Title: Spotlight Act
Policy area: Taxation

Summary:
Spotlight Act
This bill repeals an Internal Revenue Service (IRS) revenue procedure (Rev. Proc. 2018-38) that exempts certain tax-exempt organizations that are not 501(c)(3) organizations from the requirement to report the names and addresses of substantial contributors (persons who contribute more than $5,000 per year) on information returns that are filed with the IRS.
The bill requires tax-exempt organizations that fall under sections 501(c)(4), 501(c)(5), and 501(c)(6) of the Internal Revenue Code (e.g., social welfare organizations, labor organizations, business leagues) to disclose the names and addresses of all substantial contributors on their returns.
The bill also eliminates the authority of the IRS to provide exceptions to the disclosure requirements for tax-exempt organizations. This provision does not apply to determinations made by the IRS before July 16, 2018.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 276 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                 S. 276

   To amend the Internal Revenue Code of 1986 to require certain tax-
    exempt organizations to include on annual returns the names and 
     addresses of substantial contributors, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 30, 2019

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

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to require certain tax-
    exempt organizations to include on annual returns the names and 
     addresses of substantial contributors, and for other purposes.

    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 ``Spotlight Act''.

SEC. 2. INCLUSION OF CONTRIBUTOR INFORMATION ON ANNUAL RETURNS OF 
              CERTAIN ORGANIZATIONS.

    (a) Repeal of Revenue Procedure.--Revenue Procedure 2018-38 shall 
have no force and effect.
    (b) Inclusion of Contributor Information.--
            (1) Social welfare organizations.--Section 6033(f)(1) of 
        the Internal Revenue Code of 1986 is amended by inserting 
        ``(5),'' after ``paragraphs''.
            (2) Labor organizations and business leagues.--Section 6033 
        of such Code is amended by redesignating subsection (n) as 
        subsection (o) and by inserting after subsection (m) the 
        following new subsection:
    ``(n) Additional Requirements for Organizations Described in 
Subsections (c)(5) and (c)(6) of Section 501.--Every organization which 
is described in paragraph (5) or (6) of section 501(c) and which is 
subject to the requirements of subsection (a) shall include on the 
return required under subsection (a) the information referred to in 
subsection (b)(5).''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to returns required to be filed for taxable years 
        ending on or after December 31, 2018.
    (c) Modification to Discretionary Exceptions.--Section 
6033(a)(3)(B) of the Internal Revenue Code of 1986 is amended to read 
as follows:
                    ``(B) Discretionary exceptions.--
                            ``(i) In general.--Paragraph (1) shall not 
                        apply to any organization if the Secretary made 
                        a determination under this subparagraph before 
                        July 16, 2018, that such filing is not 
                        necessary to the efficient administration of 
                        the internal revenue laws.
                            ``(ii) Recommendations for other 
                        exceptions.--The Secretary may recommend to 
                        Congress that Congress relieve any organization 
                        required under paragraph (1) to file an 
                        information return from filing such a return if 
                        the Secretary determines that such filing does 
                        not advance a national security, law 
                        enforcement, or tax administration purpose.''.
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