[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 565 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 565

   To amend the Internal Revenue Code of 1986 to improve disclosure 
               requirements for tax-exempt organizations.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 11 (legislative day, March 3), 1993

 Mr. Warner (for himself and Mr. Helms) 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 improve disclosure 
               requirements for tax-exempt organizations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. IMPROVED DISCLOSURE TO DONORS BY TAX-EXEMPT ORGANIZATIONS.

    (a) In General.--Section 6033 of the Internal Revenue Code of 1986 
(relating to returns by exempt organizations) is amended by 
redesignating subsection (e) as subsection (f) and by inserting after 
subsection (d) the following new subsection:
    ``(e) Additional Requirement For Tax-Exempt Organizations.--
            ``(1) In general.--Except as provided in paragraph (2), any 
        organization described in section 501(c)(3) or 501(c)(4) and 
        any separate segregated fund described in section 527(f)(3) 
        maintained by such organization, which is subject to the 
        requirements of subsection (a) shall--
                    ``(A) advise each contributor of the availability 
                of a disclosure statement described in paragraph (3), 
                and
                    ``(B) shall furnish such statement upon written 
                request to--
                            ``(i) such contributor, or
                            ``(ii) any potential contributor,
                within 30 days of such request.
            ``(2) Exception.--Paragraph (1) shall not apply to--
                    ``(A) any organization described in clause (ii) or 
                (iii) of section 170(b)(1)(A)), or
                    ``(B) any organization the gross receipts of which 
                in each taxable year are normally not more than 
                $100,000.
            ``(3) Disclosure statement.--The disclosure statement 
        described in this paragraph is a statement for the most recent 
        taxable year for which a return under subsection (a) has been 
        filed, which contains the information described in--
                    ``(A) paragraphs (1), (2), and (3) of subsection 
                (b), and
                    ``(B) paragraphs (6) and (7) of subsection (b), but 
                only with respect to--
                            ``(i) the 5 highest compensated individuals 
                        of the organization for such taxable year, and
                            ``(ii) any other individual whose total 
                        compensation and other payments from such 
                        organization for such taxable year exceeds 
                        $100,000.
            ``(4) Processing Fees.--Any organization furnishing a 
        disclosure statement under this subsection may require that a 
        self-addressed, stamped envelope and a fee not to exceed $2 to 
        cover the costs of copying and mailing such statement be 
        included in the written request for such statement.''.
    (b) Penalty for Failure To Meet Requirements.--Paragraph (1) of 
section 6652(c) of the Internal Revenue Code of 1986 (relating to 
returns by exempt organizations and by certain trusts) is amended by 
adding at the end the following new subparagraph:
                    ``(E) Disclosure statement.--In the case of a 
                failure to comply with the requirements of section 
                6033(e)(1) (relating to disclosure statements provided 
                upon request), there shall be paid by the person 
                failing to meet such requirements $50 for each day 
                during which such failure continues.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1994.

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