[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 898 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                 S. 898

To amend the Internal Revenue Code of 1986 to prohibit audits based on 
                        Merchant Category Codes.


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                   IN THE SENATE OF THE UNITED STATES

                             March 21, 2023

  Mr. Thune (for himself, Mrs. Blackburn, Mr. Cassidy, Mr. Crapo, Mr. 
 Daines, Mr. Lankford, and Mr. Tillis) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

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                                 A BILL


 
To amend the Internal Revenue Code of 1986 to prohibit audits based on 
                        Merchant Category Codes.

    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 ``Merchant Category Code Neutrality 
Act''.

SEC. 2. PROHIBITION ON AUDITS BASED ON MERCHANT CATEGORY CODES.

    Section 7602 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new subsection:
    ``(g) Prohibition of Audits Based on Merchant Category Codes.--
            ``(1) In general.--The Secretary shall not take any action 
        described in paragraph (1), (2), or (3) of subsection (a) based 
        primarily on the Merchant Category Codes, or other similar 
        codes, used to classify the goods or services provided or 
        furnished by the business of the respective taxpayer.
            ``(2) Annual report.--For each taxable year, the Secretary 
        shall issue a public report providing a tally of each Merchant 
        Category Code for any action described in paragraph (1), (2), 
        or (3) of subsection (a) initiated in such year.
            ``(3) Merchant category code.--The term `Merchant Category 
        Code' means classification codes assigned by payment card 
        organizations to merchants or payees that accept its payment 
        cards to classify the goods or services provided or furnished 
        by a merchant or payee.''.
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