S. 1475

Charities Helping Americans Regularly Throughout the Year Act of 2019

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II

116th CONGRESS

1st Session

S. 1475

IN THE SENATE OF THE UNITED STATES

May 15, 2019

Mr. Thune (for himself, Mr. Casey, Mr. Wyden, and Mr. Roberts) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code to extend and modify certain charitable tax provisions.

1.

Short title

This Act may be cited as the Charities Helping Americans Regularly Throughout the Year Act of 2019.

2.

Determination of standard mileage rate for charitable contributions deduction

(a)

Determination of standard mileage rate for charitable contributions deduction

Subsection (i) of section 170 of the Internal Revenue Code of 1986 is amended to read as follows:

(i)

Standard mileage rate for use of passenger automobile

For purposes of computing the deduction under this section for use of a passenger automobile, the standard mileage rate shall be the rate determined by the Secretary, which rate shall not be less than the standard mileage rate used for purposes of section 213.

.

(b)

Effective date

The amendment made by this section shall apply to miles traveled after the date of the enactment of this Act.

3.

Mandatory e-filing by exempt organizations

(a)

In general

Section 6033 of the Internal Revenue Code of 1986 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection:

(n)

Mandatory electronic filing

Any organization required to file a return under this section shall file such return in electronic form.

.

(b)

Conforming amendment

Paragraph (7) of section 527(j) of such Code is amended by striking if the organization has and all that follows through such calendar year.

(c)

Inspection of electronically filed annual returns

Subsection (b) of section 6104 of such Code is amended by adding at the end the following: 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..

(d)

Effective date

(1)

In general

Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

(2)

Transitional relief

(A)

Small organizations

(i)

In general

In the case of any small organizations, or any other organizations for which the Secretary of the Treasury or the Secretary’s delegate (hereafter referred to in this paragraph as the Secretary) determines the application of the amendments made by this section would cause undue burden without a delay, the Secretary may delay the application of such amendments, but such delay shall not apply to any taxable year beginning on or after the date 2 years after of the enactment of this Act.

(ii)

Small organization

For purposes of clause (i), the term small organization means any organization—

(I)

the gross receipts of which for the taxable year are less than $200,000; and

(II)

the aggregate gross assets of which at the end of the taxable year are less than $500,000.

(B)

Organizations filing form 990–T

In the case of any organization described in section 511(a)(2) of the Internal Revenue Code of 1986 which is subject to the tax imposed by section 511(a)(1) of such Code on its unrelated business taxable income, or any organization required to file a return under section 6033 of such Code and include information under subsection (e) thereof, the Secretary may delay the application of the amendments made by this section, but such delay shall not apply to any taxable year beginning on or after the date 2 years after of the enactment of this Act.

4.

Modification of rules relating to donor advised funds

(a)

Allowance of tax-Free charitable distributions from individual retirement accounts

(1)

In general

Clause (i) of section 408(d)(8)(B) of the Internal Revenue Code of 1986 is amended by striking or any fund or account described in section 4966(d)(2).

(2)

Effective date

The amendment made by this subsection shall apply to distributions made in taxable years beginning after December 31, 2018.

(b)

Return disclosures

(1)

Distributions

Subsection (k) of section 6033 of the Internal Revenue Code of 1986 is amended—

(A)

in paragraph (2), by striking and at the end;

(B)

in paragraph (3), by striking the period at the end and inserting a comma; and

(C)

by adding at the end the following new paragraphs:

(4)

list the total number of such funds which were in existence for the 36-month period ending at the close of such taxable year,

(5)

list the total number of funds described in paragraph (4) which made at least 1 grant during the period described in such paragraph, and

(6)

set forth—

(A)

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),

(B)

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

(C)

whether such organization regularly and consistently monitors and enforces compliance with the policy described in subparagraph (A) with respect to such funds.

.

(2)

Effective date

The amendment made by this subsection shall apply to returns for taxable years beginning after December 31, 2019.

5.

Modification of the tax rate for the excise tax on investment income of private foundations

(a)

In general

Section 4940(a) of the Internal Revenue Code of 1986 is amended by striking 2 percent and inserting 1 percent.

(b)

Elimination of reduced tax where foundation meets certain distribution requirements

Section 4940 of such Code is amended by striking subsection (e).

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.