Title: Uncovering Foreign Influence in the United States Act of 2019
Policy area: Taxation

Summary:
Uncovering Foreign Influence in the United States Act of 2019
This bill establishes additional disclosure requirements for certain tax-exempt organizations that receive foreign source contributions. The bill also imposes an excise tax on a U.S. person who fails to disclose a political contribution that is made on behalf of or funded by a person other than a U.S. person or bona fide resident of a U.S. possession.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 703 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 703

To amend the Internal Revenue Code of 1986 to make public the names and 
 addresses of foreign persons contributing $50,000 or more to certain 
tax-exempt organizations and to require disclosure of foreign campaign 
                             contributions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 22, 2019

 Mr. Conaway 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 make public the names and 
 addresses of foreign persons contributing $50,000 or more to certain 
tax-exempt organizations and to require disclosure of foreign campaign 
                             contributions.

    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 ``Uncovering Foreign Influence in the 
United States Act of 2019''.

SEC. 2. PUBLIC AVAILABILITY OF 501(C)(3) ANNUAL RETURN INFORMATION 
              RELATING TO FOREIGN PERSON CONTRIBUTIONS.

    (a) Secretary.--Section 6104(b) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``509(a) or'' and inserting ``509(a),'';
            (2) by inserting ``, or as provided in the last sentence of 
        this subsection'' after ``under section 527''; and
            (3) by adding at the end the following: ``Organizations 
        described in section 501(c)(3) shall make available to the 
        public in the same manner as information under the first 
        sentence of this subsection the name and address of each 
        foreign person (as defined in subsection (d)(3)(C)) who 
        contributed $50,000 or more to the organization for the taxable 
        year.''.
    (b) Organization.--Section 6104(d)(3) of such Code is amended by 
adding at the end the following new subparagraph:
                    ``(C) Disclosure of certain contributions from 
                foreign persons.--
                            ``(i) In general.--Subparagraph (A) shall 
                        not apply in the case of the name and address 
                        of a foreign person required under the last 
                        sentence of subsection (b) to be made available 
                        to the public.
                            ``(ii) Foreign person.--For purposes of 
                        this subsection, the term `foreign person' 
                        means--
                                    ``(I) any person who is not a 
                                United States person (as defined in 
                                section 7701(a)(30),
                                    ``(II) any foreign government or 
                                foreign governmental entity (or any 
                                entity owned by, controlled by, or 
                                consisting of one or more thereof), or
                                    ``(III) any corporation which is 
                                foreign owned (within the meaning of 
                                section 269B(e)(2)).
                        Such term shall include such partnerships, 
                        trusts, associations, estates, or other forms 
                        of carrying on a business or activity as the 
                        Secretary shall by regulation prescribe based 
                        on rules similar to the rules of subparagraph 
                        (A)(iii).
                            ``(iii) Coordination with reporting 
                        relating to contributions made through 
                        intermediaries.--For purposes of this 
                        subparagraph and the last sentence of 
                        subsection (b), any foreign person with respect 
                        to whom a written statement is furnished to the 
                        organization under section 6050X(c) shall be 
                        treated as having made to the organization the 
                        contribution to which such statement 
                        relates.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to returns for taxable years beginning after December 31, 2018.

SEC. 3. REPORTING REQUIREMENTS FOR FOREIGN CONTRIBUTIONS TO 501(C)(3) 
              ORGANIZATIONS THROUGH INTERMEDIARIES.

    (a) In General.--Subpart B of part III of subchapter A of chapter 
61 of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 6050X. RETURNS RELATING TO FOREIGN CONTRIBUTIONS TO 501(C)(3) 
              ORGANIZATIONS THROUGH INTERMEDIARIES.

    ``(a) In General.--A return shall be made by any person who as an 
intermediary makes a contribution on behalf of a foreign person to an 
applicable exempt organization with the reasonable expectation that in 
connection with such contribution such organization will perform policy 
analysis for the benefit of such foreign person.
    ``(b) Form and Manner of Return.--Such return shall--
            ``(1) be made at such time and in such form and manner as 
        the Secretary shall prescribe, and
            ``(2) contain the name and address of the foreign person 
        and the amount of the contribution to which such return 
        relates.
    ``(c) Statement Shall Be Furnished to Organization.--Every person 
required to make a return under subsection (a) with respect to a 
contribution shall furnish to the organization to which such 
contribution was made a written statement showing--
            ``(1) the information required to be shown on the return 
        under subsection (a), and
            ``(2) the name and address of the person required to make 
        such return.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Foreign person.--The term `foreign person' has the 
        meaning given such term by section 6104(d)(3)(C)(ii).
            ``(2) Applicable exempt organization.--The term `applicable 
        exempt organization' means an organization described in section 
        501(c)(3) and exempt from tax under section 501(a).''.
    (b) Clerical Amendment.--The table of sections for subpart B of 
part III of subchapter A of chapter 61 of such Code is amended by 
adding at the end the following new item:

``Sec. 6050X. Returns relating to foreign contributions to 501(c)(3) 
                            organizations through intermediaries.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made after December 31, 2018.

SEC. 4. IMPOSITION OF TAX ON UNDISCLOSED FOREIGN CONTRIBUTIONS.

    (a) In General.--Subtitle D of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new chapter:

                  ``CHAPTER 50A--FOREIGN CONTRIBUTIONS

``Sec. 5000D. Imposition of tax on undisclosed foreign contributions.

``SEC. 5000D. IMPOSITION OF TAX ON UNDISCLOSED FOREIGN CONTRIBUTIONS.

    ``(a) Imposition of Tax.--In the case of a United States person who 
makes an applicable foreign-source political contribution and fails to 
disclose such contribution during the 30-day period beginning on the 
date such contribution was made, there is hereby imposed on any such 
failure a tax equal to the applicable percentage of the amount of such 
contribution.
    ``(b) Applicable Percentage.--For purposes of this section, the 
applicable percentage shall be 10 percent, increased by 10 percentage 
points (but not to more than 100 percent) for each subsequent 30-day 
period (or fraction thereof) thereafter during which such failure 
continues.
    ``(c) Applicable Foreign-Source Political Contribution.--For 
purposes of this section, the term `applicable foreign-source political 
contribution' means any contribution directly or indirectly for the 
benefit of a candidate for Federal, State, or local elected office in 
the United States which is made on behalf of, or is funded by, a person 
other than a United States person or bona fide resident (as defined in 
section 937(a)) of a possession of the United States.
    ``(d) Form and Manner of Disclosure.--The disclosure required under 
subsection (a) shall be made to the Secretary, and shall be made 
publicly available, in such form and manner as the Secretary shall 
prescribe. Such disclosure shall include the amount of the contribution 
and shall identify on whose behalf such contribution was made.''.
    (b) Clerical Amendment.--The table of chapters for subtitle D of 
such Code is amended by adding at the end the following new item:

                ``Chapter 50A. Foreign Contributions''.

    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made after December 31, 2018.
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