119-s588

[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.
 <all>