The Department of the Treasury and the Internal Revenue Service have issued proposed regulations that would clarify eligibility requirements for the refunded portions of certain individual income tax credits, according to an official IRS announcement designated IR-2026-93.
The proposed rules seek to strengthen enforcement of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), a federal law that limits access to federal public benefits to U.S. citizens, U.S. nationals, and qualified aliens. Treasury and the IRS are now proposing that the refunded portions of certain refundable tax credits constitute federal public benefits under that law.
