Title: Charities Helping Americans Regularly Throughout the Year Act of 2019
Policy area: Taxation

Summary:
Charities Helping Americans Regularly Throughout the Year Act of 2019
This bill modifies several tax provisions in the Internal Revenue Code affecting charitable contributions and tax-exempt organizations.
The Internal Revenue Service may determine the standard mileage rate for deducting the cost of using a passenger automobile for charitable purposes (currently set by statute at 14 cents per mile), and that rate may not be less than the rate for medical purposes (20 cents per mile in 2019).
The bill requires tax-exempt organizations to file their returns in electronic form.
The bill excludes from the gross income of an individual who is at least 70-1/2 years of age up to $100,000 in distributions from an individual retirement plan to a donor advised fund (DAF). The bill also modifies disclosure requires for DAFs. (A DAF is a fund or account that is separately identified by reference to contributions of a donor or donors. The account is owned and controlled by a sponsoring charitable organization, while the donor retains advisory privileges with respect to the distribution and investment of funds in the account.)
The bill reduces from 2% to 1% the excise tax on the investment income of private foundations and eliminates a provision that reduces the rate to 1% if a foundation meets certain distribution requirements.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1475 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 1475

    To amend the Internal Revenue Code to extend and modify certain 
                       charitable tax provisions.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 15, 2019

    Mr. Thune (for himself, Mr. Casey, Mr. Wyden, and Mr. Roberts) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code to extend and modify certain 
                       charitable tax provisions.

    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 ``Charities Helping Americans 
Regularly Throughout the Year Act of 2019''.

SEC. 2. DETERMINATION OF STANDARD MILEAGE RATE FOR CHARITABLE 
              CONTRIBUTIONS DEDUCTION.

    (a) Determination of Standard Mileage Rate for Charitable 
Contributions Deduction.--Subsection (i) of section 170 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(i) Standard Mileage Rate for Use of Passenger Automobile.--For 
purposes of computing the deduction under this section for use of a 
passenger automobile, the standard mileage rate shall be the rate 
determined by the Secretary, which rate shall not be less than the 
standard mileage rate used for purposes of section 213.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to miles traveled after the date of the enactment of this Act.

SEC. 3. MANDATORY E-FILING BY EXEMPT ORGANIZATIONS.

    (a) In General.--Section 6033 of the Internal Revenue Code of 1986 
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) Conforming Amendment.--Paragraph (7) of section 527(j) of such 
Code is amended by striking ``if the organization has'' and all that 
follows through ``such calendar year''.
    (c) Inspection of Electronically Filed Annual Returns.--Subsection 
(b) of section 6104 of such Code 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.--
                    (A) Small organizations.--
                            (i) In general.--In the case of any small 
                        organizations, or any other organizations for 
                        which the Secretary of the Treasury or the 
                        Secretary's delegate (hereafter 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 2 years after of the enactment of this 
                        Act.
                            (ii) Small organization.--For purposes of 
                        clause (i), the term ``small organization'' 
                        means any organization--
                                    (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 unrelated 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 2 years after of the 
                enactment of this Act.

SEC. 4. MODIFICATION OF RULES RELATING TO DONOR ADVISED FUNDS.

    (a) Allowance of Tax-Free Charitable Distributions From Individual 
Retirement Accounts.--
            (1) In general.--Clause (i) of section 408(d)(8)(B) of the 
        Internal Revenue Code of 1986 is amended by striking ``or any 
        fund or account described in section 4966(d)(2)''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to distributions made in taxable years beginning 
        after December 31, 2018.
    (b) Return Disclosures.--
            (1) Distributions.--Subsection (k) of section 6033 of the 
        Internal Revenue Code of 1986 is amended--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting a comma; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(4) list the total number of such funds which were in 
        existence for the 36-month period ending at the close of such 
        taxable year,
            ``(5) list the total number of funds described in paragraph 
        (4) which made at least 1 grant during the period described in 
        such paragraph, and
            ``(6) set forth--
                    ``(A) whether such organization has a publicly 
                available policy with respect to funds which are 
                inactive, dormant, or do not make distributions during 
                the period described in paragraph (4),
                    ``(B) a description of the organization's policy 
                for responding to funds described in subparagraph (A) 
                or a statement that no such policy is in effect, and
                    ``(C) whether such organization regularly and 
                consistently monitors and enforces compliance with the 
                policy described in subparagraph (A) with respect to 
                such funds.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to returns for taxable years beginning after 
        December 31, 2019.

SEC. 5. MODIFICATION OF THE TAX RATE FOR THE EXCISE TAX ON INVESTMENT 
              INCOME OF PRIVATE FOUNDATIONS.

    (a) In General.--Section 4940(a) of the Internal Revenue Code of 
1986 is amended by striking ``2 percent'' and inserting ``1 percent''.
    (b) Elimination of Reduced Tax Where Foundation Meets Certain 
Distribution Requirements.--Section 4940 of such Code is amended by 
striking subsection (e).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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