H.R. 359House115th Congress (2017-2019)In Committee

To amend the Internal Revenue Code of 1986 to provide for waivers of user fees imposed with respect to applications for reinstatement of tax-exempt status of small, subsidiary tax-exempt organizations.

Introduced January 6, 2017

AI-Generated Summary

Updated April 15, 2026 at 11:16 AM UTC

This bill changes the tax code to let certain small subsidiary nonprofits avoid paying the user fee when they apply to get back their tax‑exempt status after it was automatically revoked. It applies only to subsidiaries of larger tax‑exempt groups that have fewer than 50 members and that have filed the required return or notice that caused the revocation. The waiver takes effect for reinstatement applications filed after the law is enacted.

Key Provisions

  • Adds a new paragraph to §6033(j) allowing a fee waiver for reinstatement applications if the organization shows it filed the return or notice that led to the automatic revocation.
  • Requires the organization to be a subsidiary of a 501(a) tax‑exempt entity and to have fewer than 50 members for each of the three years of the filing failure.
  • If the conditions are met, the organization’s tax‑exempt status is reinstated retroactively to the revocation date and the user fee is waived.
  • The waiver applies only to reinstatement applications submitted after the bill becomes law.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

January 6, 2017

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HouseIntro Referral

Introduced in House

January 6, 2017

HouseIntro Referral

Referred to the House Committee on Ways and Means.

January 6, 2017

Floor Debate

7 members

What members said about H.R. 359 on the floor

5 Republicans2 Democrats
Edward R. Royce
Rep. Edward R. RoyceR-CA-39 · Oct 25, 2017

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1698) to expand sanctions against Iran with respect to the ballistic missile program of Iran, and for other purposes, as amended. Mr.…

Eliot L. Engel
Rep. Eliot L. EngelD-NY-16 · Oct 25, 2017

Mr. Speaker, I yield myself as much time as I may consume. Mr. Speaker, I rise in support of this measure. Let me thank our chairman of the Foreign Affairs Committee, my friend, Ed Royce from…

Kevin McCarthy
Rep. Kevin McCarthyR-CA-23 · Oct 25, 2017

Mr. Speaker, I thank the gentleman for yielding time to me. I want to thank the gentleman for his work as chairman of the Foreign Affairs Committee. Mr. Speaker, I stand on this floor thinking of the…

Ted Poe
Rep. Ted PoeR-TX-2 · Oct 25, 2017

Mr. Speaker, I thank the chairman for this legislation. Mr. Speaker, Iran continues to be one of the two greatest threats to the United States' national security and to global security. The other, of…

Michael T. McCaul
Rep. Michael T. McCaulR-TX-10 · Oct 25, 2017

Mr. Speaker, let me first commend Chairman Royce and Ranking Member Eliot Engel for their strong bipartisan work on this very important legislation that sanctions Iran's ballistic missile program and…

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Ileana Ros-Lehtinen
Rep. Ileana Ros-LehtinenR-FL-27 · Oct 25, 2017

Mr. Speaker, I thank Chairman Royce for authoring this bill alongside our good friend Ranking Member Eliot Engel, the dynamic duo of Foreign Affairs. I want to thank them for their leadership and…

Bradley Scott Schneider
Rep. Bradley Scott SchneiderD-IL-10 · Oct 25, 2017

Mr. Speaker, I rise in strong support of H.R. 1698, and am proud to cosponsor the Iran Ballistic Missiles and International Sanctions Enhancement Act because we must do everything in our power to…

Bill Text

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Introduced in HouseIssued January 6, 2017

I

115th CONGRESS

1st Session

H. R. 359

IN THE HOUSE OF REPRESENTATIVES

January 6, 2017

Mr. Griffith introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to provide for waivers of user fees imposed with respect to applications for reinstatement of tax-exempt status of small, subsidiary tax-exempt organizations.

1.

Waiver of user fees on reinstatement applications of reinstated small, subsidiary tax-exempt organizations after automatic revocation

(a)

In general

Section 6033(j) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(4)

Waiver of user fee on reinstatement applications for certain tax-exempt subsidiaries

If, upon application for reinstatement of status as an organization exempt from tax under section 501(a), an organization described in paragraph (1) can show that—

(A)

the organization has, after the failure described in paragraph (1), filed any return or notice with respect to which such failure to file triggered the automatic revocation referred to in paragraph (1), and

(B)

the organization—

(i)

is a subsidiary of an entity that is exempt from tax under section 501(a), and

(ii)

that subsidiary, for each of the 3 consecutive years referred to in paragraph (1) relating to such failure, has fewer than 50 members (as reported to such entity),

the organization’s exempt status shall be reinstated effective from the date of the revocation under such paragraph and the Secretary shall waive any user fee imposed with respect to such application.

.

(b)

Effective date

The amendment made by subsection (a) shall apply with respect to applications for reinstatement filed after the date of the enactment of this Act.