Page:United States Statutes at Large Volume 98 Part 1.djvu/1082

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 1034

"(2) For treatment of certain organizations providing child care, see section 501(k)."

Ante, p. 1033. 26 USC 2522.

(3) Subsection (d) of section 2522 is amended by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively, and by inserting before paragraph (2) (as so redesignated) the following new paragraph: "(1) For treatment of certain organizations providing child care, see section 501(k)." (c) EFFECTIVE DATES.—The amendments made by subsections

26 USC 170 note.

(a) and (b) shall apply to taxable years beginning after the date of the enactment of this Act. SEC. 1033. RESTRICTIONS ON CHURCH TAX INQUIRIES AND EXAMINATIONS.

26 USC 7612. 26 USC 7611.

(a) IN GENERAL.—Subchapter A of chapter 78 (relating to discovery of liability and enforcement of title) is amended by redesignating section 7611 as section 7612 and inserting after section 7610 the following new section: "SEC, 7611. RESTRICTIONS ON CHURCH TAX INQUIRIES AND EXAMINATIONS. "(a) RESTRICTIONS ON INQUIRIES.—

"(1) IN GENERAL.—The Secretary may begin a church tax inquiry only if— "(A) the reasonable belief requirements of paragraph (2), and "(B) the notice requirements of paragraph (3), have been met. "(2) REASONABLE BELIEF REQUIREMENTS.—The requirements of this paragraph are met with respect to any church tax inquiry if an appropriate high-level Treasury official reasonably believes (on the basis of facts and circumstances recorded in writing) that the church— "(A) may not be exempt, by reason of its status as a church, from tax under section 501(a), or "(B) may be carrying on an unrelated trade or business (within the meaning of section 513) or otherwise engaged in activities subject to taxation under this title. "(3) INQUIRY NOTICE REQUIREMENTS.—

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"(A) IN GENERAL.—The requirements of this paragraph are met with respect to any church tax inquiry if, before beginning such inquiry, the Secretary provides written notice to the church of the beginning of such inquiry. "(B) CONTENTS OF INQUIRY NOTICE.—The notice required by this paragraph shall include— "(i) an explanation of— "(I) the concerns which gave rise to such inquiry, and "(II) the general subject matter of such inquiry, "(ii) a general explanation of the applicable— "(I) administrative and constitutional provisions with respect to such inquiry (including the right to a conference with the Secretary before any examination of church records), and

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