HR 1295 PCS
SEC. 2. ORGANIZATIONS REQUIRED TO NOTIFY SECRETARY 
OF INTENT TO OPERATE AS 501(c)(4). 
(a) IN GENERAL.—Part I of subchapter F of chapter 
1 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new section: 
‘‘SEC. 506. ORGANIZATIONS REQUIRED TO NOTIFY SEC-
RETARY OF INTENT TO OPERATE AS 501(c)(4). 
‘‘(a) IN GENERAL.—An organization described in 
section 501(c)(4) shall, not later than 60 days after the 
organization is established, notify the Secretary (in such 
manner as the Secretary shall by regulation prescribe) 
that it is operating as such. 
‘‘(b) CONTENTS OF NOTICE.—The notice required 
under subsection (a) shall include the following informa-
tion: 
‘‘(1) The name, address, and taxpayer identi-
fication number of the organization. 
‘‘(2) The date on which, and the State under 
the laws of which, the organization was organized. 
‘‘(3) A statement of the purpose of the organi-
zation. 
‘‘(c) ACKNOWLEDGMENT
OF RECEIPT.—Not later 
than 60 days after receipt of such a notice, the Secretary 
shall send to the organization an acknowledgment of such 
receipt. 
VerDate Sep 11 2014 
00:58 Apr 21, 2015
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1295.PCS
H1295
smartinez on DSK4TPTVN1PROD with BILLS
HR 1295 PCS
‘‘(d) EXTENSION
FOR REASONABLE CAUSE.—The 
Secretary may, for reasonable cause, extend the 60-day 
period described in subsection (a). 
‘‘(e) USER FEE.—The Secretary shall impose a rea-
sonable user fee for submission of the notice under sub-
section (a). 
‘‘(f) REQUEST FOR DETERMINATION.—Upon request 
by an organization to be treated as an organization de-
scribed in section 501(c)(4), the Secretary may issue a de-
termination with respect to such treatment. Such request 
shall be treated for purposes of section 6104 as an applica-
tion for exemption from taxation under section 501(a).’’. 
(b) SUPPORTING INFORMATION WITH FIRST RE-
TURN.—Section 6033(f) of such Code is amended— 
(1) by striking the period at the end and insert-
ing ‘‘, and’’, 
(2) by striking ‘‘include on the return required 
under subsection (a) the information’’ and inserting 
the following: ‘‘include on the return required under 
subsection (a)— 
‘‘(1) the information’’, and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) in the case of the first such return filed by 
such an organization after submitting a notice to the 
VerDate Sep 11 2014 
00:58 Apr 21, 2015
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1295.PCS
H1295
smartinez on DSK4TPTVN1PROD with BILLS
HR 1295 PCS
Secretary under section 506(a), such information as 
the Secretary shall by regulation require in support 
of the organization’s treatment as an organization 
described in section 501(c)(4).’’. 
(c) FAILURE TO FILE INITIAL NOTIFICATION.—Sec-
tion 6652(c) of such Code is amended by redesignating 
paragraphs (4), (5), and (6) as paragraphs (5), (6), and 
(7), respectively, and by inserting after paragraph (3) the 
following new paragraph: 
‘‘(4) NOTICES UNDER SECTION 506.— 
‘‘(A) PENALTY ON ORGANIZATION.—In the 
case of a failure to submit a notice required 
under section 506(a) (relating to organizations 
required to notify Secretary of intent to operate 
as 501(c)(4)) on the date and in the manner 
prescribed therefor, there shall be paid by the 
organization failing to so submit $20 for each 
day during which such failure continues, but 
the total amount imposed under this subpara-
graph on any organization for failure to submit 
any one notice shall not exceed $5,000. 
‘‘(B) MANAGERS.—The Secretary may 
make written demand on an organization sub-
ject to penalty under subparagraph (A) speci-
fying in such demand a reasonable future date 
VerDate Sep 11 2014 
00:58 Apr 21, 2015
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H1295.PCS
H1295
smartinez on DSK4TPTVN1PROD with BILLS
HR 1295 PCS
by which the notice shall be submitted for pur-
poses of this subparagraph. If such notice is not 
submitted on or before such date, there shall be 
paid by the person failing to so submit $20 for 
each day after the expiration of the time speci-
fied in the written demand during which such 
failure continues, but the total amount imposed 
under this subparagraph on all persons for fail-
ure to submit any one notice shall not exceed 
$5,000.’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for part I of subchapter F of chapter 1 of such Code is 
amended by adding at the end the following new item: 
‘‘Sec. 506. Organizations required to notify Secretary of intent to operate as 
501(c)(4).’’. 
(e) LIMITATION.—Notwithstanding any other provi-
sion of law, any fees collected pursuant to section 506(e) 
of the Internal Revenue Code of 1986, as added by sub-
section (a), shall not be expended by the Secretary of the 
Treasury or the Secretary’s delegate unless provided by 
an appropriations Act. 
(f) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to organizations which are 
described in section 501(c)(4) of the Internal Rev-
VerDate Sep 11 2014 
00:58 Apr 21, 2015
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1295.PCS
H1295
smartinez on DSK4TPTVN1PROD with BILLS
HR 1295 PCS
enue Code of 1986 and organized after the date of 
the enactment of this Act. 
(2) CERTAIN
EXISTING
ORGANIZATIONS.—In 
the case of any other organization described in sec-
tion 501(c)(4) of such Code, the amendments made 
by this section shall apply to such organization only 
if, on or before the date of the enactment of this 
Act— 
(A) such organization has not applied for 
a written determination of recognition as an or-
ganization described in section 501(c)(4) of 
such Code, and 
(B) such organization has not filed at least 
one annual return or notice required under sub-
section (a)(1) or (i) (as the case may be) of sec-
tion 6033 of such Code. 
In the case of any organization to which the amend-
ments made by this section apply by reason of the 
preceding sentence, such organization shall submit 
the notice required by section 506(a) of such Code, 
as added by this Act, not later than 180 days after 
the date of the enactment of this Act. 
VerDate Sep 11 2014 
00:58 Apr 21, 2015
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H1295.PCS
H1295
smartinez on DSK4TPTVN1PROD with BILLS
HR 1295 PCS
SEC. 3. DECLARATORY JUDGMENTS FOR 501(c)(4) ORGANI-
ZATIONS. 
(a) IN GENERAL.—Section 7428(a)(1) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘or’’ at the 
end of subparagraph (C) and by inserting after subpara-
graph (D) the following new subparagraph: 
‘‘(E) with respect to the initial classifica-
tion or continuing classification of an organiza-
tion described in section 501(c)(4) which is ex-
empt from tax under section 501(a), or’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to pleadings filed after the date 
of the enactment of this Act. 
Passed the House of Representatives April 15, 2015. 
Attest: 
KAREN L. HAAS, 
Clerk. 
VerDate Sep 11 2014 
00:58 Apr 21, 2015
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H1295.PCS
H1295
smartinez on DSK4TPTVN1PROD with BILLS