,i #aacth ,,congress #ast ,session ,h4 ,r4 #cebj ,,in ,,the ,,house ,,of ,,representatives ,november #ah1 #bjac,mr4 ,boustany introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to reform rules relating to #eja7;c77#d7 organizations and provide certain taxpayer protections1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,exempt ,organization ,simplification and ,taxpayer ,protection ,act of #bjac4 #b4 ,organizations required to notify ,secretary of intent to operate as #eja7;c77#d7 7a7 ,in general ,part ,i of subchapter ,f of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #ejf4 ,organizations required to notify ,secretary of intent to operate as #eja7;c77#d7 7a7 ,in general ,an organization described in section #eja7;c77#d7 shall1 not later than #fj days after the organization is established1 notify the ,secretary 7in such manner as the ,secretary shall by regulation prescribe7 that it is operating as such4 7b7 ,contents of notice ,the notice required under subsection 7a7 shall include the following information3 7#a7 ,the name1 address1 and taxpayer identification number of the organization4 7#b7 ,the date on which1 and the ,state under the laws of which1 the organization was organized4 7#c7 ,a statement of the purpose of the organization4 7c7 ,acknowledgment of receipt ,not later than #fj days after receipt of such a notice1 the ,secretary shall send to the organization an acknowledgment of such receipt4 7d7 ,extension for reasonable cause ,the ,secretary may1 for reasonable cause1 extend the #fj-;day period described in subsection 7a74 7e7 ,user fee ,the ,secretary shall impose a reasonable user fee for submission of the notice under subsection 7a74 7f7 ,request for determination ,upon request by an organization to be treated as an organization described in section #eja7;c77#d71 the ,secretary may issue a determination with respect to such treatment4 ,such request shall be treated for purposes of section #fajd as an application for exemption from taxation under section #eja7;a74 4 7b7 ,supporting information with first return ,paragraph 7#a7 of section #fjcc7;f7 of such ,code is amended-- 7#a7 by striking the period at the end and inserting 1 and1 7#b7 by striking include on the return required under subsection 7a7 the information and inserting the following3 include on the return required under subsection 7a7-- 7#a7 the information 1 and 7#c7 by adding at the end the following new paragraph3 7#b7 in the case of the first such return filed by such an organization after submitting a notice to the ,secretary under section #ejf7;a71 such information as the ,secretary shall by regulation require in support of the organization's treatment as an organization described in section #eja7;c77#d74 4 7c7 ,failure ,to file initial notification ,subsection 7c7 of section #ffeb of such ,code is amended by redesignating paragraphs 7#d7 and 7#e7 as paragraphs 7#e7 and 7#f71 respectively1 and by inserting after paragraph 7#c7 the following new paragraph3 7#d7 ,notices under section #ejf 7,a7 ,penalty on organization ,in the case of a failure to submit a notice required under section #ejf7;a7 7relating to organizations required to notify ,secretary of intent to operate as #eja7;c77#d77 on the date and in the manner prescribed therefor1 there shall be paid by the organization failing to so submit #bj for each day during which such failure continues1 but the total amount imposed under this subparagraph on any organization for failure to submit any one notice shall not exceed #e1jjj4 7,b7 ,managers ,the ,secretary may make written demand on an organization subject to penalty under subparagraph 7,a7 specifying in such demand a reasonable future date by which the notice shall be submitted for purposes of this subparagraph4 ,if such notice is not submitted on or before such date1 there shall be paid by the person failing to so submit #bj for each day after the expiration of the time specified in the written demand during which such failure continues1 but the total amount imposed under this subparagraph on all persons for failure to submit any one notice shall not exceed #e1jjj4 4 7d7 ,clerical amendment ,the table of sections for part ,i of subchapter ,f of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #ejf4 ,organizations required to notify ,secretary of intent to operate as #eja7;c77#d74 4 7e7 ,effective date 7#a7 ,in general ,the amendments made by this section shall apply to organizations which are described in section #eja7;c77#d7 of the ,internal ,revenue ,code of #aihf and organized after ,december #ca1 #bjad4 7#b7 ,certain existing organizations ,in the case of any other organization described in section #eja7;c77#d7 of such ,code1 the amendments made by this section shall apply to such organization only if1 on or before the date of the enactment of this ,act-- 7,a7 such organization has not applied for a written determination of recognition as an organization described in section #eja7;c77#d7 of such ,code1 and 7,b7 such organization has not filed at least one annual return or notice required under subsection 7a77#a7 or 7i7 7as the case may be7 of section #fjcc of such ,code4 ,in the case of any organization to which the amendments made by this section apply by reason of the preceding sentence1 such organization shall submit the notice required by section #ejf7;a7 of such ,code1 as added by this ,act1 not later than #ahj days after the date of the enactment of this ,act4 #c4 ,declaratory judgments for #eja7;c77#d7 organizations 7a7 ,in general ,paragraph 7#a7 of section #gdbh7;a7 of the ,internal ,revenue ,code of #aihf is amended by striking or at the end of subparagraph 7,c7 and by inserting after subparagraph 7,d7 the following new subparagraph3 7,e7 with respect to the initial classification or continuing classification of an organization described in section #eja7;c77#d7 which is exempt from tax under section #eja7;a71 or 4 7b7 ,effective date ,the amendments made by this section shall apply to pleadings filed after the date of the enactment of this ,act4 #d4 ,release of information regarding the status of certain investigations 7a7 ,in general ,subsection 7e7 of section #fajc of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#aa7 ,disclosure of information regarding status of investigation of violation of this section ,in the case of a person who provides to the ,secretary information indicating a violation of section #gbac1 #gbac;,a1 or #gbad with respect to any return or return information of such person1 the ,secretary may disclose to such person 7or such person's designee7-- 7,a7 whether an investigation based on the person's provision of such information has been initiated and whether it is open or closed1 7,b7 whether any such investigation substantiated such a violation by any individual1 and 7,c7 whether any action has been taken with respect to such individual 7including whether a referral has been made for prosecution of such individual74 4 7b7 ,effective date ,the amendment made by this section shall take effect on the date of the enactment of this ,act4 #e4 ,review of ,internal ,revenue ,service examination selection procedures 7a7 ,in general ,the ,comptroller ,general of the ,united ,states shall conduct a study of each ,internal ,revenue ,service operating division to assess the process used for determining how enforcement cases are selected and processed4 ,such study shall include a review of the following3 7#a7 ,the standards each such operating division has established for enforcement case selection 7including any automated or discretionary selection processes7 and case work1 and whether such standards meet the objectives of impartiality1 objectivity1 compliance1 and minimizing taxpayer burden4 7#b7 ,the extent to which any cases are initiated by referrals or complaints from inside or outside of the operating division 7including from outside of the ,internal ,revenue ,service74 7#c7 ,the ,internal ,revenue ,service controls 7including management reviews and regular updates7 for assuring that its standards for enforcement cases 7and handling of referrals and complaints7 in each operating division are sufficient for achieving the objectives described in paragraph 7#a74 7#d7 ,the ,internal ,revenue ,service controls 7including training1 monitoring1 and quality assessments7 for assuring that its standards are adhered to by all division personnel and the effectiveness of such controls4 7#e7 ,whether the existing standards and controls provide reasonable assurance that each division's enforcement processes meet the ,internal ,revenue ,service objectives of impartiality1 objectivity1 compliance1 and minimizing taxpayer burden4 7b7 ,initial report ,not later than #a year after the date of the enactment of this section1 the ,comptroller ,general shall submit to the ,committee on ,ways and ,means of the ,house of ,representatives1 the ,committee on ,finance of the ,senate1 and the ,secretary of the ,treasury a report on the results of such study4 ,such report shall include such recommendations as the ,comptroller ,general may deem advisable4 7c7 ,follow-,up on recommendations ,not later than #ahj days after a report is submitted with respect to an operating division under subsection 7b71 the ,comptroller ,general shall conduct a follow-up study1 and submit to the ,committee on ,ways and ,means of the ,house of ,representatives1 the ,committee on ,finance of the ,senate1 and the ,secretary of the ,treasury a report1 on whether any recommendations to improve case selection and case work processes have been implemented and are working as intended4 7d7 ,continuing case management studies and reports 7#a7 ,in general ,after a report is submitted under subsection 7b71 the ,comptroller ,general shall conduct follow-up studies and reports in the same manner as provided in subsections 7a7 and 7b7 with respect to each operating division of the ,internal ,revenue ,service and shall include in such study and report a review of whether any previous recommendations to improve case selection and case work processes have been implemented and are working as intended4 7#b7 ,frequency ,each such report with respect to an operating division shall be submitted not later than #d years after the date the most recent report was submitted with respect to such operating division under subsection 7b7 or this subsection4 ,the ,comptroller ,general shall submit no fewer than #a such report each year4 #f4 ,,irs employees prohibited from using personal email accounts for official business ,no officer or employee of the ,internal ,revenue ,service may use a personal email account to conduct any official business of the ,government4