To amend the Internal Revenue Code of 1986 to provide for disclosure for charity employees and board members previously implicated in terror finance.

Bill: 114-hr-5185
Sponsor: full_name: Rep. Poe, Ted [R-TX-2]
Introduced: 2016-05-10
Policy area: Taxation
Subjects: Foreign property

Government information and archives

Social work, volunteer service, charitable organizations

Tax administration and collection, taxpayers

Tax-exempt organizations

Terrorism
Latest action: action_date: 2016-05-10
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2016-05-10
action_desc: Introduced in House
text: <p>This bill amends the Internal Revenue Code to require tax-exempt organizations to disclose details regarding employees and board members involved in terror finance activities. </p> <p>An organization applying for tax-exempt status must disclose in its application the names and addresses of any officer, director, trustee, or highly compensated employee who, at any time prior to the date of the application, was: </p> <ul> <li>a member or employee of an organization: (1) named on the Department of the Treasury's Designated Charities and Potential Fundraising Front Organizations for FTOs (Foreign Terrorist Organizations) list, or (2) with property that has been blocked pending investigation by Treasury's Office of Foreign Assets Control; </li> <li> an unindicted coconspirator with respect to a terror finance scheme of an organization described above, or </li> <li> an employee of any charity found liable for civil damages due to an act of international terrorism. </li> </ul> <p>In lieu of the disclosure, the organization may include a statement indicating that no officer, director, trustee, or highly compensated employee of the organization (or individual with similar powers and responsibilities) meets the criteria described above. </p> <p>Tax-exempt organizations must also include either the required disclosure or the statement in annual tax returns filed after the enactment of this bill. </p>

tv_txt: I 114th CONGRESS 2d Session H. R. 5185 IN THE HOUSE OF REPRESENTATIVES May 10, 2016 Mr. Poe of Texas 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 disclosure for charity employees and board members previously implicated in terror finance.

1. Disclosure for charity employees and board members previously implicated in terror finance (a) Application for exemption Section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following: (s) Disclosure for charity employees and board members previously implicated in terror finance (1) In general An application of an organization for exemption from tax under subsection (a) shall not be treated as complete unless the application contains— (A) the disclosures required by paragraph (2), or (B) a statement that no officer, director, trustee, or highly compensated employee of the organization (or an individual having powers or responsibilities similar to those of officers, directors, trustees, or highly compensated employees of the organization) is described in subparagraph (A), (B), or (C) of paragraph (2). (2) Required disclosures The disclosures required by this paragraph are the names and addresses of any officer, director, trustee, or highly compensated employee of the organization who, at any time before the date of the application— (A) was a member or employee of an organization described in paragraph (3), (B) was an unindicted coconspirator with respect to a terror finance scheme of an organization described in paragraph (3), or (C) was an employee of any charity found liable under section 2333 of title 18, United States Code. (3) Organization described An organization is described in this paragraph if— (A) the organization is named on the Designated Charities and Potential Fundraising Front Organizations for FTOs list, published by the Department of the Treasury, or (B) the organization’s property is blocked pending investigation by the Office of Foreign Assets Control, Department of the Treasury. . (b) Annual reporting Section 6033 of such Code is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following: (s) Disclosure for charity employees and board members previously implicated in terror finance (1) In general The annual return required of an organization by subsection (a) shall not be treated as complete unless the return contains— (A) the disclosures required by paragraph (2), or (B) a statement that no officer, director, trustee, or highly compensated employee of the organization (or an individual having powers or responsibilities similar to those of officers, directors, trustees, or highly compensated employees of the organization) is described in subparagraph (A), (B), or (C) of paragraph (2). (2) Required disclosures The disclosures required by this paragraph are the names and addresses of any officer, director, trustee, or highly compensated employee of the organization who, at any time before the date of the application— (A) was a member or employee of an organization described in paragraph (3), (B) was an unindicted coconspirator with respect to a terror finance scheme of an organization described in paragraph (3), or (C) was an employee of any charity found liable under section 2333 of title 18, United States Code. (3) Organization described An organization is described in this paragraph if— (A) the organization is described in section 501(c) and exempt from tax under section 501(a), (B) the organization is named on the Designated Charities and Potential Fundraising Front Organizations for FTOs list, published by the Department of the Treasury, or (C) the organization’s property is blocked pending investigation by the Office of Foreign Assets Control, Department of the Treasury. . (c) Effective date (1) The amendment made by subsection (a) shall apply to applications filed after the date of the enactment of this Act. (2) The amendment made by subsection (b) shall apply to returns filed for taxable years beginning after the date of the enactment of this Act.