[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 703 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 703
To amend the Internal Revenue Code of 1986 to make public the names and
addresses of foreign persons contributing $50,000 or more to certain
tax-exempt organizations and to require disclosure of foreign campaign
contributions.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 22, 2019
Mr. Conaway 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 make public the names and
addresses of foreign persons contributing $50,000 or more to certain
tax-exempt organizations and to require disclosure of foreign campaign
contributions.
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 ``Uncovering Foreign Influence in the
United States Act of 2019''.
SEC. 2. PUBLIC AVAILABILITY OF 501(C)(3) ANNUAL RETURN INFORMATION
RELATING TO FOREIGN PERSON CONTRIBUTIONS.
(a) Secretary.--Section 6104(b) of the Internal Revenue Code of
1986 is amended--
(1) by striking ``509(a) or'' and inserting ``509(a),'';
(2) by inserting ``, or as provided in the last sentence of
this subsection'' after ``under section 527''; and
(3) by adding at the end the following: ``Organizations
described in section 501(c)(3) shall make available to the
public in the same manner as information under the first
sentence of this subsection the name and address of each
foreign person (as defined in subsection (d)(3)(C)) who
contributed $50,000 or more to the organization for the taxable
year.''.
(b) Organization.--Section 6104(d)(3) of such Code is amended by
adding at the end the following new subparagraph:
``(C) Disclosure of certain contributions from
foreign persons.--
``(i) In general.--Subparagraph (A) shall
not apply in the case of the name and address
of a foreign person required under the last
sentence of subsection (b) to be made available
to the public.
``(ii) Foreign person.--For purposes of
this subsection, the term `foreign person'
means--
``(I) any person who is not a
United States person (as defined in
section 7701(a)(30),
``(II) any foreign government or
foreign governmental entity (or any
entity owned by, controlled by, or
consisting of one or more thereof), or
``(III) any corporation which is
foreign owned (within the meaning of
section 269B(e)(2)).
Such term shall include such partnerships,
trusts, associations, estates, or other forms
of carrying on a business or activity as the
Secretary shall by regulation prescribe based
on rules similar to the rules of subparagraph
(A)(iii).
``(iii) Coordination with reporting
relating to contributions made through
intermediaries.--For purposes of this
subparagraph and the last sentence of
subsection (b), any foreign person with respect
to whom a written statement is furnished to the
organization under section 6050X(c) shall be
treated as having made to the organization the
contribution to which such statement
relates.''.
(c) Effective Date.--The amendments made by this section shall
apply to returns for taxable years beginning after December 31, 2018.
SEC. 3. REPORTING REQUIREMENTS FOR FOREIGN CONTRIBUTIONS TO 501(C)(3)
ORGANIZATIONS THROUGH INTERMEDIARIES.
(a) In General.--Subpart B of part III of subchapter A of chapter
61 of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 6050X. RETURNS RELATING TO FOREIGN CONTRIBUTIONS TO 501(C)(3)
ORGANIZATIONS THROUGH INTERMEDIARIES.
``(a) In General.--A return shall be made by any person who as an
intermediary makes a contribution on behalf of a foreign person to an
applicable exempt organization with the reasonable expectation that in
connection with such contribution such organization will perform policy
analysis for the benefit of such foreign person.
``(b) Form and Manner of Return.--Such return shall--
``(1) be made at such time and in such form and manner as
the Secretary shall prescribe, and
``(2) contain the name and address of the foreign person
and the amount of the contribution to which such return
relates.
``(c) Statement Shall Be Furnished to Organization.--Every person
required to make a return under subsection (a) with respect to a
contribution shall furnish to the organization to which such
contribution was made a written statement showing--
``(1) the information required to be shown on the return
under subsection (a), and
``(2) the name and address of the person required to make
such return.
``(d) Definitions.--For purposes of this section--
``(1) Foreign person.--The term `foreign person' has the
meaning given such term by section 6104(d)(3)(C)(ii).
``(2) Applicable exempt organization.--The term `applicable
exempt organization' means an organization described in section
501(c)(3) and exempt from tax under section 501(a).''.
(b) Clerical Amendment.--The table of sections for subpart B of
part III of subchapter A of chapter 61 of such Code is amended by
adding at the end the following new item:
``Sec. 6050X. Returns relating to foreign contributions to 501(c)(3)
organizations through intermediaries.''.
(c) Effective Date.--The amendments made by this section shall
apply to contributions made after December 31, 2018.
SEC. 4. IMPOSITION OF TAX ON UNDISCLOSED FOREIGN CONTRIBUTIONS.
(a) In General.--Subtitle D of the Internal Revenue Code of 1986 is
amended by adding at the end the following new chapter:
``CHAPTER 50A--FOREIGN CONTRIBUTIONS
``Sec. 5000D. Imposition of tax on undisclosed foreign contributions.
``SEC. 5000D. IMPOSITION OF TAX ON UNDISCLOSED FOREIGN CONTRIBUTIONS.
``(a) Imposition of Tax.--In the case of a United States person who
makes an applicable foreign-source political contribution and fails to
disclose such contribution during the 30-day period beginning on the
date such contribution was made, there is hereby imposed on any such
failure a tax equal to the applicable percentage of the amount of such
contribution.
``(b) Applicable Percentage.--For purposes of this section, the
applicable percentage shall be 10 percent, increased by 10 percentage
points (but not to more than 100 percent) for each subsequent 30-day
period (or fraction thereof) thereafter during which such failure
continues.
``(c) Applicable Foreign-Source Political Contribution.--For
purposes of this section, the term `applicable foreign-source political
contribution' means any contribution directly or indirectly for the
benefit of a candidate for Federal, State, or local elected office in
the United States which is made on behalf of, or is funded by, a person
other than a United States person or bona fide resident (as defined in
section 937(a)) of a possession of the United States.
``(d) Form and Manner of Disclosure.--The disclosure required under
subsection (a) shall be made to the Secretary, and shall be made
publicly available, in such form and manner as the Secretary shall
prescribe. Such disclosure shall include the amount of the contribution
and shall identify on whose behalf such contribution was made.''.
(b) Clerical Amendment.--The table of chapters for subtitle D of
such Code is amended by adding at the end the following new item:
``Chapter 50A. Foreign Contributions''.
(c) Effective Date.--The amendments made by this section shall
apply to contributions made after December 31, 2018.
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