Title: To amend the Internal Revenue Code of 1986 to provide for waivers of user fees imposed with respect to applications for reinstatement of tax-exempt status of small, subsidiary tax-exempt organizations.
Policy area: Taxation

Summary:
This bill requires (1) the reinstatement of the tax-exempt status of a tax-exempt subsidiary organization with fewer than 50 members whose tax-exempt status was revoked due to failure to file required tax returns or notices, and (2) a waiver of any user fee charged in connection with a reinstatement application. As a condition for reinstatement, the organization must file any required returns or notices.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 177 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 177

 To amend the Internal Revenue Code of 1986 to provide for waivers of 
  user fees imposed with respect to applications for reinstatement of 
    tax-exempt status of small, subsidiary tax-exempt organizations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 3, 2019

 Mr. Griffith 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 waivers of 
  user fees imposed with respect to applications for reinstatement of 
    tax-exempt status of small, subsidiary tax-exempt organizations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. WAIVER OF USER FEES ON REINSTATEMENT APPLICATIONS OF 
              REINSTATED SMALL, SUBSIDIARY TAX-EXEMPT ORGANIZATIONS 
              AFTER AUTOMATIC REVOCATION.

    (a) In General.--Section 6033(j) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(4) Waiver of user fee on reinstatement applications for 
        certain tax-exempt subsidiaries.--If, upon application for 
        reinstatement of status as an organization exempt from tax 
        under section 501(a), an organization described in paragraph 
        (1) can show that--
                    ``(A) the organization has, after the failure 
                described in paragraph (1), filed any return or notice 
                with respect to which such failure to file triggered 
                the automatic revocation referred to in paragraph (1), 
                and
                    ``(B) the organization--
                            ``(i) is a subsidiary of an entity that is 
                        exempt from tax under section 501(a), and
                            ``(ii) that subsidiary, for each of the 3 
                        consecutive years referred to in paragraph (1) 
                        relating to such failure, has fewer than 50 
                        members (as reported to such entity),
        the organization's exempt status shall be reinstated effective 
        from the date of the revocation under such paragraph and the 
        Secretary shall waive any user fee imposed with respect to such 
        application.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to applications for reinstatement filed after the 
date of the enactment of this Act.
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