H. R. 2029—876 
TITLE IV—TAX ADMINISTRATION 
Subtitle A—Internal Revenue Service 
Reforms 
SEC. 401. DUTY TO ENSURE THAT INTERNAL REVENUE SERVICE 
EMPLOYEES ARE FAMILIAR WITH AND ACT IN ACCORD 
WITH CERTAIN TAXPAYER RIGHTS. 
(a) IN GENERAL.—Section 7803(a) is amended by redesignating 
paragraph (3) as paragraph (4) and by inserting after paragraph 
(2) the following new paragraph: 
‘‘(3) EXECUTION
OF
DUTIES
IN
ACCORD
WITH
TAXPAYER 
RIGHTS.—In discharging his duties, the Commissioner shall 
ensure that employees of the Internal Revenue Service are 
familiar with and act in accord with taxpayer rights as afforded 
by other provisions of this title, including— 
‘‘(A) the right to be informed, 
‘‘(B) the right to quality service, 
‘‘(C) the right to pay no more than the correct amount 
of tax, 
‘‘(D) the right to challenge the position of the Internal 
Revenue Service and be heard, 
‘‘(E) the right to appeal a decision of the Internal 
Revenue Service in an independent forum, 
‘‘(F) the right to finality, 
‘‘(G) the right to privacy, 
‘‘(H) the right to confidentiality, 
‘‘(I) the right to retain representation, and 
‘‘(J) the right to a fair and just tax system.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act. 
SEC. 402. IRS EMPLOYEES PROHIBITED FROM USING PERSONAL EMAIL 
ACCOUNTS FOR OFFICIAL BUSINESS. 
No officer or employee of the Internal Revenue Service may 
use a personal email account to conduct any official business of 
the Government. 
SEC. 403. RELEASE OF INFORMATION REGARDING THE STATUS OF 
CERTAIN INVESTIGATIONS. 
(a) IN GENERAL.—Section 6103(e) is amended by adding at 
the end the following new paragraph: 
‘‘(11) DISCLOSURE OF INFORMATION REGARDING STATUS OF 
INVESTIGATION OF VIOLATION OF THIS SECTION.—In the case 
of a person who provides to the Secretary information indicating 
a violation 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 substantiated such 
a violation by any individual, and 
‘‘(C) whether any action has been taken with respect 
to such individual (including whether a referral has been 
made for prosecution of such individual).’’.
H. R. 2029—877 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to disclosures made on or after the date of the enactment 
of this Act. 
SEC. 404. ADMINISTRATIVE APPEAL RELATING TO ADVERSE DETER-
MINATIONS 
OF 
TAX-EXEMPT 
STATUS 
OF 
CERTAIN 
ORGANIZATIONS. 
(a) IN GENERAL.—Section 7123 is amended by adding at the 
end of the following: 
‘‘(c) ADMINISTRATIVE APPEAL RELATING
TO ADVERSE DETER-
MINATION OF TAX-EXEMPT STATUS OF CERTAIN ORGANIZATIONS.— 
‘‘(1) IN GENERAL.—The Secretary shall prescribe procedures 
under which an organization which claims to be described 
in section 501(c) may request an administrative appeal 
(including a conference relating to such appeal if requested 
by the organization) to the Internal Revenue Service Office 
of Appeals of an adverse determination described in paragraph 
(2). 
‘‘(2) ADVERSE DETERMINATIONS.—For purposes of paragraph 
(1), an adverse determination is described in this paragraph 
if such determination is adverse to an organization with respect 
to— 
‘‘(A) the initial qualification or continuing qualification 
of the organization as exempt from tax under section 501(a) 
or as an organization described in section 170(c)(2), 
‘‘(B) the initial classification or continuing classification 
of the organization as a private foundation under section 
509(a), or 
‘‘(C) the initial classification or continuing classification 
of the organization as a private operating foundation under 
section 4942(j)(3).’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to determinations made on or after May 19, 2014. 
SEC. 405. ORGANIZATIONS REQUIRED TO NOTIFY SECRETARY OF 
INTENT TO OPERATE UNDER 501(c)(4). 
(a) IN GENERAL.—Part I of subchapter F of chapter 1 is 
amended by adding at the end the following new section: 
‘‘SEC. 506. ORGANIZATIONS REQUIRED TO NOTIFY SECRETARY OF 
INTENT TO OPERATE UNDER 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 sub-
section (a) shall include the following information: 
‘‘(1) The name, address, and taxpayer identification 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 organization. 
‘‘(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. 
‘‘(d) EXTENSION FOR REASONABLE CAUSE.—The Secretary may, 
for reasonable cause, extend the 60-day period described in sub-
section (a).
H. R. 2029—878 
‘‘(e) USER FEE.—The Secretary shall impose a reasonable user 
fee for submission of the notice under subsection (a). 
‘‘(f) REQUEST
FOR
DETERMINATION.—Upon request by an 
organization to be treated as an organization described in section 
501(c)(4), the Secretary may issue a determination with respect 
to such treatment. Such request shall be treated for purposes of 
section 6104 as an application for exemption from taxation under 
section 501(a).’’. 
(b) SUPPORTING INFORMATION WITH FIRST RETURN.—Section 
6033(f) is amended— 
(1) by striking the period at the end and inserting ‘‘, and’’, 
(2) by striking ‘‘include on the return required under sub-
section (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: 
‘‘(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 regu-
lation require in support of the organization’s treatment as 
an organization described in section 501(c)(4).’’. 
(c) FAILURE TO FILE INITIAL NOTIFICATION.—Section 6652(c) 
is amended by redesignating paragraphs (4), (5), and (6) as para-
graphs (5), (6), and (7), respectively, and by inserting after para-
graph (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 subparagraph 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 subject to penalty under 
subparagraph (A) specifying in such demand a reasonable 
future date by which the notice shall be submitted for 
purposes of this subparagraph. If such notice is not sub-
mitted 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 specified in the written demand 
during which such failure continues, but the total amount 
imposed under this subparagraph on all persons for failure 
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 is amended by adding at the end 
the following new item: 
‘‘Sec. 506. Organizations required to notify Secretary of intent to operate under 
501(c)(4).’’. 
(e) LIMITATION.—Notwithstanding any other provision of law, 
any fees collected pursuant to section 506(e) of the Internal Revenue 
Code of 1986, as added by subsection (a), shall not be expended 
by the Secretary of the Treasury or the Secretary’s delegate unless 
provided by an appropriations Act.
H. R. 2029—879 
(f) 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 Revenue Code of 1986 and organized 
after the date of the enactment of this Act. 
(2) CERTAIN EXISTING ORGANIZATIONS.—In the case of any 
other organization described in section 501(c)(4) of such Code, 
the amendments made 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 organization 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 subsection (a)(1) or (i) 
(as the case may be) of section 6033 of such Code. 
In the case of any organization to which the amendments 
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. 406. DECLARATORY JUDGMENTS FOR 501(c)(4) AND OTHER 
EXEMPT ORGANIZATIONS. 
(a) IN GENERAL.—Section 7428(a)(1) is amended by striking 
‘‘or’’ at the end of subparagraph (C) and by inserting after subpara-
graph (D) the following new subparagraph: 
‘‘(E) with respect to the initial qualification or con-
tinuing qualification of an organization as an organization 
described in section 501(c) (other than paragraph (3)) or 
501(d) and exempt 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. 407. TERMINATION OF EMPLOYMENT OF INTERNAL REVENUE 
SERVICE EMPLOYEES FOR TAKING OFFICIAL ACTIONS FOR 
POLITICAL PURPOSES. 
(a) IN GENERAL.—Paragraph (10) of section 1203(b) of the 
Internal Revenue Service Restructuring and Reform Act of 1998 
is amended to read as follows: 
‘‘(10) performing, delaying, or failing to perform (or threat-
ening to perform, delay, or fail to perform) any official action 
(including any audit) with respect to a taxpayer for purpose 
of extracting personal gain or benefit or for a political purpose.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect on the date of the enactment of this Act. 
SEC. 408. GIFT TAX NOT TO APPLY TO CONTRIBUTIONS TO CERTAIN 
EXEMPT ORGANIZATIONS. 
(a) IN GENERAL.—Section 2501(a) is amended by adding at 
the end the following new paragraph: 
‘‘(6) TRANSFERS TO CERTAIN EXEMPT ORGANIZATIONS.—Para-
graph (1) shall not apply to the transfer of money or other 
property to an organization described in paragraph (4), (5), 
or (6) of section 501(c) and exempt from tax under section 
501(a), for the use of such organization.’’.