Section 1 Short title
This Act may be cited as the “Earned Income and Child Tax Credits Outreach Act of 2021”.
Earned Income and Child Tax Credits Outreach Act of 2021
A BILL
To require the Secretary of the Treasury to conduct outreach to inform certain individuals of their potential eligibility for the Earned Income Tax Credit and the Child Tax Credit, and for other purposes.
Sec. 2 Outreach to certain individuals regarding the Earned Income Tax Credit and the Child Tax Credit
In general— Not later than March 1, 2021, the Secretary of the Treasury shall carry out a program of public outreach, including on the Internet and through mailed notices, to inform identified individuals of their potential eligibility for the earned income tax credit under section 32 of the Internal Revenue Code of 1986 and the child tax credit under section 24 of such Code.
Identified individuals—
In general— The term “identified individuals”—
means individuals—
who used the non-filer portal to provide their identifying information and receive recovery rebate payments, and
whose identity has been verified by the Internal Revenue Service, and
does not include individuals who—
are age 65 or older as of December 31, 2020, and
did not claim a dependent in tax year 2019.
Non-Filer portal— The term “non-filer portal” means the electronic portal established by the Secretary of the Treasury for the purpose of making payments under section 6428 of the Internal Revenue Code of 1986 to individuals who did not file a return of tax for 2018 or 2019.
Form and manner of notice— Mailed notices sent to identified individuals under subsection (a) may be sent to individuals in such form and manner as the Secretary of the Treasury may require, including as an attachment to, or in conjunction with, any mailed correspondence providing information on recovery rebate payments.
Notice contents— Mailed notices sent to identified individuals under subsection (a) shall provide—
a description of the earned income tax credit and the qualifications for receiving such credit,
a description of the child tax credit and the qualifications for receiving such credit,
information on the availability of, and eligibility requirements for receiving, advice and assistance from qualified return preparation programs as defined in section 7526A(e)(1) of the Internal Revenue Code of 1986, and information regarding how to locate and contact such programs, and
information on the availability of, and eligibility requirements for receiving, advice and assistance from organizations that provide tax counseling for the elderly pursuant to a cooperative agreement with the Internal Revenue Service under section 163 of the Revenue Act of 1978 (Public Law 95–600), and information regarding how to locate and contact such organizations.
Sec. 3 Effectiveness study
Study— The Treasury Inspector General for Tax Administration shall conduct a study to—
evaluate the outreach conducted under section 2(a), including—
a description of communications the Internal Revenue Service issued,
the date the Internal Revenue Service issued communications on the Internet and the date mailed notices were sent,
whether the information provided on the Internet and in mailed notices adequately described the earned income tax credit and the child tax credit and the qualifications for receiving such credits,
in what languages such communications were offered,
the number of filers who used the non-filer portal to properly claim recovery rebate payments, and
the number of mailed notices that were returned to the IRS as undeliverable, and
make recommendations for improving outreach to expand the use of the credits by identified individuals.
Report— Not later than December 31, 2022, the Treasury Inspector General for Tax Administration shall submit to the Committee on Ways and Means of the House of Representatives and the Senate Committee on Finance a report on the results of the study conducted under subsection (a).