Don't Weaponize the IRS Act

II 117TH CONGRESS 1ST SESSION S. 1777 To amend the Internal Revenue Code of 1986 to codify the Trump adminis- tration rule on reporting requirements of exempt organizations, and for other purposes. IN THE SENATE OF THE UNITED STATES MAY 20, 2021 Mr. BRAUN (for himself, Mr. MCCONNELL, Mr. BARRASSO, Mrs. BLACKBURN, Mr. BOOZMAN, Mr. BLUNT, Mr. BURR, Mrs. CAPITO, Mr. CASSIDY, Mr. CORNYN, Mr. COTTON, Mr. CRAMER, Mr. CRAPO, Mr. CRUZ, Mr. DAINES, Ms. ERNST, Mrs. FISCHER, Mr. GRASSLEY, Mr. HAGERTY, Mr. HAWLEY, Mr. HOEVEN, Mrs. HYDE-SMITH, Mr. INHOFE, Mr. JOHNSON, Mr. LANKFORD, Mr. MORAN, Mr. LEE, Ms. LUMMIS, Mr. MARSHALL, Mr. PAUL, Mr. RISCH, Mr. ROUNDS, Mr. RUBIO, Mr. SASSE, Mr. SCOTT of Florida, Mr. SHELBY, Mr. THUNE, Mr. TILLIS, Mr. TOOMEY, Mr. TUBERVILLE, Mr. WICKER, Mr. YOUNG, Mr. KENNEDY, and Mr. SCOTT of South Carolina) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to codify the Trump administration rule on reporting requirements of exempt organizations, 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 ‘‘Don’t Weaponize the 4 IRS Act’’. 5 VerDate Sep 11 2014 05:45 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1777.IS S1777 kjohnson on DSK79L0C42PROD with BILLS 2 •S 1777 IS SEC. 2. ORGANIZATIONS EXEMPT FROM REPORTING. 1 (a) GROSS RECEIPTS THRESHOLD.—Clause (ii) of 2 section 6033(a)(3)(A) of the Internal Revenue Code of 3 1986 is amended by striking ‘‘$5,000’’ and inserting 4 ‘‘$50,000’’. 5 (b) ORGANIZATIONS DESCRIBED.—Subparagraph 6 (C) of section 6033(a)(3) of the Internal Revenue Code 7 of 1986 is amended— 8 (1) by striking ‘‘and’’ at the end of clause (v), 9 (2) by striking the period at the end of clause 10 (vi) and inserting a semicolon, and 11 (3) by adding at the end the following new 12 clauses: 13 ‘‘(vii) any other organization described 14 in section 501(c) (other than a private 15 foundation or a supporting organization 16 described in section 509(a)(3)); and 17 ‘‘(viii) any organization (other than a 18 private foundation or a supporting organi- 19 zation described in section 509(a)(3)) 20 which is not described in section 21 170(c)(2)(A), or which is created or orga- 22 nized in a possession of the United States, 23 which has no significant activity (including 24 lobbying and political activity and the op- 25 VerDate Sep 11 2014 05:45 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1777.IS S1777 kjohnson on DSK79L0C42PROD with BILLS 3 •S 1777 IS eration of a trade or business) other than 1 investment activity in the United States.’’. 2 (c) EFFECTIVE DATE.—The amendments made by 3 this section shall apply to taxable years ending after the 4 date of the enactment of this Act. 5 SEC. 3. CLARIFICATION OF APPLICATION TO SECTION 527 6 ORGANIZATIONS. 7 (a) IN GENERAL.—Paragraph (1) of section 6033(g) 8 of the Internal Revenue Code of 1986 is amended— 9 (1) by striking ‘‘This section’’ and inserting 10 ‘‘Except as otherwise provided by this subsection, 11 this section’’, and 12 (2) by striking ‘‘for the taxable year.’’ and in- 13 serting ‘‘for the taxable year in the same manner as 14 to an organization exempt from taxation under sec- 15 tion 501(a).’’. 16 (b) EFFECTIVE DATE.—The amendments made by 17 this section shall apply to taxable years ending after the 18 date of the enactment of this Act. 19 SEC. 4. REPORTING OF NAMES AND ADDRESSES OF CON- 20 TRIBUTORS. 21 (a) IN GENERAL.—Paragraph (1) of section 6033(a) 22 of the Internal Revenue Code of 1986 is amended by add- 23 ing at the end the following: ‘‘Except as provided in sub- 24 sections (b)(5) and (g)(2)(B), such annual return shall not 25 VerDate Sep 11 2014 05:45 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1777.IS S1777 kjohnson on DSK79L0C42PROD with BILLS 4 •S 1777 IS be required to include the names and addresses of contrib- 1 utors to the organization.’’. 2 (b) APPLICATION TO SECTION 527 ORGANIZA- 3 TIONS.—Paragraph (2) of section 6033(g) of the Internal 4 Revenue Code of 1986 is amended— 5 (1) by striking ‘‘and’’ at the end of subpara- 6 graph (A), 7 (2) by redesignating subparagraph (B) as sub- 8 paragraph (C), and 9 (3) by inserting after subparagraph (A) the fol- 10 lowing new subparagraph: 11 ‘‘(B) containing the names and addresses 12 of all substantial contributors, and’’. 13 (c) EFFECTIVE DATE.—The amendments made by 14 this section shall apply to taxable years ending after the 15 date of the enactment of this Act. 16 Æ VerDate Sep 11 2014 05:45 Jun 08, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S1777.IS S1777 kjohnson on DSK79L0C42PROD with BILLS