S. 1310

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to end the tax subsidy for employer efforts to influence their workers’ exercise of their rights around labor organizations and engaging in collective action.

IN THE SENATE OF THE UNITED STATES · April 4, 2025 · Sponsor: Mr. Luján · Committee: Committee on Finance

Table of contents

• S. 1310
  • Sec. 6720D. Failure to include certain information with respect to employer activities relating to labor organizations.

Sec. 6720D. Failure to include certain information with respect to employer activities relating to labor organizations.

• (a) In general
  • If any taxpayer who makes expenditures described in section 162(e)(1)(E) fails to provide with the return of tax for the taxable year to which such expenditures relate the information provided in subsection (c) with respect to such expenditures, or who fails to provide all of the information required under subsection (b) or fails to provide correct information, shall pay a penalty in the amount determined under subsection (b).
  • In general
• (b) Determination of penalty amount
  • (1) In general
    • The amount of the penalty under this section for any failure described in subsection (a) shall be the greater of—
    • In general
      • $10,000, or
      • the product of $1,000 and the number of full time equivalent employees of the employer (as determined under section 45R(d)(2)).
  • (2) Increased penalty where failure continues
    • (A) In general
      • If any failure described in subsection (a)(1) continues for more than 90 days after the day on which the Secretary mails notice of such failure to the taxpayer, the taxpayer shall pay a penalty (in addition to the amount of any penalty under paragraph (1)) equal to the amount determined under paragraph (1) for each 30-day period (or fraction thereof) during which such failure continues after the expiration of such 90-day period.
      • In general
    • (B) Limitation
      • The penalty imposed under this paragraph with respect to any failure shall not exceed $100,000.
• (c) Information To be provided
  • The information required under this subsection shall include—
    • the dates that such activities described in section 162(e)(1)(E) took place,
    • a statement indicating whether the activity was an activity described in item (aa), (bb), or (cc) of section 162(e)(4)(D)(i)(I),
    • the amounts paid or incurred for such activities,
    • a copy of any disclosures which are required to be reported under the Labor-Management Reporting and Disclosure Act of 1959 (), and 29 U.S.C. 401 et seq.
    • such other information as the Secretary may prescribe.
• (d) Reasonable cause exception
  • No penalty shall be imposed by this section on any failure which is shown to be due to reasonable cause and not due to willful neglect.