H. R. 4762
One Hundred Sixth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday,
the twenty-fourth day of January, two thousand
An Act
To amend the Internal Revenue Code of 1986 to require 527 organizations to
disclose their political activities.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. REQUIRED NOTIFICATION OF SECTION 527 STATUS.
(a) IN GENERAL.—Section 527 of the Internal Revenue Code
of 1986 (relating to political organizations) is amended by adding
at the end the following new subsection:
‘‘(i) ORGANIZATIONS MUST NOTIFY SECRETARY THAT THEY ARE
SECTION 527 ORGANIZATIONS.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (5),
an organization shall not be treated as an organization
described in this section—
‘‘(A) unless it has given notice to the Secretary, elec-
tronically and in writing, that it is to be so treated, or
‘‘(B) if the notice is given after the time required under
paragraph (2), the organization shall not be so treated
for any period before such notice is given.
‘‘(2) TIME TO GIVE NOTICE.—The notice required under para-
graph (1) shall be transmitted not later than 24 hours after
the date on which the organization is established.
‘‘(3) CONTENTS OF NOTICE.—The notice required under para-
graph (1) shall include information regarding—
‘‘(A) the name and address of the organization
(including any business address, if different) and its elec-
tronic mailing address,
‘‘(B) the purpose of the organization,
‘‘(C) the names and addresses of its officers, highly
compensated employees, contact person, custodian of
records, and members of its Board of Directors,
‘‘(D) the name and address of, and relationship to,
any related entities (within the meaning of section
168(h)(4)), and
‘‘(E) such other information as the Secretary may
require to carry out the internal revenue laws.
‘‘(4) EFFECT OF FAILURE.—In the case of an organization
failing to meet the requirements of paragraph (1) for any period,
the taxable income of such organization shall be computed
by taking into account any exempt function income (and any
deductions directly connected with the production of such
income).
‘‘(5) EXCEPTIONS.—This subsection shall not apply to any
organization—
H. R. 4762—2
‘‘(A) to which this section applies solely by reason
of subsection (f )(1), or
‘‘(B) which reasonably anticipates that it will not have
gross receipts of $25,000 or more for any taxable year.
‘‘(6) COORDINATION WITH OTHER REQUIREMENTS.—This sub-
section shall not apply to any person required (without regard
to this subsection) to report under the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 431 et seq.) as a political com-
mittee.’’.
(b) DISCLOSURE REQUIREMENTS.—
(1) INSPECTION AT INTERNAL REVENUE SERVICE OFFICES.—
(A) IN GENERAL.—Section 6104(a)(1)(A) of the Internal
Revenue Code of 1986 (relating to public inspection of
applications) is amended—
(i) by inserting ‘‘or a political organization is
exempt from taxation under section 527 for any taxable
year’’ after ‘‘taxable year’’;
(ii) by inserting ‘‘or notice of status filed by the
organization under section 527(i)’’ before ‘‘, together’’;
(iii) by inserting ‘‘or notice’’ after ‘‘such application’’
each place it appears;
(iv) by inserting ‘‘or notice’’ after ‘‘any application’’;
(v) by inserting ‘‘for exemption from taxation under
section 501(a)’’ after ‘‘any organization’’ in the last
sentence; and
(vi) by inserting ‘‘OR 527’’ after ‘‘SECTION 501’’ in
the heading.
(B) CONFORMING AMENDMENT.—The heading for sec-
tion 6104(a) of such Code is amended by inserting ‘‘OR
NOTICE OF STATUS’’ before the period.
(2) INSPECTION OF NOTICE ON INTERNET AND IN PERSON.—
Section 6104(a) of such Code is amended by adding at the
end the following new paragraph:
‘‘(3) INFORMATION
AVAILABLE
ON
INTERNET
AND
IN
PER-
SON.—
‘‘(A) IN GENERAL.—The Secretary shall make publicly
available, on the Internet and at the offices of the Internal
Revenue Service—
‘‘(i) a list of all political organizations which file
a notice with the Secretary under section 527(i), and
‘‘(ii) the name, address, electronic mailing address,
custodian of records, and contact person for such
organization.
‘‘(B) TIME TO MAKE INFORMATION AVAILABLE.—The Sec-
retary shall make available the information required under
subparagraph (A) not later than 5 business days after
the Secretary receives a notice from a political organization
under section 527(i).’’.
(3) INSPECTION
BY
COMMITTEE
OF
CONGRESS.—Section
6104(a)(2) of such Code is amended by inserting ‘‘or notice
of status of any political organization which is exempt from
taxation under section 527 for any taxable year’’ after ‘‘taxable
year’’.
(4) PUBLIC
INSPECTION
MADE
AVAILABLE
BY
ORGANIZA-
TION.—Section 6104(d) of such Code (relating to public inspec-
tion of certain annual returns and applications for exemption)
is amended—