ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS.

SEC. 202. ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS. (a) In General.—Chapter 77 of the Internal Revenue Code of 1986 (relating to miscellaneous provisions) is amended by adding at the end the following new section: 116 STAT. 961 “SEC. 7527. ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS. “(a) General Rule.—Not later than August 1, 2003, the Secretary shall establish a program for making payments on behalf of certified individuals to providers of qualified health insurance (as defined in section 35(e)) for such individuals. “(b) Limitation on Advance Payments During any Taxable Year.—The Secretary may make payments under subsection (a) only to the extent that the total amount of such payments made on behalf of any individual during the taxable year does not exceed 65 percent of the amount paid by the taxpayer for coverage of the taxpayer and qualifying family members under qualified health insurance for eligible coverage months beginning in the taxable year. “(c) Certified Individual.—For purposes of this section, the term ‘certified individual’ means any individual for whom a qualified health insurance costs credit eligibility certificate is in effect. “(d) Qualified Health Insurance Costs Credit Eligibility Certificate.—For purposes of this section, the term ‘qualified health insurance costs credit eligibility certificate’ means any written statement that an individual is an eligible individual (as defined in section 35(c)) if such statement provides such information as the Secretary may require for purposes of this section and— “(1) in the case of an eligible TAA recipient (as defined in section 35(c)(2)) or an eligible alternative TAA recipient (as defined in section 35(c)(3)), is certified by the Secretary of Labor (or by any other person or entity designated by the Secretary), or “(2) in the case of an eligible PBGC pension recipient (as defined in section 35(c)(4)), is certified by the Pension Benefit Guaranty Corporation (or by any other person or entity designated by the Secretary).”. (b) Disclosure of Return Information for Purposes of Carrying out a Program for Advance Payment of Credit for Health Insurance Costs of Eligible Individuals.— (1) In general.—Subsection (1) of section 6103 of such Code (relating to disclosure of returns and return information for purposes other than tax administration) is amended by adding at the end the following new paragraph: “(18) Disclosure of return information for purposes of carrying out a program for advance payment of credit for health insurance costs of eligible individuals.—The Secretary may disclose to providers of health insurance for any certified individual (as defined in section 7527(c)) return information with respect to such certified individual only to the extent necessary to carry out the program established by section 7527 (relating to advance payment of credit for health insurance costs of eligible individuals).”. (2) Procedures and recordkeeping related to disclosures.—Subsection (p) of such section is amended— (A) in paragraph (3)(A) by striking “or (17)” and inserting “(17), or (18)”, and (B) in paragraph (4) by inserting “or (17)” after “any other person described in subsection (1)(16)” each place it appears. (3) Unauthorized inspection of returns or return information.—Section 7213A(a)(1)(B) of such Code is amended 116 STAT. 962 by striking “section 6103(n)” and inserting “subsection (1)(18) or (n) of section 6103”. (c) Information Reporting.— (1) In general.—Subpart B of part III of subchapter A of chapter 61 of the Internal Revenue Code of 1986 (relating to information concerning transactions with other persons) is amended by inserting after section 6050S the following new section: “SEC. 6050T. RETURNS RELATING TO CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS. “(a) Requirement of Reporting.—Every person who is entitled to receive payments for any month of any calendar year under section 7527 (relating to advance payment of credit for health insurance costs of eligible individuals) with respect to any certified individual (as defined in section 7527(c)) shall, at such time as the Secretary may prescribe, make the return described in subsection (b) with respect to each such individual. “(b) Form and Manner of Returns.—A return is described in this subsection if such return— “(1) is in such form as the Secretary may prescribe, and “(2) contains— “(A) the name, address, and TIN of each individual referred to in subsection (a), “(B) the number of months for which amounts were entitled to be received with respect to such individual under section 7527 (relating to advance payment of credit for health insurance costs of eligible individuals), “(C) the amount entitled to be received for each such month, and “(D) such other information as the Secretary may prescribe. “(c) Statements To Be Furnished to Individuals With Respect to Whom Information Is Required.—Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing— “(1) the name and address of the person required to make such return and the phone number of the information contact for such person, and “(2) the information required to be shown on the return with respect to such individual. The written statement required under the preceding sentence shall be furnished on or before January 31 of the year following the calendar year for which the return under subsection (a) is required to be made.”. (2) Assessable penalties.— (A) Subparagraph (B) of section 6724(d)(1) of such Code (relating to definitions) is amended by redesignating clauses (xi) through (xvii) as clauses (xii) through (xviii), respectively, and by inserting after clause (x) the following new clause: “(xi) section 6050T (relating to returns relating to credit for health insurance costs of eligible individuals),”. (B) Paragraph (2) of section 6724(d) of such Code is amended by striking “or” at the end of subparagraph (Z), 116 STAT. 963 by striking the period at the end of subparagraph (AA) and inserting or”, and by adding after subparagraph (AA) the following new subparagraph: “(BB) section 6050T (relating to returns relating to credit for health insurance costs of eligible individuals).”. (d) Clerical Amendments.— (1) Advance payment.—The table of sections for chapter 77 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: “Sec. 7527. Advance payment of credit for health insurance costs of eligible individuals.”. (2) Information reporting.—The table of sections for subpart B of part III of subchapter A of chapter 61 of such Code is amended by inserting after the item relating to section 6050S the following new item: “Sec. 6050T. Returns relating to credit for health insurance costs of eligible individuals”. (e) Effective Date.—The amendments made by this section shall take effect on the date of the enactment of this Act.