1. Short title
This Act may be cited as the “Protect Against Ideology-Based Targeting Act”.
Protect Against Ideology-Based Targeting Act
A BILL
To prohibit the Internal Revenue Service from applying disproportionate scrutiny to applicants for tax-exempt status based on ideology, and for other purposes.
2. Prohibition of ideology-based targeting
The Internal Revenue Service is prohibited, within the exercise of its regulatory authority under the Internal Revenue Code of 1986 to review applications for exemption from taxation under section 501(a) of such Code, from developing or using any methodology that applies disproportionate scrutiny to any applicant based on the ideology expressed in the name or purpose of the organization.
3. Report to Congress
In general— Subparagraph (A) of section 7803(d)(2) of the Internal Revenue Code of 1986 is amended—
by redesignating clauses (ii), (iii), and (iv) as clauses (iii), (iv), and (v), respectively, and
by inserting after clause (i) the following new clause:
“(ii) the number of complaints during the period that allege disproportionate scrutiny in the process of applying for exempt status under section 501(a) based on the ideology of the applicants;”
Evaluation of complaints— Paragraph (2) of section 7803(d) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
“(C) In the case of a complaint or allegation described in subparagraph (A)(ii), the report shall provide an evaluation of the source and the circumstances of such complaints, including a timeline of events, identification of any Internal Revenue Service employees involved in the case, and a determination of whether such scrutiny was related to the exercise of permitted political activities (as determined under subsection (c)(3) or (h), whichever is applicable, of section 501) by an applicant or exempt organization.”
Conforming amendment— Subparagraph (B) of section 7803(d)(2) of the Internal Revenue Code of 1986 is amended by striking “Clauses (iii) and (iv)” and inserting “Clauses (iv) and (v)”.
Effective date— The amendments made by this section shall apply to reports submitted after the date which is 6 months after the date of the enactment of this Act.