S 1475 — Charities Helping Americans Regularly Throughout the Year Act of 2019

Summary

Charities Helping Americans Regularly Throughout the Year Act of 2019 This bill modifies several tax provisions in the Internal Revenue Code affecting charitable contributions and tax-exempt organizations. The Internal Revenue Service may determine the standard mileage rate for deducting the cost of using a passenger automobile for charitable purposes (currently set by statute at 14 cents per mile), and that rate may not be less than the rate for medical purposes (20 cents per mile in 2019). The bill requires tax-exempt organizations to file their returns in electronic form. The bill excludes from the gross income of an individual who is at least 70-1/2 years of age up to $100,000 in distributions from an individual retirement plan to a donor advised fund (DAF). The bill also modifies disclosure requires for DAFs. (A DAF is a fund or account that is separately identified by reference to contributions of a donor or donors. The account is owned and controlled by a sponsoring charitable organization, while the donor retains advisory privileges with respect to the distribution and investment of funds in the account.) The bill reduces from 2% to 1% the excise tax on the investment income of private foundations and eliminates a provision that reduces the rate to 1% if a foundation meets certain distribution requirements.

Bill Text

• Introduced Introduced in Senate Current html May 15, 2019

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill amends the Internal Revenue Code to modify charitable contribution provisions, including mileage rates, e-filing requirements, IRA distributions, and excise taxes for private foundations.

• Section 170

  the standard mileage rate used for purposes of section 213 → the rate determined by the Secretary, which rate shall not be less than the standard mileage rate used for purposes of section 213

  Establishes that the standard mileage rate for charitable contributions must meet a minimum threshold set by the Secretary.

• Section 6033

  if the organization has

  Removes the condition that previously allowed certain organizations to not file electronically.

• Section 6104

  Any annual return required to be filed electronically under section 6033(n) shall be made available by the Secretary to the public as soon as practicable in a machine readable format.

  Mandates that electronically filed returns must be made publicly available in a machine-readable format.

• Section 408(d)(8)(B)

  or any fund or account described in section 4966(d)(2)

  Allows tax-free charitable distributions from Individual Retirement Accounts without restrictions related to donor-advised funds.

• Section 6033

  list the total number of such funds which were in existence for the 36-month period ending at the close of such taxable year, list the total number of funds described in paragraph (4) which made at least 1 grant during the period described in such paragraph, set forth-- whether such organization has a publicly available policy with respect to funds which are inactive, dormant, or do not make distributions during the period described in paragraph (4), a description of the organization's policy for responding to funds described in subparagraph (A) or a statement that no such policy is in effect, and whether such organization regularly and consistently monitors and enforces compliance with the policy described in subparagraph (A) with respect to such funds.

  Enhances transparency by requiring organizations to disclose additional information regarding donor-advised funds.

• Section 4940

  2 percent → 1 percent

  Reduces the excise tax rate on investment income of private foundations from 2% to 1%.

• Section 4940

  subsection (e)

  Eliminates the provision that previously allowed a reduced tax rate for foundations that met specific distribution requirements.

Action History

1. May 15, 2019

   Introduced in Senate

2. May 15, 2019

   Read twice and referred to the Committee on Finance. (text: CR S2887-2888)

Sponsors

• John Thune · Primary

Subjects