I 

114TH CONGRESS 

2D SESSION H. R. 5185 

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 

MAY 10, 2016 

Mr. POE of Texas 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. DISCLOSURE FOR CHARITY EMPLOYEES AND 

4 BOARD MEMBERS PREVIOUSLY IMPLICATED 

5 IN TERROR FINANCE. 

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

7 the Internal Revenue Code of 1986 is amended by adding 

8 at the end the following: 


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1 ‘‘(s) DISCLOSURE FOR CHARITY EMPLOYEES AND

2 BOARD MEMBERS PREVIOUSLY IMPLICATED IN TERROR

3 FINANCE.— 

4 ‘‘(1) IN GENERAL.—An application of an orga5 nization for exemption from tax under subsection (a) 

6 shall not be treated as complete unless the applica7 tion contains— 

8 ‘‘(A) the disclosures required by paragraph 

9 (2), or 

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

11 trustee, or highly compensated employee of the 

12 organization (or an individual having powers or 

13 responsibilities similar to those of officers, di14 rectors, trustees, or highly compensated employ15 ees of the organization) is described in subpara16 graph (A), (B), or (C) of paragraph (2). 

17 ‘‘(2) REQUIRED DISCLOSURES.—The disclo18 sures required by this paragraph are the names and 

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

20 compensated employee of the organization who, at 

21 any time before the date of the application— 

22 ‘‘(A) was a member or employee of an or23 ganization described in paragraph (3), 


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1 ‘‘(B) was an unindicted coconspirator with 

2 respect to a terror finance scheme of an organi3 zation described in paragraph (3), or 

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

5 liable under section 2333 of title 18, United 

6 States Code. 

7 ‘‘(3) ORGANIZATION DESCRIBED.—An organiza8 tion is described in this paragraph if— 

9 ‘‘(A) 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 ‘‘(B) the organization’s property is blocked 

14 pending investigation by the Office of Foreign 

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

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

17 Code is amended by redesignating subsection (n) as sub18 section (o) and by inserting after subsection (m) the fol19 lowing: 

20 ‘‘(s) DISCLOSURE FOR CHARITY EMPLOYEES AND

21 BOARD MEMBERS PREVIOUSLY IMPLICATED IN TERROR

22 FINANCE.— 

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

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

25 treated as complete unless the return contains— 


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1 ‘‘(A) the disclosures required by paragraph 

2 (2), or 

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

4 trustee, or highly compensated employee of the 

5 organization (or an individual having powers or 

6 responsibilities similar to those of officers, di7 rectors, trustees, or highly compensated employ8 ees of the organization) is described in subpara9 graph (A), (B), or (C) of paragraph (2). 

10 ‘‘(2) REQUIRED DISCLOSURES.—The disclo11 sures required by this paragraph are the names and 

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

13 compensated employee of the organization who, at 

14 any time before the date of the application— 

15 ‘‘(A) was a member or employee of an or16 ganization described in paragraph (3), 

17 ‘‘(B) was an unindicted coconspirator with 

18 respect to a terror finance scheme of an organi19 zation described in paragraph (3), or 

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

21 liable under section 2333 of title 18, United 

22 States Code. 

23 ‘‘(3) ORGANIZATION DESCRIBED.—An organiza24 tion is described in this paragraph if— 


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1 ‘‘(A) the organization is described in sec2 tion 501(c) and exempt from tax under section 

3 501(a), 

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

5 Designated Charities and Potential Fundraising 

6 Front Organizations for FTOs list, published 

7 by the Department of the Treasury, or 

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

9 pending investigation by the Office of Foreign 

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

11 (c) EFFECTIVE DATE.— 

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

13 shall apply to applications filed after the date of the 

14 enactment of this Act. 

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

16 shall apply to returns filed for taxable years begin17 ning after the date of the enactment of this Act. 

Æ 


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