Welfare Reform Act

[AI summary unavailable — showing source text] Welfare Reform Act - Title I: Amendments to the Internal Revenue Code of 1954 - Increases the earned income credit to equal 20 percent of the individual's first $5,000 in earned income, with a phaseout between the first $7,500 and $15,000 in adjusted gross or earned income, whichever is greater. Makes the earned income credit permanent. Requires employers to make advance payments of this credit to employees certified as qualifying for the credit during the current year. Treats payments of this advance credit as payment of the employer's FICA and withholding amounts, with parallel treatment of any failure to pay the employee the advance credit. Provides for the transfer of funds from the general fund of the Treasury to the FICA trust funds to cover for revenues paid by employers to employees as an advance credit instead of to the Government as withholding taxes. Imposes administrative changes on government forms and reporting requirements on employees certified for the advance credit. Includes unemployment compensation in gross income. Imposes reporting requirements on persons making unemployment compensation payments. Provides for the disclosure of requested tax return information …