Overview
Title
To amend the Internal Revenue Code of 1986 to require an individual to provide a social security number to claim the child tax credit.
ELI5 AI
H. R. 7813 is a bill that says people need to give their social security numbers, and their kids' too, when they want to get money back for taking care of their kids. There's a special rule for soldiers so they can use either partner's number if they're married.
Summary AI
H. R. 7813, known as the "Child Tax Credit Integrity Act," proposes changes to the Internal Revenue Code of 1986. This bill would require individuals to provide their social security numbers, as well as those of their children, when claiming the child tax credit on their tax returns. There is an exception for members of the Armed Forces, allowing the use of either spouse's social security number when filing jointly. The amendments would apply to tax years starting after the bill's enactment.
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AnalysisAI
General Summary of the Bill
The proposed legislation, known as the "Child Tax Credit Integrity Act," seeks to amend the Internal Revenue Code of 1986 to introduce stricter identification requirements for claiming the child tax credit. The key provision mandates that taxpayers must provide their own Social Security Numbers (SSNs), as well as those of their qualifying children, to be eligible for the credit. An exception is made for members of the U.S. Armed Forces, who only need to provide one spouse's SSN in cases of a joint return. The bill also details what constitutes a valid SSN and specifies that any omission of this information will be treated as a mathematical or clerical error. The legislation is set to apply to taxable years beginning after its enactment.
Summary of Significant Issues
A notable issue is the potential difficulty faced by individuals who do not possess an SSN by the tax filing deadline. This requirement could particularly impact immigrants and others in complex situations, potentially excluding them from accessing the child tax credit. Additionally, classifying an omission of an SSN as a "mathematical or clerical error" is relatively harsh, as it might lead to automatic adjustments on tax returns without taxpayer consultation. There is also some ambiguity around the language used to specify the exception for military members, and the reference to complex legal terminology concerning what constitutes a valid SSN could be confusing for many taxpayers.
Impact on the Public
Broadly, the bill aims to ensure that child tax credits are awarded more accurately and securely by reinforcing identification protocols. This could enhance the integrity of the tax credit system and potentially reduce fraudulent claims. However, for the general public, especially those in straightforward situations with readily available SSNs, the bill's impact might be minimal. It might simply mean an additional step in ensuring all necessary SSNs are collected and reported correctly during the tax filing process.
Impact on Specific Stakeholders
Different groups are likely to experience varied effects from this legislation. For military families, the provision allowing for only one spouse's SSN to be needed might ease the documentation burden during joint filings, reflecting positive consideration of their unique circumstances. On the contrary, immigrants or individuals without SSNs due to various valid reasons could face negative repercussions, as the requirement may bar them from receiving much-needed financial support through the child tax credit. Moreover, taxpayers unfamiliar with the specific legal references and terms may struggle to fully comply, potentially risking errors in their tax filings.
In conclusion, while the bill reinforces security and integrity for the distribution of child tax credits, care must be taken to ensure it does not unfairly penalize or exclude individuals due to a lack of clarity or accessibility in obtaining SSNs.
Issues
Section 2: The requirement for a taxpayer to provide a social security number for themselves and their child to claim the child tax credit raises concerns for individuals who may not have a social security number by the tax return due date. This could particularly affect immigrants or others in complex situations, potentially leading to exclusion from the credit.
Section 2: The amendment treats the omission of a social security number as a 'mathematical or clerical error'. This classification might be perceived as severe by taxpayers, as it is unusually strict for missing personal data, possibly resulting in automatic tax adjustments without the taxpayer's input.
Section 2: The language specifying who needs to provide a social security number could be clearer. The provision mentions an exception for 'either spouse' in the case of Armed Services members, but it does not specify whether similar exceptions might apply to other scenarios not involving joint returns. This lack of clarity could cause confusion among taxpayers.
Section 2: The reference to specific clauses in the Social Security Act can be complex and may lead to ambiguity for those not familiar with the legal terminology. This could create uncertainty regarding the criteria for a valid social security number, potentially complicating compliance for taxpayers.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The section introduces the official name of the legislation, which is called the “Child Tax Credit Integrity Act.”
2. Social security number required for child tax credit Read Opens in new tab
Summary AI
The section of the bill requires taxpayers to include the Social Security numbers of themselves and their qualifying children when claiming the child tax credit, with an exception for members of the Armed Forces who only need to include one spouse's Social Security number. The definition of a Social Security number is clarified, and an omission is treated as a simple error. This change will affect taxable years after the law is enacted.