Require audits of institutions with respect to disclosures of foreign gifts, and for other purposes.

Summary

Creates a recurring federal audit program to check colleges and universities for proper disclosure of foreign gifts and contracts, and imposes large new excise taxes on certain foreign-source receipts and on foreign funding that an audit finds was not reported. Audits start within 60 days of enactment and run every two years (at least 30 institutions per cycle); tax changes take effect for taxable years beginning more than 60 days after enactment and can subject affected institutions to 300% and 110% excise taxes.

• Establishes recurring audits of institutions' foreign gift/contract disclosures starting within 60 days and recurring every two years (at least 30 institutions audited each cycle).
• Audit selection prioritizes very large endowments, prior substantial foreign funding, prior noncompliance, public reporting of contributions from ‘‘foreign entities of concern,’’ and formal federal agreements.
• Audits must review the two prior reporting years and identify misreported gifts/contracts with amounts, sources, countries, and dates.
• Creates a new 300% excise tax on income from any "foreign country of concern" received by qualifying institutions.
• Creates a 110% excise tax on foreign gifts/contracts found by audit to have been required to be reported but were not; tax due within 180 days of audit notice.
• Amounts from a foreign country of concern can be taxable under both the 300% and 110% provisions, potentially resulting in very large combined tax exposure.
• An "applicable institution" must have had at least 500 tuition-paying students and a majority of those students located in the U.S. to be subject to the 300% tax rule.
• Tax changes apply to taxable years beginning more than 60 days after enactment; audits begin within 60 days and reports must be published within 30 days of audit completion.
• Requires coordination between the Department of Education (audits/reporting) and the IRS (assessment and collection of new excise taxes).