I 

115TH CONGRESS 

1ST SESSION H. R. 2058 

To amend the Internal Revenue Code of 1986 to provide for disclosure 

for charity employees and board members previously implicated in terror 

finance. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 6, 2017 

Mr. POE of Texas (for himself, Mr. WEBER of Texas, Mr. COOK, and Mr. 

PERRY) 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 provide 

for disclosure for charity employees and board members 

previously implicated in terror finance. 

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 ‘‘Charity Transparency 

5 Act of 2017’’. 


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1 SEC. 2. DISCLOSURE FOR CHARITY EMPLOYEES AND 

2 BOARD MEMBERS PREVIOUSLY IMPLICATED 

3 IN TERROR FINANCE. 

4 (a) APPLICATION FOR EXEMPTION.—Section 501 of 

5 the Internal Revenue Code of 1986 is amended by adding 

6 at the end the following: 

7 ‘‘(s) DISCLOSURE FOR CHARITY EMPLOYEES AND

8 BOARD MEMBERS PREVIOUSLY IMPLICATED IN TERROR

9 FINANCE.— 

10 ‘‘(1) IN GENERAL.—An application of an orga11 nization for exemption from tax under subsection (a) 

12 shall not be treated as complete unless the applica13 tion contains— 

14 ‘‘(A) the disclosures required by paragraph 

15 (2), or 

16 ‘‘(B) a statement that no officer, director, 

17 trustee, or highly compensated employee of the 

18 organization (or an individual having powers or 

19 responsibilities similar to those of officers, di20 rectors, trustees, or highly compensated employ21 ees of the organization) is described in subpara22 graph (A), (B), or (C) of paragraph (2). 

23 ‘‘(2) REQUIRED DISCLOSURES.—The disclo24 sures required by this paragraph are the names and 

25 addresses of any officer, director, trustee, or highly 


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1 compensated employee of the organization who, at 

2 any time before the date of the application— 

3 ‘‘(A) was a member or employee of an or4 ganization described in paragraph (3), 

5 ‘‘(B) was an unindicted coconspirator with 

6 respect to a terror finance scheme of an organi7 zation described in paragraph (3), or 

8 ‘‘(C) was an employee of any charity found 

9 liable under section 2333 of title 18, United 

10 States Code. 

11 ‘‘(3) ORGANIZATION DESCRIBED.—An organiza12 tion is described in this paragraph if— 

13 ‘‘(A) the organization is named on the 

14 Designated Charities and Potential Fundraising 

15 Front Organizations for FTOs list, published 

16 by the Department of the Treasury, or 

17 ‘‘(B) the organization’s property is blocked 

18 pending investigation by the Office of Foreign 

19 Assets Control, Department of the Treasury.’’. 

20 (b) ANNUAL REPORTING.—Section 6033 of such 

21 Code is amended by redesignating subsection (n) as sub22 section (o) and by inserting after subsection (m) the fol23 lowing: 


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1 ‘‘(n) DISCLOSURE FOR CHARITY EMPLOYEES AND

2 BOARD MEMBERS PREVIOUSLY IMPLICATED IN TERROR

3 FINANCE.— 

4 ‘‘(1) IN GENERAL.—The annual return required 

5 of an organization by subsection (a) shall not be 

6 treated as complete unless the return contains— 

7 ‘‘(A) the disclosures required by paragraph 

8 (2), or 

9 ‘‘(B) a statement that no officer, director, 

10 trustee, or highly compensated employee of the 

11 organization (or an individual having powers or 

12 responsibilities similar to those of officers, di13 rectors, trustees, or highly compensated employ14 ees of the organization) is described in subpara15 graph (A), (B), or (C) of paragraph (2). 

16 ‘‘(2) REQUIRED DISCLOSURES.—The disclo17 sures required by this paragraph are the names and 

18 addresses of any officer, director, trustee, or highly 

19 compensated employee of the organization who, at 

20 any time before the date of the application— 

21 ‘‘(A) was a member or employee of an or22 ganization described in paragraph (3), 

23 ‘‘(B) was an unindicted coconspirator with 

24 respect to a terror finance scheme of an organi25 zation described in paragraph (3), or 


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1 ‘‘(C) was an employee of any charity found 

2 liable under section 2333 of title 18, United 

3 States Code. 

4 ‘‘(3) ORGANIZATION DESCRIBED.—An organiza5 tion is described in this paragraph if— 

6 ‘‘(A) the organization is described in sec7 tion 501(c) and exempt from tax under section 

8 501(a), 

9 ‘‘(B) the organization is named on the 

10 Designated Charities and Potential Fundraising 

11 Front Organizations for FTOs list, published 

12 by the Department of the Treasury, or 

13 ‘‘(C) the organization’s property is blocked 

14 pending investigation by the Office of Foreign 

15 Assets Control, Department of the Treasury.’’. 

16 (c) EFFECTIVE DATE.— 

17 (1) The amendment made by subsection (a) 

18 shall apply to applications filed after the date of the 

19 enactment of this Act. 

20 (2) The amendment made by subsection (b) 

21 shall apply to returns filed for taxable years begin22 ning after the date of the enactment of this Act. 

Æ 


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