S. 588 — Presidential Audit and Tax Transparency Act

This section establishes new IRC §7613 requiring the Secretary of the Treasury to examine each Presidential income tax return (i.e., relevant returns of the President; the President's spouse; any corporation or partnership controlled by either; or related estates) as rapidly as practicable after filing to verify correctness and enforce tax requirements. The section further requires public Internet disclosure of examination reports as follows: (1) an initial report within 90 days after filing, including the taxpayer's name, return identification, filing date, and examination start date (or delay reasons); (2) periodic reports every 180 days thereafter on examination status, completed and anticipated steps, and completion timeframe estimates (with influencing factors) until a final report; (3) a final report within 90 days of completion (deemed complete upon notice of deficiency or closing document), listing audit materials and describing proposed adjustments, controversies, and resolutions; (4) a report within 90 days of granting or denying any filing extension request; and (5) for failures to file, an examination as if filed 60 days after the due date, with reports noting the failure (without precluding later application upon actual filing).

This section requires sitting Presidents (covered individuals) and major party Presidential nominees (covered candidates)—as defined under the Ethics in Government Act of 1978—to publicly disclose applicable income tax returns for the three most recent taxable years, including those of spouses, controlled corporations or partnerships, related estates, and certain trusts (i.e., new §13104A of title 5, U.S. Code). Covered individuals must include the returns in Office of Government Ethics (OGE) reports filed under §§13103(a), (d), or (e), with OGE requesting nondisclosed returns from the Treasury Secretary, redacting sensitive information in consultation with Treasury, and posting redacted returns publicly like other financial disclosures; covered candidates must amend Federal Election Commission (FEC) reports under §13103(c) within 15 days of nomination, with FEC requesting nondisclosed returns from Treasury, redacting in consultation with Treasury and OGE, and posting publicly like §13104(b) disclosures (returns already public under IRC §6103(q) satisfy requirements via internet link). This section also expands civil and criminal penalties under §13106(a) to cover knowing and willful failure to disclose or falsification of these returns.