What This Bill Does
This bill changes the federal tax reporting rules for tax-exempt organizations (groups that don't pay income taxes). It raises the threshold for when certain organizations must file tax returns with the government and limits what donor information these organizations must report.
Who It Affects
Tax-exempt organizations that receive donations or grants, including charities and nonprofit groups.
Key Provisions
• Organizations with less than $50,000 in annual gross receipts (total money received) no longer have to file certain tax reports, up from the previous $5,000 threshold (Sec. 2(a))
• Certain types of tax-exempt organizations described in section 501(c) are excused from filing requirements, except for private foundations or supporting organizations (Sec. 2(b))
• Organizations that only do investment activity and have no significant lobbying, political activity or business operations are excused from filing requirements (Sec. 2(b))
• Annual tax returns do not need to include the names and addresses of people who gave money to the organization, with some exceptions (Sec. 4(a))
• Section 527 organizations (political groups) must report names and addresses of "substantial contributors" (major donors) (Sec. 4(b))
What Changes
Tax-exempt organizations below the $50,000 annual receipts level will no longer file detailed tax reports. Most organizations will no longer have to publicly disclose their donors' names and addresses on their tax filings.
Important Definitions
None defined in the bill text.
Effective Date
The changes apply to tax years ending after the bill becomes law.
II
118TH CONGRESS
1ST SESSION
S. 1105
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
MARCH 30, 2023
Mr. BRAUN (for himself, Mr. SCOTT of Florida, Mr. YOUNG, Mr. ROMNEY,
Mrs. CAPITO, Mr. MORAN, Mr. RISCH, Mr. CRAPO, and Mrs. FISCHER)
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
SEC. 2. ORGANIZATIONS EXEMPT FROM REPORTING.
6
(a) GROSS RECEIPTS THRESHOLD.—Clause (ii) of
7
section 6033(a)(3)(A) of the Internal Revenue Code of
8
VerDate Sep 11 2014
06:03 Apr 11, 2023
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\S1105.IS
S1105
pbinns on DSKJLVW7X2PROD with $$_JOB
2
•S 1105 IS
1986 is amended by striking ‘‘$5,000’’ and inserting
1
‘‘$50,000’’.
2
(b)
ORGANIZATIONS
DESCRIBED.—Subparagraph
3
(C) of section 6033(a)(3) of the Internal Revenue Code
4
of 1986 is amended—
5
(1) by striking ‘‘and’’ at the end of clause (v),
6
(2) by striking the period at the end of clause
7
(vi) and inserting a semicolon, and
8
(3) by adding at the end the following new
9
clauses:
10
‘‘(vii) any other organization described
11
in section 501(c) (other than a private
12
foundation or a supporting organization
13
described in section 509(a)(3)); and
14
‘‘(viii) any organization (other than a
15
private foundation or a supporting organi-
16
zation described in section 509(a)(3))
17
which
is
not
described
in
section
18
170(c)(2)(A), or which is created or orga-
19
nized in a possession of the United States,
20
which has no significant activity (including
21
lobbying and political activity and the op-
22
eration of a trade or business) other than
23
investment activity in the United States.’’.
24
VerDate Sep 11 2014
06:03 Apr 11, 2023
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\S1105.IS
S1105
pbinns on DSKJLVW7X2PROD with $$_JOB
3
•S 1105 IS
(c) EFFECTIVE DATE.—The amendments made by
1
this section shall apply to taxable years ending after the
2
date of the enactment of this Act.
3
SEC. 3. CLARIFICATION OF APPLICATION TO SECTION 527
4
ORGANIZATIONS.
5
(a) IN GENERAL.—Paragraph (1) of section 6033(g)
6
of the Internal Revenue Code of 1986 is amended—
7
(1) by striking ‘‘This section’’ and inserting
8
‘‘Except as otherwise provided by this subsection,
9
this section’’, and
10
(2) by striking ‘‘for the taxable year.’’ and in-
11
serting ‘‘for the taxable year in the same manner as
12
to an organization exempt from taxation under sec-
13
tion 501(a).’’.
14
(b) EFFECTIVE DATE.—The amendments made by
15
this section shall apply to taxable years ending after the
16
date of the enactment of this Act.
17
SEC. 4. REPORTING OF NAMES AND ADDRESSES OF CON-
18
TRIBUTORS.
19
(a) IN GENERAL.—Paragraph (1) of section 6033(a)
20
of the Internal Revenue Code of 1986 is amended by add-
21
ing at the end the following: ‘‘Except as provided in sub-
22
sections (b)(5) and (g)(2)(B), such annual return shall not
23
be required to include the names and addresses of contrib-
24
utors to the organization.’’.
25
VerDate Sep 11 2014
06:03 Apr 11, 2023
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\S1105.IS
S1105
pbinns on DSKJLVW7X2PROD with $$_JOB
4
•S 1105 IS
(b) APPLICATION
TO
SECTION
527 ORGANIZA-
1
TIONS.—Paragraph (2) of section 6033(g) of the Internal
2
Revenue Code of 1986 is amended—
3
(1) by striking ‘‘and’’ at the end of subpara-
4
graph (A),
5
(2) by redesignating subparagraph (B) as sub-
6
paragraph (C), and
7
(3) by inserting after subparagraph (A) the fol-
8
lowing new subparagraph:
9
‘‘(B) containing the names and addresses
10
of all substantial contributors, and’’.
11
(c) EFFECTIVE DATE.—The amendments made by
12
this section shall apply to taxable years ending after the
13
date of the enactment of this Act.
14
Æ
VerDate Sep 11 2014
06:03 Apr 11, 2023
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\S1105.IS
S1105
pbinns on DSKJLVW7X2PROD with $$_JOB