S 588119th CongressIn Committee

Presidential Audit and Tax Transparency Act

Introduced: Feb 13, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Presidential Audit and Tax Transparency Act would, if enacted, overhaul how presidential income tax returns are audited and disclosed. It would require the IRS to promptly examine presidential returns and to publicly disclose a series of audit-related reports (initial, periodic, and final) as well as audit materials. Separately, it would create a statutory framework mandating that Presidents, major presidential candidates, and certain related individuals and entities disclose their applicable federal income tax returns (the 3 most recent years) to the public, via the Office of Government Ethics (OGE) for Presidents and to the Federal Election Commission (FEC) for candidates. The bill would also authorize specific IRS and other federal agencies to share return information with these ethics and election authorities, with redactions of sensitive personal data. The disclosures would be online and subject to timing rules and enforcement provisions. The effective date is prospective, applying to returns filed after enactment and to related reports and materials.

Key Points

1Establishes an IRS audit process for Presidential income tax returns (new SEC. 7613):
2- Initial public audit report within 90 days of filing; periodic reports at 180-day intervals; final public report within 90 days after audit completion.
3- Final report would itemize proposed adjustments, resolutions, and materials; defines when an examination is considered complete.
4- Reports and materials must be publicly available online, with limitations on the disclosure of sensitive identifiers (redaction rules apply).
5Expanded public disclosure of Presidential tax information (Section 3 of the bill):
6- Creates a new 5 U.S.C. 13104A requiring disclosure of an “applicable income tax return” for Presidents and presidential candidates, plus related spouses, entities controlled by them, estates, and certain trusts.
7- For covered individuals (Presidents and those required to file certain reports; and covered candidates nominated by a major party), requires disclosure of the 3 most recent tax years publicly; for candidates, disclosure occurs within 15 days after nomination (30 days for those already covered at enactment).
8- Public disclosures would be routed through the Director of the OGE for individuals and through the FEC for candidates, with redaction of sensitive data (e.g., SSNs, addresses beyond city/state, etc.).
9- If returns have already been publicly disclosed under existing law (6103), the bill allows satisfaction by pointing to that location on the Internet.
10Authority to disclose return information (Section 6103 amendments):
11- IRS would disclose applicable returns and audit materials to OGE and, for candidates, to the FEC upon written request; the receiving agencies may disclose to the public under the bill’s framework.
12- Defines terms used for disclosure and makes conforming amendments to carry the new disclosure regime through 6103.
13Definitions and scope:
14- “Presidential income tax return” includes related schedules and documents filed with the tax return, and expands to include certain entities (e.g., corporations, partnerships) controlled by the President or spouse.
15- “Applicable income tax return” for purposes of disclosure includes returns of candidates, spouses, controlled entities, estates, and certain trusts for the relevant taxable year.
16- Clarifies control rules (including a family attribution nuance and an exception for recent transfers to family members) to determine when an entity is considered controlled by a covered individual.
17Enforcement and penalties:
18- Adds provisions penalizing willful falsification or failure to file the required returns or to disclose them under the new framework, with penalties aligned to the verified disclosures.
19Effective date:
20- Provisions apply to returns filed after enactment (and to related reports and audit materials for those returns), plus a transitional rule for the nomination/disclosure timing of already-nominated candidates.

Impact Areas

Primary group/area affected- Presidents and presidential candidates, including spouses and entities they control; the Executive Branch ethics apparatus (OGE) and election oversight (FEC); the Internal Revenue Service (IRS) and Tax Examinations division; and congressional oversight related to presidential financial disclosures.Secondary group/area affected- Public transparency advocates and journalists seeking access to presidential tax information; political organizations and advisors who may adjust messaging or strategy in light of public disclosures; legal and privacy stakeholders evaluating the scope of redactions and data protection.Additional impacts- Administrative and cost implications for IRS, OGE, and FEC to implement new disclosure mechanics and online publication systems.- Potential shifts in political norms and expectations around transparency for the presidency and campaigns.- Privacy considerations due to public access to tax returns, though mitigated by redaction rules in the bill.The bill emphasizes online public access for disclosures and audit materials, with explicit redaction of highly sensitive identifiers.It provides a structured timeline for audit disclosures and requires public posting of initial, periodic, and final audit information, potentially increasing scrutiny of presidential finances.The measure works in tandem with existing 6103 disclosure authorities but carves out a new, parallel public transparency regime.

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