Higher Education Oversight for Nonprofits Ensuring Standards and Transparency Act
Sponsored By: Representative Adams, Alma S. [D-NC-12]
Introduced
Summary
Limits IRS probes of universities by creating written signoff rules, advance notice and conference rights, tight time limits, and mandatory Treasury and Division Counsel review before exams would proceed.
Show full summary
- Universities: Would force the IRS to give written inquiry and examination notices and an offer to confer before any records or activities are examined. It would also narrow what the IRS can inspect to defined business records and specified university activities.
- IRS and Treasury officials: Would require a documented, reasonable-belief finding by a high-level Treasury official before starting an inquiry and written Division Counsel approval before any inclusion of income, revocation of tax exempt status, or deficiency is finalized.
- Timelines and limits for both sides: Inquiries must end within 90 days unless followed by an exam. Examinations generally must finish within 2 years and cannot start until at least 15 days after the inquiry notice. A five-year bar would block new duplicate probes unless approved.
- Congress and transparency: The Secretary must send a confidential report to House Ways and Means and Senate Finance within 60 days listing the university, attestations, the notice, and related regulations.
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
5 provisions identified: 3 benefits, 1 costs, 1 mixed.
Definitions for university reviews
If enacted, the bill would define which colleges and related groups count as "universities" for these IRS rules. It would say what counts as a university "tax inquiry" versus an "examination." It would define "business records" to exclude documents got by summons under section 7609 or from government agencies. It would also say "university activities" include things like affiliations, ideological positions, advocacy, and curricular or scholastic content.
Five‑year limit on repeat reviews
If enacted, the bill would bar the IRS from starting another university tax inquiry or examination about the same university and the same or similar issues for five years after the original notice date. The IRS Secretary could waive the bar in writing. The rule applies to reviews that begin after the bill takes effect.
Serious cases exempted
If enacted, the bill would not apply to several kinds of matters. It would not limit criminal investigations. It would not apply when the review concerns someone other than a university. It would not apply to certain serious tax assessments under sections 6851, 6852, or 6861, to willful tax evasion attempts, or to knowing failures to file returns. These exclusions apply to reviews that start after the law takes effect.
Congress notified of university probes
If enacted, the bill would require the Treasury Secretary to send a confidential report to House Ways and Means and Senate Finance within 60 days after any university tax inquiry or examination begins. The report must name the university, confirm that the legal steps to start the review were taken, include the notice given to the university, and include any finalized or proposed regulations about this rule. This applies to reviews that start after the law takes effect.
Final IRS agent reports count
If enacted, the bill would treat a final IRS revenue agent report as an official Secretary determination for purposes of section 7428(a)(1). A university that receives such a final report would be treated as having exhausted its administrative remedies for purposes of sections 7428 and 7430. This applies to reviews that start after the law takes effect.
Sponsors & CoSponsors
Sponsor
Adams, Alma S. [D-NC-12]
NC • D
Cosponsors
Rep. Raskin, Jamie [D-MD-8]
MD • D
Sponsored 9/10/2026
Rep. Wilson, Frederica S. [D-FL-24]
FL • D
Sponsored 9/10/2026
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 9/10/2026
Rep. Clarke, Yvette D. [D-NY-9]
NY • D
Sponsored 9/10/2026
Rep. Mannion, John W. [D-NY-22]
NY • D
Sponsored 9/10/2026
Rep. Doggett, Lloyd [D-TX-37]
TX • D
Sponsored 9/10/2026
Rep. Grijalva, Adelita S. [D-AZ-7]
AZ • D
Sponsored 9/10/2026
Rep. Jayapal, Pramila [D-WA-7]
WA • D
Sponsored 9/10/2026
Rep. McBath, Lucy [D-GA-6]
GA • D
Sponsored 9/10/2026
Rep. Chu, Judy [D-CA-28]
CA • D
Sponsored 9/10/2026
Rep. Davis, Danny K. [D-IL-7]
IL • D
Sponsored 9/10/2026
Rep. Simon, Lateefah [D-CA-12]
CA • D
Sponsored 9/10/2026
Rep. McCollum, Betty [D-MN-4]
MN • D
Sponsored 9/10/2026
Rep. Carter, Troy A. [D-LA-2]
LA • D
Sponsored 9/10/2026
Rep. Hayes, Jahana [D-CT-5]
CT • D
Sponsored 9/10/2026
Rep. Takano, Mark [D-CA-39]
CA • D
Sponsored 9/10/2026
Rep. Carson, André [D-IN-7]
IN • D
Sponsored 9/10/2026
Rep. Kamlager-Dove, Sydney [D-CA-37]
CA • D
Sponsored 9/15/2026
Rep. Bonamici, Suzanne [D-OR-1]
OR • D
Sponsored 9/16/2026
Rep. Casar, Greg [D-TX-35]
TX • D
Sponsored 9/24/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov