tions Board and which is set aside in 
full in accordance with subsection (e) 
or (f) of section 10 of such Act.’’. 
(2) REGULATORY AUTHORITY.— 
(A) IN GENERAL.—Section 162(e) of such 
Code, as amended by subsection (b), is amend-
ed by redesignating paragraph (7) as paragraph 
(8) and by inserting after paragraph (6) the 
following new paragraph: 
‘‘(7) REGULATIONS.—The Secretary shall pre-
scribe such guidance, rules, or regulations as are 
necessary to carry out the purposes of this sub-
section, including rules relating to the timing of any 
deductions in connection with amounts described in 
paragraph (4)(D)(ii)(VIII).’’. 
(B) TIMING.—Not later than the date that 
is 240 days after the date of the enactment of 
this Act, the Secretary of the Treasury (or the 
Secretary’s delegate) shall prescribe guidance, 
rules, or regulations with respect to the applica-
tion of the amendments made by this Act. 
(d) INFORMATION REPORTING.— 
(1) CERTAIN INFORMATION INCLUDED IN TAX 
RETURNS.— 
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(A) IN GENERAL.—Part I of subchapter B 
of chapter 68 is amended by adding at the end 
the following new section: 
‘‘SEC. 6720D. FAILURE TO INCLUDE CERTAIN INFORMATION 
WITH RESPECT TO EMPLOYER ACTIVITIES 
RELATING TO LABOR ORGANIZATIONS. 
‘‘(a) IN GENERAL.—If any taxpayer who makes ex-
penditures described in section 162(e)(1)(E) fails to pro-
vide with the return of tax for the taxable year to which 
such expenditures relate the information provided in sub-
section (c) with respect to such expenditures, or who fails 
to provide all of the information required under subsection 
(b) or fails to provide correct information, shall pay a pen-
alty in the amount determined under subsection (b). 
‘‘(b) DETERMINATION OF PENALTY AMOUNT.— 
‘‘(1) IN GENERAL.—The amount of the penalty 
under this section for any failure described in sub-
section (a) shall be the greater of— 
‘‘(A) $10,000, or 
‘‘(B) the product of $1,000 and the num-
ber of full time equivalent employees of the em-
ployer (as determined under section 45R(d)(2)). 
‘‘(2) INCREASED
PENALTY
WHERE
FAILURE 
CONTINUES.— 
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‘‘(A) IN
GENERAL.—If any failure de-
scribed in subsection (a) (1) continues for more 
than 90 days after the day on which the Sec-
retary mails notice of such failure to the tax-
payer, the taxpayer shall pay a penalty (in addi-
tion to the amount of any penalty under para-
graph (1)) equal to the amount determined 
under paragraph (1) for each 30-day period (or 
fraction thereof) during which such failure con-
tinues after the expiration of such 90-day pe-
riod. 
‘‘(B) LIMITATION.—The penalty imposed 
under this paragraph with respect to any failure 
shall not exceed $100,000. 
‘‘(c) INFORMATION TO BE PROVIDED.—The infor-
mation required under this subsection shall include— 
‘‘(1) the dates that such activities described in 
section 162(e)(1)(E) took place, 
‘‘(2) a statement indicating whether the activity 
was an activity described in item (aa), (bb), or (cc) 
of section 162(e)(4)(D)(i)(I), 
‘‘(3) the amounts paid or incurred for such ac-
tivities, 
‘‘(4) a copy of any disclosures which are re-
quired to be reported under the Labor-Management 
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Reporting and Disclosure Act of 1959 (29 U.S.C. 
401 et seq.), and 
‘‘(5) such other information as the Secretary 
may prescribe. 
‘‘(d) REASONABLE CAUSE EXCEPTION.—No penalty 
shall be imposed by this section on any failure which is 
shown to be due to reasonable cause and not due to willful 
neglect.’’. 
(B) CLERICAL AMENDMENT.—The table of 
sections for part I of subchapter B of chapter 
68 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 6720D. Failure to include certain information with respect to employer 
activities relating to labor organizations.’’. 
(2) THIRD-PARTY INFORMATION REPORTING.— 
(A) IN GENERAL.—Subpart A of part III 
of subchapter A of chapter 61 of the Internal 
Revenue Code of 1986 is amended by inserting 
after section 6039J the following new section: 
‘‘SEC. 6039K. INFORMATION WITH RESPECT TO CERTAIN 
EMPLOYER ACTIVITIES RELATING TO LABOR 
ORGANIZATIONS. 
‘‘(a) IN GENERAL.—Any person conducting activities 
described in section 162(e)(1)(E) on behalf of another per-
son shall file a return (at such time and in such manner 
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as the Secretary may by regulations prescribe, which in-
cludes the information described in subsection (b)). 
‘‘(b) INFORMATION TO BE PROVIDED.—Information 
required under subsection (a) shall include— 
‘‘(1) the person on behalf of whom the activities 
described in section 162(e)(1)(E) were performed, 
‘‘(2) the dates that such activities described in 
such section took place, 
‘‘(3) a statement indicating whether the activity 
was an activity described in item (aa), (bb), or (cc) 
of section 162(e)(4)(D)(i)(I), 
‘‘(4) the amounts paid or incurred for such ac-
tivities, and 
‘‘(5) such other information as the Secretary 
may prescribe.’’. 
(B) PENALTY.—Subparagraph (B) of sec-
tion 6724(d)(1) of such Code is amended— 
(i) by striking the comma at the end 
of clause (xxvii), as added by the Infra-
structure Investment and Jobs Act, and in-
serting ‘‘, or’’, and 
(ii) by adding at the end the following 
new clause: 
‘‘(xxviii) section 6039K (relating to 
information with respect to certain em-
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ployer activities relating to labor organiza-
tions), and’’. 
(C) CLERICAL AMENDMENT.—The table of 
sections for subpart A of part III of subchapter 
A of chapter 61 of such Code is amended by in-
serting after the item relating to section 6039J 
the following new item: 
‘‘Sec. 6039K. Information with respect to certain employer activities relating to 
labor organizations.’’. 
(e) CONFORMING AMENDMENTS.— 
(1) The heading for subsection (e) of section 
162 of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘AND POLITICAL EXPENDITURES’’ 
and inserting ‘‘, POLITICAL EXPENDITURES, AND 
LABOR ORGANIZATION EXPENDITURES’’. 
(2) The heading of subparagraph (C) of section 
162(e)(4) of such Code is amended by striking ‘‘AND 
POLITICAL ACTIVITIES’’ and inserting ‘‘, POLITICAL, 
AND LABOR ORGANIZATION ACTIVITIES’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after the date that is 240 days after 
the date of the enactment of this Act. 
Æ 
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