Section 1 Short title
This Act may be cited as the “Notice for Organizations That Include Charities is Essential (NOTICE) Act”.
Notice for Organizations That Include Charities is Essential (NOTICE) Act
A BILL
To amend the Internal Revenue Code of 1986 to provide notice to charities and other nonprofit organizations before their tax-exempt status is automatically revoked.
Sec. 2 Notice required before revocation of tax exempt statue for failure to file return
In general— Section 6033(j) of the Internal Revenue Code of 1986 is amended by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and by inserting after paragraph (1) the following new paragraph:
“(2) Requirement of notice
“(A) In general—Not later than 300 days after the date an organization described in paragraph (1) fails to file the annual return or notice referenced in paragraph (1) for 2 consecutive years, the Secretary shall notify the organization—
“(i) that the Internal Revenue Service has no record of such a return or notice from such organization for 2 consecutive years, and
“(ii) about the penalty that will occur under this subsection if the organization fails to file such a return or notice by the date of the next filing deadline.”
Reinstatement without application— Paragraph (3) of section 6033(j) of the Internal Revenue Code of 1986, as redesignated under subsection (a), is amended—
by striking “Any organization” and inserting the following:
“(A) In general—Except as provided in subparagraph (B), any organization”
by adding at the end the following new subparagraph:
“(B) Retroactive reinstatement without application if actual notice not provided—If an organization described in paragraph (1)—
“(i) demonstrates to the satisfaction of the Secretary that the organization did not receive the notice required under paragraph (2), and
“(ii) files an annual return or notice referenced in paragraph (1) for the current year,”
Effective date— The amendments made by this section shall apply to notices and returns required to be filed after December 31, 2014.