Erroneous Tax Refund Fairness Act

Erroneous Tax Refund Fairness Act - Amends the Internal Revenue Code to require the abatement of interest on erroneous tax refunds without regard to the size of the refund unless the taxpayer or related third party has in any way caused such refund.

Authorizes the Secretary of the Treasury not to abate all or any part of such interest if the taxpayer received notice of the erroneous refund before the date of demand and the taxpayer did not attempt to resolve the issue with the Internal Revenue Service within 30 days.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1756 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 1756

To amend the Internal Revenue Code of 1986 to require the abatement of 
 interest on erroneous refund checks without regard to the size of the 
                                refund.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 10, 2003

    Ms. Loretta Sanchez of California (for herself, Mr. Markey, Mr. 
 Peterson of Minnesota, Mr. Davis of Illinois, Ms. Millender-McDonald, 
   Mr. Cardoza, Mr. Edwards, Ms. Jackson-Lee of Texas, Mr. Kind, Mr. 
Dooley of California, Mr. Moore, Mr. Olver, Mr. Lantos, Mr. Honda, Mr. 
   Crowley, Mr. Emanuel, Mr. Brady of Pennsylvania, Mr. Fattah, Mr. 
   Holden, Mr. Murtha, Mr. Larson of Connecticut, Mr. Doyle, and Mr. 
   Hobson) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to require the abatement of 
 interest on erroneous refund checks without regard to the size of the 
                                refund.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Erroneous Tax Refund Fairness Act''.

SEC. 2. ABATEMENT OF INTEREST.

    (a) Abatement of Interest With Respect to Erroneous Refund Check 
Without Regard to Size of Refund.--Paragraph (2) of section 6404(e) of 
the Internal Revenue Code of 1986 is amended by striking ``unless--'' 
and all that follows and inserting ``unless the taxpayer (or a related 
party) has in any way caused such erroneous refund. Notwithstanding the 
preceding sentence, the Secretary is authorized in his discretion not 
to abate all or any part of such interest if the Secretary establishes 
that the taxpayer received notice of the erroneous refund before the 
date of demand and the taxpayer did not attempt to resolve the issue 
with the Internal Revenue Service within 30 days after receipt of such 
notice.''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to interest accruing on or after the date of the enactment 
of this Act.
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