Presidential Tax Filings and Audit Transparency Act of 2022
Bill: H.R.9640 | Sponsor: Rep. Neal, Richard E. (D-MA)
Policy area: Taxation

Summary:
Presidential Tax Filings and Audit Transparency Act of 2022
This bill requires the Internal Revenue Service (IRS) to conduct an examination to determine the correctness of a Presidential income tax return as rapidly as practicable after it is filed.
The IRS must disclose and make publicly available (on the internet) an initial report, periodic reports, and a final report on the examination of such tax returns. The final report must include the date on which the IRS examination of the return was completed, a list of audit materials, and a description of each proposed adjustment to a return and any controversy relating to its examination. This disclosure of tax return information is an exception to the general rule of confidentiality of taxpayer returns.
The bill provides criteria for approving a request for an extension of the filing of a tax return and for failing to file a return within the required time period.
The bill defines Presidential income tax return as any relevant income tax return of (1) a president while the president is in office, (2) the spouse of a president, (3) a corporation or partnership controlled by a president or a president's spouse, and (4) the estate of a president or a president's spouse.

To amend the Internal Revenue Code of 1986 to provide for examination 
    and disclosure with respect to Presidential income tax returns.

    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 ``Presidential Tax Filings and Audit 
Transparency Act of 2022''.

SEC. 2. EXAMINATION AND DISCLOSURE WITH RESPECT TO PRESIDENTIAL INCOME 
              TAX RETURNS.

    (a) Audit.--Subchapter A of chapter 78 of the Internal Revenue Code 
of 1986 is amended by redesignating section 7613 as section 7614 and by 
inserting after section 7612 the following new section:

``SEC. 7613. EXAMINATION WITH RESPECT TO PRESIDENTIAL INCOME TAX 
              RETURNS.

    ``(a) In General.--As rapidly as practicable after the filing of 
any Presidential income tax return, the Secretary shall conduct an 
examination to ascertain the correctness of such return and enforce the 
requirements of this title with respect to the taxable year covered by 
such return.
    ``(b) Reports.--
            ``(1) Initial report.--Not later than 90 days after the 
        filing of a Presidential income tax return, the Secretary shall 
        disclose and make publicly available an initial report 
        regarding the examination with respect to such return. Such 
        report shall include--
                    ``(A) the name of the taxpayer,
                    ``(B) an identification of the subparagraph of 
                subsection (c)(1) which describes such return,
                    ``(C) the date that such return was filed, and
                    ``(D) the date on which the examination with 
                respect to such return commenced (or, if such 
                examination has not commenced as of the date of such 
                report, a detailed description of the reasons that such 
                examination has not commenced).
            ``(2) Periodic reports.--Not later than 180 days after the 
        disclosure of the report described in paragraph (1) with 
        respect to any Presidential income tax return and not later 
        than 180 days after the most recent disclosure of a report 
        described in this paragraph with respect to such return, the 
        Secretary shall disclose and make publicly available a periodic 
        report regarding the examination with respect to such return. 
        Such report shall include--
                    ``(A) the information described in subparagraphs 
                (A) through (D) of paragraph (1),
                    ``(B) a description of the status of the 
                examination, including a description of the portions of 
                the examination which have been completed, which are in 
                process, and which are anticipated to take place, and
                    ``(C) an estimate of the time frame for the 
                completion of the examination, including an 
                identification of factors which could alter such time 
                frame, reasonable estimates of the likelihood of such 
                factors (taking into account the specific facts and 
                circumstances of the examination), and the likely 
                specific effects of such factors on such time frame.
        Notwithstanding the preceding sentence, a periodic report shall 
        not be required under this paragraph with respect to any return 
        after the date on which a final report is disclosed under 
        paragraph (3) with respect to such return.
            ``(3) Final report.--Not later than 90 days after the 
        completion of the examination described in subsection (a) with 
        respect to any Presidential income tax return, the Secretary 
        shall disclose and make publicly available a final report 
        regarding such examination. Such report shall include--
                    ``(A) the information described in subparagraphs 
                (A) through (C) of paragraph (1),
                    ``(B) the date on which the examination with 
                respect to such return was completed,
                    ``(C) a list of the audit materials (as defined in 
                section 6103(q)(2)) with respect to such examination, 
                and
                    ``(D) a description (including the amount) of each 
                proposed adjustment, adjustment, and controversy with 
                respect to such examination together with a description 
                of how such proposed adjustment or controversy was 
                resolved (or a statement that such proposed adjustment 
                or controversy was not resolved, as the case may be).
        For purposes of this paragraph, an examination shall be treated 
        as complete on the date that the Secretary provides the 
        taxpayer with a notice of deficiency, or any closing document 
        referred to in section 6103(q)(2)(A)(v), with respect to such 
        examination.
            ``(4) Extension of due date report.--If a request is made 
        for an extension of the due date for filing any Presidential 
        income tax return, the Secretary shall, not later than 90 days 
        after such request is granted or denied, disclose and make 
        publicly available an extension of due date report with respect 
        to return. Such report shall include--
                    ``(A) the information described in subparagraphs 
                (A) and (B) of paragraph (1),
                    ``(B) a statement that an extension of the due date 
                for the filing of such return has been requested,
                    ``(C) the date that such request was received,
                    ``(D) a statement of whether such request has been 
                granted or denied, and
                    ``(E) the due date of such return (including any 
                extensions).
            ``(5) Treatment of failure to file.--In the case of a 
        failure to file a Presidential income tax return before the 
        close of the 60-day period beginning with the date prescribed 
        for filing of such return--
                    ``(A) the Secretary shall conduct the examination 
                described in subsection (a) with respect to the taxable 
                year covered by the return to which such failure 
                relates,
                    ``(B) reports made pursuant to this paragraph shall 
                include a statement that such report is with respect to 
                a return which the taxpayer failed to file, and
                    ``(C) this section and section 6103(q) shall 
                otherwise apply to such failure in the same manner as 
                if a return were filed at the close of such period.
        The application of this paragraph with respect to any failure 
        to file a Presidential income tax return shall not prevent the 
        application of this section with respect to such return at such 
        time as such return may be filed.
            ``(6) Public availability.--For purposes of this 
        subsection, a document shall not be treated as having been made 
        publicly available unless made available on the Internet.
    ``(c) Presidential Income Tax Return.--For purposes of this 
section--
            ``(1) In general.--The term `Presidential income tax 
        return' means any relevant income tax return of--
                    ``(A) a President,
                    ``(B) an individual who is married (within the 
                meaning of section 7703(a)) to a President for the 
                taxable year to which such return relates,
                    ``(C) any corporation or partnership which is 
                controlled by any individual described in subparagraph 
                (A) or (B) at any time during the taxable year to which 
                such return relates,
                    ``(D) the estate of any person described in (A) or 
                (B) or any estate with respect to which any person 
                described in subparagraph (A), (B), or (C) is an 
                executor, or beneficiary at any time during the taxable 
                year to which such return relates, and
                    ``(E) any trust with respect to which any person 
                described in subparagraph (A), (B), (C), or (D) is a 
                grantor, fiduciary or beneficiary, or for which another 
                trust described in this subparagraph is a grantor or 
                beneficiary, at any time during the taxable year to 
                which such return relates.
        Such term shall include any schedule, attachment, or other 
        document filed with such return.
            ``(2) Relevant income tax return.--The term `relevant 
        income tax return' means, with respect to a President, any 
        income tax return if--
                    ``(A) any portion of the taxable year to which such 
                return relates is during the period that such President 
                is the President,
                    ``(B) the due date for such return (including any 
                extensions) is during such period, or
                    ``(C) such return is filed during such period.
            ``(3) Control.--For purposes of paragraph (1)(C)--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, control shall be determined under the 
                rules of paragraphs (2) and (3) of section 6038(e) 
                (determined without regard to subparagraphs (A) and (B) 
                of such paragraph (2) and without regard to 
                subparagraph (C) of paragraph (3) thereof).
                    ``(B) Restriction on family attribution.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), for purposes of applying 
                        subparagraph (A)--
                                    ``(I) section 318 shall applied 
                                without regard to subsection 
                                (a)(1)(A)(ii) thereof, and
                                    ``(II) section 267(c) shall applied 
                                by treating the family of an individual 
                                as including only such individual's 
                                spouse (in lieu of the application of 
                                paragraph (4) thereof).
                            ``(ii) Exception for recent transfer to 
                        family members.--For purposes of determining 
                        whether any corporation or partnership is 
                        controlled by a President under paragraph 
                        (1)(C) for any taxable year, clause (i) shall 
                        not apply if such corporation or partnership 
                        was controlled by such President (after 
                        application of clause (i)) at any time during 
                        the 4 immediately preceding taxable years.
    ``(d) Application to Amended Returns.--For purposes of this section 
and section 6103(q), any amendment or supplement to a return of tax 
shall be treated as a separate return of tax and the determination of 
when such amendment or supplement is filed, and whether such amendment 
or supplement is a relevant income tax return, shall be made without 
regard to the underlying return.''.
    (b) Disclosure.--Section 6103 of such Code is amended by 
redesignating subsection (q) as subsection (r) and by inserting after 
subsection (p) the following new subsection:
    ``(q) Disclosure With Respect to Presidential Income Tax Returns.--
            ``(1) In general.--The Secretary shall disclose and make 
        publicly available (within the meaning of section 7613(b))--
                    ``(A) each Presidential income tax return (as 
                defined in section 7613(c)),
                    ``(B) each report described in section 7613(b), and
                    ``(C) any audit materials with respect a return 
                described in subparagraph (A).
            ``(2) Audit materials.--The term `audit materials' means, 
        with respect to any return:
                    ``(A) Any of the following which are provided by 
                the Secretary to the taxpayer (or any designee of the 
                taxpayer):
                            ``(i) Any written communication which 
                        identifies such return as being subject to 
                        examination.
                            ``(ii) Any written communication which 
                        proposes the adjustment of any item on such 
                        return, any report by an examiner related to 
                        such proposed adjustment, and any supervisory 
                        approval of any penalty proposed as part of 
                        such adjustment.
                            ``(iii) Any memorandum or report of the 
                        Internal Revenue Service Independent Office of 
                        Appeals with respect to such return, and any 
                        denial of any request described in subparagraph 
                        (B).
                            ``(iv) Any notice of deficiency with 
                        respect to such return.
                            ``(v) Any closing documents with respect to 
                        the examination of such return, including any 
                        closing agreement or no change letter.
                    ``(B) Any request for referral to the Internal 
                Revenue Service Independent Office of Appeals of any 
                controversy with respect to such return.
                    ``(C) Any petition filed with the Tax Court for a 
                redetermination of any deficiency referred to in 
                subparagraph (A)(iv).
            ``(3) Exception for certain identity information.--The 
        information disclosed and made publicly available under 
        paragraph (1) shall not include any identification number of 
        any person (including any social security number), any 
        financial account number, the name of any individual who has 
        not attained age 18 (as of the close of the taxable year to 
        which the return relates), the name of any employee of the 
        Department of the Treasury, or any address (other than the city 
        and State in which such address is located).
            ``(4) Timing of disclosures.--Any information required to 
        be disclosed under paragraph (1) shall be disclosed and made 
        publicly available not later than--
                    ``(A) in the case of any income tax return referred 
                to in paragraph (1)(A), 90 days after the date that 
                such return is filed,
                    ``(B) in the case of any report referred to in 
                paragraph (1)(B), the deadline specified in section 
                7613(b) for disclosing such report, and
                    ``(C) in the case of the audit materials referred 
                to in paragraph (1)(C), 90 days after the completion of 
                the examination (within the meaning of section 
                7613(b)(3)) with respect to the return to which such 
                audit materials relate.''.
    (c) Clerical Amendment.--Subchapter A of chapter 78 of such Code is 
amended by redesignating the item relating to section 7613 as an item 
relating to section 7614 and by inserting after the item relating to 
section 7612 the following new item:

``Sec. 7613. Examination with respect to Presidential income tax 
                            returns.''.
    (d) Effective Date.--The amendments made by this subsection shall 
apply to returns, amendments, and supplements filed (and failures to 
file returns which occur) after the date of the enactment of this Act 
(and to reports and audit materials with respect to such returns, 
amendments, supplements, and failures).

            Passed the House of Representatives December 22, 2022.

            Attest:

                                                                 Clerk.
117th CONGRESS

  2d Session

                               H. R. 9640

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