A bill to amend the Internal Revenue Code of 1986 to improve the process for providing refunds to taxpayers.

Section 6402(a) of the Internal Revenue Code of 1986 is amended—

(1) by striking In the case and inserting the following:

Except as provided in paragraph (2), in the case, and

(2) by adding at the end the following new paragraphs:

In the case of an overpayment with respect to any taxable year for which a credit is allowed to an applicable taxpayer under section 32, the Secretary shall, subject to subsections (c), (d), (e), and (f), refund such overpayment in an amount not to exceed the amount of the credit allowed under such section for such taxable year.

For purposes of paragraph (2), the term applicable taxpayer means a taxpayer who was classified by the Secretary as currently not collectible (within the meaning of section 6343(e)) prior to the date on which the refund was requested by the taxpayer.

The amendments made by this section shall apply to offsets made after the date which is 12 months after the date of enactment of this Act.