Bennet Introduces Bipartisan Legislation to Automate EITC Refunds for Certain Taxpayers

About About Michael Legislation News Press Releases Social Media Newsletter Archive Services Priorities Top Issues Child Tax Credit Investing in Colorado Contact Map Español Acerca de Michael Escribe a Michael Prioridades Servicios Visitando D.C. Bennet Introduces Bipartisan Legislation to Automate EITC Refunds for Certain Taxpayers Legislation would eliminate bureaucratic hurdles for taxpayers facing economic hardship Washington, D.C. — Colorado U.S. Senator Michael Bennet and Senator Bill Cassidy (R-La.), members of the Senate Finance Committee, introduced legislation to automatically refund a taxpayer’s Earned Income Tax Credit (EITC) if their account has been designated as currently not-collectible (CNC) – a temporary relief […] Jul 28, 2026 | Press Releases Legislation would eliminate bureaucratic hurdles for taxpayers facing economic hardship Washington, D.C. — Colorado U.S. Senator Michael Bennet and Senator Bill Cassidy (R-La.), members of the Senate Finance Committee, introduced legislation to automatically refund a taxpayer’s Earned Income Tax Credit (EITC) if their account has been designated as currently not-collectible (CNC) – a temporary relief option that stops tax collection for taxpayers able to prove economic hardship. Existing law allows certain taxpayers to apply for an Offset Bypass Refund (OBR), which allows the IRS, in limited situations, to issue refunds that would otherwise be deducted from past federal income tax liability. Individuals whose accounts have already been designated as CNC are also eligible for OBRs, but they require an additional application process – even though the IRS has already determined that they are facing economic hardship. This means that eligible taxpayers – all of whom are facing financial difficulties – must proactively request an OBR during filing season, straining IRS resources during the agency’s busiest work period and disadvantaging uninformed taxpayers who would otherwise be eligible but may not know about the OBR process. “When families are faced with economic hardship, they shouldn’t have to jump through bureaucratic hoops to take advantage of programs that exist to help them,” said Bennet . “Our bipartisan legislation will ensure that some taxpayers who are already eligible to receive their EITC refunds are able to do so without unnecessary applications that have to be processed by the IRS during filing season.” Under current law, the IRS generally deducts a taxpayer’s refund against prior-year federal income tax debts, but it may bypass such an offset and issue the refund (called an “OBR”) if the taxpayer establishes an economic hardship – such as having to pay rent or a utility bill. Taxpayers are eligible for an OBR if their income does not cover reasonable basic living expenses. Separately, taxpayers facing economic hardship may have their accounts designated as currently not-collectible (CNC) after an IRS review. CNC status does not erase the tax debt, but temporarily delays collection. While an account is in CNC status, the IRS generally will not impose a levy against assets or income. However, it will continue to offset the taxpayer’s refunds, unless the taxpayer applies for an OBR. To reduce economic hardship and the volume of time sensitive OBR requests that the IRS must process during the filing season, the legislation would require the IRS to automatically process an OBR with respect to the Earned Income Tax Credit (EITC) for a taxpayer whose accounts the IRS has designated as CNC. The text of the bill is available HERE . ### Contact Info 261 Russell Senate Building Washington, DC 20510 Phone: 202-224-5852 Fax: 202-228-5097 View State Offices Resources Write to Michael Get Help with a Federal Agency Visiting DC Investing in Colorado Map ©2026 U.S. Senate. All Rights Reserved.  | Privacy Policy Follow Follow Follow Follow Follow