SEC. 2. ORGANIZATIONS REQUIRED TO NOTIFY SECRETARY 
OF INTENT TO OPERATE AS 501(c)(4). 
(a) IN GENERAL.—Part I of subchapter F of chapter 
1 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new section: 
‘‘SEC. 506. ORGANIZATIONS REQUIRED TO NOTIFY SEC-
RETARY OF INTENT TO OPERATE AS 501(c)(4). 
‘‘(a) IN GENERAL.—An organization described in 
section 501(c)(4) shall, not later than 60 days after the 
organization is established, notify the Secretary (in such 
manner as the Secretary shall by regulation prescribe) 
that it is operating as such. 
‘‘(b) CONTENTS OF NOTICE.—The notice required 
under subsection (a) shall include the following informa-
tion: 
‘‘(1) The name, address, and taxpayer identi-
fication number of the organization. 
‘‘(2) The date on which, and the State under 
the laws of which, the organization was organized. 
‘‘(3) A statement of the purpose of the organi-
zation. 
‘‘(c) ACKNOWLEDGMENT
OF RECEIPT.—Not later 
than 60 days after receipt of such a notice, the Secretary 
shall send to the organization an acknowledgment of such 
receipt. 
VerDate Mar 15 2010 
18:32 Nov 20, 2013
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3520.IH
H3520
tkelley on DSK3SPTVN1PROD with BILLS
‘‘(d) EXTENSION
FOR REASONABLE CAUSE.—The 
Secretary may, for reasonable cause, extend the 60-day 
period described in subsection (a). 
‘‘(e) USER FEE.—The Secretary shall impose a rea-
sonable user fee for submission of the notice under sub-
section (a). 
‘‘(f) REQUEST FOR DETERMINATION.—Upon request 
by an organization to be treated as an organization de-
scribed in section 501(c)(4), the Secretary may issue a de-
termination with respect to such treatment. Such request 
shall be treated for purposes of section 6104 as an applica-
tion for exemption from taxation under section 501(a).’’. 
(b) SUPPORTING INFORMATION WITH FIRST RE-
TURN.—Paragraph (1) of section 6033(f) of such Code is 
amended— 
(1) by striking the period at the end and insert-
ing ‘‘, and’’, 
(2) by striking ‘‘include on the return required 
under subsection (a) the information’’ and inserting 
the following: ‘‘include on the return required under 
subsection (a)— 
‘‘(1) the information’’, and 
(3) by adding at the end the following new 
paragraph: 
VerDate Mar 15 2010 
18:32 Nov 20, 2013
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3520.IH
H3520
tkelley on DSK3SPTVN1PROD with BILLS
‘‘(2) in the case of the first such return filed by 
such an organization after submitting a notice to the 
Secretary under section 506(a), such information as 
the Secretary shall by regulation require in support 
of the organization’s treatment as an organization 
described in section 501(c)(4).’’. 
(c) FAILURE TO FILE INITIAL NOTIFICATION.—Sub-
section (c) of section 6652 of such Code is amended by 
redesignating paragraphs (4) and (5) as paragraphs (5) 
and (6), respectively, and by inserting after paragraph (3) 
the following new paragraph: 
‘‘(4) NOTICES UNDER SECTION 506.— 
‘‘(A) PENALTY ON ORGANIZATION.—In the 
case of a failure to submit a notice required 
under section 506(a) (relating to organizations 
required to notify Secretary of intent to operate 
as 501(c)(4)) on the date and in the manner 
prescribed therefor, there shall be paid by the 
organization failing to so submit $20 for each 
day during which such failure continues, but 
the total amount imposed under this subpara-
graph on any organization for failure to submit 
any one notice shall not exceed $5,000. 
‘‘(B) MANAGERS.—The Secretary may 
make written demand on an organization sub-
VerDate Mar 15 2010 
02:20 Nov 21, 2013
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3520.IH
H3520
tkelley on DSK3SPTVN1PROD with BILLS
ject to penalty under subparagraph (A) speci-
fying in such demand a reasonable future date 
by which the notice shall be submitted for pur-
poses of this subparagraph. If such notice is not 
submitted on or before such date, there shall be 
paid by the person failing to so submit $20 for 
each day after the expiration of the time speci-
fied in the written demand during which such 
failure continues, but the total amount imposed 
under this subparagraph on all persons for fail-
ure to submit any one notice shall not exceed 
$5,000.’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for part I of subchapter F of chapter 1 of such Code is 
amended by adding at the end the following new item: 
‘‘Sec. 506. Organizations required to notify Secretary of intent to operate as 
501(c)(4).’’. 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to organizations which are 
described in section 501(c)(4) of the Internal Rev-
enue Code of 1986 and organized after December 
31, 2014. 
(2) CERTAIN
EXISTING
ORGANIZATIONS.—In 
the case of any other organization described in sec-
tion 501(c)(4) of such Code, the amendments made 
VerDate Mar 15 2010 
18:32 Nov 20, 2013
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3520.IH
H3520
tkelley on DSK3SPTVN1PROD with BILLS
by this section shall apply to such organization only 
if, on or before the date of the enactment of this 
Act— 
(A) such organization has not applied for 
a written determination of recognition as an or-
ganization described in section 501(c)(4) of 
such Code, and 
(B) such organization has not filed at least 
one annual return or notice required under sub-
section (a)(1) or (i) (as the case may be) of sec-
tion 6033 of such Code. 
In the case of any organization to which the amend-
ments made by this section apply by reason of the 
preceding sentence, such organization shall submit 
the notice required by section 506(a) of such Code, 
as added by this Act, not later than 180 days after 
the date of the enactment of this Act. 
SEC. 3. DECLARATORY JUDGMENTS FOR 501(c)(4) ORGANI-
ZATIONS. 
(a) IN GENERAL.—Paragraph (1) of section 7428(a) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘or’’ at the end of subparagraph (C) and by inserting 
after subparagraph (D) the following new subparagraph: 
‘‘(E) with respect to the initial classifica-
tion or continuing classification of an organiza-
VerDate Mar 15 2010 
18:32 Nov 20, 2013
Jkt 039200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H3520.IH
H3520
tkelley on DSK3SPTVN1PROD with BILLS
tion described in section 501(c)(4) which is ex-
empt from tax under section 501(a), or’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to pleadings filed after the date 
of the enactment of this Act. 
SEC. 4. RELEASE OF INFORMATION REGARDING THE STA-
TUS OF CERTAIN INVESTIGATIONS. 
(a) IN GENERAL.—Subsection (e) of section 6103 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(11) DISCLOSURE OF INFORMATION REGARD-
ING STATUS OF INVESTIGATION OF VIOLATION OF 
THIS SECTION.—In the case of a person who pro-
vides to the Secretary information indicating a viola-
tion of section 7213, 7213A, or 7214 with respect 
to any return or return information of such person, 
the Secretary may disclose to such person (or such 
person’s designee)— 
‘‘(A) whether an investigation based on the 
person’s provision of such information has been 
initiated and whether it is open or closed, 
‘‘(B) whether any such investigation sub-
stantiated such a violation by any individual, 
and 
VerDate Mar 15 2010 
18:32 Nov 20, 2013
Jkt 039200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3520.IH
H3520
tkelley on DSK3SPTVN1PROD with BILLS
‘‘(C) whether any action has been taken 
with respect to such individual (including 
whether a referral has been made for prosecu-
tion of such individual).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 5. REVIEW OF INTERNAL REVENUE SERVICE EXAM-
INATION SELECTION PROCEDURES. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a study of each Internal Rev-
enue Service operating division to assess the process used 
for determining how enforcement cases are selected and 
processed. Such study shall include a review of the fol-
lowing: 
(1) The standards each such operating division 
has established for enforcement case selection (in-
cluding any automated or discretionary selection 
processes) and case work, and whether such stand-
ards meet the objectives of impartiality, objectivity, 
compliance, and minimizing taxpayer burden. 
(2) The extent to which any cases are initiated 
by referrals or complaints from inside or outside of 
the operating division (including from outside of the 
Internal Revenue Service). 
VerDate Mar 15 2010 
18:32 Nov 20, 2013
Jkt 039200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H3520.IH
H3520
tkelley on DSK3SPTVN1PROD with BILLS
(3) The Internal Revenue Service controls (in-
cluding management reviews and regular updates) 
for assuring that its standards for enforcement cases 
(and handling of referrals and complaints) in each 
operating division are sufficient for achieving the ob-
jectives described in paragraph (1). 
(4) The Internal Revenue Service controls (in-
cluding training, monitoring, and quality assess-
ments) for assuring that its standards are adhered 
to by all division personnel and the effectiveness of 
such controls. 
(5) Whether the existing standards and controls 
provide reasonable assurance that each division’s en-
forcement processes meet the Internal Revenue Serv-
ice objectives of impartiality, objectivity, compliance, 
and minimizing taxpayer burden. 
(b) INITIAL REPORT.—Not later than 1 year after 
the date of the enactment of this section, the Comptroller 
General shall submit to the Committee on Ways and 
Means of the House of Representatives, the Committee on 
Finance of the Senate, and the Secretary of the Treasury 
a report on the results of such study. Such report shall 
include such recommendations as the Comptroller General 
may deem advisable. 
VerDate Mar 15 2010 
18:32 Nov 20, 2013
Jkt 039200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H3520.IH
H3520
tkelley on DSK3SPTVN1PROD with BILLS
(c) FOLLOW-UP ON RECOMMENDATIONS.—Not later 
than 180 days after a report is submitted with respect 
to an operating division under subsection (b), the Comp-
troller General shall conduct a follow-up study, and submit 
to the Committee on Ways and Means of the House of 
Representatives, the Committee on Finance of the Senate, 
and the Secretary of the Treasury a report, on whether 
any recommendations to improve case selection and case 
work processes have been implemented and are working 
as intended. 
(d) CONTINUING CASE MANAGEMENT STUDIES AND 
REPORTS.— 
(1) IN GENERAL.—After a report is submitted 
under subsection (b), the Comptroller General shall 
conduct follow-up studies and reports in the same 
manner as provided in subsections (a) and (b) with 
respect to each operating division of the Internal 
Revenue Service and shall include in such study and 
report a review of whether any previous rec-
ommendations to improve case selection and case 
work processes have been implemented and are 
working as intended. 
(2) FREQUENCY.—Each such report with re-
spect to an operating division shall be submitted not 
later than 4 years after the date the most recent re-
VerDate Mar 15 2010 
18:32 Nov 20, 2013
Jkt 039200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H3520.IH
H3520
tkelley on DSK3SPTVN1PROD with BILLS
port was submitted with respect to such operating 
division under subsection (b) or this subsection. The 
Comptroller General shall submit no fewer than 1 
such report each year. 
SEC. 6. IRS EMPLOYEES PROHIBITED FROM USING PER-
SONAL 
EMAIL 
ACCOUNTS 
FOR 
OFFICIAL 
BUSINESS. 
No officer or employee of the Internal Revenue Serv-
ice may use a personal email account to conduct any offi-
cial business of the Government. 
Æ 
VerDate Mar 15 2010 
18:32 Nov 20, 2013
Jkt 039200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6301
E:\BILLS\H3520.IH
H3520
tkelley on DSK3SPTVN1PROD with BILLS