I
106TH CONGRESS
2D SESSION
H. R. 4168
To amend the Internal Revenue Code of 1986 to require increased reporting
by political organizations.
IN THE HOUSE OF REPRESENTATIVES
APRIL 4, 2000
Mr. DOGGETT (for himself, Mr. GEPHARDT, Mr. BONIOR, Mr. FROST, Mr.
MENENDEZ, Mr. RANGEL, Mr. NEAL of Massachusetts, Mr. STARK, Mr.
MATSUI, Mr. COYNE, Mr. LEVIN, Mr. CARDIN, Mr. MCDERMOTT, Mr.
KLECZKA, Mr. LEWIS of Georgia, Mr. MCNULTY, Mr. JEFFERSON, Mrs.
THURMAN, Mr. BECERRA, Ms. DELAURO, Ms. PELOSI, Mr. HOYER, Mr.
ABERCROMBIE, Mr. ACKERMAN, Mr. ALLEN, Mr. ANDREWS, Mr. BACA,
Mr. BAIRD, Mr. BALDACCI, Ms. BALDWIN, Mr. BARRETT of Wisconsin,
Ms. BERKLEY, Mr. BERRY, Mr. BLAGOJEVICH, Mr. BLUMENAUER, Mr.
BOSWELL, Mr. BROWN of Ohio, Mrs. CAPPS, Mr. CAPUANO, Mrs. CLAY-
TON, Mr. CLYBURN, Mr. CROWLEY, Ms. DANNER, Mr. DAVIS of Illinois,
Mr. DAVIS of Florida, Mr. DEFAZIO, Mr. DELAHUNT, Mr. DEUTSCH, Mr.
DICKS, Mr. DINGELL, Mr. DIXON, Mr. DOOLEY of California, Mr. ED-
WARDS, Mr. ENGEL, Ms. ESHOO, Mr. ETHERIDGE, Mr. EVANS, Mr.
FARR of California, Mr. FILNER, Mr. FORBES, Mr. FORD, Mr. FRANK
of Massachusetts, Mr. GEJDENSON, Mr. GONZALEZ, Mr. GREEN of
Texas, Mr. HALL of Ohio, Mr. HASTINGS of Florida, Mr. HILL of Indi-
ana, Mr. HILLIARD, Mr. HINCHEY, Mr. HINOJOSA, Mr. HOEFFEL, Mr.
HOLT, Ms. HOOLEY of Oregon, Mr. INSLEE, Mr. JACKSON of Illinois, Ms.
JACKSON-LEE of Texas, Ms. EDDIE BERNICE JOHNSON of Texas, Mrs.
JONES of Ohio, Mr. KANJORSKI, Ms. KAPTUR, Ms. KILPATRICK, Mr.
KIND, Mr. KUCINICH, Mr. LAMPSON, Mr. LANTOS, Mr. LARSON, Ms.
LEE, Ms. LOFGREN, Mrs. LOWEY, Mr. LUTHER, Mrs. MALONEY of New
York, Mr. MARKEY, Mrs. MCCARTHY of New York, Ms. MCCARTHY of
Missouri, Mr. MCGOVERN, Ms. MCKINNEY, Mr. MEEHAN, Mrs. MEEK of
Florida, Mr. MEEKS of New York, Ms. MILLENDER-MCDONALD, Mr.
GEORGE MILLER of California, Mr. MINGE, Mrs. MINK of Hawaii, Mr.
MOAKLEY, Mr. MOLLOHAN, Mr. MOORE, Mr. MORAN of Virginia, Mr.
NADLER, Mrs. NAPOLITANO, Mr. ORTIZ, Mr. OWENS, Mr. PALLONE, Mr.
PASCRELL, Mr. PAYNE, Mr. PETERSON of Minnesota, Mr. PHELPS, Mr.
POMEROY, Mr. PRICE of North Carolina, Mr. REYES, Ms. RIVERS, Mr.
RODRIGUEZ, Mr. ROTHMAN, Mr. RUSH, Mr. SABO, Ms. SANCHEZ, Mr.
SANDERS, Mr. SANDLIN, Mr. SAWYER, Ms. SCHAKOWSKY, Mr. SERRANO,
Mr. SHOWS, Ms. SLAUGHTER, Mr. SMITH of Washington, Mr. SNYDER,
Mr. SPRATT, Ms. STABENOW, Mr. STENHOLM, Mr. STRICKLAND, Mrs.
TAUSCHER, Mr. THOMPSON of Mississippi, Mr. THOMPSON of California,
Mr. TIERNEY, Mr. TURNER, Mr. UDALL of New Mexico, Mr. UDALL of
Colorado, Ms. VELA´ZQUEZ, Mr. WAXMAN, Mr. WEINER, Mr. WEXLER,
Mr. WEYGAND, Ms. WOOLSEY, Mr. WU, and Mr. WYNN) 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 require
increased reporting by political organizations.
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 ‘‘Underground Cam-
paign Disclosure Act of 2000’’.
SEC. 2. INCREASED REPORTING BY POLITICAL ORGANIZA-
TIONS.
(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 BY POLITICAL ORGANIZATIONS.
‘‘(a) STATEMENT OF ORGANIZATION.—
‘‘(1) IN GENERAL.—Every political organization
shall file a statement of organization with the Sec-
retary (in such form and manner as the Secretary
shall prescribe) which contains the information de-
scribed in paragraph (2). Such statement shall be
filed not later than 10 days after the date that such
organization is established (or, in the case of an or-
ganization in existence on the date of the enactment
of this section, not later than 10 days after such
date of enactment).
‘‘(2) STATEMENT OF ORGANIZATION.—The in-
formation described in this paragraph is—
‘‘(A) the name and address of the political
organization,
‘‘(B) the name, address, relationship, and
type of any person which is directly or indi-
rectly related to or affiliated with such political
organization,
‘‘(C) the name, address, and position of
the custodian of books and accounts of the po-
litical organization,
‘‘(D) the name and address of the treas-
urer of the political organization, and
‘‘(E) a listing of all banks, safety deposit
boxes, and other depositories used by the polit-
ical organization.
‘‘(3) CHANGES IN INFORMATION.—If there is a
change in circumstances such that the most recent
statement filed under this subsection is no longer ac-
curate, the political organization shall file a cor-
rected 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.
‘‘(4) RELATED
AND
AFFILIATED
PERSONS.—
For purposes of paragraph (2)(B), a person is di-
rectly or indirectly related to or affiliated with a po-
litical organization if such person, at any time dur-
ing the 3-year period ending on the date such state-
ment is submitted to the Secretary—
‘‘(A) was in a position to exercise substan-
tial direct or indirect influence over the process
of collecting or disbursing the exempt purpose
funds of such organization, or
‘‘(B) was in a position to exercise substan-
tial, overall direct or indirect influence over the
activities of such organization.
‘‘(b) STATEMENTS
OF CONTRIBUTIONS
AND DIS-
BURSEMENTS.—
‘‘(1) IN GENERAL.—Every political organization
shall file a statement with the Secretary (at such
time and in such form and manner as the Secretary
shall prescribe) which contains the information de-
scribed in paragraph (2) with respect to each report-
ing period.
‘‘(2) INFORMATION DESCRIBED.—The informa-
tion described in this paragraph is—
‘‘(A) the name and address of each person
to whom the political organization made any
disbursement during the reporting period in an
aggregate amount or value in excess of $200
within the calendar year,
‘‘(B) a certification, under penalty of per-
jury, whether such disbursement is made in co-
operation, consultation, or concert, with, or at
the request or suggestion of, any candidate for
public office or any authorized committee of
such candidate or agent of such committee or
candidate,
‘‘(C) the name, address, and occupation of
each person (and the name of his or her em-
ployer) who made (in the aggregate for the re-
porting period) a contribution in excess of $200
to the political organization,
‘‘(D) the name, address, and business pur-
pose 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 contribu-
tion in excess of $200 to the political organiza-
tion, and
‘‘(E) the original source and the intended
ultimate recipient of all contributions made by
a person, either directly or indirectly, on behalf
of any particular person, including contribu-
tions which are in any way earmarked or other-
wise directed through any intermediary.
‘‘(3) REPORTING PERIODS AND DUE DATES FOR
FILING STATEMENTS.—
‘‘(A) IN GENERAL.—The reporting periods
and deadlines for filing statements required by
this subsection shall be the same as the periods
and deadlines set forth for reports under para-
graph (4) of section 304(a) of Federal Election
Campaign Act of 1971 (2 U.S.C. 434(a)). The
Secretary shall issue such guidance as may be
necessary concerning the filing deadlines for
such statements.
‘‘(B) CERTAIN ORGANIZATIONS FILE AN-
NUALLY.—
‘‘(i) IN GENERAL.—In the case of a
political organization described in clause
(ii)—
‘‘(I) subparagraph (A) shall not
apply,
‘‘(II) the reporting period shall
be such organization’s taxable year,
and
‘‘(III) the due date for the state-
ment required by this subsection shall
be the due date (without regard to ex-
tensions) for filing the return of tax
for such year, whether or not such or-
ganization is required to file a return
for such taxable year.
‘‘(ii) ORGANIZATION DESCRIBED.—An
organization is described in this clause if
such organization is a political organiza-
tion which is organized and operated exclu-
sively for the purpose of securing the nomi-
nation, election, or appointment of a clear-
ly identified candidate for State, local, or
judicial office.
‘‘(4) ELECTRONIC FILING.—The Secretary shall
develop procedures for submission in electronic form
of statements required to be filed under this sub-
section.
‘‘(c) POLITICAL ORGANIZATION.—For purposes of
this section, the term ‘political organization’ has the
meaning given to such term by section 527(e) without re-
gard to whether such organization claims a tax exemption
under section 527.
‘‘(d) PAPERWORK AND BURDEN REDUCTION.—An
organization shall be not be required to file any statement
under subsection (a) or (b) for any period if, with respect
to such period, such organization submits to the Sec-
retary, under penalty of perjury, a certified statement that
the organization has made a filing, which is publicly avail-
able, with another Federal agency which includes all of
the information requested by subsection (a) or (b), which-
ever is applicable, and which specifies the public location
where such information may be found.’’
(b) PUBLIC INSPECTION OF STATEMENTS.—
(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 STATEMENTS
OF POLITICAL
ORGANIZATIONS.—
‘‘(1) IN GENERAL.—In the case of a political
organization (as defined in section 6033A(c))—
‘‘(A) a copy of the statements filed under
section 6033A shall be made available by such
organization for inspection during regular busi-
ness hours by any individual at the principal of-
fice of such organization and, if such organiza-
tion regularly maintains 1 or more regional or
district offices having 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 statements 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) 3-YEAR
LIMITATION
ON
INSPECTION
OF
STATEMENTS.—Paragraph (1) shall apply to any
statement filed under section 6033A only during the
3-year period beginning on the last day prescribed
for filing such statement (determined with regard to
any extension of time for filing).
‘‘(3) LIMITATION
ON
PROVIDING
COPIES.—A
rule similar to the rule of subsection (d)(4) shall
apply for purposes of this subsection.’’
(2) INSPECTION OF ANNUAL INFORMATION RE-
TURNS.—Subsection (b) of section 6104 of such
Code (relating to inspection of annual information
returns) is amended—
(A) by inserting ‘‘6033A,’’ after ‘‘6033,’’,
(B) by striking ‘‘509(a))’’ and inserting
‘‘509(a), or a political organization, as defined
in section 6033A(c))’’, and
(C) by adding at the end the following:
‘‘To the extent practicable, the statements re-
quired to be made under section 6033A shall
also be made available to the public on the
worldwide web.’’.
(c) PENALTIES FOR FAILURE TO FILE STATEMENTS
OR PROVIDE PUBLIC INSPECTION.—
(1) IN
GENERAL.—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) STATEMENTS UNDER SECTION 6033A.—
‘‘(A) PENALTY ON ORGANIZATION.—In the
case of—
‘‘(i) a failure to file a statement re-
quired under section 6033A (relating to re-
turns by political organizations) on the
date and in the manner prescribed therefor
(determined with regard to any extension
of time for filing), or
‘‘(ii) a failure to include any of the in-
formation required to be shown on a state-
ment filed under section 6033A or to show
the correct information,
there shall be paid by the political organization
$100 for each day during which such failure
continues. The maximum penalty under this
subparagraph on failures with respect to any 1
statement shall not exceed $50,000.
‘‘(B) MANAGERS.—
‘‘(i) IN
GENERAL.—The Secretary
may make a written demand on any orga-
nization subject to penalty under subpara-
graph (A) specifying therein a reasonable
future date by which the statement shall
be filed (or the information furnished) for
purposes of this subparagraph.
‘‘(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.
‘‘(C) PUBLIC
INSPECTION
OF
STATE-
MENTS.—In the case of a failure to comply with
the requirements of section 6104(e) on the date
and in the manner prescribed therefor (deter-
mined with regard to any extension of time for
filing), there shall be paid by the person failing
to meet such requirements $20 for each day
during which such failure continues. The max-
imum penalty imposed under this subparagraph
on all persons for failures with respect to any
1 statement shall not exceed $10,000.’’
(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) 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 sections
6033A and 6104(e).’’
(e) 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 requirements, see sections
6033A and 6104.
‘‘(2) For penalties for failure to file reports, see
sections 6652, 6685, and 7207.
‘‘(3) For modification of gift tax rules, see section
2501(a)(5).’’
(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 of political organizations.’’
(f) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
Æ