A bill to amend the Internal Revenue Code of 1986 to improve the process for providing refunds to taxpayers.
The source supplies the latest action, but no lifecycle stage.
Latest action (28 Jul 2026): Read twice and referred to the Committee on Finance.
What this bill does
This bill, S. 5142, proposes to change how the Internal Revenue Service (IRS) handles tax refunds. Specifically, it aims to create a special rule for "applicable taxpayers" who are due a refund for a tax year in which they received a credit under section 32 of the tax code. For these individuals, the IRS would be required to refund overpayments up to the amount of the section 32 credit, with certain exceptions. An "applicable taxpayer" is defined as someone previously classified by the IRS as "currently not collectible" before requesting the refund.
The bill affects taxpayers who might have outstanding debts to the government, as it introduces an exception to the usual process where refunds can be used to offset those debts. The change would apply to offsets made more than 12 months after the bill becomes law.
S. 5142 was introduced in the Senate on July 28, 2026, by Senator Michael Bennet, along with Senator Bill Cassidy as a co-sponsor. It was then read twice and referred to the Committee on Finance. As of now, its latest action is simply its introduction.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Timeline
28 Jul 2026
Read twice and referred to the Committee on Finance.
Common questions
- What does S. 5142 do?
- This bill, S. 5142, proposes to change how the Internal Revenue Service (IRS) handles tax refunds. Specifically, it aims to create a special rule for "applicable taxpayers" who are due a refund for a tax year in which they received a credit under section 32 of the tax code. For these individuals, the IRS would be required to refund overpayments up to the amount of the section 32 credit, with certain exceptions. An "applicable taxpayer" is defined as someone previously classified by the IRS as "currently not collectible" before requesting the refund. The bill affects taxpayers who might have outstanding debts to the government, as it introduces an exception to the usual process where refunds can be used to offset those debts. The change would apply to offsets made more than 12 months after the bill becomes law. S. 5142 was introduced in the Senate on July 28, 2026, by Senator Michael Bennet, along with Senator Bill Cassidy as a co-sponsor. It was then read twice and referred to the Committee on Finance. As of now, its latest action is simply its introduction.
- Has S. 5142 become law?
- The source does not supply a confirmed lifecycle stage for S. 5142. Check the latest action and official source below.
- Who sponsored S. 5142?
- S. 5142 was sponsored by Sen. Bennet, Michael F. [D-CO] (D-CO), with 1 cosponsor.
- What's the latest action on S. 5142?
- Read twice and referred to the Committee on Finance. (28 Jul 2026).
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