The House Ways and Means Committee debated and advanced five bills largely focused around disclosure requirements for nonprofit organizations and increasing penalties for the unauthorized sharing of taxpayer information.
Three of the bills (H.R. 8290, H.R. 8292, and H.R. 8314) were reported favorably with strong bipartisan support:
- H.R. 8290, the Foreign Grant Reporting Act, would create reporting requirements for grants made by U.S. tax-exempt organizations to foreign entities.
- H.R. 8314, the No Foreign Election Interference Act, aims to increase guardrails around U.S.-based tax-exempt organizations that accept donations from foreign entities to prevent them then giving to U.S. political action committees. H.R. 8292, the Taxpayer Data Protection Act, would increase penalties for unauthorized disclosures of taxpayer information from government employees and contractors up to five years in prison to 10 years, and treat each leak as a separate violation. Fines for unauthorized sharing of taxpayer information would also be increased to up to $250,000, from $5,000.
Two other bills advanced out of committee along party line votes:
- H.R. 8291, the End Zuckerbucks Act, would forbid 501(c)(3) organizations from providing funding for election administration on the state and local level.
- H.R. 8293, the American Donor Privacy and Foreign Funding Transparency Act, would require reporting of foreign donations by U.S. tax-exempt organizations, while preventing federal agencies from collecting information or requiring information from tax-exempt organizations on U.S. citizen donors.
Grant Thornton Insight:
The three bipartisan bills could gain traction in the future, though they would likely need a broader legislative vehicle to move. With the extenders currently stalled, there may not be many opportunities to move tax provisions this year.
Contacts:
Content disclaimer
This content provides information and comments on current issues and developments from Grant Thornton Advisors LLC and Grant Thornton LLP. It is not a comprehensive analysis of the subject matter covered. It is not, and should not be construed as, accounting, legal, tax, or professional advice provided by Grant Thornton Advisors LLC and Grant Thornton LLP. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this content.
For additional information on topics covered in this content, contact a Grant Thornton professional.
Grant Thornton LLP and Grant Thornton Advisors LLC (and their respective subsidiary entities) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. Grant Thornton LLP is a licensed independent CPA firm that provides attest services to its clients, and Grant Thornton Advisors LLC and its subsidiary entities provide tax and business consulting services to their clients. Grant Thornton Advisors LLC and its subsidiary entities are not licensed CPA firms.
Tax professional standards statement
This content supports Grant Thornton Advisors LLC’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. It is not, and should not be construed as, accounting, legal, tax, or professional advice provided by Grant Thornton Advisors LLC. If you are interested in the topics presented herein, we encourage you to contact a Grant Thornton Advisors LLC tax professional. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein.
The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal, tax, or professional advice provided by Grant Thornton Advisors LLC. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact a Grant Thornton Advisors LLC tax professional prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton Advisors LLC assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.
Grant Thornton Advisors LLC and its subsidiary entities are not licensed CPA firms.
More tax hot topics
No Results Found. Please search again using different keywords and/or filters.