Document Type

Article

Comments

This document is a comment letter on proposed Treasury and IRS regulations (REG-119882-25, 91 Fed. Reg. 53,812) submitted by the Cornell Law School Low-Income Taxpayer Clinic.

Abstract

On October 5, 2026, the Cornell Law School Low-Income Taxpayer Clinic submitted this comment letter on proposed Treasury and IRS regulations (REG-119882-25, 91 Fed. Reg. 53,812). The regulations would apply the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) to the refunded portions of the adoption tax credit, child tax credit, American opportunity tax credit, and earned income tax credit. The letter argues that Treasury has not adequately reconciled PRWORA's "qualified alien" test with the Code's residency and Social Security number rules. It also argues that Treasury has not justified treating the adoption credit as a federal public benefit. The letter criticizes the proposed self-certification under penalty of perjury, which shifts a complex immigration-law decision and the government's verification duty onto taxpayers. It urges Treasury to issue clearer guidance and adopt a good-faith reasonable-cause safe harbor for taxpayers and preparers. It further contends that the regulatory impact analysis understates compliance costs and the risk of deterring eligible claimants. It raises equity concerns for U.S. citizen children and low-income households, as well as effects on state credits that conform to the federal credits. Finally, it calls for reliable status data and for disallowances to go through deficiency procedures, with notice and a chance to correct errors.

Date of Authorship for this Version

10-5-2026

Keywords

REG-119882-25, 91 Fed. Reg. 53, 812, Personal Responsibility and Work Opportunity Reconciliation Act of 1996, PRWORA, Earned Income Tax Credit, EITC, American Opportunity Tax Credit, Adoption Tax Credit, Refundable tax credits, Regulatory impact analysis, Low-income taxpayers

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