110th CONGRESS
1st Session

S. 403

To amend the Internal Revenue Code of 1986 to provide that reimbursements for costs of using passenger automobiles for charitable and other organizations are excluded from gross income, and for other purposes.

IN THE SENATE OF THE UNITED STATES

January 26, 2007

Mr. FEINGOLD 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 that reimbursements for costs of using passenger automobiles for charitable and other organizations are excluded from gross income, 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. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS EXCLUDED FROM GROSS INCOME.

    (a) In General- Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139A the following new section:

`SEC. 139B. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS.

    `(a) In General- Gross income of an individual does not include amounts received, from an organization described in section 170(c), as reimbursement of operating expenses with respect to use of a passenger automobile for the benefit of such organization. The preceding sentence shall apply only to the extent that such reimbursement would be deductible under this chapter if section 274(d) were applied--

      `(1) by using the standard business mileage rate established under such section, and

      `(2) as if the individual were an employee of an organization not described in section 170(c).

    `(b) No Double Benefit- Subsection (a) shall not apply with respect to any expenses if the individual claims a deduction or credit for such expenses under any other provision of this title.

    `(c) Exemption From Reporting Requirements- Section 6041 shall not apply with respect to reimbursements excluded from income under subsection (a).'.

    (b) Clerical Amendment- The table of sections for part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 139A and inserting the following new item:

      `Sec. 139B. Reimbursement for use of passenger automobile for charity.'.

    (c) Effective Date- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

SEC. 2. INCREASE IN CRIMINAL MONETARY PENALTY LIMITATION FOR THE UNDERPAYMENT OR OVERPAYMENT OF TAX DUE TO FRAUD.

    (a) In General- Section 7206 of the Internal Revenue Code of 1986 (relating to fraud and false statements) is amended--

      (1) by striking `Any person who--' and inserting `(a) In General- Any person who--', and

      (2) by adding at the end the following new subsection:

    `(b) Increase in Monetary Limitation for Underpayment or Overpayment of Tax Due to Fraud- If any portion of any underpayment (as defined in section 6664(a)) or overpayment (as defined in section 6401(a)) of tax required to be shown on a return is attributable to fraudulent action described in subsection (a), the applicable dollar amount under subsection (a) shall in no event be less than an amount equal to such portion. A rule similar to the rule under section 6663(b) shall apply for purposes of determining the portion so attributable.'.

    (b) Increase in Penalties-

      (1) ATTEMPT TO EVADE OR DEFEAT TAX- Section 7201 of the Internal Revenue Code of 1986 is amended--

        (A) by striking `$100,000' and inserting `$250,000',

        (B) by striking `$500,000' and inserting `$1,000,000', and

        (C) by striking `5 years' and inserting `10 years'.

      (2) WILLFUL FAILURE TO FILE RETURN, SUPPLY INFORMATION, OR PAY TAX- Section 7203 of such Code is amended--

        (A) in the first sentence--

          (i) by striking `misdemeanor' and inserting `felony', and

          (ii) by striking `1 year' and inserting `10 years', and

        (B) by striking the third sentence.

      (3) FRAUD AND FALSE STATEMENTS- Section 7206(a) of such Code (as redesignated by subsection (a)) is amended--

        (A) by striking `$100,000' and inserting `$250,000',

        (B) by striking `$500,000' and inserting `$1,000,000', and

        (C) by striking `3 years' and inserting `5 years'.

    (c) Effective Date- The amendments made by this section shall apply to underpayments and overpayments attributable to actions occurring after the date of the enactment of this Act.

END