986 to improve the process for providing refunds to taxpayers.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 5142 Introduced in Senate (IS)]

<DOC>

119th CONGRESS 2d Session S. 5142

To amend the Internal Revenue Code of 1986 to improve the process for providing refunds to taxpayers.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

July 28, 2026

Mr. Bennet (for himself and Mr. Cassidy) introduced the following bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to improve the process for providing refunds to taxpayers.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. AUTOMATION OF REFUND OFFSET BYPASS.

(a) In General.--Section 6402(a) of the Internal Revenue Code of 1986 is amended-- (1) by striking ``In the case'' and inserting the following: ``(1) Authority.--Except as provided in paragraph (2), in the case'', and (2) by adding at the end the following new paragraphs: ``(2) Special rule for certain individuals.--In the case of an overpayment with respect to any taxable year for which a credit is allowed to an applicable taxpayer under section 32, the Secretary shall, subject to subsections (c), (d), (e), and (f), refund such overpayment in an amount not to exceed the amount of the credit allowed under such section for such taxable year. ``(3) Applicable taxpayer.--For purposes of paragraph (2), the term `applicable taxpayer' means a taxpayer who was classified by the Secretary as currently not collectible (within the meaning of section 6343(e)) prior to the date on which the refund was requested by the taxpayer.''. (b) Effective Date.--The amendments made by this section shall apply to offsets made after the date which is 12 months after the date of enactment of this Act. <all>