109 HR 237 IH: To amend the Internal Revenue Code of 1986 to deny the exemption from income tax for social clubs found to be practicing prohibited discrimination. U.S. House of Representatives 2005-01-04 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 1st Session H. R. 237 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.

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.