text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Exempt Organization Simplification 
  and Taxpayer Protection Act of 2013''.
  
  SEC. 2. ORGANIZATIONS REQUIRED TO NOTIFY SECRETARY OF INTENT TO OPERATE 
                AS 501(C)(4).
  
      (a) In General.--Part I of subchapter F of chapter 1 of the 
  Internal Revenue Code of 1986 is amended by adding at the end the 
  following new section:
  
  ``SEC. 506. ORGANIZATIONS REQUIRED TO NOTIFY SECRETARY OF INTENT TO 
                OPERATE AS 501(C)(4).
  
      ``(a) In General.--An organization described in section 501(c)(4) 
  shall, not later than 60 days after the organization is established, 
  notify the Secretary (in such manner as the Secretary shall by 
  regulation prescribe) that it is operating as such.
      ``(b) Contents of Notice.--The notice required under subsection (a) 
  shall include the following information:
              ``(1) The name, address, and taxpayer identification number 
          of the organization.
              ``(2) The date on which, and the State under the laws of 
          which, the organization was organized.
              ``(3) A statement of the purpose of the organization.
      ``(c) Acknowledgment of Receipt.--Not later than 60 days after 
  receipt of such a notice, the Secretary shall send to the organization 
  an acknowledgment of such receipt.
      ``(d) Extension for Reasonable Cause.--The Secretary may, for 
  reasonable cause, extend the 60-day period described in subsection (a).
      ``(e) User Fee.--The Secretary shall impose a reasonable user fee 
  for submission of the notice under subsection (a).
      ``(f) Request for Determination.--Upon request by an organization 
  to be treated as an organization described in section 501(c)(4), the 
  Secretary may issue a determination with respect to such treatment. 
  Such request shall be treated for purposes of section 6104 as an 
  application for exemption from taxation under section 501(a).''.
      (b) Supporting Information With First Return.--Paragraph (1) of 
  section 6033(f) of such Code is amended--
              (1) by striking the period at the end and inserting ``, 
          and'',
              (2) by striking ``include on the return required under 
          subsection (a) the information'' and inserting the following: 
          ``include on the return required under subsection (a)--
              ``(1) the information'', and
              (3) by adding at the end the following new paragraph:
              ``(2) in the case of the first such return filed by such an 
          organization after submitting a notice to the Secretary under 
          section 506(a), such information as the Secretary shall by 
          regulation require in support of the organization's treatment 
          as an organization described in section 501(c)(4).''.
      (c) Failure To File Initial Notification.--Subsection (c) of 
  section 6652 of such Code is amended by redesignating paragraphs (4) 
  and (5) as paragraphs (5) and (6), respectively, and by inserting after 
  paragraph (3) the following new paragraph:
              ``(4) Notices under section 506.--
                      ``(A) Penalty on organization.--In the case of a 
                  failure to submit a notice required under section 
                  506(a) (relating to organizations required to notify 
                  Secretary of intent to operate as 501(c)(4)) on the 
                  date and in the manner prescribed therefor, there shall 
                  be paid by the organization failing to so submit $20 
                  for each day during which such failure continues, but 
                  the total amount imposed under this subparagraph on any 
                  organization for failure to submit any one notice shall 
                  not exceed $5,000.
                      ``(B) Managers.--The Secretary may make written 
                  demand on an organization subject to penalty under 
                  subparagraph (A) specifying in such demand a reasonable 
                  future date by which the notice shall be submitted for 
                  purposes of this subparagraph. If such notice is not 
                  submitted on or before such date, there shall be paid 
                  by the person failing to so submit $20 for each day 
                  after the expiration of the time specified in the 
                  written demand during which such failure continues, but 
                  the total amount imposed under this subparagraph on all 
                  persons for failure to submit any one notice shall not 
                  exceed $5,000.''.
      (d) Clerical Amendment.--The table of sections for part I of 
  subchapter F of chapter 1 of such Code is amended by adding at the end 
  the following new item:
  
  ``Sec. 506. Organizations required to notify Secretary of intent to 
                              operate as 501(c)(4).''.
      (e) Effective Date.--
              (1) In general.--The amendments made by this section shall 
          apply to organizations which are described in section 501(c)(4) 
          of the Internal Revenue Code of 1986 and organized after 
          December 31, 2014.
              (2) Certain existing organizations.--In the case of any 
          other organization described in section 501(c)(4) of such Code, 
          the amendments made by this section shall apply to such 
          organization only if, on or before the date of the enactment of 
          this Act--
                      (A) such organization has not applied for a written 
                  determination of recognition as an organization 
                  described in section 501(c)(4) of such Code, and
                      (B) such organization has not filed at least one 
                  annual return or notice required under subsection 
                  (a)(1) or (i) (as the case may be) of section 6033 of 
                  such Code.
          In the case of any organization to which the amendments made by 
          this section apply by reason of the preceding sentence, such 
          organization shall submit the notice required by section 506(a) 
          of such Code, as added by this Act, not later than 180 days 
          after the date of the enactment of this Act.
  
  SEC. 3. DECLARATORY JUDGMENTS FOR 501(C)(4) ORGANIZATIONS.
  
      (a) In General.--Paragraph (1) of section 7428(a) of the Internal 
  Revenue Code of 1986 is amended by striking ``or'' at the end of 
  subparagraph (C) and by inserting after subparagraph (D) the following 
  new subparagraph:
                      ``(E) with respect to the initial classification or 
                  continuing classification of an organization described 
                  in section 501(c)(4) which is exempt from tax under 
                  section 501(a), or''.
      (b) Effective Date.--The amendments made by this section shall 
  apply to pleadings filed after the date of the enactment of this Act.
  
  SEC. 4. RELEASE OF INFORMATION REGARDING THE STATUS OF CERTAIN 
                INVESTIGATIONS.
  
      (a) In General.--Subsection (e) of section 6103 of the Internal 
  Revenue Code of 1986 is amended by adding at the end the following new 
  paragraph:
              ``(11) Disclosure of information regarding status of 
          investigation of violation of this section.--In the case of a 
          person who provides to the Secretary information indicating a 
          violation of section 7213, 7213A, or 7214 with respect to any 
          return or return information of such person, the Secretary may 
          disclose to such person (or such person's designee)--
                      ``(A) whether an investigation based on the 
                  person's provision of such information has been 
                  initiated and whether it is open or closed,
                      ``(B) whether any such investigation substantiated 
                  such a violation by any individual, and
                      ``(C) whether any action has been taken with 
                  respect to such individual (including whether a 
                  referral has been made for prosecution of such 
                  individual).''.
      (b) Effective Date.--The amendment made by this section shall take 
  effect on the date of the enactment of this Act.
  
  SEC. 5. REVIEW OF INTERNAL REVENUE SERVICE EXAMINATION SELECTION 
                PROCEDURES.
  
      (a) In General.--The Comptroller General of the United States shall 
  conduct a study of each Internal Revenue Service operating division to 
  assess the process used for determining how enforcement cases are 
  selected and processed. Such study shall include a review of the 
  following:
              (1) The standards each such operating division has 
          established for enforcement case selection (including any 
          automated or discretionary selection processes) and case work, 
          and whether such standards meet the objectives of impartiality, 
          objectivity, compliance, and minimizing taxpayer burden.
              (2) The extent to which any cases are initiated by 
          referrals or complaints from inside or outside of the operating 
          division (including from outside of the Internal Revenue 
          Service).
              (3) The Internal Revenue Service controls (including 
          management reviews and regular updates) for assuring that its 
          standards for enforcement cases (and handling of referrals and 
          complaints) in each operating division are sufficient for 
          achieving the objectives described in paragraph (1).
              (4) The Internal Revenue Service controls (including 
          training, monitoring, and quality assessments) for assuring 
          that its standards are adhered to by all division personnel and 
          the effectiveness of such controls.
              (5) Whether the existing standards and controls provide 
          reasonable assurance that each division's enforcement processes 
          meet the Internal Revenue Service objectives of impartiality, 
          objectivity, compliance, and minimizing taxpayer burden.
      (b) Initial Report.--Not later than 1 year after the date of the 
  enactment of this section, the Comptroller General shall submit to the 
  Committee on Ways and Means of the House of Representatives, the 
  Committee on Finance of the Senate, and the Secretary of the Treasury a 
  report on the results of such study. Such report shall include such 
  recommendations as the Comptroller General may deem advisable.
      (c) Follow-Up on Recommendations.--Not later than 180 days after a 
  report is submitted with respect to an operating division under 
  subsection (b), the Comptroller General shall conduct a follow-up 
  study, and submit to the Committee on Ways and Means of the House of 
  Representatives, the Committee on Finance of the Senate, and the 
  Secretary of the Treasury a report, on whether any recommendations to 
  improve case selection and case work processes have been implemented 
  and are working as intended.
      (d) Continuing Case Management Studies and Reports.--
              (1) In general.--After a report is submitted under 
          subsection (b), the Comptroller General shall conduct follow-up 
          studies and reports in the same manner as provided in 
          subsections (a) and (b) with respect to each operating division 
          of the Internal Revenue Service and shall include in such study 
          and report a review of whether any previous recommendations to 
          improve case selection and case work processes have been 
          implemented and are working as intended.
              (2) Frequency.--Each such report with respect to an 
          operating division shall be submitted not later than 4 years 
          after the date the most recent report was submitted with 
          respect to such operating division under subsection (b) or this 
          subsection. The Comptroller General shall submit no fewer than 
          1 such report each year.
  
  SEC. 6. IRS EMPLOYEES PROHIBITED FROM USING PERSONAL EMAIL ACCOUNTS FOR 
                OFFICIAL BUSINESS.
  
      No officer or employee of the Internal Revenue Service may use a 
  personal email account to conduct any official business of the 
  Government.
target: Exempt Organization Simplification and Taxpayer Protection Act of 2013 - Amends the Internal Revenue Code to: (1) require an organization that intends to operate as a tax-exempt social welfare organization to notify the Secretary of the Treasury of such intent with information as to its identity and purpose, (2) allow such an organization to seek a declaratory judgment concerning its status and classification as a tax-exempt organization, and (3) authorize the Secretary to disclose information for investigations of violations of internal revenue laws relating to unauthorized disclosure or inspection of tax information and unlawful acts of revenue officers or agents.  Directs the Comptroller General (GAO) to study and report on the process used for determining how Internal Revenue Service (IRS) enforcement cases are selected and processed. Prohibits any IRS officer or employee from using a personal email account to conduct official business.
feat_title: Exempt Organization Simplification and Taxpayer Protection Act of 2013