I
106TH CONGRESS
2D SESSION
H. R. 5277
To amend the Internal Revenue Code of 1986 to avoid duplicate reporting
of information on political activities of certain State and local political
organizations, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 25, 2000
Mr. DOGGETT (for himself, Mr. STARK, Mr. MATSUI, Mr. LEVIN, Mr. CARDIN,
Mr. MCDERMOTT, Mr. LEWIS of Georgia, Mr. NEAL of Massachusetts,
Mr. MCNULTY, Mr. MOORE, Mr. FARR of California, Mr. TIERNEY, Mr.
LANTOS, Mrs. THURMAN, Mr. OLVER, Mr. NADLER, Mr. GREEN of
Texas, Mr. BENTSEN, Mr. CROWLEY, Mr. WEINER, and Ms. SLAUGH-
TER) introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to avoid dupli-
cate reporting of information on political activities of
certain State and local political organizations, and for
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. MODIFICATION OF REPORTING OF POLITICAL
ACTIVITIES.
(a) REQUIRED NOTIFICATION OF STATUS AS SEC-
TION 527 ORGANIZATION NOT TO APPLY TO CERTAIN
‘‘(6) EXCEPTION FOR STATE AND LOCAL POLIT-
ICAL
ORGANIZATIONS.—This subsection shall not
apply to any organization for any period—
‘‘(A) such organization is organized and
operated exclusively for the purpose of influ-
encing or attempting to influence the selection,
nomination, election, or appointment of any in-
dividual to any State or local public office, and
‘‘(B) such organization is required to make
a filing for such period, which is publicly avail-
able, with a State agency containing substan-
tially the same information as is required under
this subsection.’’
(c) 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. 2. TECHNICAL CORRECTIONS TO SECTION 527 ORGA-
NIZATION DISCLOSURE PROVISIONS.
(a) UNSEGREGATED FUNDS NOT TO AVOID PEN-
ALTY.—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 purposes of the preceding sentence, the term ‘exempt
function income’ means any amount described in a sub-
paragraph of subsection (c)(3), whether or not segregated
for use for an exempt function.’’
(b) PROCEDURES FOR ASSESSMENT AND COLLEC-
TION OF PENALTY.—Paragraph (1) of section 527(j) of
such Code (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
penalty imposed by this paragraph shall be assessed and
collected in the same manner as penalties imposed by sec-
tion 6652(c).’’
(c) APPLICATION
OF FRAUD PENALTY.—Section
7207 of such Code (relating to fraudulent returns, state-
ments, and other documents) is amended by striking ‘‘pur-
suant to subsection (b) of section 6047 or pursuant to sub-
section (d) of section 6104’’ and inserting ‘‘pursuant to
section 6047(b), section 6104(d), or subsection (i) or (j)
of section 527’’.
(d) DUPLICATE ELECTRONIC AND WRITTEN FILINGS
NOT REQUIRED.—
(1) Subparagraph (A) of section 527(i)(1) of
such Code is amended by striking ‘‘, electronically
and in writing,’’.
(2) Subsection (i) of section 527 of such Code
is amended by adding at the end the following new
paragraph:
‘‘(8) ELECTRONIC FILING.—The Secretary shall
develop procedures for submission in electronic form
of notices required to be filed under this subsection
and reports required to be filed under subsection
(j).’’
(e) MODIFICATION
OF GIFT TAX RULES.—Para-
graph (5) of section 2501(a) of such Code (relating to
transfers to political organizations) is amended by adding
at the end the following new sentence: ‘‘The preceding sen-
tence shall not apply in the case of any such organization
which is not in substantial compliance with subsections (i)
and (j) of section 527.’’
(f) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall take effect as if included in the amendments
made by Public Law 106–230.
(2) MODIFICATION OF GIFT TAX RULES.—The
amendment made by subsection (e) shall apply to
gifts made after the date of the enactment of this
Act.
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