Charities Helping Americans Regularly Throughout the Year Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 3259 To amend the Internal Revenue Code to extend and modify certain charitable tax provisions. IN THE HOUSE OF REPRESENTATIVES JUNE 13, 2019 Mr. BLUMENAUER (for himself and Mr. KELLY of Pennsylvania) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code to extend and modify certain charitable tax provisions. 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 ‘‘Charities Helping 4 Americans Regularly Throughout the Year Act of 2019’’. 5 SEC. 2. DETERMINATION OF STANDARD MILEAGE RATE 6 FOR CHARITABLE CONTRIBUTIONS DEDUC- 7 TION. 8 (a) DETERMINATION OF STANDARD MILEAGE RATE 9 FOR CHARITABLE CONTRIBUTIONS DEDUCTION.—Sub- 10 VerDate Sep 11 2014 02:24 Jun 18, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3259.IH H3259 kjohnson on DSK79L0C42 with BILLS 2 •HR 3259 IH section (i) of section 170 of the Internal Revenue Code 1 of 1986 is amended to read as follows: 2 ‘‘(i) STANDARD MILEAGE RATE FOR USE OF PAS- 3 SENGER AUTOMOBILE.—For purposes of computing the 4 deduction under this section for use of a passenger auto- 5 mobile, the standard mileage rate shall be the rate deter- 6 mined by the Secretary, which rate shall not be less than 7 the standard mileage rate used for purposes of section 8 213.’’. 9 (b) EFFECTIVE DATE.—The amendment made by 10 this section shall apply to miles traveled after the date 11 of the enactment of this Act. 12 SEC. 3. MANDATORY E-FILING BY EXEMPT ORGANIZATIONS. 13 (a) IN GENERAL.—Section 6033 of the Internal Rev- 14 enue Code of 1986 is amended by redesignating subsection 15 (n) as subsection (o) and by inserting after subsection (m) 16 the following new subsection: 17 ‘‘(n) MANDATORY ELECTRONIC FILING.—Any orga- 18 nization required to file a return under this section shall 19 file such return in electronic form.’’. 20 (b) CONFORMING AMENDMENT.—Paragraph (7) of 21 section 527(j) of such Code is amended by striking ‘‘if the 22 organization has’’ and all that follows through ‘‘such cal- 23 endar year’’. 24 VerDate Sep 11 2014 02:24 Jun 18, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3259.IH H3259 kjohnson on DSK79L0C42 with BILLS 3 •HR 3259 IH (c) INSPECTION OF ELECTRONICALLY FILED AN- 1 NUAL RETURNS.—Subsection (b) of section 6104 of such 2 Code is amended by adding at the end the following: ‘‘Any 3 annual return required to be filed electronically under sec- 4 tion 6033(n) shall be made available by the Secretary to 5 the public as soon as practicable in a machine readable 6 format.’’. 7 (d) EFFECTIVE DATE.— 8 (1) IN GENERAL.—Except as provided in para- 9 graph (2), the amendments made by this section 10 shall apply to taxable years beginning after the date 11 of the enactment of this Act. 12 (2) TRANSITIONAL RELIEF.— 13 (A) SMALL ORGANIZATIONS.— 14 (i) IN GENERAL.—In the case of any 15 small organizations, or any other organiza- 16 tions for which the Secretary of the Treas- 17 ury or the Secretary’s delegate (hereafter 18 referred to in this paragraph as the ‘‘Sec- 19 retary’’) determines the application of the 20 amendments made by this section would 21 cause undue burden without a delay, the 22 Secretary may delay the application of 23 such amendments, but such delay shall not 24 apply to any taxable year beginning on or 25 VerDate Sep 11 2014 02:24 Jun 18, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3259.IH H3259 kjohnson on DSK79L0C42 with BILLS 4 •HR 3259 IH after the date 2 years after the date of the 1 enactment of this Act. 2 (ii) SMALL ORGANIZATION.—For pur- 3 poses of clause (i), the term ‘‘small organi- 4 zation’’ means any organization— 5 (I) the gross receipts of which for 6 the taxable year are less than 7 $200,000; and 8 (II) the aggregate gross assets of 9 which at the end of the taxable year 10 are less than $500,000. 11 (B) ORGANIZATIONS FILING FORM 990– 12 T.—In the case of any organization described in 13 section 511(a)(2) of the Internal Revenue Code 14 of 1986 which is subject to the tax imposed by 15 section 511(a)(1) of such Code on its unrelated 16 business taxable income, or any organization re- 17 quired to file a return under section 6033 of 18 such Code and include information under sub- 19 section (e) thereof, the Secretary may delay the 20 application of the amendments made by this 21 section, but such delay shall not apply to any 22 taxable year beginning on or after the date 2 23 years after the date of the enactment of this 24 Act. 25 VerDate Sep 11 2014 01:49 Jun 20, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3259.IH H3259 kjohnson on DSK79L0C42 with BILLS 5 •HR 3259 IH SEC. 4. MODIFICATION OF RULES RELATING TO DONOR AD- 1 VISED FUNDS. 2 (a) ALLOWANCE OF TAX-FREE CHARITABLE DIS- 3 TRIBUTIONS FROM INDIVIDUAL RETIREMENT AC- 4 COUNTS.— 5 (1) IN GENERAL.—Clause (i) of section 6 408(d)(8)(B) of the Internal Revenue Code of 1986 7 is amended by striking ‘‘or any fund or account de- 8 scribed in section 4966(d)(2)’’. 9 (2) EFFECTIVE DATE.—The amendment made 10 by this subsection shall apply to distributions made 11 in taxable years beginning after December 31, 2018. 12 (b) RETURN DISCLOSURES.— 13 (1) DISTRIBUTIONS.—Subsection (k) of section 14 6033 of the Internal Revenue Code of 1986 is 15 amended— 16 (A) in paragraph (2), by striking ‘‘and’’ at 17 the end; 18 (B) in paragraph (3), by striking the pe- 19 riod at the end and inserting a comma; and 20 (C) by adding at the end the following new 21 paragraphs: 22 ‘‘(4) list the total number of such funds which 23 were in existence for the 36-month period ending at 24 the close of such taxable year, 25 VerDate Sep 11 2014 01:49 Jun 20, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3259.IH H3259 kjohnson on DSK79L0C42 with BILLS 6 •HR 3259 IH ‘‘(5) list the total number of funds described in 1 paragraph (4) which made at least 1 grant during 2 the period described in such paragraph, and 3 ‘‘(6) set forth— 4 ‘‘(A) whether such organization has a pub- 5 licly available policy with respect to funds which 6 are inactive, dormant, or do not make distribu- 7 tions during the period described in paragraph 8 (4), 9 ‘‘(B) a description of the organization’s 10 policy for responding to funds described in sub- 11 paragraph (A) or a statement that no such pol- 12 icy is in effect, and 13 ‘‘(C) whether such organization regularly 14 and consistently monitors and enforces compli- 15 ance with the policy described in subparagraph 16 (A) with respect to such funds.’’. 17 (2) EFFECTIVE DATE.—The amendment made 18 by this subsection shall apply to returns for taxable 19 years beginning after December 31, 2019. 20 VerDate Sep 11 2014 02:24 Jun 18, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3259.IH H3259 kjohnson on DSK79L0C42 with BILLS 7 •HR 3259 IH SEC. 5. MODIFICATION OF THE TAX RATE FOR THE EXCISE 1 TAX ON INVESTMENT INCOME OF PRIVATE 2 FOUNDATIONS. 3 (a) IN GENERAL.—Section 4940(a) of the Internal 4 Revenue Code of 1986 is amended by striking ‘‘2 percent’’ 5 and inserting ‘‘1 percent’’. 6 (b) ELIMINATION OF REDUCED TAX WHERE FOUN- 7 DATION MEETS CERTAIN DISTRIBUTION REQUIRE- 8 MENTS.—Section 4940 of such Code is amended by strik- 9 ing subsection (e). 10 (c) EFFECTIVE DATE.—The amendments made by 11 this section shall apply to taxable years beginning after 12 the date of the enactment of this Act. 13 Æ VerDate Sep 11 2014 02:24 Jun 18, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\H3259.IH H3259 kjohnson on DSK79L0C42 with BILLS