The Presidential Audit and Tax Transparency Act establishes new requirements for the examination and public disclosure of income tax returns for Presidents and certain Presidential candidates. It amends the Internal Revenue Code of 1986 to mandate that the Secretary of the Treasury conduct an examination of any Presidential income tax return as rapidly as practicable after filing. This includes returns for the President, their spouse, controlled corporations and partnerships, estates, and trusts.

The bill requires the public disclosure of various reports related to these examinations. These include an initial report within 90 days of filing, periodic reports every 180 days detailing audit status and estimated completion, and a final report within 90 days of examination completion, outlining adjustments and resolutions. Additionally, the Secretary must publicly disclose the actual Presidential income tax returns and all related audit materials, such as communications, proposed adjustments, and closing documents, with certain personal identifying information redacted.

Beyond IRS-mandated disclosures, the bill amends title 5 of the U.S. Code to create a separate requirement for Presidents and major party Presidential candidates. Presidents (covered individuals) must include their three most recent applicable income tax returns in their financial disclosure reports filed with the Office of Government Ethics (OGE). Major party Presidential candidates (covered candidates) must similarly amend their Federal Election Commission (FEC) reports to include their three most recent returns within 15 days of nomination.

If a President or candidate fails to disclose these returns, the OGE or FEC, respectively, can request them directly from the Treasury Department, which is granted specific authority to release them. These returns are then made publicly available by the OGE or FEC, with appropriate redactions. The legislation also introduces penalties for knowingly and willfully falsifying or failing to file these required tax disclosures, reinforcing the commitment to transparency for those seeking or holding the nation's highest office.