S. 4539

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4539 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 4539

To amend the Internal Revenue Code of 1986 to modify the penalties 
relating to the disclosure of tax return information relating to 
contributors to certain tax-exempt organizations, and for other 
purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

May 14, 2026

Mr. Young (for himself and Mr. Lankford) introduced the following bill; 
which was read twice and referred to the Committee on Finance

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to modify the penalties 
relating to the disclosure of tax return information relating to 
contributors to certain tax-exempt organizations, and for other 
purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Protecting Charitable Giving Act''.

SEC. 2. UNAUTHORIZED DISCLOSURE OF INFORMATION RELATING TO CONTRIBUTORS 
TO CERTAIN TAX-EXEMPT ORGANIZATIONS.

(a) In General.--Section 7213 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (e) as subsection (f) and by 
inserting after subsection (d) the following new subsection:
``(e) Special Rules for Disclosures of Contributors to Certain Tax-
Exempt Organizations.--
``(1) Increased penalty.--In the case of any disclosure of 
form 990 schedule B return information, paragraphs (1), (2), 
(3), and (4) of subsection (a) shall each be applied by 
substituting `not less than $10,000 and not exceeding $250,000' 
for `not exceeding $5,000'.
``(2) Venue.--
``(A) In general.--A prosecution for an offense 
under paragraphs (1), (2), (3), or (4) of subsection 
(a) relating to the disclosure of form 990 schedule B 
return information may be brought in--
``(i) the judicial district in which a 
victim of the offense resides, or
``(ii) any other judicial district with 
jurisdiction otherwise provided for by law.
``(B) Residency.--For purposes of determining venue 
under this paragraph--
``(i) an individual shall be deemed to 
reside in the judicial district in which that 
individual is domiciled, and
``(ii) an organization shall be deemed to 
reside in the judicial district in which the 
organization maintains its principal place of 
business.
``(C) Victim.--For purposes of this paragraph, the 
term `victim' includes--
``(i) the organization whose form 990 
schedule B information was disclosed, and
``(ii) any contributor to such organization 
who is described in paragraph (3)(B).
``(3) Form 990 schedule b information.--For purposes of 
this subsection, the term `form 990 schedule B information' 
means any information which--
``(A) is return information (as defined in section 
6103(b)) of--
``(i) an organization described in section 
501(c)(3) (other than a private foundation, as 
defined in section 509(a)), or
``(ii) an organization described in section 
501(c)(4), and
``(B) contains the names or address of any 
contributor to such organization.''.
(b) Effective Date.--The amendments made by this section shall 
apply to disclosures made after the date of the enactment of this Act.

SEC. 3. AUDITS AND REPORTS ON UNAUTHORIZED DISCLOSURES RELATING TO 
CONTRIBUTORS OF CERTAIN TAX-EXEMPT ORGANIZATIONS.

Section 7803(d)(3) of the Internal Revenue Code of 1986 is amended 
by striking ``and'' at the end of subparagraph (B), by striking the 
period at the end of subparagraph (C) and inserting ``; and'', and by 
adding at the end the following new subparagraph:
``(D) issue a report with respect to any disclosure 
of form 990 schedule B information (as defined in 
section 7213(e)(3)) to which section 7213(e) applies, 
which report shall--
``(i) describe the result of an audit on 
the occurrence of such disclosure,
``(ii) recommend steps to prevent similar 
further such disclosures in the future, and
``(iii) be appropriately redacted to 
protect any return information (as defined in 
section 6103(b)).''.
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