[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1295 Introduced in House (IH)]
114th CONGRESS
1st Session
H. R. 1295
To amend the Internal Revenue Code of 1986 to improve the process for
making determinations with respect to whether organizations are exempt
from taxation under section 501(c)(4) of such Code.
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IN THE HOUSE OF REPRESENTATIVES
March 4, 2015
Mr. Holding (for himself and Mr. Roskam) introduced the following bill;
which was referred to the Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to improve the process for
making determinations with respect to whether organizations are exempt
from taxation under section 501(c)(4) of such Code.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. ORGANIZATIONS REQUIRED TO NOTIFY SECRETARY OF INTENT TO
OPERATE AS 501(C)(4).
(a) In General.--Part I of subchapter F of chapter 1 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new section:
``SEC. 506. ORGANIZATIONS REQUIRED TO NOTIFY SECRETARY OF INTENT TO
OPERATE AS 501(C)(4).
``(a) In General.--An organization described in section 501(c)(4)
shall, not later than 60 days after the organization is established,
notify the Secretary (in such manner as the Secretary shall by
regulation prescribe) that it is operating as such.
``(b) Contents of Notice.--The notice required under subsection (a)
shall include the following information:
``(1) The name, address, and taxpayer identification number
of the organization.
``(2) The date on which, and the State under the laws of
which, the organization was organized.
``(3) A statement of the purpose of the organization.
``(c) Acknowledgment of Receipt.--Not later than 60 days after
receipt of such a notice, the Secretary shall send to the organization
an acknowledgment of such receipt.
``(d) Extension for Reasonable Cause.--The Secretary may, for
reasonable cause, extend the 60-day period described in subsection (a).
``(e) User Fee.--The Secretary shall impose a reasonable user fee
for submission of the notice under subsection (a).
``(f) Request for Determination.--Upon request by an organization
to be treated as an organization described in section 501(c)(4), the
Secretary may issue a determination with respect to such treatment.
Such request shall be treated for purposes of section 6104 as an
application for exemption from taxation under section 501(a).''.
(b) Supporting Information With First Return.--Section 6033(f) of
such Code is amended--
(1) by striking the period at the end and inserting ``,
and'',
(2) by striking ``include on the return required under
subsection (a) the information'' and inserting the following:
``include on the return required under subsection (a)--
``(1) the information'', and
(3) by adding at the end the following new paragraph:
``(2) in the case of the first such return filed by such an
organization after submitting a notice to the Secretary under
section 506(a), such information as the Secretary shall by
regulation require in support of the organization's treatment
as an organization described in section 501(c)(4).''.
(c) Failure To File Initial Notification.--Section 6652(c) of such
Code is amended by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively, and by inserting after paragraph (3) the
following new paragraph:
``(4) Notices under section 506.--
``(A) Penalty on organization.--In the case of a
failure to submit a notice required under section
506(a) (relating to organizations required to notify
Secretary of intent to operate as 501(c)(4)) on the
date and in the manner prescribed therefor, there shall
be paid by the organization failing to so submit $20
for each day during which such failure continues, but
the total amount imposed under this subparagraph on any
organization for failure to submit any one notice shall
not exceed $5,000.
``(B) Managers.--The Secretary may make written
demand on an organization subject to penalty under
subparagraph (A) specifying in such demand a reasonable
future date by which the notice shall be submitted for
purposes of this subparagraph. If such notice is not
submitted on or before such date, there shall be paid
by the person failing to so submit $20 for each day
after the expiration of the time specified in the
written demand during which such failure continues, but
the total amount imposed under this subparagraph on all
persons for failure to submit any one notice shall not
exceed $5,000.''.
(d) Clerical Amendment.--The table of sections for part I of
subchapter F of chapter 1 of such Code is amended by adding at the end
the following new item:
``Sec. 506. Organizations required to notify Secretary of intent to
operate as 501(c)(4).''.
(e) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to organizations which are described in section 501(c)(4)
of the Internal Revenue Code of 1986 and organized after the
date of the enactment of this Act.
(2) Certain existing organizations.--In the case of any
other organization described in section 501(c)(4) of such Code,
the amendments made by this section shall apply to such
organization only if, on or before the date of the enactment of
this Act--
(A) such organization has not applied for a written
determination of recognition as an organization
described in section 501(c)(4) of such Code, and
(B) such organization has not filed at least one
annual return or notice required under subsection
(a)(1) or (i) (as the case may be) of section 6033 of
such Code.
In the case of any organization to which the amendments made by
this section apply by reason of the preceding sentence, such
organization shall submit the notice required by section 506(a)
of such Code, as added by this Act, not later than 180 days
after the date of the enactment of this Act.
SEC. 2. DECLARATORY JUDGMENTS FOR 501(C)(4) ORGANIZATIONS.
(a) In General.--Section 7428(a)(1) of such Code is amended by
striking ``or'' at the end of subparagraph (C) and by inserting after
subparagraph (D) the following new subparagraph:
``(E) with respect to the initial classification or
continuing classification of an organization described
in section 501(c)(4) which is exempt from tax under
section 501(a), or''.
(b) Effective Date.--The amendments made by this section shall
apply to pleadings filed after the date of the enactment of this Act.
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