HR 4622 — Don't Weaponize the IRS Act

(a) Organizations required to file (1) In general Except as provided in paragraph (3), every organization exempt from taxation under section 501(a) shall file an annual return, stating specifically the items of gross income, receipts, and disbursements, and such other information for the purpose of carrying out the internal revenue laws as the Secretary may by forms or regulations prescribe, and shall keep such records, render under oath such statements, make such other returns, and comply with such rules and regulations as the Secretary may from time to time prescribe; except that, in the discretion of the Secretary, any organization described in section 401(a) may be relieved from stating in its return any information which is reported in returns filed by the employer which established such organization. (2) Being a party to certain reportable transactions Every tax-exempt entity described in section 4965(c) shall file (in such form and manner and at such time as determined by the Secretary) a disclosure of— (A) such entity’s being a party to any prohibited tax shelter transaction (as defined in section 4965(e)), and (B) the identity of any other party to such transaction which is known by such tax-exempt entity. (3) Exceptions from filing (A) Mandatory exceptions Paragraph (1) shall not apply to— (i) churches, their integrated auxiliaries, and conventions or associations of churches, (ii) any organization (other than a private foundation, as defined in section 509(a)) described in subparagraph (C), the gross receipts of which in each taxable year are normally not more than $5,000, or (iii) the exclusively religious activities of any religious order. (B) Discretionary exceptions The Secretary may relieve any organization required under paragraph (1) (other than an organization described in section 509(a)(3)) to file an information return from filing such a return where he determines that such filing is not necessary to the efficient administration of the internal revenue laws. (C) Certain organizations The organizations referred to in subparagraph (A)(ii) are— (i) a religious organization described in section 501(c)(3); (ii) an educational organization described in section 170(b)(1)(A)(ii); (iii) a charitable organization, or an organization for the prevention of cruelty to children or animals, described in section 501(c)(3), if such organization is supported, in whole or in part, by funds contributed by the United States or any State or political subdivision thereof, or is primarily supported by contributions of the general public; (iv) an organization described in section 501(c)(3), if such organization is operated, supervised, or controlled by or in connection with a religious organization described in clause (i); (v) an organization described in section 501(c)(8); and (vi) an organization described in section 501(c)(1), if such organization is a corporation wholly owned by the United States or any agency or instrumentality thereof, or a wholly-owned subsidiary of such a corporation. (b) Certain organizations described in section 501(c)(3) Every organization described in section 501(c)(3) which is subject to the requirements of subsection (a) shall furnish annually information, at such time and in such manner as the Secretary may by forms or regulations prescribe, setting forth— (1) its gross income for the year, (2) its expenses attributable to such income and incurred within the year, (3) its disbursements within the year for the purposes for which it is exempt, (4) a balance sheet showing its assets, liabilities, and net worth as of the beginning of such year, (5) the total of the contributions and gifts received by it during the year, and the names and addresses of all substantial contributors, (6) the names and addresses of its foundation managers (within the meaning of section 4946(b)(1)) and highly compensated employees, (7) the compensation and other payments made during the year to each individual described in...