To amend the Internal Revenue Code of 1986 to provide for offsetting certain past-due local tax debts against income tax overpayments.

Amends the Internal Revenue Code to allow a state, on behalf of a local government, to submit to the Secretary of the Treasury notice of a past-due, legally enforceable local tax obligation for offset against a taxpayer's tax refund. Defines "past-due, legally enforceable local tax obligation" as any debt which: (1) resulted from a judgment determining an amount of tax due to a local government; (2) is no longer subject to judicial review; or (3) resulted from a tax imposed by a local government which has been assessed but not collected, the time for redetermination of which has expired, and which has not been delinquent for more than 10 years.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2716 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2716

 To amend the Internal Revenue Code of 1986 to provide for offsetting 
   certain past-due local tax debts against income tax overpayments.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 17, 2013

  Mr. Moran 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 provide for offsetting 
   certain past-due local tax debts against income tax overpayments.

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

SECTION 1. OFFSETTING PAST-DUE, LEGALLY ENFORCEABLE LOCAL TAX 
              OBLIGATIONS.

    (a) In General.--Subsection (e) of section 6402 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(8) Past-due, legally enforceable local tax 
        obligations.--
                    ``(A) In general.--A State may, on behalf of a 
                local government located within the State, submit a 
                notice of past-due, legally enforceable local tax 
                obligation for offset under this subsection.
                    ``(B) Special rules.--Such submission and offset 
                shall be made with respect to any past-due, legally 
                enforceable local tax obligation under rules similar to 
                the rules of this subsection, except--
                            ``(i) under paragraph (3)(A), any reduction 
                        attributable to a past-due, legally enforceable 
                        local tax obligation shall be made (in addition 
                        to reductions specified in such subparagraph) 
                        after the overpayment is reduced pursuant to--
                                    ``(I) this subsection with respect 
                                to any past-due, legally enforceable 
                                State income tax obligation; and
                                    ``(II) subsection (f) with respect 
                                to any covered unemployment 
                                compensation debt; and
                            ``(ii) the local government on whose behalf 
                        a State is submitting shall certify to the 
                        State that the requirements of paragraph (4) 
                        have been met by the local government.
                    ``(C) Past-due, legally enforceable local tax 
                obligation.--For purposes of this subsection, the term 
                `past-due, legally enforceable local tax obligation' 
                means any debt--
                            ``(i)(I) which resulted from a judgment 
                        rendered by a court of competent jurisdiction, 
                        or a determination after an administrative 
                        hearing, which has determined an amount of tax 
                        to be due to a local government; and
                            ``(II) which is no longer subject to 
                        judicial review; or
                            ``(ii) which resulted from a tax imposed by 
                        a local government which has been assessed but 
                        not collected, the time for redetermination of 
                        which has expired, and which has not been 
                        delinquent for more than 10 years.
                Such term shall not include any local income tax 
                described in the second sentence of paragraph (5).
                    ``(D) Regulations.--The Secretary shall issue such 
                regulations, and modify any such regulations under 
                paragraph (6), as may be necessary to carry out the 
                purposes of this paragraph.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to refunds payable after the date of the enactment of this Act.
                                 <all>