Representative Lloyd Doggett (D), joined by Rep. Terri A. Sewell (D-AL), is pushing to put new due process requirements into federal tax law before the IRS can revoke a nonprofit's tax-exempt status.
The lawmakers introduced the Protecting the Rights of Organizations Fairly (PROOF) Act of 2026, H.R. 10258, on September 3. The bill was referred to the House Ways and Means Committee.
"The IRS should never be a weapon to punish a President's political enemies," said Rep. Doggett. "No organization - left, right, or center - should lose its tax-exempt status on an accusation, without evidence, and without a fair chance to be heard."
The legislation would establish statutory due process protections for tax-exempt organizations facing IRS examinations. Those protections include advance written notice, an explanation of the legal basis for an examination, specific document requests, an opportunity to respond, and a right to challenge proposed adverse action.
Before the IRS could revoke an organization's status, the bill would require the examination to sufficiently support the decision and the organization's due process rights to have been honored. It would provide a formal appeal process and judicial review.
Sewell said the legislation is intended to prevent nonprofit organizations from having their tax-exempt status revoked for political purposes.
The legislation comes after Doggett and Sewell renewed their demands for answers from IRS CEO Frank Bisignano about the administration's treatment of tax-exempt organizations. In March, Bisignano told Doggett that the IRS would not initiate audits, investigations, or revocations based on political targeting, saying, "100%. We're here to administer the law, uphold the law."
The PROOF Act would make the procedural protections part of the tax code rather than relying solely on agency guidance.
