Data / Federal rules / 2026-16985
Application of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 to the Refunded Portion of Certain Federal Refundable Tax Credits
The Internal Revenue Service published this proposed rule in the Federal Register on August 20, 2026. Comments closed on October 5, 2026.
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What the agency says
This document contains proposed regulations that would provide that the refunded portion of certain refundable Federal income tax credits available to individuals is a "Federal public benefit" under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). As a result, aliens who are not "qualified aliens" under PRWORA would be ineligible to receive the refunded portion of these refundable credits. These regulations would generally affect taxpayers claiming the following Federal income tax credits: the adoption tax credit, the American opportunity tax credit, the child tax credit, and the earned income credit. As required by PRWORA, this document also provides notice to the public and notifies recipients of proposed changes regarding eligibility for the refunded portion of such Federal income tax credits under PRWORA.
Key facts
- Document number
- 2026-16985
- Type
- Proposed rule
- Action
- Notice of proposed rulemaking and notice of public hearing
- Agency
- Treasury Department; Internal Revenue Service
- Published
- August 20, 2026
- Comments due
- October 5, 2026
- Dates
- Written or electronic comments must be received by October 5, 2026. A public hearing on this proposed regulation has been scheduled for October 14, 2026. Requests to speak and outlines of topics to be discussed at the public hearing must be received by October 5, 2026. If no outlines are received October 5, 2026, the public hearing will be cancelled. Requests to attend the public hearing must be received by 5 p.m. ET on October 9, 2026.
- Docket
- REG-119882-25
- Regulation ID (RIN)
- 1545-BS06
- Code of Federal Regulations
- 26 CFR 1
- Topics
- Income taxes; Reporting and recordkeeping requirements
- Pages
- 16
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Everything from the Internal Revenue Service · Rules on income taxes · Rules on reporting and recordkeeping requirements · Published in August 2026
Read from the Federal Register API, last updated 2026-10-23. The document on federalregister.gov is the official record; dates and dockets can change through later corrections. Free to reuse with credit to SpecStream under CC BY 4.0.