Tax bill quietly eliminates IRS penalties while expanding charitable deduction
H.R. 801 — Charitable Act · Filed by Blake Moore (R-UT) · 54 cosponsors · Introduced Jan 28, 2025 · Referred to committee
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What it does
This bill allows taxpayers who do not itemize deductions to claim a charitable contribution deduction for tax years 2026–2027, capped at one-third of the standard deduction. It also eliminates two tax-compliance penalties (the accuracy-related penalty under IRC §6662(b)(9) and the increased penalty under §6662(l)) and makes conforming amendments to cross-references.
Why we flagged it
The bill's primary mechanism is a temporary charitable deduction for non-itemizers (a tax incentive), but it also eliminates two accuracy-related penalties, which is a separate compliance/enforcement measure. The two provisions are mechanically distinct and serve different constituencies.
- Elimination of §6662(b)(9) and §6662(l) accuracy-related penalties is substantively unrelated to charitable-contribution deduction policy and appears to be a separate tax-compliance carve-out.
What the text implies
- The penalty elimination (§6662(b)(9) and §6662(l)) applies to all taxpayers and all tax-reporting errors, not just charitable contributions, making it a broad compliance-cost reduction for tax filers generally.
- Removal of the §6662(l) increased penalty may reduce IRS deterrent effect for substantial understatements of income tax, potentially increasing voluntary non-compliance.
- The charitable deduction is temporary (2026–2027 only), creating a sunset that may require future legislative renewal and creates planning uncertainty for nonprofits relying on donor incentives.
- The deduction is capped at 1/3 of standard deduction, limiting benefit to lower-income non-itemizers while higher-income itemizers retain full deduction under existing law, creating a regressive structure.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
The charitable deduction expansion benefits donors (primarily higher-income households more likely to give) and may encourage charitable giving to nonprofits. However, the elimination of accuracy-related penalties reduces IRS enforcement for tax-reporting errors across all taxpayers, potentially increasing underpayment and audit risk for the general public while lowering compliance costs for those who make mistakes.
Who stands to gain
- charitable donors (individuals claiming deduction)
- nonprofit organizations (indirect, via increased donor incentives)
- taxpayers subject to accuracy-related penalties (reduced compliance cost)
Named in the bill
Internal Revenue Code §170 (charitable contributions), Internal Revenue Code §6662 (accuracy-related penalties), Internal Revenue Code §6664 (penalty procedures), Internal Revenue Code §6751 (penalty procedures), IRS (Internal Revenue Service)
Where it stands
54 cosponsors: 28 Democrats, 26 Republicans.
- Jan 28, 2025 — Introduced · Congress.gov: “Introduced in House”
- Jan 28, 2025 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
Money around this bill
19 lobbying clients named this bill on 26 disclosure filings across 3 quarters, Dec 2025 to Jun 2026. Those filings disclosed $1,533,748 in lobbying spend. A filing names 5 bills on average, so that figure is what each filing reported, not a share belonging to this bill.
More lobbying clients named this bill than 96% of bills with at least one filing.
Blake Moore, the sponsor, reported $1,467,500 in PAC receipts in the 2026 cycle.
- United Way Worldwide (uww) — $240,000 on 2 filings
- American Lung Association — $190,000 on 2 filings
- Ywca USA — $167,678 on 2 filings
- National Assn of Independent Colleges & Universities — $155,000 on 2 filings
- National Council of Nonprofits (formerly Known As the National Council of Nonpro — $147,024 on 2 filings
Lobbying Disclosure Act filings through Jul 21, 2026. A filing shows who paid to lobby on a bill it names, not what changed.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (1,688 characters) on Sep 23, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 14,707 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
Money — Senate Lobbying Disclosure Act filings whose specific-issue field names this bill for quarters ending Dec 2025 to Jun 2026. A filing's amount is reported whole beside the median number of bills a filing names; it is never divided across them. PAC receipts are FEC-reported contributions to the sponsor's candidate committee in the 2026 cycle.
As of — lobbying records through Jul 21, 2026 · page rendered 2026-09-23.
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