“Section 6676(a) is amended by striking "income tax" and inserting "income or employment tax".”
The section strikes income tax and inserts income or employment tax in section 6676(a) of the Internal Revenue Code of 1986, so that the penalty for an erroneous claim reaches employment tax as well. That change applies to claims for credit or refund after enactment, and the rest of the section applies to aid, assistance and advice provided after enactment. The Secretary must issue guidance to carry the section out.
What the document actually says
“Section 6676(a) is amended by striking "income tax" and inserting "income or employment tax".”
That sentence, in plain words
Two words are taken out of a penalty rule. Wider words are put in. They add employment tax.
What this is about
The penalty used to reach income tax only. Now it reaches payroll tax too. That is the tax these credits sat against.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Provide for reconciliation pursuant to title II of H. Con. Res. 14, Public Law 119-21, sec. 70605, 139 Stat. 286 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
This page
“The erroneous claim penalty is widened to employment tax,” Provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70605, Sec. 70605. Read the Mandate, https://readthemandate.org/pl-119-21/proposal/sec70605-erroneous-claim/ (retrieved August 26, 2026).
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