H.R.9721

Fiscal Sponsorship Transparency Act of 2026 imposes taxes on improper conduit arrangements by tax-exempt organizations.

The Fiscal Sponsorship Transparency Act of 2026 amends the Internal Revenue Code to impose taxes on improper conduit arrangements by tax-exempt organizations. It requires reporting by certain charitable organizations relating to fiscal sponsorship arrangements. The act imposes a tax equal to 20 percent of the amount transferred in an improper conduit arrangement, paid by the organization. It also imposes additional taxes if the transfer is not corrected within the taxable period. The act applies to taxable years beginning after December 31, 2027.