Don't Weaponize the IRS Act

Bill: 118-s-1105
Sponsor: full_name: Sen. Braun, Mike [R-IN]
Introduced: 2023-03-30
Policy area: Taxation
Latest action: action_date: 2023-03-30
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2023-03-30
action_desc: Introduced in Senate
text: <p><strong>Don't Weaponize the IRS Act</strong></p> <p>This bill codifies regulations promulgated by the Trump Administration exempting certain tax-exempt organizations from specified reporting requirements. Specifically the bill </p> <ul> <li>increases from $5,000 to $50,000 the gross receipts threshold used to determine the eligibility of tax-exempt organizations for the exemption from certain disclosure and reporting requirements;</li> <li>expands the definition of <em>organization</em> to include tax-exempt charitable organizations and organizations with no significant activities relating to lobbying, political activity, and the operation of a trade or business;</li> <li>exempts from disclosure the names and addresses of contributors to an organization in its annual informational return; and </li> <li>extends exemptions from reporting requirements to political action committees (i.e., 527 organizations).</li> </ul>

tv_txt: II 118th CONGRESS 1st Session S. 1105 IN THE SENATE OF THE UNITED STATES March 30, 2023 Mr. Braun (for himself, Mr. Scott of Florida , Mr. Young , Mr. Romney , Mrs. Capito , Mr. Moran , Mr. Risch , Mr. Crapo , and Mrs. Fischer ) 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 codify the Trump administration rule on reporting requirements of exempt organizations, and for other purposes.

1. Short title This Act may be cited as the Don't Weaponize the IRS Act . 2. Organizations exempt from reporting (a) Gross receipts threshold Clause (ii) of section 6033(a)(3)(A) of the Internal Revenue Code of 1986 is amended by striking $5,000 and inserting $50,000 . (b) Organizations described Subparagraph (C) of section 6033(a)(3) of the Internal Revenue Code of 1986 is amended— (1) by striking and at the end of clause (v), (2) by striking the period at the end of clause (vi) and inserting a semicolon, and (3) by adding at the end the following new clauses: (vii) any other organization described in section 501(c) (other than a private foundation or a supporting organization described in section 509(a)(3)); and (viii) any organization (other than a private foundation or a supporting organization described in section 509(a)(3)) which is not described in section 170(c)(2)(A), or which is created or organized in a possession of the United States, which has no significant activity (including lobbying and political activity and the operation of a trade or business) other than investment activity in the United States. . (c) Effective date The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. 3. Clarification of application to section 527 organizations (a) In general Paragraph (1) of section 6033(g) of the Internal Revenue Code of 1986 is amended— (1) by striking This section and inserting Except as otherwise provided by this subsection, this section , and (2) by striking for the taxable year. and inserting for the taxable year in the same manner as to an organization exempt from taxation under section 501(a). . (b) Effective date The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. 4. Reporting of names and addresses of contributors (a) In general Paragraph (1) of section 6033(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following: Except as provided in subsections (b)(5) and (g)(2)(B), such annual return shall not be required to include the names and addresses of contributors to the organization. . (b) Application to section 527 organizations Paragraph (2) of section 6033(g) of the Internal Revenue Code of 1986 is amended— (1) by striking and at the end of subparagraph (A), (2) by redesignating subparagraph (B) as subparagraph (C), and (3) by inserting after subparagraph (A) the following new subparagraph: (B) containing the names and addresses of all substantial contributors, and . (c) Effective date The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.