[Congressional Record Volume 169, Number 51 (Tuesday, March 21, 2023)]
[Senate]
[Pages S861-S862]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. THUNE (for himself, Mrs. Blackburn, Mr. Cassidy, Mr. 
        Crapo, Mr. Daines, Mr. Lankford, and Mr. Tillis):
  S. 898. A bill to amend the Internal Revenue Code of 1986 to prohibit 
audits based on Merchant Category Codes; to the Committee on Finance.
  Mr. THUNE. Madam President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 898

       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

[[Page S862]]

     its payment cards to classify the goods or services provided 
     or furnished by a merchant or payee.''.

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