Don't Weaponize the IRS Act

Subjects: Taxation

Summary:  <p><strong>Don't Weaponize the IRS Act</strong></p> <p>This bill codifies regulations promulgated by the Trump Administration exempting certain tax-exempt organizations from specified reporting requirements. Specifically the bill </p> <ul> <li>increases from $5,000 to $50,000 the gross receipts threshold used to determine the eligibility of tax-exempt organizations for the exemption from certain disclosure and reporting requirements;</li> <li>expands the definition of <em>organization</em> to include tax-exempt charitable organizations and organizations with no significant activities relating to lobbying, political activity, and the operation of a trade or business;</li> <li>exempts from disclosure the names and addresses of contributors to an organization in its annual informational return; and </li> <li>extends exemptions from reporting requirements to political action committees (i.e., 527 organizations).</li> </ul>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1105 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                S. 1105

    To amend the Internal Revenue Code of 1986 to codify the Trump 
administration rule on reporting requirements of exempt organizations, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 30, 2023

 Mr. Braun (for himself, Mr. Scott of Florida, Mr. Young, Mr. Romney, 
    Mrs. Capito, Mr. Moran, Mr. Risch, Mr. Crapo, and Mrs. Fischer) 
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 codify the Trump 
administration rule on reporting requirements of exempt organizations, 
                        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 ``Don't Weaponize the IRS Act''.

SEC. 2. ORGANIZATIONS EXEMPT FROM REPORTING.

    (a) Gross Receipts Threshold.--Clause (ii) of section 6033(a)(3)(A) 
of the Internal Revenue Code of 1986 is amended by striking ``$5,000'' 
and inserting ``$50,000''.
    (b) Organizations Described.--Subparagraph (C) of section 
6033(a)(3) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of clause (v),
            (2) by striking the period at the end of clause (vi) and 
        inserting a semicolon, and
            (3) by adding at the end the following new clauses:
                            ``(vii) any other organization described in 
                        section 501(c) (other than a private foundation 
                        or a supporting organization described in 
                        section 509(a)(3)); and
                            ``(viii) any organization (other than a 
                        private foundation or a supporting organization 
                        described in section 509(a)(3)) which is not 
                        described in section 170(c)(2)(A), or which is 
                        created or organized in a possession of the 
                        United States, which has no significant 
                        activity (including lobbying and political 
                        activity and the operation of a trade or 
                        business) other than investment activity in the 
                        United States.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 3. CLARIFICATION OF APPLICATION TO SECTION 527 ORGANIZATIONS.

    (a) In General.--Paragraph (1) of section 6033(g) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``This section'' and inserting ``Except as 
        otherwise provided by this subsection, this section'', and
            (2) by striking ``for the taxable year.'' and inserting 
        ``for the taxable year in the same manner as to an organization 
        exempt from taxation under section 501(a).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 4. REPORTING OF NAMES AND ADDRESSES OF CONTRIBUTORS.

    (a) In General.--Paragraph (1) of section 6033(a) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following: 
``Except as provided in subsections (b)(5) and (g)(2)(B), such annual 
return shall not be required to include the names and addresses of 
contributors to the organization.''.
    (b) Application to Section 527 Organizations.--Paragraph (2) of 
section 6033(g) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of subparagraph (A),
            (2) by redesignating subparagraph (B) as subparagraph (C), 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) containing the names and addresses of all 
                substantial contributors, and''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.
                                 &lt;all&gt;
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