II 

114TH CONGRESS 

1ST SESSION S. 400 

To amend the Internal Revenue Code of 1986 to provide notice to charities 

and other nonprofit organizations before their tax-exempt status is automatically revoked. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 5, 2015 

Mr. COATS (for himself and Mr. CARDIN) 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 

notice to charities and other nonprofit organizations before their tax-exempt status is automatically revoked. 

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 ‘‘Notice for Organiza5 tions That Include Charities is Essential (NOTICE) Act’’. 


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1 SEC. 2. NOTICE REQUIRED BEFORE REVOCATION OF TAX 

2 EXEMPT STATUS FOR FAILURE TO FILE RE3 TURN. 

4 (a) IN GENERAL.—Section 6033(j) of the Internal 

5 Revenue Code of 1986 is amended by redesignating para6 graphs (2) and (3) as paragraphs (3) and (4), respectively, 

7 and by inserting after paragraph (1) the following new 

8 paragraph: 

9 ‘‘(2) REQUIREMENT OF NOTICE.— 

10 ‘‘(A) IN GENERAL.—Not later than 300 

11 days after the date an organization described in 

12 paragraph (1) fails to file the annual return or 

13 notice referenced in paragraph (1) for 2 con14 secutive years, the Secretary shall notify the or15 ganization— 

16 ‘‘(i) that the Internal Revenue Service 

17 has no record of such a return or notice 

18 from such organization for 2 consecutive 

19 years, and 

20 ‘‘(ii) about the penalty that will occur 

21 under this subsection if the organization 

22 fails to file such a return or notice by the 

23 date of the next filing deadline. 

24 The notification under the preceding sentence 

25 shall include information about how to comply 


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1 with the filing requirements under subsection 

2 (a)(1) and (i).’’. 

3 (b) REINSTATEMENT WITHOUT APPLICATION.— 

4 Paragraph (3) of section 6033(j) of such Code, as redesig5 nated under subsection (a), is amended— 

6 (1) by striking ‘‘Any organization’’ and insert7 ing the following: 

8 ‘‘(A) IN GENERAL.—Except as provided in 

9 subparagraph (B), any organization’’, and 

10 (2) by adding at the end the following new sub11 paragraph: 

12 ‘‘(B) RETROACTIVE REINSTATEMENT

13 WITHOUT APPLICATION IF ACTUAL NOTICE NOT

14 PROVIDED.—If an organization described in 

15 paragraph (1)— 

16 ‘‘(i) demonstrates to the satisfaction 

17 of the Secretary that the organization did 

18 not receive the notice required under para19 graph (2), and 

20 ‘‘(ii) files an annual return or notice 

21 referenced in paragraph (1) for the current 

22 year, 

23 then the Secretary may reinstate the organiza24 tion’s exempt status effective from the date of 


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1 the revocation under paragraph (1) without the 

2 need for an application.’’. 

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

4 this section shall apply to notices and returns required to 

5 be filed after December 31, 2014. 

Æ 


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