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H.R. 5053 (114th): Preventing IRS Abuse and Protecting Free Speech Act


The text of the bill below is as of Jun 15, 2016 (Referred to Senate Committee). The bill was not enacted into law.

Summary of this bill

Under current law, tax-exempt groups and organizations don’t have to reveal their donors to the public, but they do have to reveal any donors giving more than $5,000 to the Internal Revenue Service (IRS). Under a new bill that just passed an important House committee, those groups would no longer even have to reveal their donors to the IRS. But opponents warn that this is a shadowy tactic largely meant to help billionaires wishing to avoid transparency.

What it does

H.R. 5053, the Preventing IRS Abuse and Protecting Free Speech Act, would “prohibit the Secretary of the Treasury from requiring that the identity of contributors to 501(c) organizations be …


IIB

114th CONGRESS

2d Session

H. R. 5053

IN THE SENATE OF THE UNITED STATES

June 15, 2016

Received; read twice and referred to the Committee on Finance

AN ACT

To amend the Internal Revenue Code of 1986 to prohibit the Secretary of the Treasury from requiring that the identity of contributors to 501(c) organizations be included in annual returns.

1.

Short title

This Act may be cited as the Preventing IRS Abuse and Protecting Free Speech Act.

2.

Prohibition on requiring that identity of contributors to 501(c) organizations be included in annual returns

(a)

In general

Section 6033 of the Internal Revenue Code of 1986 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following:

(n)

Identifying information of donors

(1)

In general

For purposes of subsection (a), the Secretary may not require the name, address, or other identifying information of any contributor to any organization described in section 501(c) of any amount of any contribution, grant, bequest, devise, or gift of money or property.

(2)

Exceptions

(A)

In general

Paragraph (1) shall not apply—

(i)

to any disclosure required by subsection (a)(2), and

(ii)

with respect to any a contribution, grant, bequest, devise, or gift of money or property made by an officer or director of the organization (or an individual having powers or responsibilities similar to those of officers or directors) or any covered employee.

(B)

Covered employee

For purposes of this paragraph, the term covered employee means any employee (including any former employee) of the organization if the employee is one of the five highest compensated employees of the organization for the taxable year.

(C)

Compensation from related organizations

(i)

In general

Compensation of a covered employee by the organization shall include any compensation paid with respect to employment of such employee by any related person or governmental entity.

(ii)

Related organizations

A person or governmental entity shall be treated as related to the organization if such person or governmental entity—

(I)

controls, or is controlled by, the organization,

(II)

is controlled by one or more persons that control the organization,

(III)

is a supported organization (as defined in section 509(f)(3)) during the taxable year with respect to the organization,

(IV)

is a supporting organization described in section 509(a)(3) during the taxable year with respect to the organization, or

(V)

in the case of an organization that is a voluntary employees’ beneficiary association described in section 501(c)(9), establishes, maintains, or makes contributions to such voluntary employees’ beneficiary association.

.

(b)

Conforming amendment

Section 6033(b)(5) of such Code is amended—

(1)

by striking all, and

(2)

by adding at the end the following: to the extent not prohibited by subsection (n),.

(c)

Effective date

The amendments made by this section shall apply to returns required to be filed for taxable years ending after the date of the enactment of this Act.

Passed the House of Representatives June 14, 2016.

Karen L. Haas,

Clerk.