Spotlight Act

I 117TH CONGRESS 1ST SESSION H. R. 774 To amend the Internal Revenue Code of 1986 to require certain tax-exempt organizations to include on annual returns the names and addresses of substantial contributors, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 3, 2021 Mr. PRICE of North Carolina (for himself, Ms. SCHAKOWSKY, Ms. LEE of California, Ms. NORTON, and Mr. SARBANES) 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 require certain tax-exempt organizations to include on annual returns the names and addresses of substantial contribu- tors, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Spotlight Act’’. 4 VerDate Sep 11 2014 17:28 Feb 24, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H774.IH H774 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 774 IH SEC. 2. INCLUSION OF CONTRIBUTOR INFORMATION ON 1 ANNUAL RETURNS OF CERTAIN ORGANIZA- 2 TIONS. 3 (a) REPEAL OF REGULATIONS.—The final regula- 4 tions of the Department of the Treasury relating to guid- 5 ance under section 6033 regarding the reporting require- 6 ments of exempt organizations (published at 85 Fed. Reg. 7 31959 (May 28, 2020)) shall have no force and effect. 8 (b) INCLUSION OF CONTRIBUTOR INFORMATION.— 9 (1) SOCIAL WELFARE ORGANIZATIONS.—Sec- 10 tion 6033(f)(1) of the Internal Revenue Code of 11 1986 is amended by inserting ‘‘(5),’’ after ‘‘para- 12 graphs’’. 13 (2) LABOR ORGANIZATIONS AND BUSINESS 14 LEAGUES.—Section 6033 of such Code is amended 15 by redesignating subsection (o) as subsection (p) 16 and by inserting after subsection (n) the following 17 new subsection: 18 ‘‘(o) ADDITIONAL REQUIREMENTS FOR ORGANIZA- 19 TIONS DESCRIBED IN SUBSECTIONS (c)(5) AND (c)(6) OF 20 SECTION 501.—Every organization which is described in 21 paragraph (5) or (6) of section 501(c) and which is subject 22 to the requirements of subsection (a) shall include on the 23 return required under subsection (a) the information re- 24 ferred to in subsection (b)(5).’’. 25 VerDate Sep 11 2014 17:28 Feb 24, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H774.IH H774 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 774 IH (3) EFFECTIVE DATE.—The amendments made 1 by this subsection shall apply to returns required to 2 be filed for taxable years ending after the date of the 3 enactment of this Act. 4 (c) MODIFICATION TO DISCRETIONARY EXCEP- 5 TIONS.—Section 6033(a)(3)(B) of the Internal Revenue 6 Code of 1986 is amended to read as follows: 7 ‘‘(B) DISCRETIONARY EXCEPTIONS.— 8 ‘‘(i) IN GENERAL.—Paragraph (1) 9 shall not apply to any organization if the 10 Secretary made a determination under this 11 subparagraph before July 16, 2018, that 12 such filing is not necessary to the efficient 13 administration of the internal revenue 14 laws. 15 ‘‘(ii) RECOMMENDATIONS FOR OTHER 16 EXCEPTIONS.—The Secretary may rec- 17 ommend to Congress that Congress relieve 18 any organization required under paragraph 19 (1) to file an information return from fil- 20 ing such a return if the Secretary deter- 21 mines that such filing does not advance a 22 national security, law enforcement, or tax 23 administration purpose.’’. 24 Æ VerDate Sep 11 2014 17:28 Feb 24, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H774.IH H774 pamtmann on DSKBC07HB2PROD with BILLS