[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4002 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 4002
To amend the Internal Revenue Code of 1986 to provide for flexible
giving accounts, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 25, 2019
Mr. Buchanan (for himself and Mr. Suozzi) 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 provide for flexible
giving accounts, 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 ``Everyday Philanthropist Act''.
SEC. 2. FLEXIBLE GIVING ACCOUNTS.
(a) In General.--Subsection (a) of section 132 of the Internal
Revenue Code of 1986 is amended by striking ``or'' at the end of
paragraph (7), by striking the period at the end of paragraph (8) and
inserting ``, or'', and by inserting after paragraph (8) the following:
``(9) flexible giving account.''.
(b) Flexible Giving Account.--Section 132 of such Code is amended
by redesignating subsection (o) as subsection (p) and by inserting
after subsection (n) the following:
``(o) Flexible Giving Account.--
``(1) In general.--
``(A) Flexible giving account.--For purposes of
this subsection, a flexible giving account is an
account under an arrangement which is a separate
written plan of an employer for the exclusive benefit
of all eligible employees under which--
``(i) an employee may elect--
``(I) to receive a reduction in
compensation and have the employer
deposit the amount of the reduction in
a flexible giving account of the
electing employee, and
``(II) before the reduction under
subclause (I), to designate one or more
entities to which distributions are to
be made from the account,
``(ii) the employer, as soon after the
deposit under clause (i)(I) as practicable,
makes the disbursements designated under clause
(i),
``(iii) the employer provides reasonable
notification of the availability and terms of
the arrangement to all eligible employees,
``(iv) the employer maintains a separate
flexible giving account on behalf of each
employee for whom an election is in effect
clause (i), and
``(v) the employer agrees to furnish to
each participating employee, on or before
January 31 of each year, a written accounting
of the employee's flexible giving account
showing deposits and disbursements during the
previous calendar year.
``(B) Maximum reduction.--The amount of a reduction
under subparagraph (A) for a taxable year shall not
exceed $2,700.
``(2) Eligible employee.--For purposes of this subsection--
``(A) In general.--
``(i) Eligible employee.--The term
`eligible employee' means, with respect to a
flexible giving account, any employee who is
not a highly compensated or key employee and
who is eligible to participate in the
arrangement.
``(ii) Highly compensated employee.--The
term `highly compensated employee' has the
meaning given such term by section 414(q).
``(iii) Key employee.--The term `key
employee' has the meaning given such term by
section 416(i).
``(B) Certain employees may be excluded.--For
purposes of subparagraph (A), an employer may elect to
exclude under the arrangement described in paragraph
(1) any employee who--
``(i) has not attained the age of 21 before
the close of a plan year of the arrangement,
``(ii) has less than 1 year of service with
the employer as of any day during the plan
year, and
``(iii) is described in section
410(b)(3)(C) (relating to nonresident aliens
working outside the United States).
``(C) Shorter service period; younger age.--An
arrangement may provide a shorter period of service or
younger age for purposes of subparagraph (B).
``(3) Tax treatment of distributions.--
``(A) In general.--Any distribution from a flexible
giving account shall be includible in the gross income
of the distributee in the manner as provided in section
72.
``(B) Exception for charitable contributions.--
``(i) In general.--Subparagraph (A) shall
not apply to any distribution which is a
charitable contribution made pursuant to
paragraph (1).
``(ii) Coordination with section 170.--
Distributions from the flexible giving account
of an employee--
``(I) shall be treated as a
charitable contribution of the
employee,
``(II) shall not be taken into
account under section 170(a) (relating
to allowance of deduction), but
``(III) shall be taken into account
under section 170(b) (relating to
percentage limitation).
``(C) Additional tax for distributions not used for
charitable purposes.--The tax imposed by this chapter
for any taxable year on any taxpayer from whose
flexible giving account a distribution is made that is
includible in gross income shall be increased by 20
percent of the amount which is so includible.
``(D) Identifying information.--No distribution
shall be excluded from the gross income under
subparagraph (B) unless the taxpayer provides on the
return of tax the name and address of the entity to
whom the distribution is made. In the case of a failure
to provide the information required by the preceding
sentence, the preceding sentence shall not apply if it
is shown that the taxpayer exercised due diligence in
attempting to provide the information so required.
``(4) Charitable contribution.--For purposes of this
section, the term `charitable contribution' has the meaning
given such term by section 170(c), except that such term
irrevocable transfers of funds and not just a pledges or
agreement to make a transfer in the future.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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