Democrats are proposing some big changes in how our government operates. Their massive reconciliation bill, if it passes, would redefine what it means to be someone's child.
As part of their sweeping 3.5 trillion-dollar reconciliation plan, House Democrats want to overhaul the Child Tax Credit payment program. Specifically, dumping long-standing rules which require a child to be a relative of the person taking the credit. The lawmakers say they want to account for children in a variety of living situations. However, tax expert and attorney Bill Dendy says redefining what it means to be someone's child could become a bureaucratic nightmare.
“The big challenge for the IRS is going to be to determine on a rule that can change on a monthly basis who is the right person to get the credit,” Dendy said. “This broader definition can make it almost any person that gives care to the child.”
He says that would be complicated and difficult for the IRS.
“The IRS is overburdened with having to implement all these rules with the SECURE Act and CARES Act and as we continue to expand our government, we are going to have to expand the IRS just to monitor and regulate,” Dendy explained.
Many Americans don't want to see the IRS get any bigger.