PROOF Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 10258 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 10258 To amend the Internal Revenue Code of 1986 to clarify due process rights in the case of an action to terminate tax exempt status. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES September 3, 2026 Mr. Doggett (for himself and Ms. Sewell) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to clarify due process rights in the case of an action to terminate tax exempt status. 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 ``Protecting the Rights of Organizations Fairly Act of 2026'' or the ``PROOF Act''. SEC. 2. PROCESS FOR EXAMINATION OF CERTAIN TAX EXEMPT ENTITIES. (a) In General.--Subchapter A of chapter 78 is amended by inserting after section 7611 the following new section: ``SEC. 7611A. PROCESS FOR EXAMINATION OF CERTAIN TAX EXEMPT ENTITIES. ``(a) In General.-- ``(1) Examination.--In the case of an organization exempt from tax under section 501(a) (other than a church) the Secretary may begin a tax exempt examination only if the notice requirements of subsection (b) are met. ``(2) Revocation of status.--The Secretary may make an adverse determination with respect to an organization's status as exempt from tax under section 501(a) only if-- ``(A) an examination begun pursuant to paragraph (1), or in the case of a church, section 7611(b), sufficiently supports such determination, and ``(B) the due process requirements of subsection (c) are met. ``(b) Notice Requirements.-- ``(1) In general.--The notice requirements of this subsection shall be treated as met with respect to an exami