Exempt Organization Simplification and Taxpayer Protection Act of 2013 - Amends the Internal Revenue Code to: (1) require an organization that intends to operate as a tax-exempt social welfare organization to notify the Secretary of the Treasury of such intent with information as to its identity and purpose, (2) allow such an organization to seek a declaratory judgment concerning its status and classification as a tax-exempt organization, and (3) authorize the Secretary to disclose information for investigations of violations of internal revenue laws relating to unauthorized disclosure or inspection of tax information and unlawful acts of revenue officers or agents.
Directs the Comptroller General (GAO) to study and report on the process used for determining how Internal Revenue Service (IRS) enforcement cases are selected and processed.
Prohibits any IRS officer or employee from using a personal email account to conduct official business.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3520 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 3520
To amend the Internal Revenue Code of 1986 to reform rules relating to
501(c)(4) organizations and provide certain taxpayer protections, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 18, 2013
Mr. Boustany introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to reform rules relating to
501(c)(4) organizations and provide certain taxpayer protections, and
for other purposes.
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 ``Exempt Organization Simplification
and Taxpayer Protection Act of 2013''.
SEC. 2. ORGANIZATIONS REQUIRED TO NOTIFY SECRETARY OF INTENT TO OPERATE
AS 501(C)(4).
(a) In General.--Part I of subchapter F of chapter 1 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new section:
``SEC. 506. ORGANIZATIONS REQUIRED TO NOTIFY SECRETARY OF INTENT TO
OPERATE AS 501(C)(4).
``(a) In General.--An organization described in section 501(c)(4)
shall, not later than 60 days after the organization is established,
notify the Secretary (in such manner as the Secretary shall by
regulation prescribe) that it is operating as such.
``(b) Contents of Notice.--The notice required under subsection (a)
shall include the following information:
``(1) The name, address, and taxpayer identification number
of the organization.
``(2) The date on which, and the State under the laws of
which, the organization was organized.
``(3) A statement of the purpose of the organization.
``(c) Acknowledgment of Receipt.--Not later than 60 days after
receipt of such a notice, the Secretary shall send to the organization
an acknowledgment of such receipt.
``(d) Extension for Reasonable Cause.--The Secretary may, for
reasonable cause, extend the 60-day period described in subsection (a).
``(e) User Fee.--The Secretary shall impose a reasonable user fee
for submission of the notice under subsection (a).
``(f) Request for Determination.--Upon request by an organization
to be treated as an organization described in section 501(c)(4), the
Secretary may issue a determination with respect to such treatment.
Such request shall be treated for purposes of section 6104 as an
application for exemption from taxation under section 501(a).''.
(b) Supporting Information With First Return.--Paragraph (1) of
section 6033(f) of such Code is amended--
(1) by striking the period at the end and inserting ``,
and'',
(2) by striking ``include on the return required under
subsection (a) the information'' and inserting the following:
``include on the return required under subsection (a)--
``(1) the information'', and
(3) by adding at the end the following new paragraph:
``(2) in the case of the first such return filed by such an
organization after submitting a notice to the Secretary under
section 506(a), such information as the Secretary shall by
regulation require in support of the organization's treatment
as an organization described in section 501(c)(4).''.
(c) Failure To File Initial Notification.--Subsection (c) of
section 6652 of such Code is amended by redesignating paragraphs (4)
and (5) as paragraphs (5) and (6), respectively, and by inserting after
paragraph (3) the following new paragraph:
``(4) Notices under section 506.--
``(A) Penalty on organization.--In the case of a
failure to submit a notice required under section
506(a) (relating to organizations required to notify
Secretary of intent to operate as 501(c)(4)) on the
date and in the manner prescribed therefor, there shall
be paid by the organization failing to so submit $20
for each day during which such failure continues, but
the total amount imposed under this subparagraph on any
organization for failure to submit any one notice shall
not exceed $5,000.
``(B) Managers.--The Secretary may make written
demand on an organization subject to penalty under
subparagraph (A) specifying in such demand a reasonable
future date by which the notice shall be submitted for
purposes of this subparagraph. If such notice is not
submitted on or before such date, there shall be paid
by the person failing to so submit $20 for each day
after the expiration of the time specified in the
written demand during which such failure continues, but
the total amount imposed under this subparagraph on all
persons for failure to submit any one notice shall not
exceed $5,000.''.
(d) Clerical Amendment.--The table of sections for part I of
subchapter F of chapter 1 of such Code is amended by adding at the end
the following new item:
``Sec. 506. Organizations required to notify Secretary of intent to
operate as 501(c)(4).''.
(e) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to organizations which are described in section 501(c)(4)
of the Internal Revenue Code of 1986 and organized after
December 31, 2014.
(2) Certain existing organizations.--In the case of any
other organization described in section 501(c)(4) of such Code,
the amendments made by this section shall apply to such
organization only if, on or before the date of the enactment of
this Act--
(A) such organization has not applied for a written
determination of recognition as an organization
described in section 501(c)(4) of such Code, and
(B) such organization has not filed at least one
annual return or notice required under subsection
(a)(1) or (i) (as the case may be) of section 6033 of
such Code.
In the case of any organization to which the amendments made by
this section apply by reason of the preceding sentence, such
organization shall submit the notice required by section 506(a)
of such Code, as added by this Act, not later than 180 days
after the date of the enactment of this Act.
SEC. 3. DECLARATORY JUDGMENTS FOR 501(C)(4) ORGANIZATIONS.
(a) In General.--Paragraph (1) of section 7428(a) of the Internal
Revenue Code of 1986 is amended by striking ``or'' at the end of
subparagraph (C) and by inserting after subparagraph (D) the following
new subparagraph:
``(E) with respect to the initial classification or
continuing classification of an organization described
in section 501(c)(4) which is exempt from tax under
section 501(a), or''.
(b) Effective Date.--The amendments made by this section shall
apply to pleadings filed after the date of the enactment of this Act.
SEC. 4. RELEASE OF INFORMATION REGARDING THE STATUS OF CERTAIN
INVESTIGATIONS.
(a) In General.--Subsection (e) of section 6103 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
paragraph:
``(11) Disclosure of information regarding status of
investigation of violation of this section.--In the case of a
person who provides to the Secretary information indicating a
violation of section 7213, 7213A, or 7214 with respect to any
return or return information of such person, the Secretary may
disclose to such person (or such person's designee)--
``(A) whether an investigation based on the
person's provision of such information has been
initiated and whether it is open or closed,
``(B) whether any such investigation substantiated
such a violation by any individual, and
``(C) whether any action has been taken with
respect to such individual (including whether a
referral has been made for prosecution of such
individual).''.
(b) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act.
SEC. 5. REVIEW OF INTERNAL REVENUE SERVICE EXAMINATION SELECTION
PROCEDURES.
(a) In General.--The Comptroller General of the United States shall
conduct a study of each Internal Revenue Service operating division to
assess the process used for determining how enforcement cases are
selected and processed. Such study shall include a review of the
following:
(1) The standards each such operating division has
established for enforcement case selection (including any
automated or discretionary selection processes) and case work,
and whether such standards meet the objectives of impartiality,
objectivity, compliance, and minimizing taxpayer burden.
(2) The extent to which any cases are initiated by
referrals or complaints from inside or outside of the operating
division (including from outside of the Internal Revenue
Service).
(3) The Internal Revenue Service controls (including
management reviews and regular updates) for assuring that its
standards for enforcement cases (and handling of referrals and
complaints) in each operating division are sufficient for
achieving the objectives described in paragraph (1).
(4) The Internal Revenue Service controls (including
training, monitoring, and quality assessments) for assuring
that its standards are adhered to by all division personnel and
the effectiveness of such controls.
(5) Whether the existing standards and controls provide
reasonable assurance that each division's enforcement processes
meet the Internal Revenue Service objectives of impartiality,
objectivity, compliance, and minimizing taxpayer burden.
(b) Initial Report.--Not later than 1 year after the date of the
enactment of this section, the Comptroller General shall submit to the
Committee on Ways and Means of the House of Representatives, the
Committee on Finance of the Senate, and the Secretary of the Treasury a
report on the results of such study. Such report shall include such
recommendations as the Comptroller General may deem advisable.
(c) Follow-Up on Recommendations.--Not later than 180 days after a
report is submitted with respect to an operating division under
subsection (b), the Comptroller General shall conduct a follow-up
study, and submit to the Committee on Ways and Means of the House of
Representatives, the Committee on Finance of the Senate, and the
Secretary of the Treasury a report, on whether any recommendations to
improve case selection and case work processes have been implemented
and are working as intended.
(d) Continuing Case Management Studies and Reports.--
(1) In general.--After a report is submitted under
subsection (b), the Comptroller General shall conduct follow-up
studies and reports in the same manner as provided in
subsections (a) and (b) with respect to each operating division
of the Internal Revenue Service and shall include in such study
and report a review of whether any previous recommendations to
improve case selection and case work processes have been
implemented and are working as intended.
(2) Frequency.--Each such report with respect to an
operating division shall be submitted not later than 4 years
after the date the most recent report was submitted with
respect to such operating division under subsection (b) or this
subsection. The Comptroller General shall submit no fewer than
1 such report each year.
SEC. 6. IRS EMPLOYEES PROHIBITED FROM USING PERSONAL EMAIL ACCOUNTS FOR
OFFICIAL BUSINESS.
No officer or employee of the Internal Revenue Service may use a
personal email account to conduct any official business of the
Government.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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