[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 588 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 588
To amend the Internal Revenue Code of 1986 to provide for examination
and disclosure with respect to Presidential income tax returns, to
amend chapter 131 of title 5, United States Code, to require the
disclosure of certain tax returns by Presidents and certain candidates
for the office of the President, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 13, 2025
Mr. Wyden (for himself, Ms. Klobuchar, Mr. Kaine, Ms. Warren, Mr.
Merkley, Mr. Whitehouse, Mr. Sanders, Ms. Cantwell, and Mr. Van Hollen)
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 provide for examination
and disclosure with respect to Presidential income tax returns, to
amend chapter 131 of title 5, United States Code, to require the
disclosure of certain tax returns by Presidents and certain candidates
for the office of the President, 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 ``Presidential Audit and Tax
Transparency Act''.
SEC. 2. EXAMINATION AND DISCLOSURE WITH RESPECT TO PRESIDENTIAL INCOME
TAX RETURNS.
(a) Audit.--Subchapter A of chapter 78 of the Internal Revenue Code
of 1986 is amended by redesignating section 7613 as section 7614 and by
inserting after section 7612 the following new section:
``SEC. 7613. EXAMINATION WITH RESPECT TO PRESIDENTIAL INCOME TAX
RETURNS.
``(a) In General.--As rapidly as practicable after the filing of
any Presidential income tax return, the Secretary shall conduct an
examination to ascertain the correctness of such return and enforce the
requirements of this title with respect to the taxable year covered by
such return.
``(b) Reports.--
``(1) Initial report.--Not later than 90 days after the
filing of a Presidential income tax return, the Secretary shall
disclose and make publicly available an initial report
regarding the examination with respect to such return. Such
report shall include--
``(A) the name of the taxpayer,
``(B) an identification of the subparagraph of
subsection (c)(1) which describes such return,
``(C) the date that such return was filed, and
``(D) the date on which the examination with
respect to such return commenced (or, if such
examination has not commenced as of the date of such
report, a detailed description of the reasons that such
examination has not commenced).
``(2) Periodic reports.--Not later than 180 days after the
disclosure of the report described in paragraph (1) with
respect to any Presidential income tax return and not later
than 180 days after the most recent disclosure of a report
described in this paragraph with respect to such return, the
Secretary shall disclose and make publicly available a periodic
report regarding the examination with respect to such return.
Such report shall include--
``(A) the information described in subparagraphs
(A) through (D) of paragraph (1),
``(B) a description of the status of the
examination, including a description of the portions of
the examination which have been completed, which are in
process, and which are anticipated to take place, and
``(C) an estimate of the time frame for the
completion of the examination, including an
identification of factors which could alter such time
frame, reasonable estimates of the likelihood of such
factors (taking into account the specific facts and
circumstances of the examination), and the likely
specific effects of such factors on such time frame.
Notwithstanding the preceding sentence, a periodic report shall
not be required under this paragraph with respect to any return
after the date on which a final report is disclosed under
paragraph (3) with respect to such return.
``(3) Final report.--Not later than 90 days after the
completion of the examination described in subsection (a) with
respect to any Presidential income tax return, the Secretary
shall disclose and make publicly available a final report
regarding such examination. Such report shall include--
``(A) the information described in subparagraphs
(A) through (C) of paragraph (1),
``(B) the date on which the examination with
respect to such return was completed,
``(C) a list of the audit materials (as defined in
section 6103(q)(2)) with respect to such examination,
and
``(D) a description (including the amount) of each
proposed adjustment, adjustment, and controversy with
respect to such examination together with a description
of how such proposed adjustment or controversy was
resolved (or a statement that such proposed adjustment
or controversy was not resolved, as the case may be).
For purposes of this paragraph, an examination shall be treated
as complete on the date that the Secretary provides the
taxpayer with a notice of deficiency, or any closing document
referred to in section 6103(q)(2)(A)(v), with respect to such
examination.
``(4) Extension of due date report.--If a request is made
for an extension of the due date for filing any Presidential
income tax return, the Secretary shall, not later than 90 days
after such request is granted or denied, disclose and make
publicly available an extension of due date report with respect
to return. Such report shall include--
``(A) the information described in subparagraphs
(A) and (B) of paragraph (1),
``(B) a statement that an extension of the due date
for the filing of such return has been requested,
``(C) the date that such request was received,
``(D) a statement of whether such request has been
granted or denied, and
``(E) the due date of such return (including any
extensions).
``(5) Treatment of failure to file.--In the case of a
failure to file a Presidential income tax return before the
close of the 60-day period beginning with the date prescribed
for filing of such return--
``(A) the Secretary shall conduct the examination
described in subsection (a) with respect to the taxable
year covered by the return to which such failure
relates,
``(B) reports made pursuant to this paragraph shall
include a statement that such report is with respect to
a return which the taxpayer failed to file, and
``(C) this section and section 6103(q) shall
otherwise apply to such failure in the same manner as
if a return were filed at the close of such period.
The application of this paragraph with respect to any failure
to file a Presidential income tax return shall not prevent the
application of this section with respect to such return at such
time as such return may be filed.
``(6) Public availability.--For purposes of this
subsection, a document shall not be treated as having been made
publicly available unless made available on the Internet.
``(c) Presidential Income Tax Return.--For purposes of this
section--
``(1) In general.--The term `Presidential income tax
return' means any relevant income tax return of--
``(A) a President,
``(B) an individual who is married (within the
meaning of section 7703(a)) to a President for the
taxable year to which such return relates,
``(C) any corporation or partnership which is
controlled by any individual described in subparagraph
(A) or (B) at any time during the taxable year to which
such return relates,
``(D) the estate of any person described in (A) or
(B) or any estate with respect to which any person
described in subparagraph (A), (B), or (C) is an
executor or beneficiary at any time during the taxable
year to which such return relates, and
``(E) any trust with respect to which any person
described in subparagraph (A), (B), (C), or (D) is a
grantor, fiduciary, or beneficiary, or for which
another trust described in this subparagraph is a
grantor or beneficiary, at any time during the taxable
year to which such return relates.
Such term shall include any schedule, attachment, or other
document filed with such return.
``(2) Relevant income tax return.--The term `relevant
income tax return' means, with respect to a President, any
income tax return if--
``(A) any portion of the taxable year to which such
return relates is during the period that such President
is the President,
``(B) the due date for such return (including any
extensions) is during such period, or
``(C) such return is filed during such period.
``(3) Control.--For purposes of paragraph (1)(C)--
``(A) In general.--Except as otherwise provided in
this paragraph, control shall be determined under the
rules of paragraphs (2) and (3) of section 6038(e)
(determined without regard to subparagraphs (A) and (B)
of such paragraph (2) and without regard to
subparagraph (C) of paragraph (3) thereof).
``(B) Restriction on family attribution.--
``(i) In general.--Except as provided in
clause (ii), for purposes of applying
subparagraph (A)--
``(I) section 318 shall be applied
without regard to subsection
(a)(1)(A)(ii) thereof, and
``(II) section 267(c) shall be
applied by treating the family of an
individual as including only such
individual's spouse (in lieu of the
application of paragraph (4) thereof).
``(ii) Exception for recent transfer to
family members.--For purposes of determining
whether any corporation or partnership is
controlled by a President under paragraph
(1)(C) for any taxable year, clause (i) shall
not apply if such corporation or partnership
was controlled by such President (after
application of clause (i)) at any time during
the 4 immediately preceding taxable years.
``(d) Application to Amended Returns.--For purposes of this section
and section 6103(q), any amendment or supplement to a return of tax
shall be treated as a separate return of tax and the determination of
when such amendment or supplement is filed, and whether such amendment
or supplement is a relevant income tax return, shall be made without
regard to the underlying return.''.
(b) Disclosure.--Section 6103 of such Code is amended by
redesignating subsection (q) as subsection (r) and by inserting after
subsection (p) the following new subsection:
``(q) Disclosure With Respect to Presidential Income Tax Returns.--
``(1) In general.--The Secretary shall disclose and make
publicly available (within the meaning of section 7613(b))--
``(A) each Presidential income tax return (as
defined in section 7613(c)),
``(B) each report described in section 7613(b), and
``(C) any audit materials with respect a return
described in subparagraph (A).
``(2) Audit materials.--The term `audit materials' means,
with respect to any return:
``(A) Any of the following which are provided by
the Secretary to the taxpayer (or any designee of the
taxpayer):
``(i) Any written communication which
identifies such return as being subject to
examination.
``(ii) Any written communication which
proposes the adjustment of any item on such
return, any report by an examiner related to
such proposed adjustment, and any supervisory
approval of any penalty proposed as part of
such adjustment.
``(iii) Any memorandum or report of the
Internal Revenue Service Independent Office of
Appeals with respect to such return, and any
denial of any request described in subparagraph
(B).
``(iv) Any notice of deficiency with
respect to such return.
``(v) Any closing documents with respect to
the examination of such return, including any
closing agreement or no change letter.
``(B) Any request for referral to the Internal
Revenue Service Independent Office of Appeals of any
controversy with respect to such return.
``(C) Any petition filed with the Tax Court for a
redetermination of any deficiency referred to in
subparagraph (A)(iv).
``(3) Exception for certain identity information.--The
information disclosed and made publicly available under
paragraph (1) shall not include any identification number of
any person (including any social security number), any
financial account number, the name of any individual who has
not attained age 18 (as of the close of the taxable year to
which the return relates), the name of any employee of the
Department of the Treasury, or any address (other than the city
and State in which such address is located).
``(4) Timing of disclosures.--Any information required to
be disclosed under paragraph (1) shall be disclosed and made
publicly available not later than--
``(A) in the case of any income tax return referred
to in paragraph (1)(A), 90 days after the date that
such return is filed,
``(B) in the case of any report referred to in
paragraph (1)(B), the deadline specified in section
7613(b) for disclosing such report, and
``(C) in the case of the audit materials referred
to in paragraph (1)(C), 90 days after the completion of
the examination (within the meaning of section
7613(b)(3)) with respect to the return to which such
audit materials relate.''.
(c) Clerical Amendment.--Subchapter A of chapter 78 of such Code is
amended by redesignating the item relating to section 7613 as an item
relating to section 7614 and by inserting after the item relating to
section 7612 the following new item:
``Sec. 7613. Examination with respect to Presidential income tax
returns.''.
(d) Effective Date.--The amendments made by this subsection shall
apply to returns, amendments, and supplements filed (and failures to
file returns which occur) after the date of the enactment of this Act
(and to reports and audit materials with respect to such returns,
amendments, supplements, and failures).
SEC. 3. ADDITIONAL DISCLOSURE OF TAX RETURNS BY PRESIDENTS AND CERTAIN
PRESIDENTIAL CANDIDATES.
(a) In General.--
(1) Disclosure requirement.--Chapter 131 of title 5, United
States Code, is amended--
(A) by inserting after section 13104 the following:
``SEC. 13104A. DISCLOSURE OF TAX RETURNS.
``(a) Definitions.--In this section:
``(1) Applicable income tax return.--
``(A) In general.--The term `applicable income tax
return' means, with respect to any taxable year, any
return (within the meaning of section 6103(b) of the
Internal Revenue Code of 1986) relating to Federal
income taxes of--
``(i) a covered candidate or covered
individual;
``(ii) an individual who is married (within
the meaning of section 7703(a) of the Internal
Revenue Code of 1986) to a covered candidate or
covered individual for the taxable year;
``(iii) any corporation or partnership that
was controlled (as determined under section
7613(c)(3) of the Internal Revenue Code of
1986) by an individual described in clause (i)
or (ii) at any time during the taxable year;
``(iv) the estate of any person described
in clause (i) or (ii) or any estate with
respect to which any person described in clause
(i), (ii), or (iii) is an executor or
beneficiary at any time during the taxable
year; and
``(v) any trust with respect to which any
person described in clause (i), (ii), (iii), or
(iv) is a grantor, fiduciary, or beneficiary,
or for which another trust described in this
clause is a grantor or beneficiary, at any time
during the taxable year.
``(B) Inclusion of certain documents.--Such term
shall include any schedule, attachment, or other
document filed with such return.
``(2) Covered candidate.--The term `covered candidate'
means an individual--
``(A) required to file a report under section
13103(c); and
``(B) who is nominated by a major party as a
candidate for the office of President, regardless of
whether the individual is nominated after May 15 of an
applicable year.
``(3) Covered individual.--The term `covered individual'
means--
``(A) a President required to file a report under
subsection (a) or (d) of section 13103; and
``(B) an individual who occupies the office of the
President required to file a report under section
13103(e).
``(4) Major party.--The term `major party' has the meaning
given the term in section 9002 of the Internal Revenue Code of
1986.
``(b) Disclosure.--
``(1) Covered individuals.--
``(A) In general.--In addition to the information
described in subsections (a) and (b) of section 13104,
a covered individual shall include in each report
required to be filed under this title a copy of all
applicable income tax returns for the 3 most recent
taxable years for which a return has been filed with
the Internal Revenue Service as of the date on which
the report is filed.
``(B) Failure to disclose.--If an income tax return
is not disclosed under subparagraph (A), the Director
of the Office of Government Ethics shall submit to the
Secretary of the Treasury a request that the Secretary
of the Treasury provide the Director of the Office of
Government Ethics with a copy of the income tax return.
``(C) Publicly available.--Each income tax return
submitted or provided under this paragraph shall be
filed with the Director of the Office of Government
Ethics and made publicly available in the same manner
as the information described in subsections (a) and (b)
of section 13104.
``(D) Redaction of certain information.--Before
making any income tax return submitted under this
paragraph available to the public, the Director of the
Office of Government Ethics shall redact such
information as the Director of the Office of Government
Ethics, in consultation with the Secretary of the
Treasury (or a delegate of the Secretary), determines
appropriate.
``(2) Covered candidates.--
``(A) In general.--Not later than 15 days after the
date on which a covered candidate is nominated, the
covered candidate shall amend the report filed by the
covered candidate under section 13103(c) with the
Federal Election Commission to include a copy of the
applicable income tax returns for the 3 most recent
taxable years for which a return has been filed with
the Internal Revenue Service.
``(B) Failure to disclose.--If an applicable income
tax return is not disclosed under subparagraph (A), the
Federal Election Commission shall submit to the
Secretary of the Treasury a request that the Secretary
of the Treasury provide the Federal Election Commission
with the applicable income tax return.
``(C) Publicly available.--Each applicable income
tax return submitted or provided under this paragraph
shall be filed with the Federal Election Commission and
made publicly available in the same manner as the
information described in section 13104(b).
``(D) Redaction of certain information.--Before
making any applicable income tax return submitted under
this paragraph available to the public, the Federal
Election Commission shall redact such information as
the Federal Election Commission, in consultation with
the Secretary of the Treasury (or a delegate of the
Secretary) and the Director of the Office of Government
Ethics, determines appropriate.
``(3) Special rule with respect to returns disclosed under
other authority.--For purposes of this subsection, in the case
of any applicable income tax return that has been made publicly
available pursuant to section 6103(q) of the Internal Revenue
Code of 1986, the requirements of paragraphs (1)(A) and (2)(A)
shall be satisfied with respect to such return if the covered
individual or covered candidate (as the case may be) provides
the location on the Internet where such disclosure has been
made publicly available.''; and
(B) in section 13106--
(i) in subsection (a)--
(I) in paragraph (1), in the first
sentence, by inserting ``or any
individual who knowingly and willfully
falsifies or who knowingly and
willfully fails to file an applicable
income tax return that such individual
is required to disclose pursuant to
section 13104A of this title'' before
the period; and
(II) in paragraph (2)(A)--
(aa) in clause (i), by
inserting ``or falsify any
applicable income tax return
that such person is required to
disclose under section 13104A
of this title'' before the
semicolon; and
(bb) in clause (ii), by
inserting ``or fail to file any
applicable income tax return
that such person is required to
disclose under section 13104A
of this title'' before the
period;
(ii) in subsection (b), in the first
sentence, by inserting ``or willfully failed to
file or has willfully falsified an applicable
income tax return required to be disclosed
under section 13104A'' before the period;
(iii) in subsection (c), by inserting ``or
failing to file or falsifying an applicable
income tax return required to be disclosed
under section 13104A'' before the period; and
(iv) in subsection (d)(1)--
(I) in the matter preceding
subparagraph (A), by inserting ``or
files an applicable income tax return
required to be disclosed under section
13104A'' after ``subchapter''; and
(II) in subparagraph (A), by
inserting ``or such applicable income
tax return, as applicable,'' after
``report''.
(2) Special rule for individuals who are covered candidates
on date of enactment.--In the case of any individual who is a
covered candidate (as defined in section 13104A of title 5,
United States Code, as added by paragraph (1)) on the date of
the enactment of this Act, section 13104A(b)(2)(A) shall be
applied by substituting ``30 days after the date of the
enactment of the Presidential Audit and Tax Transparency Act''
for ``15 days after the date on which a covered candidate is
nominated''.
(3) Clerical amendment.--The table of sections for chapter
131 of title 5, United States Code, is amended by adding at the
end the following:
``13104A. Disclosure of tax returns.''.
(b) Authority To Disclose Information.--
(1) In general.--Section 6103(l) of the Internal Revenue
Code of 1986 is amended by adding at the end the following:
``(23) Disclosure of return information of presidents and
certain presidential candidates under chapter 131 of title 5,
united states code.--
``(A) Disclosure of returns of presidents.--
``(i) In general.--The Secretary shall,
upon written request from the Director of the
Office of Government Ethics pursuant to section
13104A(b)(1)(B) of title 5, United States Code,
provide to officers and employees of the Office
of Government Ethics a copy of each applicable
income tax return with respect to any covered
individual who has been identified in such
request.
``(ii) Disclosure to public.--The Director
of the Office of Government Ethics may disclose
to the public any applicable income tax return
required to be submitted to the Director
pursuant to section 13104A(b)(1) of title 5,
United States Code.
``(B) Disclosure of returns of certain candidates
for president.--
``(i) In general.--The Secretary shall,
upon written request from the Chairman of the
Federal Election Commission pursuant to section
13104A(b)(2)(B) of title 5, United States Code,
provide to officers and employees of the
Federal Election Commission a copy of each
applicable income tax return with respect to
any covered candidate who has been identified
in such request.
``(ii) Disclosure to public.--The Federal
Election Commission may disclose to the public
any applicable income tax return required to be
filed with the Commission pursuant to section
13104A(b)(2) of title 5, United States Code.
``(C) Definitions.--For purposes of this paragraph,
the terms `applicable income tax return', `covered
individual', and `covered candidate' have the meanings
given those terms in section 13104A of title 5, United
States Code.''.
(2) Conforming amendments.--Section 6103(p)(4) of the
Internal Revenue Code of 1986, in the matter preceding
subparagraph (A) and in subparagraph (F)(ii), is amended by
striking ``or (22)'' and inserting ``(22), or (23)'' each place
it appears.
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