I 
116TH CONGRESS 
1ST SESSION H. R. 4002 
To amend the Internal Revenue Code of 1986 to provide for flexible giving 
accounts, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 25, 2019 
Mr. BUCHANAN (for himself and Mr. SUOZZI) introduced the following bill; 
which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for flexible giving accounts, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Everyday Philan-
thropist Act’’. 
SEC. 2. FLEXIBLE GIVING ACCOUNTS. 
(a) IN GENERAL.—Subsection (a) of section 132 of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘or’’ at the end of paragraph (7), by striking the period 
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at the end of paragraph (8) and inserting ‘‘, or’’, and by 
inserting after paragraph (8) the following: 
‘‘(9) flexible giving account.’’. 
(b) FLEXIBLE GIVING ACCOUNT.—Section 132 of 
such Code is amended by redesignating subsection (o) as 
subsection (p) and by inserting after subsection (n) the 
following: 
‘‘(o) FLEXIBLE GIVING ACCOUNT.— 
‘‘(1) IN GENERAL.— 
‘‘(A) FLEXIBLE
GIVING
ACCOUNT.—For 
purposes of this subsection, a flexible giving ac-
count is an account under an arrangement 
which is a separate written plan of an employer 
for the exclusive benefit of all eligible employees 
under which— 
‘‘(i) an employee may elect— 
‘‘(I) to receive a reduction in 
compensation and have the employer 
deposit the amount of the reduction in 
a flexible giving account of the elect-
ing employee, and 
‘‘(II) before the reduction under 
subclause (I), to designate one or 
more entities to which distributions 
are to be made from the account, 
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‘‘(ii) the employer, as soon after the 
deposit under clause (i)(I) as practicable, 
makes the disbursements designated under 
clause (i), 
‘‘(iii) the employer provides reasonable 
notification of the availability and terms of 
the arrangement to all eligible employees, 
‘‘(iv) the employer maintains a sepa-
rate flexible giving account on behalf of 
each employee for whom an election is in 
effect clause (i), and 
‘‘(v) the employer agrees to furnish to 
each participating employee, on or before 
January 31 of each year, a written ac-
counting of the employee’s flexible giving 
account showing deposits and disburse-
ments during the previous calendar year. 
‘‘(B) MAXIMUM REDUCTION.—The amount 
of a reduction under subparagraph (A) for a 
taxable year shall not exceed $2,700. 
‘‘(2) ELIGIBLE
EMPLOYEE.—For purposes of 
this subsection— 
‘‘(A) IN GENERAL.— 
‘‘(i) ELIGIBLE EMPLOYEE.—The term 
‘eligible employee’ means, with respect to a 
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flexible giving account, any employee who 
is not a highly compensated or key em-
ployee and who is eligible to participate in 
the arrangement. 
‘‘(ii) 
HIGHLY
COMPENSATED
EM-
PLOYEE.—The term ‘highly compensated 
employee’ has the meaning given such term 
by section 414(q). 
‘‘(iii) KEY
EMPLOYEE.—The term 
‘key employee’ has the meaning given such 
term by section 416(i). 
‘‘(B) CERTAIN
EMPLOYEES
MAY
BE
EX-
CLUDED.—For purposes of subparagraph (A), 
an employer may elect to exclude under the ar-
rangement described in paragraph (1) any em-
ployee who— 
‘‘(i) has not attained the age of 21 be-
fore the close of a plan year of the ar-
rangement, 
‘‘(ii) has less than 1 year of service 
with the employer as of any day during the 
plan year, and 
‘‘(iii) 
is 
described 
in 
section 
410(b)(3)(C) 
(relating 
to 
nonresident 
aliens working outside the United States). 
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‘‘(C) SHORTER SERVICE PERIOD; YOUNGER 
AGE.—An arrangement may provide a shorter 
period of service or younger age for purposes of 
subparagraph (B). 
‘‘(3) TAX TREATMENT OF DISTRIBUTIONS.— 
‘‘(A) IN GENERAL.—Any distribution from 
a flexible giving account shall be includible in 
the gross income of the distributee in the man-
ner as provided in section 72. 
‘‘(B) EXCEPTION FOR CHARITABLE CON-
TRIBUTIONS.— 
‘‘(i) IN GENERAL.—Subparagraph (A) 
shall not apply to any distribution which is 
a charitable contribution made pursuant to 
paragraph (1). 
‘‘(ii) COORDINATION
WITH
SECTION 
170.—Distributions from the flexible giving 
account of an employee— 
‘‘(I) shall be treated as a chari-
table contribution of the employee, 
‘‘(II) shall not be taken into ac-
count under section 170(a) (relating 
to allowance of deduction), but 
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‘‘(III) shall be taken into account 
under section 170(b) (relating to per-
centage limitation). 
‘‘(C) ADDITIONAL
TAX
FOR
DISTRIBU-
TIONS
NOT
USED
FOR
CHARITABLE
PUR-
POSES.—The tax imposed by this chapter for 
any taxable year on any taxpayer from whose 
flexible giving account a distribution is made 
that is includible in gross income shall be in-
creased by 20 percent of the amount which is 
so includible. 
‘‘(D) 
IDENTIFYING
INFORMATION.—No 
distribution shall be excluded from the gross in-
come under subparagraph (B) unless the tax-
payer provides on the return of tax the name 
and address of the entity to whom the distribu-
tion is made. In the case of a failure to provide 
the information required by the preceding sen-
tence, the preceding sentence shall not apply if 
it is shown that the taxpayer exercised due dili-
gence in attempting to provide the information 
so required. 
‘‘(4) CHARITABLE
CONTRIBUTION.—For pur-
poses of this section, the term ‘charitable contribu-
tion’ has the meaning given such term by section 
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170(c), except that such term irrevocable transfers 
of funds and not just a pledges or agreement to 
make a transfer in the future.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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