H. R. 3151—35 
title 5, United States Code, or whose employment was terminated 
under section 1203 of the Internal Revenue Service Restructuring 
and Reform Act of 1998 (26 U.S.C. 7804 note).’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply with respect to the hiring of employees after the date 
of the enactment of this Act. 
SEC. 3002. NOTIFICATION OF UNAUTHORIZED INSPECTION OR DISCLO-
SURE OF RETURNS AND RETURN INFORMATION. 
(a) IN GENERAL.—Subsection (e) of section 7431 is amended 
by adding at the end the following new sentences: ‘‘The Secretary 
shall also notify such taxpayer if the Internal Revenue Service 
or a Federal or State agency (upon notice to the Secretary by 
such Federal or State agency) proposes an administrative deter-
mination as to disciplinary or adverse action against an employee 
arising from the employee’s unauthorized inspection or disclosure 
of the taxpayer’s return or return information. The notice described 
in this subsection shall include the date of the unauthorized inspec-
tion or disclosure and the rights of the taxpayer under such adminis-
trative determination.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to determinations proposed after the date which is 
180 days after the date of the enactment of this Act. 
Subtitle B—Provisions Relating to Exempt 
Organizations 
SEC. 3101. MANDATORY E-FILING BY EXEMPT ORGANIZATIONS. 
(a) IN GENERAL.—Section 6033 is amended by redesignating 
subsection (n) as subsection (o) and by inserting after subsection 
(m) the following new subsection: 
‘‘(n) 
MANDATORY
ELECTRONIC
FILING.—Any 
organization 
required to file a return under this section shall file such return 
in electronic form.’’. 
(b) OTHER REPORTS AND RETURNS.— 
(1) 
POLITICAL
ORGANIZATIONS.—Section 
527(j)(7) 
is 
amended by striking ‘‘if the organization has’’ and all that 
follows through ‘‘such calendar year’’. 
(2) UNRELATED BUSINESS INCOME TAX RETURNS.—Section 
6011 is amended by redesignating subsection (h) as subsection 
(i) and by inserting after subsection (g) the following new 
subsection: 
‘‘(h) MANDATORY E-FILING OF UNRELATED BUSINESS INCOME 
TAX RETURN.—Any organization required to file an annual return 
under this section which relates to any tax imposed by section 
511 shall file such return in electronic form.’’. 
(c) INSPECTION OF ELECTRONICALLY FILED ANNUAL RETURNS.— 
Section 6104(b) is amended by adding at the end the following: 
‘‘Any annual return required to be filed electronically under section 
6033(n) shall be made available by the Secretary to the public 
as soon as practicable in a machine readable format.’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to taxable years 
beginning after the date of the enactment of this Act. 
(2) TRANSITIONAL RELIEF.—
H. R. 3151—36 
(A) SMALL ORGANIZATIONS.— 
(i) IN GENERAL.—In the case of any small organiza-
tions, or any other organizations for which the Sec-
retary of the Treasury or the Secretary’s delegate (here-
after referred to in this paragraph as the ‘‘Secretary’’) 
determines the application of the amendments made 
by this section would cause undue burden without 
a delay, the Secretary may delay the application of 
such amendments, but such delay shall not apply to 
any taxable year beginning on or after the date that 
is 2 years after the enactment of this Act. 
(ii) SMALL ORGANIZATION.—For purposes of clause 
(i), the term ‘‘small organization’’ means any organiza-
tion— 
(I) the gross receipts of which for the taxable 
year are less than $200,000; and 
(II) the aggregate gross assets of which at 
the end of the taxable year are less than $500,000. 
(B) ORGANIZATIONS FILING FORM 990–T.—In the case 
of any organization described in section 511(a)(2) of the 
Internal Revenue Code of 1986 which is subject to the 
tax imposed by section 511(a)(1) of such Code on its unre-
lated business taxable income, or any organization required 
to file a return under section 6033 of such Code and include 
information under subsection (e) thereof, the Secretary may 
delay the application of the amendments made by this 
section, but such delay shall not apply to any taxable 
year beginning on or after the date that is 2 years after 
the enactment of this Act. 
SEC. 3102. NOTICE REQUIRED BEFORE REVOCATION OF TAX-EXEMPT 
STATUS FOR FAILURE TO FILE RETURN. 
(a) IN GENERAL.—Section 6033(j)(1) is amended by striking 
‘‘If an organization’’ and inserting the following: 
‘‘(A) NOTICE.—If an organization described in sub-
section (a)(1) or (i) fails to file the annual return or notice 
required under either subsection 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 revocation that will occur under 
subparagraph (B) if the organization fails to file such 
a return or notice by the due date for the next such 
return or notice required to be filed. 
The notification under the preceding sentence shall include 
information about how to comply with the filing require-
ments under subsections (a)(1) and (i). 
‘‘(B) REVOCATION.—If an organization’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to failures to file returns or notices for 2 consecutive 
years if the return or notice for the second year is required to 
be filed after December 31, 2019.
H. R. 3151—37 
Subtitle C—Revenue Provision 
SEC. 3201. INCREASE IN PENALTY FOR FAILURE TO FILE. 
(a) IN GENERAL.—The second sentence of subsection (a) of sec-
tion 6651 is amended by striking ‘‘$205’’ and inserting ‘‘$330’’. 
(b) INFLATION ADJUSTMENT.—Section 6651(j)(1) is amended— 
(1) by striking ‘‘2014’’ and inserting ‘‘2020’’, 
(2) by striking ‘‘$205’’ and inserting ‘‘$330’’, and 
(3) by striking ‘‘2013’’ and inserting ‘‘2019’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to returns required to be filed after December 31, 
2019. 
TITLE IV—BUDGETARY EFFECTS 
SEC. 4001. DETERMINATION OF BUDGETARY EFFECTS. 
The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined 
by reference to the latest statement titled ‘‘Budgetary Effects of 
PAYGO Legislation’’ for this Act, submitted for printing in the 
Congressional Record by the Chairman of the House Budget Com-
mittee, provided that such statement has been submitted prior 
to the vote on passage. 
Speaker of the House of Representatives. 
Vice President of the United States and
President of the Senate.