George Holding: “I thank the chairman. H.R. 1295, the IRS Bureaucracy Reduction and Judicial Review Act, has two simple goals. First, it…”

“I thank the chairman. H.R. 1295, the IRS Bureaucracy Reduction and Judicial Review Act, has two simple goals. First, it will provide newly formed 501(c)(4) organizations with a mandatory yet simple process for registering with the IRS. Within 60 days of establishment, a new 501(c)(4) will be required to provide notice of formation and intent to the IRS. The IRS, in return, must issue an acknowledgement of receipt to the notifying organization. Second, this legislation would offer 501(c)(4)s the ability to seek judicial review should the IRS deny their application for recognition, fail to act on the application, or inform an organization that it is considering revoking or adversely modifying its tax-exempt status. This would be conducted under the 7428 declaratory judgment procedure that is currently afforded to other tax-exempt organizations. Mr. Speaker, it is important to note that this legislation does not change the requirement for 501(c)(4)s to file an annual 990 or alter any of the other reporting requirements currently mandated for 501(c)(4)s. Now, thanks to the efforts of Chairman Roskam of the Oversight Subcommittee, leading a team of us, we know that last year the IRS spent nearly 10,000 hours reviewing 501(c)(4)s. So this legislation before us would simplify the review process for the IRS and allow them to better focus their resources on the thousands--thousands, Mr. Speaker--of 501(c)(3) applications which are outstanding and languishing for review.…”