Protecting Charitable Giving Act

[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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