H.R. 2686
119th CONGRESS 1st Session
To amend the Internal Revenue Code of 1986 to impose penalties with respect to civil rights violations by certain tax-exempt educational institutions.
IN THE HOUSE OF REPRESENTATIVES · April 7, 2025 · Sponsor: Ms. Malliotakis · Committee: Committee on Ways and Means
Table of contents
Sec. 6720D. Civil rights violations by certain tax-exempt educational institutions.
- (a) In general
- There is hereby imposed a penalty equal to the applicable penalty amount on a specified tax-exempt educational institution with respect to each determination of civil rights violation with respect to such institution.
- (b) Timing of liability
- (1) In general
- A specified tax-exempt educational institution shall be liable for the penalty imposed under subsection (a) with respect to any determination of civil rights violation on the date of the judgment referred to in subsection (c).
- (2) Reversal of determinations
- In the event that any determination of civil rights violation is vacated, overturned, or otherwise reversed, the Secretary shall refund any penalty paid with respect to the determination of civil rights violation. The preceding sentence shall not be interpreted to prevent the application of this section with respect to any determination of civil rights violation that is reinstated or otherwise redetermined following any such reversal.
- (1) In general
- (c) Determination of civil rights violation
- For purposes of this section—
- (1) In general
- The term means, with respect to any specified tax-exempt educational institution, any civil judgment of a Federal court of competent jurisdiction that such institution violated any provision of title VI of the Civil Rights Act of 1964.
determination of civil rights violation
- The term means, with respect to any specified tax-exempt educational institution, any civil judgment of a Federal court of competent jurisdiction that such institution violated any provision of title VI of the Civil Rights Act of 1964.
- (2) Authority to treat certain judgments as a single determination of civil rights violation
- If the Secretary determines that two or more judgments are based on the same set of facts and circumstances, such judgments shall be treated as a single determination of civil rights violation for purposes of this section, section 501(s), and such provisions of section 6033(o) as the Secretary determines appropriate.
- (d) Applicable penalty amount
- For purposes of this section—
- (1) In general
- The term means, with respect to each determination of civil rights violation made with respect to any specified tax-exempt educational institution, the greater of—
applicable penalty amount- $100,000, or
- in the case of an institution subject to the requirements of section 6033(a), 5 percent of the aggregate administrative compensation paid by such specified tax-exempt educational institution during the taxable year in which such violation occurred.
- The term means, with respect to each determination of civil rights violation made with respect to any specified tax-exempt educational institution, the greater of—
- (2) Administrative compensation
- The term means, with respect to any specified tax-exempt educational institution, the compensation and other payments described in section 6033(b)(7) made by such institution.
administrative compensation
- The term means, with respect to any specified tax-exempt educational institution, the compensation and other payments described in section 6033(b)(7) made by such institution.
- (e) Specified tax-Exempt educational institution
- For purposes of this section, the term means any eligible educational institution (as defined in section 25A(f)(2)) which is described in section 501(c) or section 511(a)(2)(B).
specified tax-exempt educational institution
- For purposes of this section, the term means any eligible educational institution (as defined in section 25A(f)(2)) which is described in section 501(c) or section 511(a)(2)(B).
- (f) Waiver of limitations on assessment and refund
- Sections 6501 and 6511 shall not apply to any penalty imposed under subsection (a) or refund made under subsection (b)(2).