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S. 918 (114th): Notice for Organizations That Include Charities is Essential (NOTICE) Act


The text of the bill below is as of Apr 14, 2015 (Placed on Calendar in the Senate). The bill was not enacted into law.


II

Calendar No. 51

114th CONGRESS

1st Session

S. 918

[Report No. 114–28]

IN THE SENATE OF THE UNITED STATES

April 14, 2015

, from the Committee on Finance, reported the following original bill; which was read twice and placed on the calendar

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 statue 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 subsection (a)(1) and (i).

.

(b)

Reinstatement without application

Paragraph (3) of section 6033(j) of the Internal Revenue Code of 1986, 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.

April 14, 2015

Read twice and placed on the calendar