I 

113TH CONGRESS 

1ST SESSION H. R. 2924 

To amend the Internal Revenue Code of 1986 to require that the Secretary 

of the Treasury follow certain procedures relating to status applications 

of 501(c)(4) organizations. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 1, 2013 

Mr. MARCHANT 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 require 

that the Secretary of the Treasury follow certain procedures relating to status applications of 501(c)(4) organizations. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Strict Standards and 

5 Accountability Act’’. 


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•HR 2924 IH

1 SEC. 2. CERTAIN PROCEDURES RELATING TO STATUS AP2 PLICATIONS OF 501(c)(4) ORGANIZATIONS. 

3 (a) IN GENERAL.—Part I of subchapter F of chapter 

4 1 of the Internal Revenue Code of 1986 is amended by 

5 adding at the end the following: 

6 ‘‘SEC. 506. PROCEDURES RELATING TO APPLICATIONS OF 

7 501(c)(4) ORGANIZATIONS. 

8 ‘‘(a) INITIAL NOTICE.—The Secretary shall acknowl9 edge in writing the receipt of an application to be treated 

10 as an organization described in section 501(c)(4) and ex11 empt from tax under section 501(a) not later than 28 days 

12 after receipt of such application. 

13 ‘‘(b) 6 MONTHS.—In the case that the Secretary has 

14 not approved or denied such application after 6 months 

15 after the date of the acknowledgment specified in para16 graph (1) the Secretary shall— 

17 ‘‘(1)(A) inform the applicant in writing as to 

18 the status of its application, 

19 ‘‘(B) enumerate reasons specific to the applica20 tion for its delay, and 

21 ‘‘(C) provide an approximate expectation of 

22 when a final decision may be made, and 

23 ‘‘(2) consider such application under fast track 

24 procedures which the Secretary shall provide by reg25 ulation or other guidance. 

26 ‘‘(c) 1-YEAR.— 


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•HR 2924 IH

1 ‘‘(1) IN GENERAL.—In the case that the Sec2 retary has not approved or denied such application 

3 after 365 days after the date of the acknowledgment 

4 specified in paragraph (1), the Secretary shall— 

5 ‘‘(A) inform the applicant in writing as to 

6 the status of its application, and 

7 ‘‘(B) enumerate reasons specific to the ap8 plication for its delay. 

9 ‘‘(2) NOTICE TO CONGRESS.—If the Secretary 

10 cannot make a decision before two months after 365 

11 days from the date of the initial acknowledgment 

12 under subsection (a), the Secretary shall report dur13 ing that time to the Chairpersons of the Committee 

14 on Ways and Means Committee and Senate Finance 

15 Committee on the extenuating circumstances of each 

16 such case that prevents timely determination thereof 

17 and provide the numerical amount of 501(c)(4) ap18 plications pending for over 365 days.’’. 

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

20 for part I of subchapter F of chapter 1 of such Code is 

21 amended by adding at the end the following new item: 

‘‘Sec. 506. Procedures relating to applications of 501(c)(4) organizations.’’. 

22 (c) EFFECTIVE DATE.—The amendment made by 

23 this section shall apply to applications submitted after the 

24 date of the enactment of this Act. 

Æ 


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