SEC. 2. MANDATORY MONTHLY REPORTING. 
(a) IN GENERAL.—Section 527(j)(2) of the Internal 
Revenue Code of 1986 (relating to required disclosure) is 
amended to read as follows: 
‘‘(2) REQUIRED DISCLOSURE.—A political orga-
nization which accepts a contribution, or makes an 
expenditure, for an exempt function during any cal-
endar year shall file with the Secretary monthly re-
ports for each such year which shall be filed not 
later than the 20th day after the last day of the 
month and shall be complete as of the last day of 
the month, except that, in lieu of filing the reports 
otherwise due in November and December of any 
year in which a regularly scheduled general election 
is held, the organization shall file—
‘‘(A) a pre-election report, which shall be 
filed no later than the 12th day before (or post-
ed by registered or certified mail no later than 
the 15th day before) any election with respect 
to which the organization accepts a contribution 
or makes an expenditure, and which shall be 
complete as of the 20th day before the election; 
‘‘(B) a post-general election report, which 
shall be filed no later than the 30th day after 
the general election and which shall be complete
as of the 20th day after such general election; 
and 
‘‘(C) a year-end report which shall be filed 
no later than January 31 of the following cal-
endar year.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to taxable years beginning after 
December 31, 2005. 
SEC. 3. FAILURE OF 527 ORGANIZATION TO COMPLY WITH 
DISCLOSURE REQUIREMENTS. 
(a) EXCISE TAX ON MANAGERS.—
(1) IN GENERAL.—Subchapter C of chapter 42 
of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new section: 
‘‘SEC. 4956. TAX ON FAILURE OF POLITICAL ORGANIZA-
TIONS 
TO 
MEET 
DISCLOSURE 
REQUIRE-
MENTS. 
‘‘(a) TAX IMPOSED.—In the case of a failure of a po-
litical organization to meet the disclosure requirements of 
section 527(j) with respect to any contribution to or ex-
penditure from the political organization, there is hereby 
imposed on the political organization, in addition to any 
other tax or penalty provided in this title, a tax for each 
such failure.
‘‘(b) AMOUNT OF TAX.—The tax imposed by sub-
section (a) shall be 30 percent of the total amount of the 
contribution or expenditure with respect to which such 
failure occurred. 
‘‘(c) LIABILITY FOR TAX.—
‘‘(1) IN
GENERAL.—Except as provided by 
paragraph (2), the tax imposed by subsection (a) 
shall be paid by the political organization. 
‘‘(2) JOINT AND SEVERAL LIABILITY OF ORGA-
NIZATION MANAGERS.—Each organization manager 
of the political organization shall be jointly and sev-
erally liable for any tax imposed under subsection 
(a). 
‘‘(d) ORGANIZATION MANAGER.—For purposes of 
this section, the term ‘organization manager’ means any 
officer, director, or trustee of the political organization (or 
individual having powers or responsibilities similar to 
those of an officer, director, or trustee). 
‘‘(e) POLITICAL ORGANIZATION.—The term ‘political 
organization’ shall have the meaning given such term by 
section 527(e)(1).’’. 
(2) CONFORMING AMENDMENTS.—
(A) The heading for subchapter C of chap-
ter 42 of such Code is amended by adding at 
the end the following: ‘‘; Failure of Polit-