Labor-Management 
Reporting 
and 
Disclosure Act of 1959 (29 U.S.C. 
402). 
‘‘(III) 
LABOR
ORGANIZATION 
ELECTION.—The term ‘labor organi-
zation election’ means any election de-
scribed in section 9 of the National 
Labor Relations Act (29 U.S.C. 159) 
or section 2 of the Railway Labor Act 
(45 U.S.C. 152).’’. 
(c) SPECIAL RULES.— 
(1) IN GENERAL.—Section 162(e)(4) of the In-
ternal Revenue Code of 1986 is amended by adding 
at the end the following new subparagraph: 
‘‘(D) EXPENSES RELATING TO LABOR OR-
GANIZATIONS OR LABOR ORGANIZATION ACTIVI-
TIES.— 
‘‘(i) IN
GENERAL.—For purposes of 
paragraph (1)(E), amounts paid or in-
curred in connection with attempting to in-
fluence the taxpayer’s employees with re-
spect to labor organizations or labor orga-
nization activities include— 
‘‘(I) any amount paid or incurred 
directly or indirectly by the taxpayer, 
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including wages and other general and 
administrative costs, in connection 
with an action that results in— 
‘‘(aa) a complaint issued 
under section 10 of the National 
Labor Relations Act (29 U.S.C. 
160) against the taxpayer for an 
unfair labor practice under sec-
tion 8(a) of such Act (29 U.S.C. 
158(a)), 
‘‘(bb) a settlement offer re-
lated to an investigation by the 
National Labor Relations Board 
of a charge of an unfair labor 
practice under section 8(a) of 
such Act (29 U.S.C. 158(a)) that 
results in a settlement of such 
charge without issuance of a 
complaint under section 10 of 
such Act (29 U.S.C. 160), or 
‘‘(cc) a finding of inter-
ference, influence, or coercion by 
a Federal court under section 2 
of the Railway Labor Act (45 
U.S.C. 152), 
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‘‘(II) any amount paid or in-
curred directly or indirectly by the 
taxpayer, including wages and other 
general and administrative costs, in 
producing, conducting, or attending 
any meeting or training— 
‘‘(aa) which includes employ-
ees of the taxpayer who are or 
who could become members of a 
unit appropriate for the purposes 
of collective bargaining, and 
‘‘(bb) at which labor organi-
zations or a labor organization 
activity is discussed, and 
‘‘(III) any amount which is re-
quired to be reported under the 
Labor-Management 
Reporting 
and 
Disclosure Act of 1959 (29 U.S.C. 
401 et seq.). 
‘‘(ii) 
EXCEPTIONS.—The 
following 
amounts shall not be treated as amounts 
paid or incurred in connection with at-
tempting to influence the taxpayer’s em-
ployees with respect to labor organizations 
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or labor organization activities under para-
graph (1)(E): 
‘‘(I) Amounts paid or incurred 
for communications or negotiations di-
rectly with the designated or selected 
representative of the employees of the 
taxpayer described in section 9(a) of 
the National Labor Relations Act (29 
U.S.C. 159(a)) or under the Railway 
Labor Act (45 U.S.C. 151 et seq.). 
‘‘(II) Amounts paid or incurred 
for 
communications 
directly 
with 
shareholders, as may be required 
under section 13 of the Securities Ex-
change Act of 1934 (15 U.S.C. 78m). 
‘‘(III) Amounts paid or incurred 
for communications or consultations 
by the taxpayer in the process of vol-
untarily recognizing a labor organiza-
tion as a representative in accordance 
with section 9 of the National Labor 
Relations Act (29 U.S.C. 159). 
‘‘(IV) Amounts paid or incurred 
with respect to the operation of a 
labor-management 
partnership 
de-
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scribed in a collective bargaining 
agreement in effect between a rep-
resentative of employees of the tax-
payer and the taxpayer, including a 
labor management committee estab-
lished pursuant to section 205A(a) of 
the Labor Management Relations Act, 
1947 (29 U.S.C. 175a(a)). 
‘‘(V) Amounts paid or incurred 
for communications or consultations 
related to the operation of a grievance 
procedure described in a collective 
bargaining agreement in effect be-
tween a representative of employees of 
the taxpayer and the taxpayer. 
‘‘(VI) Amounts paid or incurred 
by a labor organization. 
‘‘(VII) Amounts paid or incurred 
for communication materials, includ-
ing visual or audio media, required to 
be posted for, or provided to, employ-
ees of the taxpayer by law, including 
under the National Labor Relations 
Act (29 U.S.C. 151 et seq.) or the 
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Railway Labor Act (45 U.S.C. 151 et 
seq.). 
‘‘(VIII) Amounts paid or in-
curred relating to a complaint which 
is issued by the National Labor Rela-
tions Board and which is set aside in 
full in accordance with subsection (e) 
or (f) of section 10 of such Act.’’. 
(2) REGULATORY AUTHORITY.— 
(A) IN GENERAL.—Section 162(e) of such 
Code, as amended by subsection (b), is amend-
ed by redesignating paragraph (7) as paragraph 
(8) and by inserting after paragraph (6) the 
following new paragraph: 
‘‘(7) REGULATIONS.—The Secretary shall pre-
scribe such guidance, rules, or regulations as are 
necessary to carry out the purposes of this sub-
section, including rules relating to the timing of any 
deductions in connection with amounts described in 
paragraph (4)(D)(ii)(VIII).’’. 
(B) TIMING.—Not later than the date that 
is 240 days after the date of the enactment of 
this Act, the Secretary of the Treasury (or the 
Secretary’s delegate) shall prescribe guidance, 
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rules, or regulations with respect to the applica-
tion of the amendments made by this Act. 
(d) INFORMATION REPORTING.— 
(1) CERTAIN INFORMATION INCLUDED IN TAX 
RETURNS.— 
(A) IN GENERAL.—Part I of subchapter B 
of chapter 68 is amended by adding at the end 
the following new section: 
‘‘SEC. 6720D. FAILURE TO INCLUDE CERTAIN INFORMATION 
WITH RESPECT TO EMPLOYER ACTIVITIES 
RELATING TO LABOR ORGANIZATIONS. 
‘‘(a) IN GENERAL.—If any taxpayer who makes ex-
penditures described in section 162(e)(1)(E) fails to pro-
vide with the return of tax for the taxable year to which 
such expenditures relate the information provided in sub-
section (c) with respect to such expenditures, or who fails 
to provide all of the information required under subsection 
(b) or fails to provide correct information, shall pay a pen-
alty in the amount determined under subsection (b). 
‘‘(b) DETERMINATION OF PENALTY AMOUNT.— 
‘‘(1) IN GENERAL.—The amount of the penalty 
under this section for any failure described in sub-
section (a) shall be the greater of— 
‘‘(A) $10,000, or 
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‘‘(B) the product of $1,000 and the num-
ber of full time equivalent employees of the em-
ployer (as determined under section 45R(d)(2)). 
‘‘(2) INCREASED
PENALTY
WHERE
FAILURE 
CONTINUES.— 
‘‘(A) IN
GENERAL.—If any failure de-
scribed in subsection (a)(1) continues for more 
than 90 days after the day on which the Sec-
retary mails notice of such failure to the tax-
payer, the taxpayer shall pay a penalty (in addi-
tion to the amount of any penalty under para-
graph (1)) equal to the amount determined 
under paragraph (1) for each 30-day period (or 
fraction thereof) during which such failure con-
tinues after the expiration of such 90-day pe-
riod. 
‘‘(B) LIMITATION.—The penalty imposed 
under this paragraph with respect to any failure 
shall not exceed $100,000. 
‘‘(c) INFORMATION TO BE PROVIDED.—The infor-
mation required under this subsection shall include— 
‘‘(1) the dates that such activities described in 
section 162(e)(1)(E) took place, 
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‘‘(2) a statement indicating whether the activity 
was an activity described in item (aa), (bb), or (cc) 
of section 162(e)(4)(D)(i)(I), 
‘‘(3) the amounts paid or incurred for such ac-
tivities, 
‘‘(4) a copy of any disclosures which are re-
quired to be reported under the Labor-Management 
Reporting and Disclosure Act of 1959 (29 U.S.C. 
401 et seq.), and 
‘‘(5) such other information as the Secretary 
may prescribe. 
‘‘(d) REASONABLE CAUSE EXCEPTION.—No penalty 
shall be imposed by this section on any failure which is 
shown to be due to reasonable cause and not due to willful 
neglect.’’. 
(B) CLERICAL AMENDMENT.—The table of 
sections for part I of subchapter B of chapter 
68 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 6720D. Failure to include certain information with respect to employer 
activities relating to labor organizations.’’. 
(2) THIRD-PARTY INFORMATION REPORTING.— 
(A) IN GENERAL.—Subpart A of part III 
of subchapter A of chapter 61 of the Internal 
Revenue Code of 1986 is amended by inserting 
after section 6039J the following new section: 
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‘‘SEC. 6039K. INFORMATION WITH RESPECT TO CERTAIN 
EMPLOYER ACTIVITIES RELATING TO LABOR 
ORGANIZATIONS. 
‘‘(a) IN GENERAL.—Any person conducting activities 
described in section 162(e)(1)(E) on behalf of another per-
son shall file a return (at such time and in such manner 
as the Secretary may by regulations prescribe, which in-
cludes the information described in subsection (b)). 
‘‘(b) INFORMATION TO BE PROVIDED.—Information 
required under subsection (a) shall include— 
‘‘(1) the person on behalf of whom the activities 
described in section 162(e)(1)(E) were performed, 
‘‘(2) the dates that such activities described in 
such section took place, 
‘‘(3) a statement indicating whether the activity 
was an activity described in item (aa), (bb), or (cc) 
of section 162(e)(4)(D)(i)(I), 
‘‘(4) the amounts paid or incurred for such ac-
tivities, and 
‘‘(5) such other information as the Secretary 
may prescribe.’’. 
(B) PENALTY.—Subparagraph (B) of sec-
tion 6724(d)(1) of such Code is amended— 
(i) by striking the comma at the end 
of clause (xxvii), as added by the Infra-
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structure Investment and Jobs Act, and in-
serting ‘‘, or’’, and 
(ii) by adding at the end the following 
new clause: 
‘‘(xxviii) section 6039K (relating to 
information with respect to certain em-
ployer activities relating to labor organiza-
tions), and’’. 
(C) CLERICAL AMENDMENT.—The table of 
sections for subpart A of part III of subchapter 
A of chapter 61 of such Code is amended by in-
serting after the item relating to section 6039J 
the following new item: 
‘‘Sec. 6039K. Information with respect to certain employer activities relating to 
labor organizations.’’. 
(e) CONFORMING AMENDMENTS.— 
(1) The heading for subsection (e) of section 
162 of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘AND POLITICAL EXPENDITURES’’ 
and inserting ‘‘, POLITICAL EXPENDITURES, AND 
LABOR ORGANIZATION EXPENDITURES’’. 
(2) The heading of subparagraph (C) of section 
162(e)(4) of such Code is amended by striking ‘‘AND 
POLITICAL ACTIVITIES’’ and inserting ‘‘, POLITICAL, 
AND LABOR ORGANIZATION ACTIVITIES’’. 
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(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after the date that is 240 days after 
the date of the enactment of this Act. 
Æ 
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