IRS must show its work before revoking nonprofit tax status
H.R. 10258 — PROOF Act · Filed by Lloyd Doggett (D-TX) · 1 cosponsor · Introduced Sep 3, 2026 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill adds new procedural protections for tax-exempt organizations (except churches, which already have protections) when the IRS examines or seeks to revoke their tax-exempt status. It requires the IRS to give detailed written notice before starting an exam, maintain a documented record of findings, allow organizations to request supervisory conferences, disclose examination records within 30 days of request, give at least 30 days' notice before issuing a final revocation letter, and provide a closing conference explaining the legal basis for any adverse decision. Churches receive similar new protections aligned with these standards.
Why we flagged it
The bill's core function is to impose procedural requirements on the IRS when examining or revoking tax-exempt status—notice, documentation, conferences, and appeal rights. It is not a substantive tax change but a governance reform ensuring administrative due process.
What the text implies
- The 30-day disclosure requirement for examination records may create administrative burden on IRS but increases transparency and reduces ability to rely on undisclosed findings.
- Requirement for supervisory conferences and closing conferences before adverse determination may slow IRS revocation process, potentially allowing organizations to continue operating longer during disputes.
The full analysis lists 4 implications of this text.
Who it affects
The bill strengthens due-process protections for tax-exempt organizations facing IRS revocation of status, ensuring transparency, documented reasoning, and opportunity to be heard before losing tax benefits. This protects both the organizations themselves and the public interest they serve (charities, religious groups, educational institutions) from arbitrary government action.