US Codex
Pub. L.
Notes

Title III — Miscellaneous Provisions

116th Congress · Approved Jul 1, 2019 · 133 Stat. 981 · Lineage

TITLE III Miscellaneous Provisions

Subtitle A Reform of Laws Governing Internal Revenue Service Employees

SEC. 3001. Prohibition on Rehiring Any Employee of the Internal Revenue Service Who Was Involuntarily Separated from Service for Misconduct.

(a)
In General.— Section 7804 is amended by adding at the end the following new subsection:

“(d) Prohibition on Rehiring Employees Involuntarily Separated.—The Commissioner may not hire any individual previously employed by the Commissioner who was removed for misconduct under this subchapter or chapter 43 or chapter 75 of title 5, United States Code, or whose employment was terminated under section 1203 of the Internal Revenue Service Restructuring and Reform Act of 1998 (26 U.S.C. 7804 note).”

(b)
Effective Date.— The amendment made by subsection (a) shall apply with respect to the hiring of employees after the date of the enactment of this Act.

SEC. 3002. Notification of Unauthorized Inspection or Disclosure of Returns and Return Information.

(a)
In General.— Subsection (e) of section 7431 is amended by adding at the end the following new sentences: “ The Secretary shall also notify such taxpayer if the Internal Revenue Service or a Federal or State agency (upon notice to the Secretary by such Federal or State agency) proposes an administrative determination as to disciplinary or adverse action against an employee arising from the employee’s unauthorized inspection or disclosure of the taxpayer’s return or return information. The notice described in this subsection shall include the date of the unauthorized inspection or disclosure and the rights of the taxpayer under such administrative determination.”.
(b)
Effective Date.— The amendment made by this section shall apply to determinations proposed after the date which is 180 days after the date of the enactment of this Act.

Subtitle B Provisions Relating to Exempt Organizations

SEC. 3101. Mandatory E-Filing by Exempt Organizations.

(a)
In General.— Section 6033 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)
Other Reports and Returns.—
(1)
Political organizations.— Section 527(j)(7) is amended by striking “ if the organization has” and all that follows through “ such calendar year”.
(2)
Unrelated business income tax returns.— Section 6011 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:

“(h) Mandatory E-Filing of Unrelated Business Income Tax Return.—Any organization required to file an annual return under this section which relates to any tax imposed by section 511 shall file such return in electronic form.”

(c)
Inspection of Electronically Filed Annual Returns.— Section 6104(b) 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 that is 2 years after 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 that is 2 years after the enactment of this Act.

SEC. 3102. Notice Required Before Revocation of Tax-Exempt Status for Failure to File Return.

(a)
In General.— Section 6033(j)(1) is amended by striking “ If an organization” and inserting the following:

“(A) Notice.—If an organization described in subsection (a)(1) or (i) fails to file the annual return or notice required under either subsection 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 revocation that will occur under subparagraph (B) if the organization fails to file such a return or notice by the due date for the next such return or notice required to be filed.

“(B) Revocation.—If an organization”

(b)
Effective Date.— The amendment made by this section shall apply to failures to file returns or notices for 2 consecutive years if the return or notice for the second year is required to be filed after December 31, 2019.

Subtitle C Revenue Provision

SEC. 3201. Increase in Penalty for Failure to File.

(a)
In General.— The second sentence of subsection (a) of section 6651 is amended by striking “ $205” and inserting “ $330”.
(b)
Inflation Adjustment.— Section 6651(j)(1) is amended—
(1)
by striking “ 2014” and inserting “ 2020”,
(2)
by striking “ $205” and inserting “ $330”, and
(3)
by striking “ 2013” and inserting “ 2019”.
(c)
Effective Date.— The amendments made by this section shall apply to returns required to be filed after December 31, 2019.