Title: Charity Transparency Act of 2017
Policy area: Taxation

Summary:
Charity Transparency Act of 2017
This bill amends the Internal Revenue Code to require tax-exempt organizations to disclose details regarding employees and board members involved in terror finance activities.
An organization applying for tax-exempt status must disclose in its application the names and addresses of any officer, director, trustee, or highly compensated employee who, at any time prior to the date of the application, was:
In lieu of the disclosure, the organization may include a statement indicating that no officer, director, trustee, or highly compensated employee of the organization (or individual with similar powers and responsibilities) meets the criteria described above.
Tax-exempt organizations must also include either the required disclosure or the statement in annual tax returns filed after the enactment of this bill.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2058 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 2058

 To amend the Internal Revenue Code of 1986 to provide for disclosure 
for charity employees and board members previously implicated in terror 
                                finance.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 6, 2017

 Mr. Poe of Texas (for himself, Mr. Weber of Texas, Mr. Cook, and Mr. 
    Perry) 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 disclosure 
for charity employees and board members previously implicated in terror 
                                finance.

    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 ``Charity Transparency Act of 2017''.

SEC. 2. DISCLOSURE FOR CHARITY EMPLOYEES AND BOARD MEMBERS PREVIOUSLY 
              IMPLICATED IN TERROR FINANCE.

    (a) Application for Exemption.--Section 501 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following:
    ``(s) Disclosure for Charity Employees and Board Members Previously 
Implicated in Terror Finance.--
            ``(1) In general.--An application of an organization for 
        exemption from tax under subsection (a) shall not be treated as 
        complete unless the application contains--
                    ``(A) the disclosures required by paragraph (2), or
                    ``(B) a statement that no officer, director, 
                trustee, or highly compensated employee of the 
                organization (or an individual having powers or 
                responsibilities similar to those of officers, 
                directors, trustees, or highly compensated employees of 
                the organization) is described in subparagraph (A), 
                (B), or (C) of paragraph (2).
            ``(2) Required disclosures.--The disclosures required by 
        this paragraph are the names and addresses of any officer, 
        director, trustee, or highly compensated employee of the 
        organization who, at any time before the date of the 
        application--
                    ``(A) was a member or employee of an organization 
                described in paragraph (3),
                    ``(B) was an unindicted coconspirator with respect 
                to a terror finance scheme of an organization described 
                in paragraph (3), or
                    ``(C) was an employee of any charity found liable 
                under section 2333 of title 18, United States Code.
            ``(3) Organization described.--An organization is described 
        in this paragraph if--
                    ``(A) the organization is named on the Designated 
                Charities and Potential Fundraising Front Organizations 
                for FTOs list, published by the Department of the 
                Treasury, or
                    ``(B) the organization's property is blocked 
                pending investigation by the Office of Foreign Assets 
                Control, Department of the Treasury.''.
    (b) Annual Reporting.--Section 6033 of such Code is amended by 
redesignating subsection (n) as subsection (o) and by inserting after 
subsection (m) the following:
    ``(n) Disclosure for Charity Employees and Board Members Previously 
Implicated in Terror Finance.--
            ``(1) In general.--The annual return required of an 
        organization by subsection (a) shall not be treated as complete 
        unless the return contains--
                    ``(A) the disclosures required by paragraph (2), or
                    ``(B) a statement that no officer, director, 
                trustee, or highly compensated employee of the 
                organization (or an individual having powers or 
                responsibilities similar to those of officers, 
                directors, trustees, or highly compensated employees of 
                the organization) is described in subparagraph (A), 
                (B), or (C) of paragraph (2).
            ``(2) Required disclosures.--The disclosures required by 
        this paragraph are the names and addresses of any officer, 
        director, trustee, or highly compensated employee of the 
        organization who, at any time before the date of the 
        application--
                    ``(A) was a member or employee of an organization 
                described in paragraph (3),
                    ``(B) was an unindicted coconspirator with respect 
                to a terror finance scheme of an organization described 
                in paragraph (3), or
                    ``(C) was an employee of any charity found liable 
                under section 2333 of title 18, United States Code.
            ``(3) Organization described.--An organization is described 
        in this paragraph if--
                    ``(A) the organization is described in section 
                501(c) and exempt from tax under section 501(a),
                    ``(B) the organization is named on the Designated 
                Charities and Potential Fundraising Front Organizations 
                for FTOs list, published by the Department of the 
                Treasury, or
                    ``(C) the organization's property is blocked 
                pending investigation by the Office of Foreign Assets 
                Control, Department of the Treasury.''.
    (c) Effective Date.--
            (1) The amendment made by subsection (a) shall apply to 
        applications filed after the date of the enactment of this Act.
            (2) The amendment made by subsection (b) shall apply to 
        returns filed for taxable years beginning after the date of the 
        enactment of this Act.
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