Notice for Organizations That Include Charities is Essential (NOTICE) Act

Bill: 113-s-2351
Sponsor: full_name: Sen. Coats, Daniel [R-IN]
Introduced: 2014-05-15
Policy area: Taxation
Subjects: Tax administration and collection, taxpayers

Tax-exempt organizations
Latest action: action_date: 2014-05-15
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2014-05-15
action_desc: Introduced in Senate
text: <p>Notice for Organizations That Include Charities is Essential (NOTICE) Act - Amends the Internal Revenue Code to require the Secretary of the Treasury to notify any tax-exempt organization, not later than 300 days after such an organization fails to file its annual tax return or other required information for two consecutive years, that: (1) the Internal Revenue Service (IRS) has no record of its return or&nbsp;information&nbsp;for two consecutive years, and (2) a penalty will occur if the organization fails to file&nbsp;its&nbsp;return or&nbsp;information by the next filing deadline.&nbsp;Allows the reinstatement of the tax-exempt status of such an organization without the requirement of an application if: (1) the organization demonstrates to the satisfaction of the Secretary that it did not receive the notice required by this Act, and (2) it files an annual return or required&nbsp;information for the current year. </p>

tv_txt: II 113th CONGRESS 2d Session S. 2351 IN THE SENATE OF THE UNITED STATES May 15, 2014 Mr. Coats 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 notice to charities and other nonprofit organizations before their tax-exempt status is automatically revoked.

1. Short title This Act may be cited as the Notice for Organizations That Include Charities is Essential (NOTICE) Act . 2. Notice required before revocation of tax-exempt status for failure to file return (a) In general Section 6033(j) of the Internal Revenue Code of 1986 is amended by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and by inserting after paragraph (1) the following new paragraph: (2) Requirement of notice (A) In general Not later than 300 days after the date an organization described in paragraph (1) fails to file the annual return or notice referenced in paragraph (1) for 2 consecutive years, the Secretary shall notify the organization— (i) that the Internal Revenue Service has no record of such a return or notice from such organization for 2 consecutive years, and (ii) about the penalty that will occur under this subsection if the organization fails to file such a return or notice by the date of the next filing deadline. The notification under the preceding sentence shall include information about how to comply with the filing requirements under subsections (a)(1) and (i). . (b) Reinstatement without application Paragraph (3) of section 6033(j) of such Code, as redesignated under subsection (a), is amended— (1) by striking Any organization and inserting the following: (A) In general Except as provided in subparagraph (B), any organization , and (2) by adding at the end the following new subparagraph: (B) Retroactive reinstatement without application if actual notice not provided If an organization described in paragraph (1)— (i) demonstrates to the satisfaction of the Secretary that the organization did not receive the notice required under paragraph (2), and (ii) files an annual return or notice referenced in paragraph (1) for the current year, then the Secretary may reinstate the organization’s exempt status effective from the date of the revocation under paragraph (1) without the need for an application. . (c) Effective date The amendments made by this section shall apply to notices and returns required to be filed after December 31, 2014.