I
106TH CONGRESS
2D SESSION
H. R. 4717
To amend the Internal Revenue Code of 1986 to require 527 organizations
and certain other tax-exempt organizations to disclose their political activities.
IN THE HOUSE OF REPRESENTATIVES
JUNE 22, 2000
Mr. HOUGHTON (for himself, Mr. ENGLISH, Mrs. JOHNSON of Connecticut,
Mr. CASTLE, Mr. MCINNIS, Mr. COX, Mr. RAMSTAD, Mr. SMITH of
Michigan, Mr. SHAW, Mr. OSE, Mr. FRELINGHUYSEN, and Mr. WALDEN
of Oregon) introduced the following bill; which was referred to the Com-
mittee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to require
527 organizations and certain other tax-exempt organiza-
tions to disclose their political activities.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Full and Fair Political
Activity Disclosure Act of 2000’’.
SEC. 2. INCREASED REPORTING OF POLITICAL ACTIVITIES.
(a) IN GENERAL.—Subpart A of part III of sub-
chapter A of chapter 61 of the Internal Revenue Code of
1986 (relating to information concerning persons subject
to special provisions) is amended by inserting after section
6033 the following new section:
‘‘SEC. 6033A. RETURNS RELATING TO POLITICAL ACTIVI-
TIES.
‘‘(a) GENERAL REPORTING REQUIREMENTS.—
‘‘(1) IN
GENERAL.—Every organization to
which this subsection applies for a reporting period
shall submit a return to the Secretary for such pe-
riod. Such return shall include—
‘‘(A) a detailed description of such organi-
zation’s disclosable activities during the report-
ing period and the purpose and intended results
for the major categories of expenditures for
such activities, including the candidates in-
tended to be affected,
‘‘(B) a list identifying—
‘‘(i) each expenditure made for a
disclosable activity during the reporting pe-
riod in an amount in excess of the thresh-
old amount, and
‘‘(ii) the name and address of each
person to whom the organization made any
expenditure required to be reported under
clause (i), and
‘‘(C) 
in 
the 
case 
of 
a 
reportable
contributor—
‘‘(i) the name and address of the con-
tributor (and, if the contributor is an indi-
vidual, the contributor’s occupation and
employer),
‘‘(ii) the amount of each contribution
made by such contributor,
‘‘(iii) the name and address of the
person (if any) on whose behalf the con-
tributor made any payment to such organi-
zation, and
‘‘(iv) if any payment by the contrib-
utor was designated for a beneficiary other
than such organization (including amounts
which are in any way earmarked or other-
wise directed through an intermediary),
the name and address of the intended ben-
eficiary.
The information required under the preceding sen-
tence for any reporting period shall be set forth sep-
arately for such period and in the aggregate for such
period and preceding reporting periods during the
calendar year.
‘‘(2) ORGANIZATIONS
TO
WHICH
SUBSECTION
APPLIES.—This subsection shall apply to an organi-
zation if such organization—
‘‘(A) is described in paragraph (4), (5), or
(6) of section 501(c), or
‘‘(B) is a 527 organization.
‘‘(3) EXCEPTION FOR NON-527 ORGANIZATIONS
HAVING
AGGREGATE
DISCLOSABLE
EXPENDITURES
OF LESS THAN $10,000.—This subsection shall not
apply to an organization described in paragraph
(2)(A) for any reporting period if the aggregate ex-
penditures of the organization for disclosable activi-
ties during the period beginning on January 1 of the
calendar year in which the reporting period begins
and ending on the last day of the reporting period
are less than $10,000.
‘‘(4) REPORTABLE CONTRIBUTOR.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘reportable contributor’
means any person if the aggregate of the con-
tributions and membership dues, fees, and as-
sessments (within the meaning of section 527)
received by the organization from such person
during the testing period exceeds the threshold
amount.
‘‘(B) EXCEPTION FOR DUES NOT ATTRIB-
UTABLE TO DISCLOSABLE ACTIVITIES.—
‘‘(i) IN GENERAL.—At the election of
the organization, the only dues taken into
account under subparagraph (A) shall be
dues attributable to expenditures for
disclosable activities.
‘‘(ii) PORTION
OF
DUES
ATTRIB-
UTABLE
TO
DISCLOSABLE
ACTIVITIES.—
For purposes of clause (i), the portion of
dues attributable to expenditures for
disclosable activities of an organization is
the amount which bears the same ratio to
the total amount of dues as the expendi-
tures of the organization which are
disclosable under paragraph (1) for the
testing period bears to the total expendi-
tures of the organization for such period.
‘‘(C) TESTING PERIOD.—For purposes of
this paragraph, the term ‘testing period’ means,
with respect to any reporting period, the
period—
‘‘(i) beginning on January 1 of the
calendar year in which the reporting period
begins, and
‘‘(ii) ending on the last day of the re-
porting period.
‘‘(5) SPECIAL
RULE
FOR
EARMARKED
CON-
TRIBUTIONS
DEPOSITED
INTO
A
SEPARATE, SEG-
REGATED FUND.—
‘‘(A) IN GENERAL.—In the case of an or-
ganization described in paragraph (4), (5), or
(6) of section 501(c), paragraph (1)(C) shall
apply only with respect to amounts received
which are earmarked for a disclosable activity if
the organization elects—
‘‘(i) to maintain a separate, seg-
regated fund,
‘‘(ii) to deposit into such fund only
and all amounts received by such organiza-
tion which are earmarked by the contrib-
utor for a disclosable activity, and
‘‘(iii) to make no expenditures for
disclosable activities other than from such
fund.
Such a fund shall not be treated as a 527 orga-
nization for purposes of this section.
‘‘(B) NONCOMPLIANCE.—In the case of an
organization with respect to which an election is
in effect under subparagraph (A) and which
fails to comply with a requirement in subpara-
graph (A) during any reporting period, sub-
paragraph (A) shall not apply to such period or
any subsequent reporting period during the cal-
endar year in which such period begins.
‘‘(C) DE
MINIMIS
EXPENDITURES.—Fail-
ures to meet the requirement of subparagraph
(A)(iii) with respect to de minimis amounts
shall not be treated as a failure to comply with
such requirement.
‘‘(6) THRESHOLD AMOUNT.—For purposes of
this section, the term ‘threshold amount’ means—
‘‘(A) $200 in the case of a 527 organiza-
tion, and
‘‘(B) $1,000 in any other case.
‘‘(b) DISCLOSABLE ACTIVITIES.—For purposes of
this section—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘disclosable activities’ means—
‘‘(A) a 527-type activity,
‘‘(B) establishing, administering, or solic-
iting contributions to a 527 organization,
‘‘(C) contributing to an organization which
is described in paragraph (4), (5), or (6) of sec-
tion 501(c) or which is a 527 organization, and
after the date that such organization is estab-
lished (or, in the case of an organization in ex-
istence on the date of the enactment of this sec-
tion, not later than 10 days after such date of
enactment).
‘‘(B) STATEMENT
OF
ORGANIZATION.—
The information described in this subparagraph
is—
‘‘(i) the name and address of the 527
organization,
‘‘(ii) the name, address, relationship,
and type of any person which is directly or
indirectly related to or affiliated with such
527 organization,
‘‘(iii) the name, address, and position
of the custodian of books and accounts of
the 527 organization,
‘‘(iv) the name and address of the
treasurer of the 527 organization, and
‘‘(v) a listing of all banks, safety de-
posit boxes, and other depositories used by
the 527 organization.
‘‘(C) CHANGES IN INFORMATION.—If there
is a change in circumstances such that the most
recent statement filed under this paragraph is
no longer accurate, the 527 organization shall
file a corrected statement with the Secretary (in
such manner as the Secretary shall prescribe)
not later than 10 days after the date that the
statement first ceased to be accurate.
‘‘(D) RELATED
AND
AFFILIATED
PER-
SONS.—For purposes of subparagraph (B)(ii), a
person is directly or indirectly related to or af-
filiated with a 527 organization if such person,
at any time during the 3-year period ending on
the date such statement is submitted to the
Secretary—
‘‘(i) was in a position to exercise sub-
stantial direct or indirect influence over
the process of collecting or disbursing the
exempt purpose funds of such organiza-
tion, or
‘‘(ii) was in a position to exercise sub-
stantial, overall direct or indirect influence
over the activities of such organization.
‘‘(2) OTHER INFORMATION.—
‘‘(A) IN GENERAL.—In addition to the in-
formation required by subsection (a), every 527
organization shall include the information de-
scribed in subparagraph (B) on the return re-
quired under subsection (a).
‘‘(B) INFORMATION DESCRIBED.—The in-
formation described in this subparagraph is—
‘‘(i) a certification, under penalty of
perjury, whether such expenditure is made
in cooperation, consultation, or concert
with, or at the request or suggestion of,
any candidate for public office or any au-
thorized committee of such candidate or
agent of such committee or candidate,
‘‘(ii) the name, address, and business
purpose of any entity, as well as whether
the entity purports to be exempt from tax
under this title and (if so) the provision
under which the entity purports to be so
exempt, which made (in the aggregate for
the reporting period) a contribution in ex-
cess of the threshold amount to the 527
organization, and
‘‘(iii) the original source and the in-
tended ultimate recipient of all contribu-
tions made by a person, either directly or
indirectly, on behalf of any particular per-
son, including contributions which are in
any way earmarked or otherwise directed
through any intermediary.
‘‘(d) REPORTING PERIODS AND DUE DATES FOR RE-
TURNS
AND
STATEMENTS.—For 
purposes 
of 
this
section—
‘‘(1) ORGANIZATIONS OTHER THAN 527 ORGANI-
ZATIONS.—In the case of an organization described
in paragraph (4), (5), or (6) of section 501(c)—
‘‘(A) IN GENERAL.—The term ‘reporting
period’ means—
‘‘(i) a calendar quarter, and
‘‘(ii) a calendar year.
‘‘(B) DUE DATE.—
‘‘(i) QUARTERLY RETURN.—The due
date for each return required by this sec-
tion for a calendar quarter shall be the
15th day after the end of the quarter.
‘‘(ii) ANNUAL
RETURN.—The due
date for the return required by this section
for a calendar year shall be the date pre-
scribed by the Secretary.
‘‘(2) 527 ORGANIZATIONS.—In the case of a
527 organization—
‘‘(A) IN GENERAL.—The reporting periods
and deadlines for filing returns and statements
required by this section shall be the same as the
periods and deadlines set forth for reports
under paragraph (4) of section 304(a) of Fed-
eral Election Campaign Act of 1971 (2 U.S.C.
434(a)). The Secretary shall issue such guid-
ance as may be necessary concerning the filing
deadlines for such returns and statements.
‘‘(B) CERTAIN ORGANIZATIONS FILE AN-
NUALLY.—In the case of a 527 organization de-
scribed in subparagraph (C)—
‘‘(i) subparagraph (A) shall not apply,
‘‘(ii) the reporting period shall be
such organization’s taxable year, and
‘‘(iii) the due date for the returns and
statements required by this section shall be
the due date (without regard to extensions)
for filing the return of tax for such year,
whether or not such organization is re-
quired to file a return for such taxable
year.
‘‘(C) ORGANIZATION DESCRIBED.—An or-
ganization is described in this subparagraph if
such organization is a 527 organization which
is organized and operated exclusively for the
purpose of securing the nomination, election, or
appointment of a clearly identified candidate for
State, local, or judicial office.
‘‘(e) DEFINITIONS.—For purposes of this section—
‘‘(1) 527 ORGANIZATION.—The term ‘527 orga-
nization’ means any political organization (as de-
fined by section 527(e)(1)).
‘‘(2) 527-TYPE ACTIVITY.—The term ‘527-type
activity’ means an exempt function (as defined in
section 527(e)(2)).
‘‘(3) CONTRIBUTIONS.—The term ‘contribu-
tions’ has the meaning given to such term by section
271(b)(2).
‘‘(4) EXPENDITURES.—The term ‘expenditures’
has the meaning given to such term by section
271(b)(3).
‘‘(f) SPECIAL RULES.—
‘‘(1) ELECTRONIC FILING.—The Secretary shall
develop procedures for submission in electronic form
of returns and statements required to be filed under
this section.
‘‘(2) PAPERWORK
AND
BURDEN
REDUCTION
FOR
ORGANIZATIONS
OTHERWISE
DISCLOSING
IN-
FORMATION.—An organization shall not be required
to file any return or statement under subsection (a)
or (c) for any period if, with respect to such period,
such organization submits to the Secretary, under
penalty of perjury, a certified statement that the or-
ganization has made a filing, which is publicly avail-
able, with another Federal agency which includes all
of the information required by subsection (a) or (c),
as the case may be, and which specifies the public
location where such information may be found.’’.
(b) PUBLIC INSPECTION OF RETURNS AND STATE-
MENTS.—
(1) IN GENERAL.—Section 6104 of such Code
(relating to publicity of information required from
certain exempt organizations and certain trusts) is
amended by adding at the end the following new
subsection:
‘‘(e) INSPECTION OF DOCUMENTS RELATING TO PO-
LITICAL ACTIVITIES OF CERTAIN 501(c) ORGANIZATIONS
AND 527 ORGANIZATIONS .—
‘‘(1) IN GENERAL.—In the case of any organi-
zation required to submit a document under section
6033A—
‘‘(A) a copy of such document shall be
made available by such organization for inspec-
tion during regular business hours by any indi-
vidual at the principal office of such organiza-
tion and, if such organization regularly main-
tains 1 or more regional or district offices hav-
ing 3 or more employees, at each such regional
or district office, and
‘‘(B) upon request of an individual made
at such principal office or such a regional or
district office, a copy of such document shall be
provided to such individual without charge
other than a reasonable fee for any reproduc-
tion and mailing costs.
The request described in subparagraph (B) must be
made in person or in writing. If such request is
made in person, such copy shall be provided imme-
diately and, if made in writing, shall be provided
within 30 days.
‘‘(2) ANNUAL INCOME TAX RETURNS OF 527 OR-
GANIZATIONS.—In the case of an organization re-
quired to file a return under section 6012(a)(6), the
requirements of paragraph (1) shall also apply to
such return.
‘‘(3) TIMELY AVAILABILITY.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), documents required to be
available under this subsection shall be available
no later than 2 business days after being filed.
‘‘(B) 
EXCEPTION.—Subparagraph 
(A)
shall not apply to—
‘‘(i) any document filed under section
6033A with respect to an annual period,
and
‘‘(ii) any return filed under section
6012(a)(6).
‘‘(4) 3-YEAR LIMITATION ON INSPECTION DOCU-
MENTS.—Paragraphs (1) and (2) shall apply to any
document only during the 3-year period beginning
on the last day prescribed for its filing (determined
with regard to any extension of time for filing).
‘‘(5) LIMITATION
ON
PROVIDING
COPIES.—A
rule similar to the rule of subsection (d)(4) shall
apply for purposes of this subsection.’’.
(2) INSPECTION
OF
INFORMATION
RETURNS
AND INCOME TAX RETURNS OF POLITICAL ORGANI-
ZATIONS.—Subsection (b) of section 6104 of such
Code (relating to inspection of annual information
returns) is amended to read as follows:
‘‘(b) INSPECTION OF INFORMATION RETURNS AND
INCOME TAX RETURNS OF POLITICAL ORGANIZATIONS.—
‘‘(1) IN GENERAL.—The information required
to be furnished by sections 6033, 6033A, 6034, and
6058 (together with the names and addresses of
such organizations and trusts) and returns filed
under section 6012(a)(6) shall be made available to
the public at such times and in such places as the
Secretary may prescribe.
‘‘(2) EXCEPTIONS.—
‘‘(A) NONDISCLOSURE OF NAMES AND AD-
DRESSES OF CONTRIBUTORS.—
‘‘(i) IN
GENERAL.—Nothing in this
subsection shall authorize the Secretary to
disclose the name or address of any con-
tributor to any organization or trust which
is required to furnish such information.
‘‘(ii) EXCEPTION.—Clause (i) shall
not apply to a private foundation (as de-
fined in section 509(a)), a 527 organiza-
tion (as defined in section 6033A(d)), or
information on a return under section
6033A(a) of an organization described in
paragraph (4), (5) or (6) of section 501(c).
‘‘(B) RELIGIOUS AND APOSTOLIC ORGANI-
ZATIONS.—In the case of an organization de-
scribed in section 501(d), this subsection shall
not apply to copies referred to in section
6031(b) with respect to such organization.
‘‘(3) SPECIAL RULES FOR INFORMATION UNDER
SECTION 6033A.—
‘‘(A) TIMELY
AVAILABILITY.—Documents
filed under section 6033A (other than with re-
spect to an annual period) shall be available
under paragraph (1) no later than 2 business
days after being filed.
‘‘(B) AVAILABILITY
ON
WORLD
WIDE
WEB.—To the extent practicable, documents
filed under section 6033A shall also be made
available to the public on the world wide web.
‘‘(4) COOPERATION
WITH
OTHER
FEDERAL
AGENCIES.—The Secretary may cooperate with an-
other Federal agency to carry out the requirements
of this subsection with respect to returns and state-
ments required to be filed under section 6033A.’’.
(c) PENALTIES FOR FAILURE TO FILE DOCUMENTS
OR PROVIDE PUBLIC INSPECTION OF DOCUMENTS.—
(1) PENALTY
FOR
FAILURE
TO
REPORT
DISCLOSABLE ACTIVITIES.—Subsection (c) of section
6652 of such Code is amended by redesignating
paragraphs (2), (3), and (4) as paragraphs (3), (4),
and (5), respectively, and by inserting after para-
graph (1) the following new paragraph:
‘‘(2) INFORMATION UNDER SECTION 6033A.—
‘‘(A) IN GENERAL.—In the case of—
‘‘(i) a failure to file a document re-
quired under section 6033A (relating to re-
turns relating to political activities) at the
time and in the manner prescribed therefor
(determined without regard to any exten-
sion of time for filing), or
‘‘(ii) a failure to include any of the in-
formation required to be shown on such a
return or statement or to show the correct
information,
there shall be paid by the organization an
amount equal to the highest rate of tax speci-
fied in section 11(b) multiplied by the amount
to which the failure relates.
‘‘(B) PUBLIC INSPECTION.—In the case of
a failure to comply with the requirements of
section 6104(e) at the time and in the manner
prescribed therefor (determined without regard
to any extension of time for filing), there shall
be paid by the person failing to meet such re-
quirements $20 for each day during which such
failure continues. The maximum penalty im-
posed under this subparagraph on all persons
for failures with respect to any 1 statement
shall not exceed $10,000.
‘‘(C) ADDITIONAL PENALTY ON MANAGERS
OF 527 ORGANIZATIONS.—
‘‘(i) IN
GENERAL.—The Secretary
may make a written demand on any 527
organization subject to penalty under sub-
paragraph (A) specifying therein a reason-
able future date by which the return or
statement shall be filed (or the information
furnished) for purposes of this subpara-
graph.
‘‘(ii) FAILURE TO COMPLY WITH DE-
MAND.—If any person fails to comply with
any demand under clause (i) on or before
the date specified in such demand, there
shall be paid by the person failing to so
comply $10 for each day after the expira-
tion of the time specified in such demand
during which such failure continues. The
maximum penalty imposed under this sub-
paragraph on all persons for failures with
respect to any 1 statement shall not exceed
$5,000.’’.
(2) OTHER PENALTIES.—
(A) Section 6685 of such Code (relating to
assessable penalty with respect to public inspec-
tion requirements for certain tax-exempt orga-
nizations) is amended—
(i) by striking ‘‘subsection (d)’’ and
inserting ‘‘subsection (d) or (e)’’, and
(ii) by striking ‘‘return or application’’
each place it appears and inserting ‘‘re-
turn, application, or statement’’.
(B) Section 7207 of such Code (relating to
fraudulent returns, statements, and other docu-
ments) is amended by striking ‘‘subsection (d)’’
and inserting ‘‘subsection (d) or (e)’’.
(d) CONFORMING AMENDMENTS.—
(1) Section 527 of such Code is amended by
adding at the end the following new subsection:
‘‘(i) CROSS REFERENCES.—
‘‘(1) For reporting and inspection requirements,
see sections 6033A and 6104.
‘‘(2) For penalties for failure to file returns and
statements, see sections 6652, 6685, and 7207.’’.
(2) The table of sections for subpart A of part
III of subchapter A of chapter 61 of such Code is
amended by inserting after the item relating to sec-
tion 6033 the following new item:
‘‘Sec. 6033A. Returns relating to political activities.’’.
(e) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply to——
(A) expenditures made and contributions
received in reporting periods beginning after the
date of the enactment of this Act, and
(B) expenditures made and contributions
received in annual reporting periods ending
after the date of the enactment of this Act, ex-
cept that only expenditures and contributions
described in subparagraph (A) shall be taken
into account.
(2) STATEMENT
OF
ORGANIZATION.—Para-
graph (1) of section 6033A(c) of the Internal Rev-
enue Code of 1986 (as added by this section) shall
take effect on the date of the enactment of this Act.
Æ