Where can I read the terms (all 700 pages) of the Gubmint bailout bill?

March 25, 2020 11:58 PM

Researching for someone who asked me the following question: "If someone owes the IRS money and it is the IRS sending out the checks to citizens, will the IRS take the money and apply it against a debt or will they send the check out regardless?"

Let's say a person owes the IRS $20,000. If this person were to file taxes and deserve a refund, the IRS will apply that refund against past due taxes, penalties and interest. They will not send you a tax refund while you owe them money.

In the current circumstances, with the Congress approving a $2 trillion bailout bill that gives $1,200 to individuals who earned under some threshold ($99,000?), will the IRS still send that $1,200 to an individual that owes the IRS back taxes that far exceed the handout?

posted by AugustWest to Law & Government (12 answers total)

Here's the text:

https://www.documentcloud.org/documents/6819239-FINAL-FINAL-CARES-ACT.html

You can find the part regarding the $1,200 payment in section 2201, starting on page 144.
posted by value of information at 2:15 AM on March 26, 2020

this copy (via Politico) seems less blurry. does anyone know what the font/fonts used in this document is/are?
posted by chavenet at 2:19 AM on March 26, 2020

The full payment is only for people making under 75000, it lowers the more you make until it's zeroed at 99000.
posted by TheAdamist at 2:45 AM on March 26, 2020

This is something I’ve been worried about as well, please update if you find out.
posted by corb at 5:11 AM on March 26, 2020

Please note that the bill has not yet passed, so what is linked above is the version as passed by the Senate. It is expected to pass, it may pass without amendment, but you can never know until it does.

The House votes on it today.
posted by yclipse at 5:23 AM on March 26, 2020

If you can't figure it out from reading the bill, there are some pretty savvy people on Money & Personal Finance StackExchange; you might consider posting the question over there.
posted by Johnny Assay at 5:35 AM on March 26, 2020

Not exactly what you asked for, but this NYT article has a good question and answer format for FAQ.
posted by XtineHutch at 6:28 AM on March 26, 2020

There is language that seems to be related to this, but I can't speak for the full implications of the screenshot on that tweet.
posted by Nonsteroidal Anti-Inflammatory Drug at 6:31 AM on March 26, 2020

The screenshot of that Tweet linked by Nonsteroidal Anti-inflammatory Drug (eponysterical?), is a screenshot of page 154 of the bill linked above. I am not a lawyer or a tax accountant, but if you read the full text on page 154 it appears as if it will NOT be withheld.

Line 13 of page 154 says, "...shall not be--" and then if you go to line 20 it says, [shall not be--] "reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection."

I think that is the answer. One gets the check regardless of back taxes owed. I am no expert, but that is what I will be sending to my friend. I also have a call into the IRS to ask them how they interpret this.

Thank you to everyone who answered. Further insight appreciated too.
posted by AugustWest at 6:43 AM on March 26, 2020

go to congress.gov to look up all legislation, amendments, action and progress through the chambers. Here's a pdf. The site also has the option to have the text read to you if you are visually impaired.
posted by brookeb at 8:00 AM on March 26, 2020

These checks will come from the US Treasury, like a tax refund, but the IRS needn't be involved -- different pockets, etc. Then we'll all get 1099s to account for this extra income, early next year.
posted by Rash at 8:43 AM on March 26, 2020

Follow-up: Friend who owes IRS money got her money in full via direct deposit.
posted by AugustWest at 8:26 PM on April 25, 2020