[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 237 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 237

 To amend the Internal Revenue Code of 1986 to deny the exemption from 
     income tax for social clubs found to be practicing prohibited 
                            discrimination.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 2005

  Mr. Towns 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 deny the exemption from 
     income tax for social clubs found to be practicing prohibited 
                            discrimination.

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

SECTION 1. DENIAL OF EXEMPTION FROM TAX FOR SOCIAL CLUBS PRACTICING 
              PROHIBITED DISCRIMINATION.

    (a) In General.--Subsection (i) of section 501 of the Internal 
Revenue Code of 1986 (relating to prohibition of discrimination by 
certain social clubs) is amended--
            (1) by inserting before the period at the end of the first 
        sentence ``, or if, at any time during the taxable year or a 
        prior taxable year, a determination by an appropriate 
        government agency or court that such organization has a pattern 
        or practice of so discriminating against any person became 
        final'', and
            (2) by adding at the end the following new sentence:
``A final determination shall cease to be taken into account under the 
first sentence after the date it is established to the satisfaction of 
the Secretary that the organization no longer engages in discrimination 
of the type involved in such determination.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.
                                 <all>