I
106TH CONGRESS
2D SESSION
H. R. 4762
To amend the Internal Revenue Code of 1986 to require 527 organizations
to disclose their political activities.
IN THE HOUSE OF REPRESENTATIVES
JUNE 27, 2000
Mr. HOUGHTON introduced the following bill; which was referred to the
Committee on Ways and Means
JUNE 27, 2000
Committee on Ways and Means discharged; considered under suspension of
the rules and passed
A BILL
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 Representa-
tives of the United States of America in Congress assembled,
SECTION 1. REQUIRED NOTIFICATION OF SECTION 527 STA-
TUS.
(a) IN GENERAL.—Section 527 of the Internal Rev-
enue Code of 1986 (relating to political organizations) is
amended by adding at the end the following new sub-
section:
‘‘(i) ORGANIZATIONS
MUST
NOTIFY
SECRETARY
THAT THEY ARE SECTION 527 ORGANIZATIONS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (5), an organization shall not be treated as an
organization described in this section—
‘‘(A) unless it has given notice to the Sec-
retary, electronically 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 re-
quired under paragraph (1) shall be transmitted not
later than 24 hours after the date on which the or-
ganization is established.
‘‘(3) CONTENTS
OF
NOTICE.—The notice re-
quired under paragraph (1) shall include informa-
tion regarding—
‘‘(A) the name and address of the organi-
zation (including any business address, if dif-
ferent) and its electronic mailing address,
‘‘(B) the purpose of the organization,
‘‘(C) the names and addresses of its offi-
cers, highly compensated employees, contact
person, custodian of records, and members of
its Board of Directors,
‘‘(D) the name and address of, and rela-
tionship to, any related entities (within the
meaning of section 168(h)(4)), and
‘‘(E) such other information as the Sec-
retary 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 de-
ductions directly connected with the production of
such income).
‘‘(5) EXCEPTIONS.—This subsection shall not
apply to any organization—
‘‘(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
REQUIRE-
MENTS.—This subsection shall not apply to any per-
son required (without regard to this subsection) to
report under the Federal Election Campaign Act of
1971 (2 U.S.C. 431 et seq.) as a political com-
mittee.’’.
(b) DISCLOSURE REQUIREMENTS.—
(1) INSPECTION AT INTERNAL REVENUE SERV-
ICE 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 organi-
zation is exempt from taxation under sec-
tion 527 for any taxable year’’ after ‘‘tax-
able 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 ‘‘SEC-
TION 501’’ in the heading.
(B) 
CONFORMING
AMENDMENT.—The
heading for section 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 PERSON.—
‘‘(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 AVAIL-
ABLE.—The Secretary shall make available the
information required under subparagraph (A)
not later than 5 business days after the Sec-
inserting after subsection (f) the following new sub-
section:
‘‘(g) RETURNS REQUIRED BY POLITICAL ORGANIZA-
TIONS.—In the case of a political organization required
to file a return under section 6012(a)(6)—
‘‘(1) such organization shall file a 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), and
‘‘(B) containing such other information as
the Secretary deems necessary to carry out the
provisions of this subsection, and
‘‘(2) subsection (a)(2)(B) (relating to discre-
tionary exceptions) shall apply with respect to such
return.’’.
(b) PUBLIC DISCLOSURE OF RETURNS.—
(1) RETURNS
MADE
AVAILABLE
BY
SEC-
RETARY.—
(A) IN GENERAL.—Section 6104(b) of the
Internal Revenue Code of 1986 (relating to in-
spection of annual information returns) is
amended by inserting ‘‘6012(a)(6),’’ before
‘‘6033’’.