This bill adds a new section to the tax code that sets rules for when the Treasury Department or the Internal Revenue Service (IRS) can open and carry out tax inquiries and examinations of colleges, universities, and related organizations. It requires a written, recorded reasonable belief by a high-level Treasury official before starting an inquiry. The bill requires written notice to the university explaining the concerns and the subjects of the inquiry. Examinations may begin only after an inquiry and only to the extent needed to decide specific tax issues (for example, whether income is excluded under section 115, whether the organization is tax-exempt under section 501(a), or whether it has unrelated business income under section 513). The bill limits how long inquiries and exams can last, generally requiring completion within 2 years for examinations and 90 days for inquiries without an exam. It also requires Division Counsel review and written approval before certain determinations (such as including income, revoking tax-exempt status, issuing deficiency notices, or assessments). Other rules include notice and conference opportunities, limits on re-opening similar inquiries for 5 years, reporting to specified congressional committees within 60 days, and definitions and exceptions (for example, criminal investigations are excluded).
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No publicly available information in the bill text about supporters' stated reasons or benefits beyond the procedural rules the bill creates.
No publicly available information in the bill text about opponents' stated concerns or criticisms.