II 

109TH CONGRESS 

1ST SESSION S. 315 

To amend the Internal Revenue Code of 1986 to provide that reimbursements 

for costs of using passenger automobiles for charitable and other organizations are excluded from gross income, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 8, 2005 

Mr. FEINGOLD introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

that reimbursements for costs of using passenger automobiles for charitable and other organizations are excluded from gross income, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. MILEAGE REIMBURSEMENTS TO CHARITABLE 

4 VOLUNTEERS EXCLUDED FROM GROSS IN5 COME. 

6 (a) IN GENERAL.—Part III of subchapter B of chap7 ter 1 of the Internal Revenue Code of 1986 is amended 

8 by inserting after section 139A the following new section: 
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1 ‘‘SEC. 139B. MILEAGE REIMBURSEMENTS TO CHARITABLE 

2 VOLUNTEERS. 

3 ‘‘(a) IN GENERAL.—Gross income of an individual 

4 does not include amounts received, from an organization 

5 described in section 170(c), as reimbursement of operating 

6 expenses with respect to use of a passenger automobile 

7 for the benefit of such organization. The preceding sen8 tence shall apply only to the extent that such reimburse9 ment would be deductible under this chapter if section 

10 274(d) were applied— 

11 ‘‘(1) by using the standard business mileage 

12 rate established under such section, and 

13 ‘‘(2) as if the individual were an employee of an 

14 organization not described in section 170(c). 

15 ‘‘(b) NO DOUBLE BENEFIT.—Subsection (a) shall 

16 not apply with respect to any expenses if the individual 

17 claims a deduction or credit for such expenses under any 

18 other provision of this title. 

19 ‘‘(c) EXEMPTION FROM REPORTING REQUIRE20 MENTS.—Section 6041 shall not apply with respect to re21 imbursements excluded from income under subsection 

22 (a).’’. 

23 (b) CLERICAL AMENDMENT.—The table of sections 

24 for part III of subchapter B of chapter 1 of the Internal 

25 Revenue Code of 1986 is amended by inserting after the 
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1 item relating to section 139A and inserting the following 

2 new item: 

‘‘Sec. 139B. Reimbursement for use of passenger automobile for charity.’’. 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

6 SEC. 2. INCREASE IN CRIMINAL MONETARY PENALTY LIMI7 TATION FOR THE UNDERPAYMENT OR OVER8 PAYMENT OF TAX DUE TO FRAUD. 

9 (a) IN GENERAL.—Section 7206 of the Internal Rev10 enue Code of 1986 (relating to fraud and false statements) 

11 is amended— 

12 (1) by striking ‘‘Any person who—’’ and insert13 ing ‘‘(a) IN GENERAL.—Any person who—’’, and 

14 (2) by adding at the end the following new sub15 section: 

16 ‘‘(b) INCREASE IN MONETARY LIMITATION FOR UN17 DERPAYMENT OR OVERPAYMENT OF TAX DUE TO

18 FRAUD.—If any portion of any underpayment (as defined 

19 in section 6664(a)) or overpayment (as defined in section 

20 6401(a)) of tax required to be shown on a return is attrib21 utable to fraudulent action described in subsection (a), the 

22 applicable dollar amount under subsection (a) shall in no 

23 event be less than an amount equal to such portion. A 

24 rule similar to the rule under section 6663(b) shall apply 

25 for purposes of determining the portion so attributable.’’. 
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1 (b) INCREASE IN PENALTIES.— 

2 (1) ATTEMPT TO EVADE OR DEFEAT TAX.— 

3 Section 7201 of the Internal Revenue Code of 1986 

4 is amended— 

5 (A) by striking ‘‘$100,000’’ and inserting 

6 ‘‘$250,000’’, 

7 (B) by striking ‘‘$500,000’’ and inserting 

8 ‘‘$1,000,000’’, and 

9 (C) by striking ‘‘5 years’’ and inserting 

10 ‘‘10 years’’. 

11 (2) WILLFUL FAILURE TO FILE RETURN, SUP12 PLY INFORMATION, OR PAY TAX.—Section 7203 of 

13 such Code is amended— 

14 (A) in the first sentence— 

15 (i) by striking ‘‘misdemeanor’’ and in16 serting ‘‘felony’’, and 

17 (ii) by striking ‘‘1 year’’ and inserting 

18 ‘‘10 years’’, and 

19 (B) by striking the third sentence. 

20 (3) FRAUD AND FALSE STATEMENTS.—Section 

21 7206(a) of such Code (as redesignated by subsection 

22 (a)) is amended— 

23 (A) by striking ‘‘$100,000’’ and inserting 

24 ‘‘$250,000’’, 
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1 (B) by striking ‘‘$500,000’’ and inserting 

2 ‘‘$1,000,000’’, and 

3 (C) by striking ‘‘3 years’’ and inserting ‘‘5 

4 years’’. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to underpayments and overpay7 ments attributable to actions occurring after the date of 

8 the enactment of this Act. 

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