RESTRICTIONS ON TAXPAYERS WHO IMPROPERLY CLAIMED CREDITS IN PRIOR YEAR.

SEC. 208. RESTRICTIONS ON TAXPAYERS WHO IMPROPERLY CLAIMED CREDITS IN PRIOR YEAR. (a) Restrictions.— (1) [26 U.S.C. 24] Child tax credit.—Section 24 is amended by adding at the end the following new subsection: “(g) Restrictions on taxpayers who improperly claimed credit in prior year.— “(1) Taxpayers making prior fraudulent or reckless claims.— “(A) In general.—No credit shall be allowed under this section for any taxable year in the disallowance period. “(B) Disallowance period.—For purposes of subparagraph (A), the disallowance period is— “(i) the period of 10 taxable years after the most recent taxable year for which there was a final determination that the taxpayer’s claim of credit under this section was due to fraud, and “(ii) the period of 2 taxable years after the most recent taxable year for which there was a final determination that the taxpayer’s claim of credit under this section was due to reckless or intentional disregard of rules and regulations (but not due to fraud). “(2) Taxpayers making improper prior claims.—In the case of a taxpayer who is denied credit under this section for any taxable year as a result of the deficiency procedures under subchapter B of chapter 63, no credit shall be allowed under this section for any subsequent taxable year unless the taxpayer provides such information as the Secretary may require to demonstrate eligibility for such credit.” . (2) [26 U.S.C. 25A] American opportunity tax credit.—Section 25A(i), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: “(7) Restrictions on Taxpayers Who Improperly Claimed Credit in Prior Year.— “(A) Taxpayers making prior fraudulent or reckless claims.— “(i) In general.—No credit shall be allowed under this section for any taxable year in the disallowance period. “(ii) Disallowance period.—For purposes of clause (i), the disallowance period is— “(I) the period of 10 taxable years after the most recent taxable year for which there was a final determination that the taxpayer’s claim of credit under this section was due to fraud, and “(II) the period of 2 taxable years after the most recent taxable year for which there was a final determination that the taxpayer’s claim of credit under this section was due to reckless or intentional disregard of rules and regulations (but not due to fraud). “(B) Taxpayers making improper prior claims.—In the case of a taxpayer who is denied credit under this section for any taxable year as a result of the deficiency procedures under subchapter B of chapter 63, no credit shall be allowed under this section for any subsequent taxable year unless the taxpayer provides such information as the Secretary may require to demonstrate eligibility for such credit.” . (b) Math Error Authority.— (1) [26 U.S.C. 6213] Earned income tax credit.—Section 6213(g)(2)(K) is amended by inserting before the comma at the end the following: “or an entry on the return claiming the credit under section 32 for a taxable year for which the credit is disallowed under subsection (k)(1) thereof”. (2) American opportunity tax credit and child tax credit.—Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking “and” at the end of subparagraph (N), by striking the period at the end of subparagraph (O), and by inserting after subparagraph (O) the following new subparagraphs: “(P) an omission of information required by section 24(h)(2) or an entry on the return claiming the credit under section 24 for a taxable year for which the credit is disallowed under subsection (h)(1) thereof, and “(Q) an omission of information required by section 25A(i)(8)(B) or an entry on the return claiming the credit determined under section 25A(i) for a taxable year for which the credit is disallowed under paragraph (8)(A) thereof.” . (c) [26 U.S.C. 24 note] Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2015.