‘‘(g) RETURNS REQUIRED BY POLITICAL ORGANIZA-
TIONS.— 
‘‘(1) IN GENERAL.—This section shall apply to 
a political organization (as defined by section 
527(e)(1)) which has gross receipts of $25,000 or 
more for the taxable year. In the case of a political 
organization which is a qualified State or local polit-
ical organization (as defined in section 527(e)(5)), 
the preceding sentence shall be applied by sub-
stituting ‘$100,000’ for ‘$25,000’. 
‘‘(2) ANNUAL
RETURNS.—Political organiza-
tions described in paragraph (1) shall file an annual 
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), with 
such modifications as the Secretary considers 
appropriate to require only information which is 
necessary for the purposes of carrying out sec-
tion 527, and 
‘‘(B) containing such other information as 
the Secretary deems necessary to carry out the 
provisions of this subsection. 
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‘‘(3) MANDATORY EXCEPTIONS FROM FILING.— 
Paragraph (2) shall not apply to an organization— 
‘‘(A) which is a State or local committee of 
a political party, or political committee of a 
State or local candidate, 
‘‘(B) which is a caucus or association of 
State or local officials, 
‘‘(C) which is an authorized committee (as 
defined in section 301(6) of the Federal Elec-
tion Campaign Act of 1971) of a candidate for 
Federal office, 
‘‘(D) which is a national committee (as de-
fined in section 301(14) of the Federal Election 
Campaign Act of 1971) of a political party, 
‘‘(E) which is a United States House of 
Representatives or United States Senate cam-
paign committee of a political party committee, 
‘‘(F) which is required to report under the 
Federal Election Campaign Act of 1971 as a 
political committee (as defined in section 301(4) 
of such Act), or 
‘‘(G) to which section 527 applies for the 
taxable year solely by reason of subsection 
(f)(1) of such section. 
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‘‘(4) DISCRETIONARY
EXCEPTION.—The Sec-
retary may relieve any organization required under 
paragraph (2) to file an information return from fil-
ing such a return if the Secretary determines that 
such filing is not necessary to the efficient adminis-
tration of the internal revenue laws.’’. 
(d) 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. 4. NOTIFICATION OF INTERACTION OF REPORTING 
REQUIREMENTS. 
(a) IN GENERAL.—The Secretary of the Treasury, in 
consultation with the Federal Election Commission, shall 
publicize— 
(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 
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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. 5. WAIVER OF FILING AMOUNTS. 
(a) WAIVER OF FILING AMOUNTS.—Section 527 of 
the Internal Revenue Code of 1986 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 comply with the 
requirements of subsection (i), or 
‘‘(2) amount imposed under subsection (j) for a 
failure to comply with the requirements thereof, 
on a showing that such failure was due to reasonable cause 
and not due to willful neglect.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to any tax assessed or amount 
imposed after June 30, 2000. 
SEC. 6. MODIFICATIONS TO SECTION 527 ORGANIZATION 
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 
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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 AMOUNTS.—Paragraph (1) of section 527(j) of 
the Internal Revenue Code of 1986 (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 amount imposed by this para-
graph shall be assessed and collected in the same manner 
as penalties imposed by section 6652(c).’’. 
(c) DUPLICATE
WRITTEN
FILINGS
NOT
RE-
QUIRED.—Subparagraph (A) of section 527(i)(1) of the 
Internal Revenue Code of 1986 is amended by striking ‘‘, 
electronically and in writing,’’ and inserting ‘‘electroni-
cally’’. 
(d) APPLICATION
OF FRAUD PENALTY.—Section 
7207 of the Internal Revenue Code of 1986 (relating to 
fraudulent returns, statements, and other documents) is 
amended by striking ‘‘pursuant to subsection (b) of section 
6047 or pursuant to subsection (d) of section 6104’’ and 
inserting ‘‘pursuant to section 6047(b), section 6104(d), 
or subsection (i) or (j) of section 527’’. 
(e) CONTENTS AND FILING OF REPORT.— 
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(1) CONTENTS.—Section 527(j)(3) of the Inter-
nal Revenue Code of 1986 (relating to contents of 
report) is amended— 
(A) by inserting ‘‘, date, and purpose’’ 
after ‘‘The amount’’ in subparagraph (A), and 
(B) by inserting ‘‘and date’’ after ‘‘the 
amount’’ in subparagraph (B). 
(2) ELECTRONIC
FILING.—Section 527(j) of 
such Code is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(7) ELECTRONIC
FILING.—Any report re-
quired under paragraph (2) with respect to any cal-
endar year shall be filed in electronic form if the or-
ganization has, or has reason to expect to have, con-
tributions exceeding $50,000 or expenditures exceed-
ing $50,000 in such calendar year.’’. 
(3) ELECTRONIC FILING AND ACCESS OF RE-
QUIRED DISCLOSURES.—Section 527 of such Code, 
as amended by section 5(a), is amended by redesig-
nating subsection (k) as subsection (l) and by insert-
ing after subsection (j) the following new subsection: 
‘‘(k) PUBLIC AVAILABILITY OF NOTICES AND RE-
PORTS.— 
‘‘(1) IN GENERAL.—The Secretary shall make 
any notice described in subsection (i)(1) or report 
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described in subsection (j)(7) available for public in-
spection on the Internet not later than 48 hours 
after such notice or report has been filed (in addi-
tion to such public availability as may be made 
under section 6104(d)(7)). 
‘‘(2) ACCESS.—The Secretary shall make the 
entire database of notices and reports which are 
made available to the public under paragraph (1) 
searchable by the following items (to the extent the 
items are required to be included in the notices and 
reports): 
‘‘(A) Names, States, zip codes, custodians 
of records, directors, and general purposes of 
the organizations. 
‘‘(B) Entities related to the organizations. 
‘‘(C) Contributors to the organizations. 
‘‘(D) Employers of such contributors. 
‘‘(E) Recipients of expenditures by the or-
ganizations. 
‘‘(F) Ranges of contributions and expendi-
tures. 
‘‘(G) Time periods of the notices and re-
ports. 
Such database shall be downloadable.’’. 
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(f) CONTENTS OF NOTICE.—Section 527(i)(3) of the 
Internal Revenue Code of 1986 (relating to contents of 
notice) is amended by striking ‘‘and’’ at the end of sub-
paragraph (D), by redesignating subparagraph (E) as sub-
paragraph (F), and by inserting after subparagraph (D) 
the following new subparagraph: 
‘‘(E) whether the organization intends to 
claim an exemption from the requirements of 
subsection (j) or section 6033, and’’. 
(g) TIMING
OF NOTICE
IN CASE
OF MATERIAL 
CHANGE.— 
(1) IN GENERAL.—Subparagraph (B) of section 
527(i)(1) of the Internal Revenue Code of 1986 (re-
lating to general notification requirement) is amend-
ed by inserting ‘‘or, in the case of any material 
change in the information required under paragraph 
(3), for the period beginning on the date on which 
the material change occurs and ending on the date 
on which such notice is given’’ after ‘‘given’’. 
(2) TIME TO GIVE NOTICE.—Section 527(i)(2) 
of the Internal Revenue Code of 1986 (relating to 
time to give notice) is amended by inserting ‘‘or, in 
the case of any material change in the information 
required under paragraph (3), not later than 30 
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days after such material change’’ after ‘‘estab-
lished’’. 
(3) EFFECT OF FAILURE.—Paragraph (4) of 
section 527(i) of the Internal Revenue Code of 1986 
(relating to effect of failure) is amended by inserting 
before the period at the end the following: ‘‘or, in 
the case of a failure relating to a material change, 
by taking into account such income and deductions 
only during the period beginning on the date on 
which the material change occurs and ending on the 
date on which notice is given under this subsection’’. 
(h) EFFECTIVE DATES.— 
(1) SUBSECTIONS (a) AND (b).—The amend-
ments made by subsections (a) and (b) shall apply 
to failures occurring on or after the date of the en-
actment of this Act. 
(2) SUBSECTION (c).—The amendments made 
by subsection (c) shall take effect as if included in 
the amendments made by Public Law 106–230. 
(3) SUBSECTION (d).—The amendment made 
by subsection (d) shall apply to reports and notices 
required to be filed on or after the date of the enact-
ment of this Act. 
(4) SUBSECTIONS (e)(1) AND (f).—The amend-
ments made by subsections (e)(1) and (f) shall apply 
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to reports and notices required to be filed more than 
30 days after the date of the enactment of this Act. 
(5) SUBSECTIONS
(e)(2) 
AND
(e)(3).—The 
amendments made by subsections (e)(2) and (e)(3) 
shall apply to reports required to be filed on or after 
June 30, 2003. 
(6) SUBSECTION (g).— 
(A) IN GENERAL.—The amendments made 
by subsection (g) shall apply to material 
changes on or after the date of the enactment 
of this Act. 
(B) TRANSITION RULE.—In the case of a 
material change occurring during the 30-day 
period beginning on the date of the enactment 
of this Act, a notice under section 527(i) of the 
Internal Revenue Code of 1986 (as amended by 
this Act) shall not be required to be filed under 
such section before the later of— 
(i) 30 days after the date of such ma-
terial change, or 
(ii) 45 days after the date of the en-
actment of this Act. 
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SEC. 7. EFFECT OF AMENDMENTS ON EXISTING DISCLO-
SURES. 
Notices, reports, or returns that were required to be 
filed with the Secretary of the Treasury before the date 
of the enactment of the amendments made by this Act 
and that were disclosed by the Secretary of the Treasury 
consistent with the law in effect at the time of disclosure 
shall remain subject on and after such date to the disclo-
sure provisions of section 6104 of the Internal Revenue 
Code of 1986. 
Æ 
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