of the Internal Revenue Code of 1986 is amended by inserting after subsection (f) the following new subsection: (g) Coordination with advance payments of earned income credit (1) Recapture of advance payments If any payment is made to the individual by an employer under section 3507 during any calendar year, then the tax imposed by this chapter for the individual's last taxable year beginning in such calendar year shall be increased by the aggregate amount of such payments. (2) Reconciliation of payments advanced and credit allowed Any increase in tax under paragraph (1) shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit (other than the credit allowed by subsection (a)) allowable under this part. . (c) Filing requirement Section 6012(a) of the Internal Revenue Code of 1986 is amended by inserting after paragraph (8) the following new paragraph: (9) Every individual who receives payments during the calendar year in which the taxable year begins under section 3507. . (d) Receipts for employees Section 6051(a) of the Internal Revenue Code of 1986 is amended by inserting after paragraph (6) the following new paragraph: (7) the total amount paid to the employee under section 3507 (relating to advance payment of earned income credit), . (e) Clerical amendment The table of sections for chapter 25 of subtitle C of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 3506 the following new item: Sec. 3507. Advance payment of earned income credit. . (f) Effective date The amendments made by this section shall apply to taxable years beginning after the date which is 1 year after the date of the enactment of this Act.