Presidential Audit and Tax Transparency Act

Subjects: Taxation

Summary:  <p> <strong></strong><strong>Presidential Audit and Tax Transparency Act</strong></p> <p>This bill requires the Internal Revenue Service (IRS) to conduct an examination to determine the correctness of a Presidential income tax return as rapidly as practicable after it is filed.</p> <p>The IRS must disclose and make publicly available (on the internet) an initial report, periodic reports, and a final report on the examination of such tax returns. The final report must include the date on which the IRS examination of the return was completed, a list of audit materials, and a description of each proposed adjustment to a return and any controversy relating to its examination. This disclosure of tax return information is an exception to the general rule of confidentiality of taxpayer returns. </p> <p>The bill defines<em> Presidential income tax return</em> as any relevant income tax return of (1) a president while the president is in office, (2) the spouse of a president, (3) a corporation or partnership controlled by a president or a president's spouse, and (4) the estate of a president or a president's spouse.</p> <p>The bill imposes additional disclosure requirements by presidents and presidential candidates under the Ethics in Government Act of 1978.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1272 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                S. 1272

 To amend the Internal Revenue Code of 1986 to provide for examination 
  and disclosure with respect to Presidential income tax returns, to 
amend the Ethics in Government Act of 1978 to require the disclosure of 
certain tax returns by Presidents and certain candidates for the office 
               of the President, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 25, 2023

Mr. Wyden (for himself, Mr. Sanders, Mr. Whitehouse, Ms. Cantwell, Ms. 
   Warren, Mr. Van Hollen, Mr. Kaine, Mr. Welch, Ms. Klobuchar, Mr. 
 Cardin, and Mr. Markey) 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 for examination 
  and disclosure with respect to Presidential income tax returns, to 
amend the Ethics in Government Act of 1978 to require the disclosure of 
certain tax returns by Presidents and certain candidates for the office 
               of the President, and for other purposes.

    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 ``Presidential Audit and Tax 
Transparency Act''.

SEC. 2. EXAMINATION AND DISCLOSURE WITH RESPECT TO PRESIDENTIAL INCOME 
              TAX RETURNS.

    (a) Audit.--Subchapter A of chapter 78 of the Internal Revenue Code 
of 1986 is amended by redesignating section 7613 as section 7614 and by 
inserting after section 7612 the following new section:

``SEC. 7613. EXAMINATION WITH RESPECT TO PRESIDENTIAL INCOME TAX 
              RETURNS.

    ``(a) In General.--As rapidly as practicable after the filing of 
any Presidential income tax return, the Secretary shall conduct an 
examination to ascertain the correctness of such return and enforce the 
requirements of this title with respect to the taxable year covered by 
such return.
    ``(b) Reports.--
            ``(1) Initial report.--Not later than 90 days after the 
        filing of a Presidential income tax return, the Secretary shall 
        disclose and make publicly available an initial report 
        regarding the examination with respect to such return. Such 
        report shall include--
                    ``(A) the name of the taxpayer,
                    ``(B) an identification of the subparagraph of 
                subsection (c)(1) which describes such return,
                    ``(C) the date that such return was filed, and
                    ``(D) the date on which the examination with 
                respect to such return commenced (or, if such 
                examination has not commenced as of the date of such 
                report, a detailed description of the reasons that such 
                examination has not commenced).
            ``(2) Periodic reports.--Not later than 180 days after the 
        disclosure of the report described in paragraph (1) with 
        respect to any Presidential income tax return and not later 
        than 180 days after the most recent disclosure of a report 
        described in this paragraph with respect to such return, the 
        Secretary shall disclose and make publicly available a periodic 
        report regarding the examination with respect to such return. 
        Such report shall include--
                    ``(A) the information described in subparagraphs 
                (A) through (D) of paragraph (1),
                    ``(B) a description of the status of the 
                examination, including a description of the portions of 
                the examination which have been completed, which are in 
                process, and which are anticipated to take place, and
                    ``(C) an estimate of the time frame for the 
                completion of the examination, including an 
                identification of factors which could alter such time 
                frame, reasonable estimates of the likelihood of such 
                factors (taking into account the specific facts and 
                circumstances of the examination), and the likely 
                specific effects of such factors on such time frame.
        Notwithstanding the preceding sentence, a periodic report shall 
        not be required under this paragraph with respect to any return 
        after the date on which a final report is disclosed under 
        paragraph (3) with respect to such return.
            ``(3) Final report.--Not later than 90 days after the 
        completion of the examination described in subsection (a) with 
        respect to any Presidential income tax return, the Secretary 
        shall disclose and make publicly available a final report 
        regarding such examination. Such report shall include--
                    ``(A) the information described in subparagraphs 
                (A) through (C) of paragraph (1),
                    ``(B) the date on which the examination with 
                respect to such return was completed,
                    ``(C) a list of the audit materials (as defined in 
                section 6103(q)(2)) with respect to such examination, 
                and
                    ``(D) a description (including the amount) of each 
                proposed adjustment, adjustment, and controversy with 
                respect to such examination together with a description 
                of how such proposed adjustment or controversy was 
                resolved (or a statement that such proposed adjustment 
                or controversy was not resolved, as the case may be).
        For purposes of this paragraph, an examination shall be treated 
        as complete on the date that the Secretary provides the 
        taxpayer with a notice of deficiency, or any closing document 
        referred to in section 6103(q)(2)(A)(v), with respect to such 
        examination.
            ``(4) Extension of due date report.--If a request is made 
        for an extension of the due date for filing any Presidential 
        income tax return, the Secretary shall, not later than 90 days 
        after such request is granted or denied, disclose and make 
        publicly available an extension of due date report with respect 
        to return. Such report shall include--
                    ``(A) the information described in subparagraphs 
                (A) and (B) of paragraph (1),
                    ``(B) a statement that an extension of the due date 
                for the filing of such return has been requested,
                    ``(C) the date that such request was received,
                    ``(D) a statement of whether such request has been 
                granted or denied, and
                    ``(E) the due date of such return (including any 
                extensions).
            ``(5) Treatment of failure to file.--In the case of a 
        failure to file a Presidential income tax return before the 
        close of the 60-day period beginning with the date prescribed 
        for filing of such return--
                    ``(A) the Secretary shall conduct the examination 
                described in subsection (a) with respect to the taxable 
                year covered by the return to which such failure 
                relates,
                    ``(B) reports made pursuant to this paragraph shall 
                include a statement that such report is with respect to 
                a return which the taxpayer failed to file, and
                    ``(C) this section and section 6103(q) shall 
                otherwise apply to such failure in the same manner as 
                if a return were filed at the close of such period.
        The application of this paragraph with respect to any failure 
        to file a Presidential income tax return shall not prevent the 
        application of this section with respect to such return at such 
        time as such return may be filed.
            ``(6) Public availability.--For purposes of this 
        subsection, a document shall not be treated as having been made 
        publicly available unless made available on the Internet.
    ``(c) Presidential Income Tax Return.--For purposes of this 
section--
            ``(1) In general.--The term `Presidential income tax 
        return' means any relevant income tax return of--
                    ``(A) a President,
                    ``(B) an individual who is married (within the 
                meaning of section 7703(a)) to a President for the 
                taxable year to which such return relates,
                    ``(C) any corporation or partnership which is 
                controlled by any individual described in subparagraph 
                (A) or (B) at any time during the taxable year to which 
                such return relates,
                    ``(D) the estate of any person described in (A) or 
                (B) or any estate with respect to which any person 
                described in subparagraph (A), (B), or (C) is an 
                executor or beneficiary at any time during the taxable 
                year to which such return relates, and
                    ``(E) any trust with respect to which any person 
                described in subparagraph (A), (B), (C), or (D) is a 
                grantor, fiduciary, or beneficiary, or for which 
                another trust described in this subparagraph is a 
                grantor or beneficiary, at any time during the taxable 
                year to which such return relates.
        Such term shall include any schedule, attachment, or other 
        document filed with such return.
            ``(2) Relevant income tax return.--The term `relevant 
        income tax return' means, with respect to a President, any 
        income tax return if--
                    ``(A) any portion of the taxable year to which such 
                return relates is during the period that such President 
                is the President,
                    ``(B) the due date for such return (including any 
                extensions) is during such period, or
                    ``(C) such return is filed during such period.
            ``(3) Control.--For purposes of paragraph (1)(C)--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, control shall be determined under the 
                rules of paragraphs (2) and (3) of section 6038(e) 
                (determined without regard to subparagraphs (A) and (B) 
                of such paragraph (2) and without regard to 
                subparagraph (C) of paragraph (3) thereof).
                    ``(B) Restriction on family attribution.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), for purposes of applying 
                        subparagraph (A)--
                                    ``(I) section 318 shall be applied 
                                without regard to subsection 
                                (a)(1)(A)(ii) thereof, and
                                    ``(II) section 267(c) shall be 
                                applied by treating the family of an 
                                individual as including only such 
                                individual's spouse (in lieu of the 
                                application of paragraph (4) thereof).
                            ``(ii) Exception for recent transfer to 
                        family members.--For purposes of determining 
                        whether any corporation or partnership is 
                        controlled by a President under paragraph 
                        (1)(C) for any taxable year, clause (i) shall 
                        not apply if such corporation or partnership 
                        was controlled by such President (after 
                        application of clause (i)) at any time during 
                        the 4 immediately preceding taxable years.
    ``(d) Application to Amended Returns.--For purposes of this section 
and section 6103(q), any amendment or supplement to a return of tax 
shall be treated as a separate return of tax and the determination of 
when such amendment or supplement is filed, and whether such amendment 
or supplement is a relevant income tax return, shall be made without 
regard to the underlying return.''.
    (b) Disclosure.--Section 6103 of such Code is amended by 
redesignating subsection (q) as subsection (r) and by inserting after 
subsection (p) the following new subsection:
    ``(q) Disclosure With Respect to Presidential Income Tax Returns.--
            ``(1) In general.--The Secretary shall disclose and make 
        publicly available (within the meaning of section 7613(b))--
                    ``(A) each Presidential income tax return (as 
                defined in section 7613(c)),
                    ``(B) each report described in section 7613(b), and
                    ``(C) any audit materials with respect a return 
                described in subparagraph (A).
            ``(2) Audit materials.--The term `audit materials' means, 
        with respect to any return:
                    ``(A) Any of the following which are provided by 
                the Secretary to the taxpayer (or any designee of the 
                taxpayer):
                            ``(i) Any written communication which 
                        identifies such return as being subject to 
                        examination.
                            ``(ii) Any written communication which 
                        proposes the adjustment of any item on such 
                        return, any report by an examiner related to 
                        such proposed adjustment, and any supervisory 
                        approval of any penalty proposed as part of 
                        such adjustment.
                            ``(iii) Any memorandum or report of the 
                        Internal Revenue Service Independent Office of 
                        Appeals with respect to such return, and any 
                        denial of any request described in subparagraph 
                        (B).
                            ``(iv) Any notice of deficiency with 
                        respect to such return.
                            ``(v) Any closing documents with respect to 
                        the examination of such return, including any 
                        closing agreement or no change letter.
                    ``(B) Any request for referral to the Internal 
                Revenue Service Independent Office of Appeals of any 
                controversy with respect to such return.
                    ``(C) Any petition filed with the Tax Court for a 
                redetermination of any deficiency referred to in 
                subparagraph (A)(iv).
            ``(3) Exception for certain identity information.--The 
        information disclosed and made publicly available under 
        paragraph (1) shall not include any identification number of 
        any person (including any social security number), any 
        financial account number, the name of any individual who has 
        not attained age 18 (as of the close of the taxable year to 
        which the return relates), the name of any employee of the 
        Department of the Treasury, or any address (other than the city 
        and State in which such address is located).
            ``(4) Timing of disclosures.--Any information required to 
        be disclosed under paragraph (1) shall be disclosed and made 
        publicly available not later than--
                    ``(A) in the case of any income tax return referred 
                to in paragraph (1)(A), 90 days after the date that 
                such return is filed,
                    ``(B) in the case of any report referred to in 
                paragraph (1)(B), the deadline specified in section 
                7613(b) for disclosing such report, and
                    ``(C) in the case of the audit materials referred 
                to in paragraph (1)(C), 90 days after the completion of 
                the examination (within the meaning of section 
                7613(b)(3)) with respect to the return to which such 
                audit materials relate.''.
    (c) Clerical Amendment.--Subchapter A of chapter 78 of such Code is 
amended by redesignating the item relating to section 7613 as an item 
relating to section 7614 and by inserting after the item relating to 
section 7612 the following new item:

``Sec. 7613. Examination with respect to Presidential income tax 
                            returns.''.
    (d) Effective Date.--The amendments made by this subsection shall 
apply to returns, amendments, and supplements filed (and failures to 
file returns which occur) after the date of the enactment of this Act 
(and to reports and audit materials with respect to such returns, 
amendments, supplements, and failures).

SEC. 3. ADDITIONAL DISCLOSURE OF TAX RETURNS BY PRESIDENTS AND CERTAIN 
              PRESIDENTIAL CANDIDATES.

    (a) In General.--
            (1) Disclosure requirement.--Title I of the Ethics in 
        Government Act of 1978 (5 U.S.C. App.) is amended--
                    (A) by inserting after section 102 the following:

``SEC. 102A. DISCLOSURE OF TAX RETURNS.

    ``(a) Definitions.--In this section:
            ``(1) Applicable income tax return.--
                    ``(A) In general.--The term `applicable income tax 
                return' means, with respect to any taxable year, any 
                return (within the meaning of section 6103(b) of the 
                Internal Revenue Code of 1986) relating to Federal 
                income taxes of--
                            ``(i) a covered candidate or covered 
                        individual;
                            ``(ii) an individual who is married (within 
                        the meaning of section 7703(a) of the Internal 
                        Revenue Code of 1986) to a covered candidate or 
                        covered individual for the taxable year;
                            ``(iii) any corporation or partnership that 
                        was controlled (as determined under section 
                        7613(c)(3) of the Internal Revenue Code of 
                        1986) by an individual described in clause (i) 
                        or (ii) at any time during the taxable year;
                            ``(iv) the estate of any person described 
                        in clause (i) or (ii) or any estate with 
                        respect to which any person described in clause 
                        (i), (ii), or (iii) is an executor or 
                        beneficiary at any time during the taxable 
                        year; and
                            ``(v) any trust with respect to which any 
                        person described in clause (i), (ii), (iii), or 
                        (iv) is a grantor, fiduciary, or beneficiary, 
                        or for which another trust described in this 
                        clause is a grantor or beneficiary, at any time 
                        during the taxable year.
                    ``(B) Inclusion of certain documents.--Such term 
                shall include any schedule, attachment, or other 
                document filed with such return.
            ``(2) Covered candidate.--The term `covered candidate' 
        means an individual--
                    ``(A) required to file a report under section 
                101(c); and
                    ``(B) who is nominated by a major party as a 
                candidate for the office of President, regardless of 
                whether the individual is nominated after May 15 of an 
                applicable year.
            ``(3) Covered individual.--The term `covered individual' 
        means--
                    ``(A) a President required to file a report under 
                subsection (a) or (d) of section 101; and
                    ``(B) an individual who occupies the office of the 
                President required to file a report under section 
                101(e).
            ``(4) Major party.--The term `major party' has the meaning 
        given the term in section 9002 of the Internal Revenue Code of 
        1986.
    ``(b) Disclosure.--
            ``(1) Covered individuals.--
                    ``(A) In general.--In addition to the information 
                described in subsections (a) and (b) of section 102, a 
                covered individual shall include in each report 
                required to be filed under this title a copy of all 
                applicable income tax returns for the 3 most recent 
                taxable years for which a return has been filed with 
                the Internal Revenue Service as of the date on which 
                the report is filed.
                    ``(B) Failure to disclose.--If an income tax return 
                is not disclosed under subparagraph (A), the Director 
                of the Office of Government Ethics shall submit to the 
                Secretary of the Treasury a request that the Secretary 
                of the Treasury provide the Director of the Office of 
                Government Ethics with a copy of the income tax return.
                    ``(C) Publicly available.--Each income tax return 
                submitted under this paragraph shall be filed with the 
                Director of the Office of Government Ethics and made 
                publicly available in the same manner as the 
                information described in subsections (a) and (b) of 
                section 102.
                    ``(D) Redaction of certain information.--Before 
                making any income tax return submitted under this 
                paragraph available to the public, the Director of the 
                Office of Government Ethics shall redact such 
                information as the Director of the Office of Government 
                Ethics, in consultation with the Secretary of the 
                Treasury (or a delegate of the Secretary), determines 
                appropriate.
            ``(2) Covered candidates.--
                    ``(A) In general.--Not later than 15 days after the 
                date on which a covered candidate is nominated, the 
                covered candidate shall amend the report filed by the 
                covered candidate under section 101(c) with the Federal 
                Election Commission to include a copy of the applicable 
                income tax returns for the 3 most recent taxable years 
                for which a return has been filed with the Internal 
                Revenue Service.
                    ``(B) Failure to disclose.--If an applicable income 
                tax return is not disclosed under subparagraph (A), the 
                Federal Election Commission shall submit to the 
                Secretary of the Treasury a request that the Secretary 
                of the Treasury provide the Federal Election Commission 
                with the applicable income tax return.
                    ``(C) Publicly available.--Each applicable income 
                tax return submitted under this paragraph shall be 
                filed with the Federal Election Commission and made 
                publicly available in the same manner as the 
                information described in section 102(b).
                    ``(D) Redaction of certain information.--Before 
                making any applicable income tax return submitted under 
                this paragraph available to the public, the Federal 
                Election Commission shall redact such information as 
                the Federal Election Commission, in consultation with 
                the Secretary of the Treasury (or a delegate of the 
                Secretary) and the Director of the Office of Government 
                Ethics, determines appropriate.
            ``(3) Special rule with respect to returns disclosed under 
        other authority.--For purposes of this subsection, in the case 
        of any applicable income tax return which has been made 
        publicly available pursuant to section 6103(q) of the Internal 
        Revenue Code of 1986, the requirements of paragraphs (1)(A) and 
        (2)(A) shall be satisfied with respect to such return if the 
        covered individual or covered candidate (as the case may be) 
        provides the location on the Internet where such disclosure has 
        been made publicly available.''; and
                    (B) in section 104--
                            (i) in subsection (a)--
                                    (I) in paragraph (1), in the first 
                                sentence, by inserting ``or any 
                                individual who knowingly and willfully 
                                falsifies or who knowingly and 
                                willfully fails to file an applicable 
                                income tax return that such individual 
                                is required to disclose pursuant to 
                                section 102A'' before the period; and
                                    (II) in paragraph (2)(A)--
                                            (aa) in clause (i), by 
                                        inserting ``or falsify any 
                                        applicable income tax return 
                                        that such person is required to 
                                        disclose under section 102A'' 
                                        before the semicolon; and
                                            (bb) in clause (ii), by 
                                        inserting ``or fail to file any 
                                        applicable income tax return 
                                        that such person is required to 
                                        disclose under section 102A'' 
                                        before the period;
                            (ii) in subsection (b), in the first 
                        sentence by inserting ``or willfully failed to 
                        file or has willfully falsified an applicable 
                        income tax return required to be disclosed 
                        under section 102A'' before the period;
                            (iii) in subsection (c), by inserting ``or 
                        failing to file or falsifying an applicable 
                        income tax return required to be disclosed 
                        under section 102A'' before the period; and
                            (iv) in subsection (d)(1)--
                                    (I) in the matter preceding 
                                subparagraph (A), by inserting ``or 
                                files an applicable income tax return 
                                required to be disclosed under section 
                                102A'' after ``title''; and
                                    (II) in subparagraph (A), by 
                                inserting ``or such applicable income 
                                tax return, as applicable,'' after 
                                ``report''.
            (2) Special rule for individuals who are covered candidates 
        on date of enactment.--In the case of any individual who is a 
        covered candidate (as defined in section 102A of the Ethics in 
        Government Act of 1978, as added by paragraph (1)) on the date 
        of the enactment of this Act, section 102A(b)(2)(A) shall be 
        applied by substituting ``30 days after the date of the 
        enactment of the Presidential Audit and Tax Transparency Act'' 
        for ``15 days after the date on which a covered candidate is 
        nominated''.
    (b) Authority To Disclose Information.--
            (1) In general.--Section 6103(l) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following:
            ``(23) Disclosure of return information of presidents and 
        certain presidential candidates under ethics in government act 
        of 1978.--
                    ``(A) Disclosure of returns of presidents.--
                            ``(i) In general.--The Secretary shall, 
                        upon written request from the Director of the 
                        Office of Government Ethics pursuant to section 
                        102A(b)(1)(B) of the Ethics in Government Act 
                        of 1978 provide to officers and employees of 
                        the Office of Government Ethics a copy of each 
                        applicable income tax return with respect to 
                        any covered individual who has been identified 
                        in such request.
                            ``(ii) Disclosure to public.--The Director 
                        of the Office of Government Ethics may disclose 
                        to the public any applicable income tax return 
                        required to be submitted to the Director 
                        pursuant to section 102A(b)(1) of the Ethics in 
                        Government Act of 1978.
                    ``(B) Disclosure of returns of certain candidates 
                for president.--
                            ``(i) In general.--The Secretary shall, 
                        upon written request from the Chairman of the 
                        Federal Election Commission pursuant to section 
                        102A(b)(2)(B) of the Ethics in Government Act 
                        of 1978, provide to officers and employees of 
                        the Federal Election Commission a copy of each 
                        applicable income tax return with respect to 
                        any covered candidate who has been identified 
                        in such request.
                            ``(ii) Disclosure to public.--The Federal 
                        Election Commission may disclose to the public 
                        any applicable income tax return required to be 
                        filed with the Commission pursuant to section 
                        102A(b)(2) of the Ethics in Government Act.
                    ``(C) Definitions.--For purposes of this paragraph, 
                the terms `applicable income tax return', `covered 
                individual', and `covered candidate' have the meanings 
                given those terms in section 102A of the Ethics in 
                government Act of 1978.''.
            (2) Conforming amendments.--Section 6103(p)(4) of the 
        Internal Revenue Code of 1986, in the matter preceding 
        subparagraph (A) and in subparagraph (F)(ii), is amended by 
        striking ``or (22)'' and inserting ``(22), or (23)'' each place 
        it appears.
                                 &lt;all&gt;
</pre></body></html>