Advance refunds and credits

Each individual who was an eligible individual for such individual’s first taxable year beginning in 2019 shall be treated as having made a payment against the tax imposed by chapter 1 for such taxable year in an amount equal to the advance refund amount for such taxable year.

For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such taxable year if this section (other than subsection (e) and this subsection) had applied to such taxable year. For purposes of determining the advance refund amount with respect to such taxable year—

(A) any individual who was deceased before January 1, 2020 , shall be treated for purposes of applying subsection (g) in the same manner as if the valid identification number of such person was not included on the return of tax for such taxable year, and

(B) no amount shall be determined under this subsection with respect to any qualifying child of the taxpayer if— (i) the taxpayer was deceased before January 1, 2020 , or (ii) in the case of a joint return, both taxpayers were deceased before January 1, 2020 .

(A) Timing (i) In general The Secretary shall, subject to the provisions of this title, refund or credit any overpayment attributable to this subsection as rapidly as possible. (ii) Deadline (I) In general Except as provided in subclause (II), no refund or credit shall be made or allowed under this subsection after January 15, 2021 . (II) Exception for mirror code possessions In the case of a possession of the United States which has a mirror code tax system (as such terms are defined in section 272(c) of the COVID-related Tax Relief Act of 2020), no refund or credit shall be made or allowed under this subsection after the earlier of— (aa) such date as is determined appropriate by the Secretary, or (bb) September 30, 2021 .

(B) Delivery of payments Notwithstanding any other provision of law, the Secretary may certify and disburse refunds payable under this subsection electronically to— (i) any account to which the payee authorized, on or after January 1, 2019 , the delivery of a refund of taxes under this title or of a Federal payment (as defined in section 3332 of title 31 , United States Code), (ii) any account belonging to a payee from which that individual, on or after January 1, 2019 , made a payment of taxes under this title, or (iii) any Treasury-sponsored account (as defined in section 208.2 of title 31, Code of Federal Regulations).

(C) Waiver of certain rules Notwithstanding section 3325 of title 31 , United States Code, or any other provision of law, with respect to any payment of a refund under this subsection, a disbursing official in the executive branch of the United States Government may modify payment information received from an officer or employee described in section 3325(a)(1)(B) of such title for the purpose of facilitating the accurate and efficient delivery of such payment. Except in cases of fraud or reckless neglect, no liability under sections 3325, 3527, 3528, or 3529 of title 31, United States Code, shall be imposed with respect to payments made under this subparagraph.

(A) In general In the case of a specified individual who, at the time of any determination made pursuant to paragraph (3), has not filed a tax return for the year described in paragraph (1), the Secretary may use information with respect to such individual which is provided by— (i) in the case of a specified social security beneficiary or a specified supplemental security income recipient, the Commissioner of Social Security, (ii) in the case of a specified railroad retirement beneficiary, the Railroad Retirement Board, and (iii) in the case of a specified veterans beneficiary, the Secretary of Veterans Affairs (in coordination with, and with the assistance of, the Commissioner of Social Security if appropriate).

(B) Specified individual For purposes of this paragraph, the term “specified individual” means any individual who is— (i) a specified social security beneficiary, (ii) a specified supplemental security income recipient, (iii) a specified railroad retirement beneficiary, or (iv) a specified veterans beneficiary.

(C) Specified social security beneficiary (i) In general For purposes of this paragraph, the term “specified social security beneficiary” means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is entitled to any monthly insurance benefit payable under title II of the Social Security Act ( 42 U.S.C. 401 et seq.), including payments made pursuant to sections 202(d), 223(g), and 223(i)(7) of such Act. (ii) Exception For purposes of this paragraph, the term “specified social security beneficiary” shall not include any individual if such benefit is not payable for such month by reason of section 202(x)(1)(A) of the Social Security Act ( 42 U.S.C. 402(x)(1)(A) ) or section 1129A of such Act ( 42 U.S.C. 1320a–8a ).

(D) Specified supplemental security income recipient (i) In general For purposes of this paragraph, the term “specified supplemental security income recipient” means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is eligible for a monthly benefit payable under title XVI of the Social Security Act ( 42 U.S.C. 1381 et seq.), including— (I) payments made pursuant to section 1614(a)(3)(C) of such Act ( 42 U.S.C. 1382c(a)(3)(C) ), (II) payments made pursuant to section 1619(a) ( 42 U.S.C. 1382h(a) ) or subsections (a)(4), (a)(7), or (p)(7) of section 1631 ( 42 U.S.C. 1383 ) of such Act, and (III) State supplementary payments of the type referred to in section 1616(a) of such Act ( 42 U.S.C. 1382e(a) ) (or payments of the type described in section 212(a) of Public Law 93–66 ) which are paid by the Commissioner under an agreement referred to in such section 1616(a) (or section 212(a) of Public Law 93–66 ). (ii) Exception For purposes of this paragraph, the term “specified supplemental security income recipient” shall not include any individual if such monthly benefit is not payable for such month by reason of section 1611(e)(1)(A) of the Social Security Act ( 42 U.S.C. 1382(e)(1)(A) ) or section 1129A of such Act ( 42 U.S.C. 1320a–8a ).

(E) Specified railroad retirement beneficiary For purposes of this paragraph, the term “specified railroad retirement beneficiary” means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is entitled to a monthly annuity or pension payment payable (without regard to section 5(a)(ii) of the Railroad Retirement Act of 1974 ( 45 U.S.C. 231d(a)(ii) )) under— (i) section 2(a)(1) of such Act ( 45 U.S.C. 231a(a)(1) ), (ii) section 2(c) of such Act ( 45 U.S.C. 231a(c) ), (iii) section 2(d)(1) of such Act ( 45 U.S.C. 231a(d)(1) ), or (iv) section 7(b)(2) of such Act ( 45 U.S.C. 231f(b)(2) ) with respect to any of the benefit payments described in subparagraph (C)(i).

(F) Specified veterans beneficiary (i) In general For purposes of this paragraph, the term “specified veterans beneficiary” means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is entitled to a compensation or pension payment payable under— (I) section 1110, 1117, 1121, 1131, 1141, or 1151 of title 38, United States Code, (II) section 1310, 1312, 1313, 1315, 1316, or 1318 of title 38, United States Code, (III) section 1513, 1521, 1533, 1536, 1537, 1541, 1542, or 1562 of title 38, United States Code, or (IV) section 1805, 1815, or 1821 of title 38, United States Code, to a veteran, surviving spouse, child, or parent as described in paragraph (2), (3), (4)(A)(ii), or (5) of section 101, title 38, United States Code. (ii) Exception For purposes of this paragraph, the term “specified veterans beneficiary” shall not include any individual if such compensation or pension payment is not payable, or was reduced, for such month by reason of section 1505 or 5313 of title 38, United States Code.

(G) Subsequent determinations and redeterminations not taken into account For purposes of this section, any individual’s status as a specified social security beneficiary, a specified supplemental security income recipient, a specified railroad retirement beneficiary, or a specified veterans beneficiary shall be unaffected by any determination or redetermination of any entitlement to, or eligibility for, any benefit, payment, or compensation, if such determination or redetermination occurs after the last month for which the Secretary has available information as of the date of enactment of this section.

(H) Payment to representative payees and fiduciaries (i) In general If the benefit, payment, or compensation referred to in subparagraph (C)(i), (D)(i), (E), or (F)(i) with respect to any specified individual is paid to a representative payee or fiduciary, payment by the Secretary under paragraph (3) with respect to such specified individual shall be made to such individual’s representative payee or fiduciary and the entire payment shall be used only for the benefit of the individual who is entitled to the payment. (ii) Application of enforcement provisions (I) In the case of a payment described in clause (i) which is made with respect to a specified social security beneficiary or a specified supplemental security income recipient, section 1129(a)(3) of the Social Security Act ( 42 U.S.C. 1320a–8(a)(3) ) shall apply to such payment in the same manner as such section applies to a payment under title II or XVI of such Act. (II) In the case of a payment described in clause (i) which is made with respect to a specified railroad retirement beneficiary, section 13 of the Railroad Retirement Act ( 45 U.S.C. 231 l ) shall apply to such payment in the same manner as such section applies to a payment under such Act. (III) In the case of a payment described in clause (i) which is made with respect to a specified veterans beneficiary, sections 5502, 6106, and 6108 of title 38, United States Code, shall apply to such payment in the same manner as such sections apply to a payment under such title.

(I) Ineligibility for special rule not to be interpreted as general ineligibility An individual shall not fail to be treated as an eligible individual for purposes of this subsection or subsection (a) merely because such individual is not a specified individual (including by reason of subparagraph (C)(ii), (D)(ii), or (F)(ii)).

As soon as practicable after the date on which the Secretary distributed any payment to an eligible taxpayer pursuant to this subsection, the Secretary shall send notice by mail to such taxpayer’s last known address. Such notice shall indicate the method by which such payment was made, the amount of such payment, and a phone number for the appropriate point of contact at the Internal Revenue Service to report any failure to receive such payment.