Freeing Americans from Interest on Reimbursements Act or the FAIR Act
This bill excludes from gross income, for income tax purposes, any interest allowed and paid upon a tax refund amount.
To amend the Internal Revenue Code of 1986 to exclude from gross income 
              any interest paid on an overpayment of tax.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Freeing Americans from Interest on 
Reimbursements Act'' or the ``FAIR Act''.

SEC. 2. INTEREST RECEIVED ON OVERPAYMENTS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting before section 
140 the following new section:

``SEC. 139I. INTEREST RECEIVED ON TAX OVERPAYMENTS.

    ``Gross income shall not include any interest allowed and paid upon 
an overpayment of tax pursuant to section 6611.''.
    (b) Applicability.--The amendments made by this section shall apply 
to taxable years beginning after the date of the enactment of this 
section.
    (c) Clerical Amendment.--The table of contents for Part III of 
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is 
amended by inserting before the item relating to section 140 the 
following new item:

``139I. Interest received on tax overpayments.''.
                                 <all>
FAIR Act
To amend the Internal Revenue Code of 1986 to exclude from gross income any interest paid on an overpayment of tax.
FAIR Act
Freeing Americans from Interest on Reimbursements Act
Rep. Spanberger, Abigail Davis