I 

116TH CONGRESS 

1ST SESSION H. R. 4002 

To amend the Internal Revenue Code of 1986 to provide for flexible giving 

accounts, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 25, 2019 

Mr. BUCHANAN (for himself and Mr. SUOZZI) 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 flexible giving accounts, 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Everyday Philan5 thropist Act’’. 

6 SEC. 2. FLEXIBLE GIVING ACCOUNTS. 

7 (a) IN GENERAL.—Subsection (a) of section 132 of 

8 the Internal Revenue Code of 1986 is amended by striking 

9 ‘‘or’’ at the end of paragraph (7), by striking the period 


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1 at the end of paragraph (8) and inserting ‘‘, or’’, and by 

2 inserting after paragraph (8) the following: 

3 ‘‘(9) flexible giving account.’’. 

4 (b) FLEXIBLE GIVING ACCOUNT.—Section 132 of 

5 such Code is amended by redesignating subsection (o) as 

6 subsection (p) and by inserting after subsection (n) the 

7 following: 

8 ‘‘(o) FLEXIBLE GIVING ACCOUNT.— 

9 ‘‘(1) IN GENERAL.— 

10 ‘‘(A) FLEXIBLE GIVING ACCOUNT.—For 

11 purposes of this subsection, a flexible giving ac12 count is an account under an arrangement 

13 which is a separate written plan of an employer 

14 for the exclusive benefit of all eligible employees 

15 under which— 

16 ‘‘(i) an employee may elect— 

17 ‘‘(I) to receive a reduction in 

18 compensation and have the employer 

19 deposit the amount of the reduction in 

20 a flexible giving account of the elect21 ing employee, and 

22 ‘‘(II) before the reduction under 

23 subclause (I), to designate one or 

24 more entities to which distributions 

25 are to be made from the account, 


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1 ‘‘(ii) the employer, as soon after the 

2 deposit under clause (i)(I) as practicable, 

3 makes the disbursements designated under 

4 clause (i), 

5 ‘‘(iii) the employer provides reasonable 

6 notification of the availability and terms of 

7 the arrangement to all eligible employees, 

8 ‘‘(iv) the employer maintains a sepa9 rate flexible giving account on behalf of 

10 each employee for whom an election is in 

11 effect clause (i), and 

12 ‘‘(v) the employer agrees to furnish to 

13 each participating employee, on or before 

14 January 31 of each year, a written ac15 counting of the employee’s flexible giving 

16 account showing deposits and disburse17 ments during the previous calendar year. 

18 ‘‘(B) MAXIMUM REDUCTION.—The amount 

19 of a reduction under subparagraph (A) for a 

20 taxable year shall not exceed $2,700. 

21 ‘‘(2) ELIGIBLE EMPLOYEE.—For purposes of 

22 this subsection— 

23 ‘‘(A) IN GENERAL.— 

24 ‘‘(i) ELIGIBLE EMPLOYEE.—The term 

25 ‘eligible employee’ means, with respect to a 


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1 flexible giving account, any employee who 

2 is not a highly compensated or key em3 ployee and who is eligible to participate in 

4 the arrangement. 

5 ‘‘(ii) HIGHLY COMPENSATED EM6 PLOYEE.—The term ‘highly compensated 

7 employee’ has the meaning given such term 

8 by section 414(q). 

9 ‘‘(iii) KEY EMPLOYEE.—The term 

10 ‘key employee’ has the meaning given such 

11 term by section 416(i). 

12 ‘‘(B) CERTAIN EMPLOYEES MAY BE EX13 CLUDED.—For purposes of subparagraph (A), 

14 an employer may elect to exclude under the ar15 rangement described in paragraph (1) any em16 ployee who— 

17 ‘‘(i) has not attained the age of 21 be18 fore the close of a plan year of the ar19 rangement, 

20 ‘‘(ii) has less than 1 year of service 

21 with the employer as of any day during the 

22 plan year, and 

23 ‘‘(iii) is described in section 

24 410(b)(3)(C) (relating to nonresident 

25 aliens working outside the United States). 


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1 ‘‘(C) SHORTER SERVICE PERIOD; YOUNGER

2 AGE.—An arrangement may provide a shorter 

3 period of service or younger age for purposes of 

4 subparagraph (B). 

5 ‘‘(3) TAX TREATMENT OF DISTRIBUTIONS.— 

6 ‘‘(A) IN GENERAL.—Any distribution from 

7 a flexible giving account shall be includible in 

8 the gross income of the distributee in the man9 ner as provided in section 72. 

10 ‘‘(B) EXCEPTION FOR CHARITABLE CON11 TRIBUTIONS.— 

12 ‘‘(i) IN GENERAL.—Subparagraph (A) 

13 shall not apply to any distribution which is 

14 a charitable contribution made pursuant to 

15 paragraph (1). 

16 ‘‘(ii) COORDINATION WITH SECTION

17 170.—Distributions from the flexible giving 

18 account of an employee— 

19 ‘‘(I) shall be treated as a chari20 table contribution of the employee, 

21 ‘‘(II) shall not be taken into ac22 count under section 170(a) (relating 

23 to allowance of deduction), but 


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1 ‘‘(III) shall be taken into account 

2 under section 170(b) (relating to per3 centage limitation). 

4 ‘‘(C) ADDITIONAL TAX FOR DISTRIBU5 TIONS NOT USED FOR CHARITABLE PUR6 POSES.—The tax imposed by this chapter for 

7 any taxable year on any taxpayer from whose 

8 flexible giving account a distribution is made 

9 that is includible in gross income shall be in10 creased by 20 percent of the amount which is 

11 so includible. 

12 ‘‘(D) IDENTIFYING INFORMATION.—No 

13 distribution shall be excluded from the gross in14 come under subparagraph (B) unless the tax15 payer provides on the return of tax the name 

16 and address of the entity to whom the distribu17 tion is made. In the case of a failure to provide 

18 the information required by the preceding sen19 tence, the preceding sentence shall not apply if 

20 it is shown that the taxpayer exercised due dili21 gence in attempting to provide the information 

22 so required. 

23 ‘‘(4) CHARITABLE CONTRIBUTION.—For pur24 poses of this section, the term ‘charitable contribu25 tion’ has the meaning given such term by section 


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1 170(c), except that such term irrevocable transfers 

2 of funds and not just a pledges or agreement to 

3 make a transfer in the future.’’. 

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

5 this section shall apply to taxable years beginning after 

6 the date of the enactment of this Act. 

Æ 


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