filed and are publicly available for inspec-
tion in a manner similar to that required
by section 6104(d)(1).
‘‘(B) PARTICIPATION
OF
FEDERAL
CAN-
DIDATE
OR
OFFICE
HOLDER.—The term ‘ex-
empt State or local political organization’ shall
not include any organization otherwise de-
scribed in subparagraph (A) if a candidate for
nomination or election to Federal elective office
or an individual who holds such office—
‘‘(i) controls or materially participates
in the direction of the organization, or
‘‘(ii) directs, in whole or in part, ex-
penditures or fundraising activities of the
organization.’’.
(c) ANNUAL RETURN REQUIREMENTS.—
(1) INCOME
TAX
RETURNS
REQUIRED
ONLY
WHERE
POLITICAL
ORGANIZATION
TAXABLE
IN-
COME.—Paragraph (6) of section 6012(a) of such
Code (relating to general rule of persons required to
make returns of income) is amended by striking ‘‘or
which has gross receipts of $25,000 or more for the
taxable year (other than an organization to which
section 527 applies solely by reason of subsection
(f)(1) of such section)’’.
(2) INFORMATION RETURNS.—Subsection (g) of
section 6033 of such Code (relating to returns re-
quired by political organizations) is amended to read
as follows:
‘‘(g) RETURNS REQUIRED BY POLITICAL ORGANIZA-
TIONS.—
‘‘(1) IN GENERAL.—Every political organization
(within the meaning of section 527(e)(1)), and every
fund treated under section 527(g) as if it constituted
a political organization, which has gross receipts of
$25,000 or more for the taxable year shall file a
return—
‘‘(A) containing the information required,
and complying with the other requirements,
under subsection (a)(1) for organizations ex-
empt from taxation under section 501(a), and
‘‘(B) containing such other information as
the Secretary deems necessary to carry out the
provisions of this subsection.
‘‘(2) EXCEPTIONS FROM FILING.—
‘‘(A) 
MANDATORY
EXCEPTIONS.—Para-
graph (1) shall not apply to an organization—
‘‘(i) which is an exempt State or local
political organization (as defined in section
527(e)(5)),
‘‘(ii) which is a State or local com-
mittee of a political party, or political com-
mittee of a State or local candidate, as de-
fined by State law,
‘‘(iii) which is a caucus or association
of State or local elected officials,
‘‘(iv) which is a national association of
State or local officials,
‘‘(v) which is an authorized committee
(as defined in section 301(6) of the Fed-
eral Election Campaign Act of 1971) of a
candidate for Federal office,
‘‘(vi) which is a national committee
(as defined in section 301(14) of the Fed-
eral Election Campaign Act of 1971) of a
political party, or
‘‘(vii) to which section 527 applies for
the taxable year solely by reason of sub-
section (f)(1) of such section.
‘‘(B) DISCRETIONARY
EXCEPTION.—The
Secretary may relieve any organization required
under paragraph (1) to file an information re-
turn from filing such a return where he deter-
mines that such filing is not necessary to the
efficient administration of the internal revenue
laws.’’.
(d) WAIVER OF PENALTIES.—Section 527 of such
Code is amended by adding at the end the following:
‘‘(k) AUTHORITY TO WAIVE.—The Secretary may
waive all or any portion of the—
‘‘(1) tax assessed on an organization by reason
of the failure of the organization to give notice
under subsection (i), or
‘‘(2) penalty imposed under subsection (j) for a
failure to file a report,
on a showing that such failure was due to reasonable cause
and not due to willful neglect.’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in the amend-
ments made by Public Law 106–230.
SEC. 2. NOTIFICATION OF INTERACTION OF REPORTING
REQUIREMENTS.
(a) IN GENERAL.—The Secretary of the Treasury, in
consultation with the Federal Election Commission, shall
publicize information on—
(1) the effect of the amendments made by this
Act, and
(2) the interaction of requirements to file a no-
tification or report under section 527 of the Internal
Revenue Code of 1986 and reports under the Fed-
eral Election Campaign Act of 1971.
(b) INFORMATION.—Information provided under sub-
section (a) shall be included in any appropriate form, in-
struction, notice, or other guidance issued to the public
by the Secretary of the Treasury or the Federal Election
Commission regarding reporting requirements of political
organizations (as defined in section 527 of the Internal
Revenue Code of 1986) or reporting requirements under
the Federal Election Campaign Act of 1971.
SEC. 3. TECHNICAL CORRECTIONS TO SECTION 527 ORGA-
NIZATION DISCLOSURE PROVISIONS.
(a) UNSEGREGATED FUNDS NOT TO AVOID TAX.—
Paragraph (4) of section 527(i) of the Internal Revenue
Code of 1986 (relating to failure to notify) is amended
by adding at the end the following new sentence: ‘‘For
purposes of the preceding sentence, the term ‘exempt func-
tion income’ means any amount described in a subpara-
graph of subsection (c)(3), whether or not segregated for
use for an exempt function.’’.
(b) PROCEDURES FOR ASSESSMENT AND COLLEC-
TION OF PENALTY.—Paragraph (1) of section 527(j) of
such Code (relating to required disclosure of expenditures
and contributions) is amended by adding at the end the
following new sentence: ‘‘For purposes of subtitle F, the
penalty imposed by this paragraph shall be assessed and
collected in the same manner as penalties imposed by sec-
tion 6652(c).’’.
(c) APPLICATION
OF FRAUD PENALTY.—Section
7207 of such Code (relating to fraudulent returns, state-
ments, and other documents) is amended by striking ‘‘pur-
suant to subsection (b) of section 6047 or pursuant to sub-
section (d) of section 6104’’ and inserting ‘‘pursuant to
section 6047(b), section 6104(d), or subsection (i) or (j)
of section 527’’.
(d) DUPLICATE ELECTRONIC AND WRITTEN FILINGS
NOT REQUIRED.—
(1) Subparagraph (A) of section 527(i)(1) of
such Code is amended by striking ‘‘, electronically
and in writing,’’.
(2) Subsection (i) of section 527 of such Code
is amended by adding at the end the following new
paragraph:
‘‘(7) ELECTRONIC FILING.—The Secretary shall
develop procedures for submission in electronic form
of notices required to be filed under this subsection
and reports required to be filed under subsection
(j).’’.
(e) EFFECTIVE DATES.—