Spotlight Act

Spotlight Act

This bill renders null and void final Internal Revenue Service (IRS) regulations published on May 28, 2020, relating to the reporting requirements of tax-exempt organizations.

The bill requires tax-exempt organizations that fall under sections 501(c)(4), 501(c)(5), and 501(c)(6) of the Internal Revenue Code (e.g., social welfare organizations, labor organizations, business leagues) to disclose the names and addresses of all substantial contributors (persons who contribute more than $5,000 per year to such organizations) on their information returns.

The bill also eliminates the authority of the IRS to provide exceptions to the disclosure requirements for tax-exempt organizations. This provision does not apply to determinations made by the IRS before July 16, 2018.

Bill 117 HR 774, also known as the Spotlight Act, is a piece of legislation introduced in the US Congress. The main purpose of this bill is to increase transparency and accountability in government spending by requiring federal agencies to publicly disclose information about their expenditures.

The Spotlight Act mandates that federal agencies must publish detailed reports on their spending activities on a publicly accessible website. This includes information on contracts, grants, and other financial transactions. The goal of this requirement is to make it easier for the public to understand how taxpayer dollars are being used and to hold government agencies accountable for their spending decisions.

Additionally, the bill requires federal agencies to establish internal controls to ensure the accuracy and completeness of the financial information they report. This is intended to prevent fraud, waste, and abuse of taxpayer funds. Overall, the Spotlight Act aims to promote transparency and accountability in government spending by making financial information more readily available to the public. This increased transparency is seen as a way to improve government efficiency and effectiveness, as well as to build trust between the government and the American people.