Earned Income Tax Credit Fraud Prevention Act

Summary

Earned Income Tax Credit Fraud Prevention Act - Amends the Internal Revenue Code to define "eligible individual," for earned income credit (EIC) provisions, to exclude any individual who does not include on their return their taxpayer identification number (TIN) and, if married, the TIN of their spouse. Adds to the definition of "mathematical or clerical error," for provisions relating to restrictions applicable to deficiencies and petitions to Tax Court, references to omission of a TIN required by provisions relating to credit for families with younger children or to the EIC. Removes individuals without children from eligibility for the EIC. Modifies credit and phaseout percentages. Terminates, on a specified date, provisions providing for inflation adjustments in the earned income amount and the phaseout amount. Adds to the types of income that, if their aggregate exceeds a specified amount, will deny EIC: (1) capital gain net income; (2) certain income from passive activities; and (3) amounts includible in gross income under provisions relating to beneficiaries of estates and trusts. Lowers the aggregate limit. Modifies the definition of adjusted gross income for purposes of the maximum limit on EIC. Mandates a study and report to specified congressional committees on the Federal tax treatment of child support payments to determine whether changes are necessary. Prohibits considering EIC as an allowable credit, for provisions requiring that excess credits be considered overpayments, unless the EIC can be verified by comparing it with information returns filed by employees of the individual claiming the credit or with self-employment returns. Applies this paragraph to any advanced payment of the EIC under specified provisions. Mandates a study and report to specified congressional committees on the delays (if any) that would result in the processing of Federal income tax returns because of the amendment made by this paragraph. Prohibits approving the application of any person to be an electronic return originator unless the applicant provides fingerprints and credit information. Applies these requirements to originators whose applications were approved before enactment of this Act.

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Timeline

1. 8 June 1995

   Introduced

   Read twice and referred to the Committee on Finance.

   Source: IntroReferral

2. 8 June 1995

   Introduced

   Introduced in Senate

   Source: IntroReferral

3. 14 June 1995

   Introduced

   Sponsor introductory remarks on measure. (CR S8404-8412)

   Source: IntroReferral

Votes

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Versions

• Introduced in Senate · 8 June 1995 · Official file

Documents

3 official files

• Introduced in Senate (text)

  Introduced in Senate · EN · 8 June 1995

  ViewDownloadOpen at official source

• Introduced in Senate (PDF)

  Introduced in Senate · EN · 8 June 1995

  ViewDownloadOpen at official source

• Introduced in Senate

  summary · EN · 8 June 1995

  Open at official source

Sponsors

• Sen. Roth Jr., William V. [R-DE] · R · Sponsor
• Sen. Nickles, Don [R-OK] · R · Sponsor
• Rep. Pressler, Larry [R-SD-1] · R · Sponsor
• · ssfi00 · Standing

Related records

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