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Code · BILL · 113th Congress · H.R. 1 (Introduced in House) — To amend the Internal Revenue Code of 1986 to provide for comprehensive tax reform. · Sec. 5304

Sec. 5304. Repeal of Type II and Type III supporting organizations

696 words·~3 min read·/bill/113/hr/1/ih/section-5304

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Subparagraph
(B)of section 509(a)(3) is amended— by inserting and at the end of clause (i), by striking clauses
(ii)and (iii), and by striking is— and all that follows through operated, supervised, or controlled and inserting is operated, supervised, or controlled . Section 170(f)(18)(A) is amended by striking is not— and all that follows through , and and inserting the following: is not described in paragraph (3), (4), or
(5)of subsection (c), and . Section 509(f) is amended by striking paragraph
(1)and by redesignating paragraphs
(2)and
(3)as paragraphs
(1)and (2), respectively. Section 4942(g)(4)(A)(ii)(I) is amended by striking section 509(f)(3) and inserting section 509(f)(2) . Section 4958(c)(3)(C)(ii)(II) is amended by striking section 509(f)(3) and inserting section 509(f)(2) . Section 4966(d)(4)(A)(ii)(I) is amended by striking section 509(f)(3) and inserting section 509(f)(2) . Section 509(f)(1)(A), as so redesignated, is amended by striking shall not be considered to be— and all that follows through if such organization and inserting the following: shall not be considered to be operated, supervised, or controlled by any organization described in paragraph
(1)or
(2)of subsection (a), if such organization . Section 2055(e)(5)(A) is amended by striking is not— and all that follows through , and and inserting the following: is not described in paragraph
(3)or
(4)of subsection (a), and . Section 2522(c)(5)(A) is amended by striking is not— and all that follows through , and and inserting the following: is not described in paragraph
(3)or
(4)of subsection (a), and . Section 4942(g)(4)(A), as amended by the preceding provision of this Act, is amended— by redesignating subclauses
(I)and
(II)of clause
(ii)as clauses
(i)and (ii), respectively, and moving such redesignated clauses 2 ems to the left, by striking paid by a private foundation to— and all that follows through any organization which and inserting the following: paid by a private foundation to any organization which , and by striking subparagraph
(B)or
(C)and inserting subparagraph
(B). Section 4942(g)(4)(B) is amended— by striking clause (ii), by striking section 509(a), or and inserting section 509(a). , by striking and is— and all that follows through operated, supervised, or controlled by and inserting the following: and is operated, supervised, or controlled by , and by striking in the heading thereof. Type I and type II Section 4942(g)(4) is amended by striking subparagraph (C). Section 4945(d)(4)(A)(ii) is amended by striking clause
(i)or
(ii)of section 4942(g)(4)(A) and inserting section 4942(g)(4)(A) . Section 4943 is amended by striking subsection (f). Section 4966(d)(4)(A), as amended by this Act, is amended— by redesignating subclauses
(I)and
(II)of clause
(ii)as clauses
(i)and (ii), respectively, and moving such redesignated clauses 2 ems to the left, by striking with respect to any distribution— and all that follows through any organization which and inserting the following: with respect to any distribution, any organization which , and by striking subparagraph
(B)or
(C)and inserting subparagraph
(B). Section 4966(d)(4)(B) is amended— by striking clause (ii), by striking section 509(a), or and inserting section 509(a). , by striking and is— and all that follows through operated, supervised, or controlled by and inserting the following: and is operated, supervised, or controlled by , and by striking in the heading thereof. Type I and type II Section 4966(d)(4) is amended by striking subparagraph (C). Section 6033(l) is amended by inserting and at the end of paragraph (1), by striking paragraph (2), and by redesignating paragraph
(3)as paragraph (2). Except as provided in paragraph (2), the amendments made by this section shall take effect on the date of the enactment of this Act. In the case of an organization which, as of the date of the enactment of this Act, meets the requirements of subparagraphs
(A)and
(C)of section 509(a)(3) of the Internal Revenue Code of 1986 and is— supervised or controlled in connection with one or more organizations described in paragraph
(1)or
(2)of section 509(a) of such Code, or is operated in connection with one or more such organizations, the amendments made by this section shall apply to taxable years beginning after December 31, 2015.
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