S. 5142

119 S5142 IS: To amend the Internal Revenue Code of 1986 to improve the process for providing refunds to taxpayers.
 U.S. Senate
 2026-07-28
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 II  119th CONGRESS  2d Session  S. 5142  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.
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.