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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 400 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Notice for Organizations That 
Include Charities is Essential (NOTICE) Act''.

SEC. 2. NOTICE REQUIRED BEFORE REVOCATION OF TAX EXEMPT STATUS FOR 
              FAILURE TO FILE RETURN.

    (a) In General.--Section 6033(j) of the Internal Revenue Code of 
1986 is amended by redesignating paragraphs (2) and (3) as paragraphs 
(3) and (4), respectively, and by inserting after paragraph (1) the 
following new paragraph:
            ``(2) Requirement of notice.--
                    ``(A) In general.--Not later than 300 days after 
                the date an organization described in paragraph (1) 
                fails to file the annual return or notice referenced in 
                paragraph (1) for 2 consecutive years, the Secretary 
                shall notify the organization--
                            ``(i) that the Internal Revenue Service has 
                        no record of such a return or notice from such 
                        organization for 2 consecutive years, and
                            ``(ii) about the penalty that will occur 
                        under this subsection if the organization fails 
                        to file such a return or notice by the date of 
                        the next filing deadline.
                The notification under the preceding sentence shall 
                include information about how to comply with the filing 
                requirements under subsection (a)(1) and (i).''.
    (b) Reinstatement Without Application.--Paragraph (3) of section 
6033(j) of such Code, as redesignated under subsection (a), is 
amended--
            (1) by striking ``Any organization'' and inserting the 
        following:
                    ``(A) In general.--Except as provided in 
                subparagraph (B), any organization'', and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Retroactive reinstatement without application 
                if actual notice not provided.--If an organization 
                described in paragraph (1)--
                            ``(i) demonstrates to the satisfaction of 
                        the Secretary that the organization did not 
                        receive the notice required under paragraph 
                        (2), and
                            ``(ii) files an annual return or notice 
                        referenced in paragraph (1) for the current 
                        year,
                then the Secretary may reinstate the organization's 
                exempt status effective from the date of the revocation 
                under paragraph (1) without the need for an 
                application.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to notices and returns required to be filed after December 31, 
2014.
                                 <all>
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