Automation of refund offset bypass

(a) In general Section 6402(a) is amended— (1) by striking In the case and inserting the following: (1) Authority Except as provided in paragraph (2), in the case, and (2) by adding at the end the following new paragraphs: (2) Special rule for certain individuals In the case of an overpayment with respect to any taxable year for which a credit is allowed to an applicable taxpayer under section 32, the Secretary shall, subject to subsections (c), (d), (e), and (f), refund such overpayment in an amount not to exceed the amount of the credit allowed under such section for such taxable year. (3) Applicable taxpayer For purposes of paragraph (2), the term applicable taxpayer means a taxpayer who was classified by the Secretary as currently not collectible (within the meaning of section 6343(e)) prior to the date on which the refund was requested by the taxpayer.. (b) Effective date The amendments made by this section shall apply to offsets made after the date which is 12 months after the date of enactment of this Act.