,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #ajccj  ,,9 ,,! ,,h\se ,,(         
,,repres5tatives  ,septemb] #aj1        
#bjbf,ms4 ,adams 7= h]self1 ,mr4 ,rask91
 ,ms4 ,wilson ( ,florida1 ,ms4 ,norton1 
,ms4 ,cl>ke ( ,new ,york1 ,mr4 ,mannion1
 ,mr4 ,doggett1 ,mrs4 ,grijalva1 ,ms4   
,jayapal1 ,mrs4 ,mc,bath1 ,ms4 ,*u1 ,mr4
 ,davis ( ,ill9ois1 ,ms4 ,simon1 ,ms4   
,mc,collum1 ,mr4 ,c>t] ( ,l\isiana1     
,mrs4 ,hayes1 ,mr4 ,takano1 & ,mr4      
,c>son7 introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to impose re/rictions on 
univ]sity tax inquiries & exam9ations1 &
 = o!r purposes4  #a4 ,%ort title  ,?is 
,act may be cit$ z ! ,high] ,education  
,ov]sight = ,nonpr(its ,ensur+ ,/&>ds & 
,transp>5cy ,act4  #b4 ,re/rictions on  
univ]sity tax inquiries & exam9ations   
7a7 ,9 g5]al ,sub*apt] ,a ( *apt] #gh ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$-- 7#a7 by r$esignat+ section #gfac
 z section #gfad1 &  7#b7 by ins]t+ aft]

 section #gfab ! foll[+ new section3    
#gfac4 ,re/rictions on univ]sity tax    
inquiries & exam9ations  7a7            
,re/rictions on inquiries  7#a7 ,9 g5]al
 ,! ,secret>y may beg9 a univ]sity tax  
inquiry only if ! requirem5ts (         
p>agraphs 7#b7 & 7#c7 h be5 met4  7#b7  
,reasonable belief requirem5t ,!        
requirem5t ( ?is p>agraph is met )      
respect to any univ]sity tax inquiry    
if-- 7,a7 9 ! case ( su* inquiry s]v+ z 
a basis = det]m9+ :e!r any income d]iv$ 
by ! univ]sity is excludable f taxation 
"u section #aae1 an appropriate         
high-level ,treasury (ficial reasonably 
believes 7on ! basis ( facts &          
circum/ances record$ 9 writ+7 t any su* 
income may n be s exclud$1  7,b7 9 !    
case ( su* inquiry s]v+ z a basis =     
det]m9+ :e!r ! univ]sity is exempt f    
taxation "u section #eja7;a71 an        
appropriate high-level ,treasury (ficial
 reasonably believes 7on ! basis ( facts
 & circum/ances record$ 9 writ+7 t su*  
univ]sity may n be s exempt1 &  7,c7 9 !

 case ( su* inquiry s]v+ z a basis =    
det]m9+ :e!r ! univ]sity is c>ry+ on an 
unrelat$ trade or bus9ess 7)9 ! mean+ ( 
section #eac7 or o!rwise engag$ 9       
activities :i* may be subject to        
taxation "u ?is title1 an appropriate   
high-level ,treasury (ficial reasonably 
believes 7on ! basis ( facts &          
circum/ances record$ 9 writ+7 t su*     
univ]sity may be c>ry+ on su* an        
unrelat$ trade or bus9ess or engag$ 9   
su* activities4  7#c7 ,inquiry notice   
requirem5t  7,a7 ,9 g5]al ,! requirem5t 
( ?is p>agraph is met ) respect to any  
univ]sity tax inquiry if1 be=e beg9n+   
su* inquiry1 ! ,secret>y provides writt5
 notice to ! univ]sity ( ! beg9n+ ( su* 
inquiry4  7,b7 ,cont5ts ( inquiry notice
 ,! notice requir$ by ?is p>agraph %all 
include--  7i7 an explanation (-- 7,i7 !
 conc]ns :i* gave rise to su* inquiry1 &
  7,,ii7 ! g5]al subject matt] ( su*    
inquiry1 &  7ii7 a g5]al explanation ( !
 applicable--  7,i7 adm9i/rative &      
con/itutional provisions ) respect to   

su* inquiry 7includ+ ! "r to a conf]5ce 
) ! ,secret>y be=e any exam9ation (     
univ]sity bus9ess records or univ]sity  
activities71 &  7,,ii7 provisions ( ?is 
title :i* au?orize su* inquiry or :i*   
may be o!rwise involv$ 9 su* inquiry4   
7b7 ,re/rictions on exam9ations  7#a7 ,9
 g5]al  7,a7 ,preconditions ,! ,secret>y
 may beg9 a univ]sity tax exam9ation    
only-- 7i7 foll[+ ! beg9n+ ( a univ]sity
 tax inquiry "u subsection 7a7 into !   
univ]sity to be exam9$1  7ii7 subject to
 subp>agraph 7,b71 &  7iii7 if !        
requirem5t ( p>agraph 7#b7 has be5 met4 
7,b7 ,bus9ess records & activities ,a   
univ]sity tax exam9ation may be made    
only-- 7i7 9 ! case ( univ]sity bus9ess 
records1 to ! ext5t necess>y to det]m9e 
! liability =1 & ! am\nt (1 any taxation
 impos$ by ?is title1 &  7ii7 9 ! case (
 univ]sity activities1 to ! ext5t       
necess>y to det]m9e :e!r a univ]sity    
claim+-- 7,i7 any income to be          
excludable f taxation "u section #aae is
 s excludable1 or  7,,ii7 to be exempt f

 taxation "u section #eja7;a7 is s      
exempt4  7#b7 ,notice ( exam9ation2     
opportunity = conf]5ce ,! requirem5t (  
?is p>agraph is met ) respect to any    
univ]sity tax exam9ation if--  7,a7 at  
lea/ #ae days be=e ! beg9n+ ( su*       
exam9ation1 ! ,secret>y provides !      
notice describ$ 9 p>agraph 7#c7 to bo? !
 univ]sity & ! appropriate ,division    
,c\nsel ( ! ,int]nal ,rev5ue ,s]vice1 & 
7,b7 ! univ]sity has a reasonable "t to 
p>ticipate 9 a conf]5ce describ$ 9      
p>agraph 7#c77;,a77iii71 b only if !    
univ]sity reque/s su* a conf]5ce be=e ! 
beg9n+ ( ! exam9ation4  7#c7 ,cont5ts ( 
exam9ation notice1 etc  7,a7 ,9 g5]al ,!
 notice describ$ 9 ?is p>agraph is a    
writt5 notice :i* includes-- 7i7 a copy 
( ! univ]sity tax inquiry notice provid$
 to ! univ]sity "u subsection 7a71  7ii7
 a description ( ! univ]sity bus9ess    
records & univ]sity activities :i* !    
,secret>y seeks to exam9e1  7iii7 an (f]
 to h a conf]5ce betwe5 ! univ]sity & ! 
,secret>y 9 ord] to discuss1 & attempt  

to resolve1 conc]ns relat+ to su*       
exam9ation1 &  7iv7 a copy ( all        
docum5ts :i* 7 collect$ or prep>$ by !  
,int]nal ,rev5ue ,s]vice = use 9 su*    
exam9ation & ! disclosure ( :i* is      
requir$ by ! ,fre$om ( ,in=mation ,act4 
7,b7 ,e>lie/ day exam9ation notice may  
be provid$ ,! exam9ation notice describ$
 9 ?is p>agraph %all n be provid$ to !  
univ]sity be=e ! #ae? day aft] ! date on
 :i* ! univ]sity tax inquiry notice 0   
provid$ to ! univ]sity "u subsection    
7a74  7,c7 ,op9ion ( ,division ,c\nsel )
 respect to exam9ation ,! ,division     
,c\nsel ( ! ,int]nal ,rev5ue ,s]vice :o 
receives an exam9ation notice "u        
p>agraph 7#b77;,a7 may1 )9 #ae days aft]
 su* notice is provid$1 submit to !     
,secret>y an advisory objection to !    
exam9ation4  7#d7 ,exam9ation ( bus9ess 
records & activities n specifi$ 9 notice
 ,)9 ! c\rse ( a univ]sity tax          
exam9ation :i* 7at ! "t ! exam9ation    
beg9s7 satisfies ! preconditions (      
p>agraph 7#a77;,a71 ! ,secret>y may     

exam9e any univ]sity bus9ess records or 
univ]sity activities :i* 7 n specifi$ 9 
! exam9ation notice to ! ext5t su*      
exam9ation meets ! requirem5t ( clause  
7i7 or 7ii7 ( p>agraph 7#a77;,b7 7:i*ev]
 applies74  7c7 ,limitation on p]iod (  
inquiries & exam9ations  7#a7 ,inquiries
 & exam9ations mu/ be complet$ )9 #b    
ye>s  7,a7 ,9 g5]al ,! ,secret>y %all   
complete any univ]sity tax inquiry or   
exam9ation 7& make a f9al det]m9ation ) 
respect !reto7 n lat] ?an ! date :i* is 
#b ye>s aft] ! exam9ation notice date4  
7,b7 ,inquiries n foll[$ by exam9ations 
,9 ! case ( a univ]sity tax inquiry )   
respect to :i* !re is no exam9ation     
notice "u subsection 7b71 ! ,secret>y   
%all complete su* inquiry 7& make a f9al
 det]m9ation ) respect !reto7 n lat] ?an
 ! date :i* is #ij days aft] ! inquiry  
notice date4  7#b7 ,susp5sion ( #b-ye>  
p]iod ,! runn+ ( ! #b-ye> p]iod describ$
 9 p>agraph 7#a77;,a7 & ! #ij-;day p]iod
 9 p>agraph 7#a77;,b7 %all be susp5d$-- 
7,a7 = any p]iod dur+ :i*--  7i7 a      

judicial proce$+ br\ght by ! univ]sity  
aga9/ ! ,secret>y ) respect to !        
univ]sity tax inquiry or exam9ation is  
p5d+ or be+ appeal$1  7ii7 a judicial   
proce$+ br\ght by ! ,secret>y aga9/ !   
univ]sity 7or any (ficial !re(7 to      
compel compliance ) any reasonable      
reque/ ( ! ,secret>y 9 a univ]sity tax  
exam9ation = exam9ation ( univ]sity     
bus9ess records or univ]sity activities 
is p5d+ or be+ appeal$1 or  7iii7 !     
,secret>y is unable to take actions )   
respect to ! univ]sity tax inquiry or   
exam9ation by reason ( an ord] issu$ 9  
any judicial proce$+ br\ght "u section  
#gfji1  7,b7 = any p]iod 9 excess ( #bj 
days 7b n 9 excess ( #f mon?s7 9 :i* !  
univ]sity or its ag5ts fail to comply ) 
any reasonable reque/ ( ! ,secret>y =   
univ]sity bus9ess records or o!r        
in=mation1 or  7,c7 = any p]iod mutually
 agre$ ^u by ! ,secret>y & ! univ]sity4 
7d7 ,limitations on det]m9ations by     
,secret>y1 etc  7#a7 ,9 g5]al ,!        
,secret>y may--  7,a7 det]m9e t-- 7i7   

any income d]iv$ by a univ]sity is n    
excludable f taxation "u section #aae1  
or  7ii7 a univ]sity is n exempt f      
taxation "u section #eja7;a71  7,b7 s5d 
a notice ( defici5cy ( any tax involv$ 9
 a univ]sity tax exam9ation1 or  7,c7 9 
! case ( any tax ) respect to :i*       
sub*apt] ,b ( *apt] #fc does n apply1   
assess any und]paym5t ( su* tax involv$ 
9 a univ]sity tax exam9ation1  only if !
 appropriate ,division ,c\nsel ( !      
,int]nal ,rev5ue ,s]vice det]m9es 9     
writ+ t !re has be5 sub/antial          
compliance ) ! requirem5ts ( ?is section
 & approves 9 writ+ ( su* inclusion (   
income1 revocation ( /atus1 notice (    
defici5cy1 or assessm5t4  7#b7          
,limitations on p]iod ( assessm5t  7,a7 
,inclusion ( income & revocation (      
tax-exempt /atus  7i7 #c-ye> /atute (   
limitations g5]ally ,9 ! case ( any     
univ]sity tax exam9ation ) respect to-- 
7,i7 ! inclusion "u section #aae ( any  
income previ\sly exclud$ f taxation "u  
su* section1 or  7,,ii7 ! revocation (  

tax-exempt /atus "u section #eja7;a71   
any tax impos$ by *apt] #a 7o!r ?an     
section #eaa7 may be assess$1 or a      
proce$+ 9 c\rt = collection ( su* tax   
may be begun )\t assessm5t1 only = ! #c 
mo/ rec5t taxable ye>s end+ be=e !      
exam9ation notice date4  7ii7 #f-ye>    
/atute ( limitations 9 c]ta9 cases ,if !
 univ]sity-- 7,i7 d]ives no income :i*  
is excludable f taxation "u section     
#aae1 &  7,,ii7 is n exempt f taxation  
"u section #eja7;a71  = any ( ! #c      
taxable ye>s describ$ 9 clause 7i71     
clause 7i7 %all be appli$ by sub/itut+  
#f mo/ rec5t taxable ye>s = #c mo/ rec5t
 taxable ye>s4  7,b7 ,unrelat$ bus9ess  
tax ,9 ! case ( any univ]sity tax       
exam9ation ) respect to ! tax impos$ by 
section #eaa1 su* tax may be assess$1 or
 a proce$+ 9 c\rt = ! collection ( su*  
tax may be begun )\t assessm5t1 only )  
respect to ! #f mo/ rec5t taxable ye>s  
end+ be=e ! exam9ation notice date4     
7,c7 ,exception :]e %ort] /atute (      
limitations o!rwise applicable          

,subp>agraphs 7,a7 & 7,b7 %all n be     
con/ru$ to increase ! p]iod o!rwise     
applicable "u sub*apt] ,a ( *apt] #ff4  
7e7 ,in=mation n collect$ 9 sub/antial  
compliance ) proc$ures ,to /ay summons  
proce$+  7#a7 ,9 g5]al ,if !re has n be5
 sub/antial compliance )--  7,a7 !      
notice requirem5ts ( subsection 7a7 or  
7b71  7,b7 ! conf]5ce requirem5t        
describ$ 9 subsection 7b77#c77;,a77iii71
 or  7,c7 ! approval requirem5t (       
subsection 7d77#a7 7if applicable71  )  
respect to any univ]sity tax inquiry or 
exam9ation1 any proce$+ to compel       
compliance ) any summons ) respect to   
su* inquiry or exam9ation %all be /ay$  
until ! c\rt f9ds t all practicable /eps
 to correct ! noncompliance h be5 tak54 
,! p]iod applicable "u p>agraph 7#a7 (  
subsection 7c7 %all n be susp5d$ dur+ ! 
p]iod ( any /ay "u ! prec$+ s5t5ce4     
7#b7 ,rem$y to be exclusive ,no suit may
 be ma9ta9$1 & no def5se may be rais$ 9 
any proce$+ 7o!r ?an z provid$ 9        
p>agraph 7#a771 by reason ( any         

noncompliance by ! ,secret>y ) !        
requirem5ts ( ?is section4  7f7         
,limitations on additional inquiries &  
exam9ations  7#a7 ,9 g5]al ,if any      
univ]sity tax inquiry or exam9ation )   
respect to any univ]sity is complet$ &  
does n result 9-- 7,a7 an inclusion (   
income1 revocation ( /atus1 notice (    
defici5cy1 or assessm5t describ$ 9      
subsection 7d77#a71 or  7,b7 a reque/ by
 ! ,secret>y = any significant *ange 9 !
 op]ational practices ( ! univ]sity     
7includ+ ! adequacy ( acc\nt+           
practices71  no o!r univ]sity tax       
inquiry or exam9ation may beg9 ) respect
 to su* univ]sity dur+ ! applicable     
#e-ye> p]iod unless su* inquiry or      
exam9ation is approv$ 9 writ+ by !      
,secret>y or does n involve ! same or   
simil> issues involv$ 9 ! prec$+ inquiry
 or exam9ation4 ,= purposes ( ! prec$+  
s5t5ce1 an inquiry or exam9ation %all be
 treat$ z complet$ n lat] ?an !         
expiration ( ! applicable p]iod "u      
p>agraph 7#a7 ( subsection 7c74  7#b7   

,applicable #e-ye> p]iod ,= purposes (  
p>agraph 7#a71 ! t]m applicable #e-ye>  
p]iod means ! #e-ye> p]iod beg9n+ on !  
date ! notice tak5 into acc\nt =        
purposes ( subsection 7c77#a7 0 provid$4
 ,= purposes ( ! prec$+ s5t5ce1 ! rules 
( subsection 7c77#b7 %all apply4  7g7   
,treatm5t ( f9al report ( rev5ue ag5t   
,any f9al report ( an ag5t ( ! ,int]nal 
,rev5ue ,s]vice %all be treat$ z a      
det]m9ation ( ! ,secret>y "u p>agraph   
7#a7 ( section #gdbh7;a71 & any         
univ]sity receiv+ su* a report %all be  
treat$ = purposes ( sections #gdbh &    
#gdcj z hav+ exhau/$ ! adm9i/rative     
rem$ies available to x4  7h7 ,report+   
requirem5t ,n lat] ?an #fj days aft] !  
beg9n+ ( any univ]sity tax inquiry or   
exam9ation1 ! ,secret>y %all transmit to
 ! appropriate congressional committees 
a confid5tial report t includes--  7#a7 
! id5tity ( ! univ]sity subject to ! tax
 inquiry or exam9ation1  7#b7 an        
atte/ation t ! requirem5ts ( subsection 
7a77#a7 or 7b77#a77;,a7 7:i*ev] applies7

 h be5 met1  7#c7 a copy ( ! univ]sity  
tax inquiry notice or ! univ]sity tax   
exam9ation notice provid$ to ! univ]sity
 "u subsection 7a7 or 7b71 respectively 
7:i*ev] applies71 &  7#d7 a copy ( all  
f9aliz$ & (ficially propos$ regulations 
relat+ to ! int]pretation &             
implem5tation ( ?is section4  7i7       
,def9itions ,= purposes ( ?is section-- 
7#a7 ,univ]sity ,! t]m univ]sity means--
  7,a7 any in/itution ( high] education 
7z def9$ "u section #ajb ( ! ,high]     
,education ,act ( #aife71 &  7,b7 any   
relat$ organization 7z def9$ "u section 
#difh7;g77#b77 ( su* an in/itution4     
7#b7 ,univ]sity tax inquiry ,! t]m      
univ]sity tax inquiry means any inquiry 
into a univ]sity 7o!r ?an an exam9ation7
 to s]ve z a basis = det]m9+ :e!r-- 7,a7
 any income d]iv$ by ! univ]sity is     
excludable f taxation "u section #aae1  
7,b7 ! univ]sity is exempt f taxation "u
 section #eja7;a71 or  7,c7 ! univ]sity 
is c>ry+ on an unrelat$ trade or bus9ess
 7)9 ! mean+ ( section #eac7 or o!rwise 

engag$ 9 activities :i* may be subject  
to taxation "u ?is title4  7#c7         
,univ]sity tax exam9ation ,! t]m        
univ]sity tax exam9ation means1 =       
purposes ( mak+ a det]m9ation describ$ 9
 p>agraph 7#b71 any exam9ation (-- 7,a7 
univ]sity bus9ess records at ! reque/ ( 
! ,int]nal ,rev5ue ,s]vice1 or  7,b7    
univ]sity activities4  7#d7 ,univ]sity  
bus9ess records  7,a7 ,9 g5]al ,! t]m   
univ]sity bus9ess records means all     
corporate & f9ancial records regul>ly   
kept by a univ]sity4  7,b7 ,exception   
,su* t]m %all n include records         
acquir$-- 7i7 pursuant to a summons to  
:i* section #gfji applies1 or  7ii7 f   
any gov]nm5tal ag5cy4  7#e7 ,univ]sity  
activities ,! t]m univ]sity activities--
  7,a7 means any activities relat+ to ! 
academic or bureaucratic op]ation ( !   
univ]sity1 includ+-- 7i7 any            
affiliations or ideological positions (1
 or advocacy by1 ! univ]sity1 &  7ii7 ! 
curricul> or s*ola/ic cont5t t !        
univ]sity provides to its /ud5ts1 b     

7,b7 does n include univ]sity bus9ess   
records4  7#f7 ,inquiry notice date ,!  
t]m inquiry notice date means ! date !  
notice ) respect to a univ]sity tax     
inquiry is provid$ "u subsection 7a7 to 
! univ]sity4  7#g7 ,exam9ation notice   
date ,! t]m exam9ation notice date means
 ! date ! notice ) respect to a         
univ]sity tax exam9ation is provid$ "u  
subsection 7b7 to ! univ]sity4  7#h7    
,appropriate high-level ,treasury       
(ficial ,! t]m appropriate high-level   
,treasury (ficial means ! ,secret>y ( ! 
,treasury or any delegate ( ! ,secret>y 
^: rank is no l[] ?an t ( a pr9cipal    
,int]nal ,rev5ue (fic] = an int]nal     
rev5ue di/rict4  7#i7 ,appropriate      
congressional committees ,! t]m         
appropriate congressional committees    
means--  7,a7 ! ,committee on ,ways &   
,means ( ! ,h\se ( ,repres5tatives1 &   
7,b7 ! ,committee on ,f9ance ( ! ,s5ate4
  7j7  ,section n ,to apply to crim9al  
inve/igations1 etc  ,?is section %all n 
apply to-- 7#a7 any crim9al             

inve/igation1  7#b7 any inquiry or      
exam9ation relat+ to ! tax liability (  
any p]son o!r ?an a univ]sity1  7#c7 any
 assessm5t "u section #fhea1 #fheb1 or  
#fhfa1  7#d7 any willful attempt to     
defeat or evade any tax impos$ by ?is   
title1 or  7#e7 any kn[+ failure to file
 a return ( tax impos$ by ?is title4  4 
7b7 ,con=m+ am5dm5ts  7#a7 ,! table (   
sections = sub*apt] ,a ( *apt] #gh ( su*
 ,code is am5d$ by /rik+ ! item relat+  
to section #gfac & ins]t+ ! foll[+ new  
items3  ,sec4 #gfac4 ,re/rictions on    
univ]sity tax inquiries & exam9ations4  
,sec4 #gfad4 ,cross ref]5ces4  4  7#b7  
,section #gfje7;c7 ( su* ,code is am5d$ 
to read z foll[s3  7c7 ,cross ref]5ces  
7#a7 ,re/rictions on *ur* tax inquiries 
& exam9ations ,= provisions re/rict+    
*ur* tax inquiries & exam9ations1 see   
section #gfaa4  7#b7 ,re/rictions on    
univ]sity tax inquiries & exam9ations ,=
 provisions re/rict+ univ]sity tax      
inquiries & exam9ations1 see section    
#gfac4  4  7c7 ,effective date ,!       

am5dm5ts made by ?is section %all apply 
) respect to inquiries & exam9ations    
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4