[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 937 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 937

To prohibit the Internal Revenue Service from applying disproportionate 
scrutiny to applicants for tax-exempt status based on ideology, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 14, 2013

    Mr. Flake (for himself, Mr. Isakson, Mr. Risch, and Mr. Cornyn) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To prohibit the Internal Revenue Service from applying disproportionate 
scrutiny to applicants for tax-exempt status based on ideology, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protect Against Ideology-Based 
Targeting Act''.

SEC. 2. PROHIBITION OF IDEOLOGY-BASED TARGETING.

    The Internal Revenue Service is prohibited, within the exercise of 
its regulatory authority under the Internal Revenue Code of 1986 to 
review applications for exemption from taxation under section 501(a) of 
such Code, from developing or using any methodology that applies 
disproportionate scrutiny to any applicant based on the ideology 
expressed in the name or purpose of the organization.

SEC. 3. REPORT TO CONGRESS.

    (a) In General.--Subparagraph (A) of section 7803(d)(2) of the 
Internal Revenue Code of 1986 is amended--
            (1) by redesignating clauses (ii), (iii), and (iv) as 
        clauses (iii), (iv), and (v), respectively, and
            (2) by inserting after clause (i) the following new clause:
                            ``(ii) the number of complaints during the 
                        period that allege disproportionate scrutiny in 
                        the process of applying for exempt status under 
                        section 501(a) based on the ideology of the 
                        applicants;''.
    (b) Evaluation of Complaints.--Paragraph (2) of section 7803(d) of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new subparagraph:
                    ``(C) In the case of a complaint or allegation 
                described in subparagraph (A)(ii), the report shall 
                provide an evaluation of the source and the 
                circumstances of such complaints, including a timeline 
                of events, identification of any Internal Revenue 
                Service employees involved in the case, and a 
                determination of whether such scrutiny was related to 
                the exercise of permitted political activities (as 
                determined under subsection (c)(3) or (h), whichever is 
                applicable, of section 501) by an applicant or exempt 
                organization.''.
    (c) Conforming Amendment.--Subparagraph (B) of section 7803(d)(2) 
of the Internal Revenue Code of 1986 is amended by striking ``Clauses 
(iii) and (iv)'' and inserting ``Clauses (iv) and (v)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to reports submitted after the date which is 6 months after the 
date of the enactment of this Act.
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