II 

Calendar No. 51 

114TH CONGRESS 

1ST SESSION S. 918 

[Report No. 114–28] 

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 

APRIL 14, 2015 

Mr. HATCH, from the Committee on Finance, reported the following original 

bill; which was read twice and placed on the calendar 

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 STATUE 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 the Internal Revenue 

5 Code of 1986, as redesignated under subsection (a), is 

6 amended— 

7 (1) by striking ‘‘Any organization’’ and insert8 ing the following: 

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

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

11 (2) by adding at the end the following new sub12 paragraph: 

13 ‘‘(B) RETROACTIVE REINSTATEMENT

14 WITHOUT APPLICATION IF ACTUAL NOTICE NOT

15 PROVIDED.—If an organization described in 

16 paragraph (1)— 

17 ‘‘(i) demonstrates to the satisfaction 

18 of the Secretary that the organization did 

19 not receive the notice required under para20 graph (2), and 

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

22 referenced in paragraph (1) for the current 

23 year, 

24 then the Secretary may reinstate the organiza25 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. 


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emcdonald on DSK67QTVN1PROD with BILLS
Calendar No. 51 

114TH CONGRESS 

1ST SESSION S. 918 

[Report No. 114–28] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

automatically revoked. ganizations before their tax-exempt status is provide notice to charities and other nonprofit orAPRIL 14, 2015 

Read twice and placed on the calendar 


emcdonald on DSK67QTVN1PROD with BILLS