Higher Education Oversight for Nonprofits Ensuring Standards and Transparency Act

This bill would add new rules to the federal tax code that limit when and how the IRS can investigate colleges and universities and their related organizations. Before starting an inquiry, a high-level Treasury official would have to reasonably believe, based on written facts, that a tax problem may exist, and the IRS would have to give the school written notice explaining its concerns. Before a fuller examination of records or activities, the IRS would have to give at least 15 days' notice, offer a conference, and later get written approval from IRS Division Counsel before taking actions such as revoking tax-exempt status. Inquiries and examinations would generally have to be finished within set time limits, repeat reviews on the same issues would be limited for 5 years, and the IRS would have to send confidential reports on each case to congressional tax committees. These rules would not apply to criminal investigations or cases of willful tax evasion.

Full text and official record on Congress.gov

Sponsors

• Alma S. Adams Democrat sponsor
• 21 cosponsors