II 118th CONGRESS 1st Session S. 1272 IN THE SENATE OF THE UNITED STATES April 25, 2023 Mr. Wyden (for himself, Mr. Sanders , Mr. Whitehouse , Ms. Cantwell , Ms. Warren , Mr. Van Hollen , Mr. Kaine , Mr. Welch , Ms. Klobuchar , Mr. Cardin , and Mr. Markey ) 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 provide for examination and disclosure with respect to Presidential income tax returns, to amend the Ethics in Government Act of 1978 to require the disclosure of certain tax returns by Presidents and certain candidates for the office of the President, and for other purposes.

1. Short title This Act may be cited as the Presidential Audit and Tax Transparency Act . 2. Examination and disclosure with respect to Presidential income tax returns (a) Audit Subchapter A of chapter 78 of the Internal Revenue Code of 1986 is amended by redesignating section 7613 as section 7614 and by inserting after section 7612 the following new section: 7613. Examination with respect to Presidential income tax returns (a) In general As rapidly as practicable after the filing of any Presidential income tax return, the Secretary shall conduct an examination to ascertain the correctness of such return and enforce the requirements of this title with respect to the taxable year covered by such return. (b) Reports (1) Initial report Not later than 90 days after the filing of a Presidential income tax return, the Secretary shall disclose and make publicly available an initial report regarding the examination with respect to such return. Such report shall include— (A) the name of the taxpayer, (B) an identification of the subparagraph of subsection (c)(1) which describes such return, (C) the date that such return was filed, and (D) the date on which the examination with respect to such return commenced (or, if such examination has not commenced as of the date of such report, a detailed description of the reasons that such examination has not commenced). (2) Periodic reports Not later than 180 days after the disclosure of the report described in paragraph (1) with respect to any Presidential income tax return and not later than 180 days after the most recent disclosure of a report described in this paragraph with respect to such return, the Secretary shall disclose and make publicly available a periodic report regarding the examination with respect to such return. Such report shall include— (A) the information described in subparagraphs (A) through (D) of paragraph (1), (B) a description of the status of the examination, including a description of the portions of the examination which have been completed, which are in process, and which are anticipated to take place, and (C) an estimate of the time frame for the completion of the examination, including an identification of factors which could alter such time frame, reasonable estimates of the likelihood of such factors (taking into account the specific facts and circumstances of the examination), and the likely specific effects of such factors on such time frame. Notwithstanding the preceding sentence, a periodic report shall not be required under this paragraph with respect to any return after the date on which a final report is disclosed under paragraph (3) with respect to such return. (3) Final report Not later than 90 days after the completion of the examination described in subsection (a) with respect to any Presidential income tax return, the Secretary shall disclose and make publicly available a final report regarding such examination. Such report shall include— (A) the information described in subparagraphs (A) through (C) of paragraph (1), (B) the date on which the examination with respect to such return was completed, (C) a list of the audit materials (as defined in section 6103(q)(2)) with respect to such examination, and (D) a description (including the amount) of each proposed adjustment, adjustment, and controversy with respect to such examination together with a description of how such proposed adjustment or controversy was resolved (or a statement that such proposed adjustment or controversy was not resolved, as the case may be). For purposes of this paragraph, an examination shall be treated as complete on the date that the Secretary provides the taxpayer with a notice of deficiency, or any closing document referred to in section 6103(q)(2)(A)(v), with respect to such examination. (4) Extension of due date report If a request is made for an extension of the due date for filing any Presidential income tax return, the Secretary shall, not later than 90 days after such request is granted or denied, disclose and make publicly available an extension of due date report with respect to return. Such report shall include— (A) the information described in subparagraphs (A) and (B) of paragraph (1), (B) a statement that an extension of the due date for the filing of such return has been requested, (C) the date that such request was received, (D) a statement of whether such request has been granted or denied, and (E) the due date of such return (including any extensions). (5) Treatment of failure to file In the case of a failure to file a Presidential income tax return before the close of the 60-day period beginning with the date prescribed for filing of such return— (A) the Secretary shall conduct the examination described in subsection (a) with respect to the taxable year covered by the return to which such failure relates, (B) reports made pursuant to this paragraph shall include a statement that such report is with respect to a return which the taxpayer failed to file, and (C) this section and section 6103(q) shall otherwise apply to such failure in the same manner as if a return were filed at the close of such period. The application of this paragraph with respect to any failure to file a Presidential income tax return shall not prevent the application of this section with respect to such return at such time as such return may be filed. (6) Public availability For purposes of this subsection, a document shall not be treated as having been made publicly available unless made available on the Internet. (c) Presidential income tax return For purposes of this section— (1) In general The term Presidential income tax return means any relevant income tax return of— (A) a President, (B) an individual who is married (within the meaning of section 7703(a)) to a President for the taxable year to which such return relates, (C) any corporation or partnership which is controlled by any individual described in subparagraph (A) or (B) at any time during the taxable year to which such return relates, (D) the estate of any person described in (A) or (B) or any estate with respect to which any person described in subparagraph (A), (B), or (C) is an executor or beneficiary at any time during the taxable year to which such return relates, and (E) any trust with respect to which any person described in subparagraph (A), (B), (C), or (D) is a grantor, fiduciary, or beneficiary, or for which another trust described in this subparagraph is a grantor or beneficiary, at any time during the taxable year to which such return relates. Such term shall include any schedule, attachment, or other document filed with such return. (2) Relevant income tax return The term relevant income tax return means, with respect to a President, any income tax return if— (A) any portion of the taxable year to which such return relates is during the period that such President is the President, (B) the due date for such return (including any extensions) is during such period, or (C) such return is filed during such period. (3) Control For purposes of paragraph (1)(C)— (A) In general Except as otherwise provided in this paragraph, control shall be determined under the rules of paragraphs (2) and (3) of section 6038(e) (determined without regard to subparagraphs (A) and (B) of such paragraph (2) and without regard to subparagraph (C) of paragraph (3) thereof). (B) Restriction on family attribution (i) In general Except as provided in clause (ii), for purposes of applying subparagraph (A)— (I) section 318 shall be applied without regard to subsection (a)(1)(A)(ii) thereof, and (II) section 267(c) shall be applied by treating the family of an individual as including only such individual’s spouse (in lieu of the application of paragraph (4) thereof). (ii) Exception for recent transfer to family members For purposes of determining whether any corporation or partnership is controlled by a President under paragraph (1)(C) for any taxable year, clause (i) shall not apply if such corporation or partnership was controlled by such President (after application of clause (i)) at any time during the 4 immediately preceding taxable years. (d) Application to amended returns For purposes of this section and section 6103(q), any amendment or supplement to a return of tax shall be treated as a separate return of tax and the determination of when such amendment or supplement is filed, and whether such amendment or supplement is a relevant income tax return, shall be made without regard to the underlying return. . (b) Disclosure Section 6103 of such Code is amended by redesignating subsection (q) as subsection (r) and by inserting after subsection (p) the following new subsection: (q) Disclosure with respect to Presidential income tax returns (1) In general The Secretary shall disclose and make publicly available (within the meaning of section 7613(b))— (A) each Presidential income tax return (as defined in section 7613(c)), (B) each report described in section 7613(b), and (C) any audit materials with respect a return described in subparagraph (A). (2) Audit materials The term audit materials means, with respect to any return: (A) Any of the following which are provided by the Secretary to the taxpayer (or any designee of the taxpayer): (i) Any written communication which identifies such return as being subject to examination. (ii) Any written communication which proposes the adjustment of any item on such return, any report by an examiner related to such proposed adjustment, and any supervisory approval of any penalty proposed as part of such adjustment. (iii) Any memorandum or report of the Internal Revenue Service Independent Office of Appeals with respect to such return, and any denial of any request described in subparagraph (B). (iv) Any notice of deficiency with respect to such return. (v) Any closing documents with respect to the examination of such return, including any closing agreement or no change letter. (B) Any request for referral to the Internal Revenue Service Independent Office of Appeals of any controversy with respect to such return. (C) Any petition filed with the Tax Court for a redetermination of any deficiency referred to in subparagraph (A)(iv). (3) Exception for certain identity information The information disclosed and made publicly available under paragraph (1) shall not include any identification number of any person (including any social security number), any financial account number, the name of any individual who has not attained age 18 (as of the close of the taxable year to which the return relates), the name of any employee of the Department of the Treasury, or any address (other than the city and State in which such address is located). (4) Timing of disclosures Any information required to be disclosed under paragraph (1) shall be disclosed and made publicly available not later than— (A) in the case of any income tax return referred to in paragraph (1)(A), 90 days after the date that such return is filed, (B) in the case of any report referred to in paragraph (1)(B), the deadline specified in section 7613(b) for disclosing such report, and (C) in the case of the audit materials referred to in paragraph (1)(C), 90 days after the completion of the examination (within the meaning of section 7613(b)(3)) with respect to the return to which such audit materials relate. . (c) Clerical amendment Subchapter A of chapter 78 of such Code is amended by redesignating the item relating to section 7613 as an item relating to section 7614 and by inserting after the item relating to section 7612 the following new item: Sec. 7613. Examination with respect to Presidential income tax returns. . (d) Effective date The amendments made by this subsection shall apply to returns, amendments, and supplements filed (and failures to file returns which occur) after the date of the enactment of this Act (and to reports and audit materials with respect to such returns, amendments, supplements, and failures). 3. Additional disclosure of tax returns by Presidents and certain Presidential candidates (a) In general (1) Disclosure requirement Title I of the Ethics in Government Act of 1978 (5 U.S.C. App.) is amended— (A) by inserting after section 102 the following: 102A. Disclosure of tax returns (a) Definitions In this section: (1) Applicable income tax return (A) In general The term applicable income tax return means, with respect to any taxable year, any return (within the meaning of section 6103(b) of the Internal Revenue Code of 1986) relating to Federal income taxes of— (i) a covered candidate or covered individual; (ii) an individual who is married (within the meaning of section 7703(a) of the Internal Revenue Code of 1986) to a covered candidate or covered individual for the taxable year; (iii) any corporation or partnership that was controlled (as determined under section 7613(c)(3) of the Internal Revenue Code of 1986) by an individual described in clause (i) or (ii) at any time during the taxable year; (iv) the estate of any person described in clause (i) or (ii) or any estate with respect to which any person described in clause (i), (ii), or (iii) is an executor or beneficiary at any time during the taxable year; and (v) any trust with respect to which any person described in clause (i), (ii), (iii), or (iv) is a grantor, fiduciary, or beneficiary, or for which another trust described in this clause is a grantor or beneficiary, at any time during the taxable year. (B) Inclusion of certain documents Such term shall include any schedule, attachment, or other document filed with such return. (2) Covered candidate The term covered candidate means an individual— (A) required to file a report under section 101(c); and (B) who is nominated by a major party as a candidate for the office of President, regardless of whether the individual is nominated after May 15 of an applicable year. (3) Covered individual The term covered individual means— (A) a President required to file a report under subsection (a) or (d) of section 101; and (B) an individual who occupies the office of the President required to file a report under section 101(e). (4) Major party The term major party has the meaning given the term in section 9002 of the Internal Revenue Code of 1986. (b) Disclosure (1) Covered individuals (A) In general In addition to the information described in subsections (a) and (b) of section 102, a covered individual shall include in each report required to be filed under this title a copy of all applicable income tax returns for the 3 most recent taxable years for which a return has been filed with the Internal Revenue Service as of the date on which the report is filed. (B) Failure to disclose If an income tax return is not disclosed under subparagraph (A), the Director of the Office of Government Ethics shall submit to the Secretary of the Treasury a request that the Secretary of the Treasury provide the Director of the Office of Government Ethics with a copy of the income tax return. (C) Publicly available Each income tax return submitted under this paragraph shall be filed with the Director of the Office of Government Ethics and made publicly available in the same manner as the information described in subsections (a) and (b) of section 102. (D) Redaction of certain information Before making any income tax return submitted under this paragraph available to the public, the Director of the Office of Government Ethics shall redact such information as the Director of the Office of Government Ethics, in consultation with the Secretary of the Treasury (or a delegate of the Secretary), determines appropriate. (2) Covered candidates (A) In general Not later than 15 days after the date on which a covered candidate is nominated, the covered candidate shall amend the report filed by the covered candidate under section 101(c) with the Federal Election Commission to include a copy of the applicable income tax returns for the 3 most recent taxable years for which a return has been filed with the Internal Revenue Service. (B) Failure to disclose If an applicable income tax return is not disclosed under subparagraph (A), the Federal Election Commission shall submit to the Secretary of the Treasury a request that the Secretary of the Treasury provide the Federal Election Commission with the applicable income tax return. (C) Publicly available Each applicable income tax return submitted under this paragraph shall be filed with the Federal Election Commission and made publicly available in the same manner as the information described in section 102(b). (D) Redaction of certain information Before making any applicable income tax return submitted under this paragraph available to the public, the Federal Election Commission shall redact such information as the Federal Election Commission, in consultation with the Secretary of the Treasury (or a delegate of the Secretary) and the Director of the Office of Government Ethics, determines appropriate. (3) Special rule with respect to returns disclosed under other authority For purposes of this subsection, in the case of any applicable income tax return which has been made publicly available pursuant to section 6103(q) of the Internal Revenue Code of 1986, the requirements of paragraphs (1)(A) and (2)(A) shall be satisfied with respect to such return if the covered individual or covered candidate (as the case may be) provides the location on the Internet where such disclosure has been made publicly available. ; and (B) in section 104— (i) in subsection (a)— (I) in paragraph (1), in the first sentence, by inserting or any individual who knowingly and willfully falsifies or who knowingly and willfully fails to file an applicable income tax return that such individual is required to disclose pursuant to section 102A before the period; and (II) in paragraph (2)(A)— (aa) in clause (i), by inserting or falsify any applicable income tax return that such person is required to disclose under section 102A before the semicolon; and (bb) in clause (ii), by inserting or fail to file any applicable income tax return that such person is required to disclose under section 102A before the period; (ii) in subsection (b), in the first sentence by inserting or willfully failed to file or has willfully falsified an applicable income tax return required to be disclosed under section 102A before the period; (iii) in subsection (c), by inserting or failing to file or falsifying an applicable income tax return required to be disclosed under section 102A before the period; and (iv) in subsection (d)(1)— (I) in the matter preceding subparagraph (A), by inserting or files an applicable income tax return required to be disclosed under section 102A after title ; and (II) in subparagraph (A), by inserting or such applicable income tax return, as applicable, after report . (2) Special rule for individuals who are covered candidates on date of enactment In the case of any individual who is a covered candidate (as defined in section 102A of the Ethics in Government Act of 1978, as added by paragraph (1)) on the date of the enactment of this Act, section 102A(b)(2)(A) shall be applied by substituting 30 days after the date of the enactment of the Presidential Audit and Tax Transparency Act for 15 days after the date on which a covered candidate is nominated . (b) Authority To disclose information (1) In general Section 6103(l) of the Internal Revenue Code of 1986 is amended by adding at the end the following: (23) Disclosure of return information of Presidents and certain Presidential candidates under Ethics in Government Act of 1978 (A) Disclosure of returns of Presidents (i) In general The Secretary shall, upon written request from the Director of the Office of Government Ethics pursuant to section 102A(b)(1)(B) of the Ethics in Government Act of 1978 provide to officers and employees of the Office of Government Ethics a copy of each applicable income tax return with respect to any covered individual who has been identified in such request. (ii) Disclosure to public The Director of the Office of Government Ethics may disclose to the public any applicable income tax return required to be submitted to the Director pursuant to section 102A(b)(1) of the Ethics in Government Act of 1978. (B) Disclosure of returns of certain candidates for President (i) In general The Secretary shall, upon written request from the Chairman of the Federal Election Commission pursuant to section 102A(b)(2)(B) of the Ethics in Government Act of 1978, provide to officers and employees of the Federal Election Commission a copy of each applicable income tax return with respect to any covered candidate who has been identified in such request. (ii) Disclosure to public The Federal Election Commission may disclose to the public any applicable income tax return required to be filed with the Commission pursuant to section 102A(b)(2) of the Ethics in Government Act. (C) Definitions For purposes of this paragraph, the terms applicable income tax return , covered individual , and covered candidate have the meanings given those terms in section 102A of the Ethics in government Act of 1978. . (2) Conforming amendments Section 6103(p)(4) of the Internal Revenue Code of 1986, in the matter preceding subparagraph (A) and in subparagraph (F)(ii), is amended by striking or (22) and inserting (22), or (23) each place it appears.