Page:United States Statutes at Large Volume 92 Part 3.djvu/141

 PUBLIC LAW 95-600—NOV. 6, 1978

92 STAT. 2773

vidual' does not include an individual who, for the taxable year, is entitled to exclude any amount from gross income under section 911 (relating to earned income from sources 26 USC 911. without the United States) or section 931 (relating to income 26 USC 931. from sources within the possessions of the United States).", (f) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 43 notei. apply to taxable years beginning after December 31, 1978. SEC. 105. ADVANCE PAYMENT OF EARNED INCOME CREDIT. (a) COORDINATION OF CREDIT WITH ADVANCE PAYMENTS.—Section

43 (relating to earned income credit) is amended by adding at the end 26 USC 43. thereof the following new subsection: "(h) COORDINATION WITH ADVANCE PAYMENTS OF EARNED INCOME CREDIT.— "(1) RECAPTURE OF EXCESS ADVANCE PAYMENTS.—If any pay-

ment is made to the individual by an employer under section 3507 during any calendar year, then the tax imposed by this ^"/rachapter for the individual's last taxable year beginning in such calendar year shall be increased by the aggregate amount of such payments. "(2)

RECONCIUATION OF PAYMENTS ADVANCED AND CREDIT

ALLOWED.—Any increase in tax under paragraph (1) shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit (other than the credit allowed by subsection (a)) allowable under this subpart.''. (b) ADVANCE PAYMENT OF EARNED INCOME CREDIT.—

(1) IN GENERAL.—Chapter 25 (general provisions relating to employment taxes) is amended by adding at the end thereof the following new section: "SEC. 3507. ADVANCE PAYMENT OF EARNED INCOME CREDIT.

"(a) GENERAL RULE.—Except as otherwise provided in this section, every employer making payment of wages to an employee with respect to whom an earned income eligibility certificate is in effect shall, at the time of paying such wages, make an additional payment to such employee equal to such employee's earned income advance amount. "(b) EARNED INCOME ELIGIBILITY CERTIFICATE.—For purposes of this title, an earned income eligibility certificate is a statement furnished by an employee to the employer which— "(1) certifies that the employee will be eligible to receive the credit provided by section 43 for the taxable year, "(2) certifies that the employee does not have an earned income eligibility certificate in effect for the calendar year with respect to the payment of wages by another employer, and "(3) states whether or not the employee's spouse has an earned income eligibility certificate in effect. For purposes of this section, a certificate shall be treated as being in effect with respect to a spouse if such a certificate will be in effect on the first status determination date following the date on which the employee furnishes the statement in question. ' '(c) EARNED INCOME ADVANCE AMOUNT.—

"(1) IN GENERAL.—For purposes of this title, the term 'earned income advance amount means, with respect to any payroll period, the amount determined— "(A) on the basis of the employee's wages from the employer for such period, and "(B) in accordance with tables prescribed by the Secretary.

26 USC 3507.

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