Section 1 Short title
This Act may be cited as the “Freeing Americans from Interest on Reimbursements Act” or the “FAIR Act”.
Freeing Americans from Interest on Reimbursements Act
A BILL
To amend the Internal Revenue Code of 1986 to exclude from gross income any interest paid on an overpayment of tax.
Sec. 2 Interest received on overpayments
In general— Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section:
“139I. Interest received on tax overpayments
“Gross income shall not include any interest allowed and paid upon an overpayment of tax pursuant to section 6611.”
Applicability— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this section.
Clerical amendment— The table of contents for Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before the item relating to section 140 the following new item: