To amend the Internal Revenue Code of 1986 to require 527 organizations to disclose their political activities.
PL 106-230 (H.R.4762), enacted 07/01/2000

PUBLIC LAW 106-230-^ULY 1, 2000 
114 STAT. 477 
Public Law 106-230 
106th Congress 
An Act 
To amend the Internal Revenue Code of 1986 to require 527 organizations to 
July 1, 2000 
disclose their political activities. 
[H.R. 4762] 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. REQUIRED NOTIFICATION OF SECTION 527 STATUS. 
(a) IN GENERAL.—Section 527 of the Internal Revenue Code 
of 1986 (relating to political organizations) is amended by adding 26USC527. 
at the end the following new subsection: 
"(i) ORGANIZATIONS MUST NOTIFY SECRETARY THAT THEY ARE 
SECTION 527 ORGANIZATIONS.— 
"(1) IN GENERAL.—Except as provided in paragraph (5), 
an organization shall not be treated as an organization 
described in this section— 
"(A) unless it has given notice to the Secretary, elec-
tronically 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 required imder para- Deadline, 
graph (1) shall be transmitted not later than 24 hours after 
the date on which the organization is established. 
"(3) CONTENTS OF NOTICE.—The notice required imder para-
graph (1) shall include information regarding— 
"(A) the name and address of the organization 
(including any business address, if different) and its elec-
tronic mailing address, 
"(B) the purpose of the organization, 
"(C) the names £ind addresses of its officers, highly 
compensated employees, contact person, custodian of 
records, and members of its Board of Directors, 
"(D) the name and address of, and relationship to, 
any related entities (within the meaning of section 
168(h)(4)), and 
"(E) such other information as the Secretary 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 shedl be computed 
by taking into account any exempt function income (and any 
deductions directly connected with the production of such 
income). 
"(5) EXCEPTIONS.—This subsection shall not apply to any 
organization— 
79-194 O - 00 - 17: QL 3 Part 1 
114 STAT. 478 
PUBLIC LAW 106-230^JULY 1, 2000 
26 use 6104. 
Public 
information. 
Records. 
Deadline. 
"(A) to which this section apphes 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 REQUIREMENTS.—This sub-
section shall not apply to any person required (without regard 
to this subsection) to report under the Federal Election Cam-
paign Act of 1971 (2 U.S.C. 431 et seq.) as a political com-
mittee.", 
(b) DISCLOSURE REQUIREMENTS.— 
(1) INSPECTION AT INTERNAL REVENUE SERVICE 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 organization is 
exempt from taxation under section 527 for any taxable 
year" after "taxable 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 "SECTION 501" in 
the heading. 
(B) CONFORMING AMENDMENT.—The heading for sec-
tion 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 PER-
SON.— 
"(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), £ind 
"(ii) the name, address, electronic mailing address, 
custodian of records, and contact person for such 
organization. 
"(B) TIME TO MAKE INFORMATION AVAILABLE.—The Sec-
retary shall make available the information required under 
subparagraph (A) not later than 5 business days after 
the Secretary receives a notice from a political organization 
under section 527(i).". 
(3) 
INSPECTION BY COMMITTEE OF CONGRESS.—Section 
6104(a)(2) of such Code is amended by inserting "or notice 
of status of any political organization which is exempt from 
taxation under section 527 for any taxable year" after "taxable 
year". 
(4) PUBLIC INSPECTION MADE AVAILABLE BY ORGANIZA-
TION.—Section 6104(d) of such Code (relating to public inspec-
tion of certain annual returns and applications for exemption) 
is amended— 
PUBLIC LAW 106-230^JULY 1, 2000 
114 STAT. 479 
(A) by striking "AND APPLICATIONS FOR EXEMPTION" 
and inserting ", APPLICATIONS FOR EXEMPTION, AND 
NOTICES OF STATUS" in the heading; 
(B) by inserting "or notice of status under section 
527(i)" after "section 501" and by inserting "or any notice 
materials" after "materials" in paragraph (l)(A)(ii); 
(C) by inserting or "or such notice materials" after 
"materials" in paragraph (1)(B); and 
(D) by adding at the end the following new paragraph: 
"(6) NOTICE MATERIALS.—For purposes of paragraph (1), 
the term 'notice materials' means the notice of status filed 
under section 527(i) and any papers submitted in support of 
such notice and any letter or other document issued by the 
Internal Revenue Service with respect to such notice.". 
(c) FAILURE TO MAKE PUBLIC—Section 6652(c)(1)(D) of the 
Internal Revenue Code of 1986 (relating to public inspection of 26USC6652. 
applications for exemption) is amended— 
(1) by inserting "or notice materials (as defined in such 
section)" after "section)"; and 
(2) by inserting "AND NOTICE OF STATUS" after "EXEMPTION" 
in the heading. 
(d) EFFECTIVE DATE.— 
26 use 527 note. 
(1) IN GENERAL.—Except as provided in paragraphs (2) 
and (3), the amendments made by this section shall take effect 
on the date of the enactment of this section. 
(2) ORGANIZATIONS ALREADY IN EXISTENCE.—In the case Deadline, 
of an organization established before the date of the enactment 
of this section, the time to file the notice under section 527(i)(2) 
of the Internal Revenue Code of 1986, as added by this section, 
shall be 30 days after the date of the enactment of this section. 
(3) INFORMATION AVAILABILITY.—The amendment made by 
subsection (b)(2) shall take effect on the date that is 45 days 
after the date of the enactment of this section. 
SEC. 2. DISCLOSURES BY POLITICAL ORGANIZATIONS. 
(a) REQUIRED DISCLOSURE OF 527 ORGANIZATIONS.—Section 527 
of the Internal Revenue Code of 1986 (relating to political organiza-
tions), as amended by section 1(a), is amended by adding at the 
end the following new section: 
"(j) REQUIRED DISCLOSURE OF EXPENDITURES AND CONTRIBU-
TIONS.— 
"(1) PENALTY FOR FAILURE.—In the case of— 
"(A) a failure to make the required disclosures under 
paragraph (2) at the time and in the manner prescribed 
therefor, or 
"(B) a failure to include any of the information required 
to be shown by such disclosures or to show the correct 
^ 
information, 
there shall be paid by the organization an amount equal to 
jthe rate of tax specified in subsection (b)(1) multiplied by the 
/amount to which the failure relates. 
"(2) REQUIRED DISCLOSURE.—A political organization which 
accepts a contribution, or makes an expenditure, for an exempt 
function during any calendar year shall file with the Secretary 
either— 
"(A)(i) in the case of a calendar year in which a regu-
larly scheduled election is held— 
26 use 527. 
Reports. 
Effective dates. 
Deadlines. 
114 STAT. 480 
PUBLIC LAW 106-230^JULY 1, 2000 
"(I) quarterly reports, beginning with the first 
quarter of the calendar year in which a contribution 
is accepted or expenditure is made, which shall be 
filed not later than the fifteenth day after the last 
day of each calendar quarter, except that the report 
for the quarter ending on December 31 of such calendar 
year shall be filed not later than January 31 of the 
following calendar year, 
"(II) a pre-election report, which shall be filed not 
later than the twelfth day before (or posted by reg-
istered or certified mail not later than the fifteenth 
day before) any election with respect to which the 
organization makes a contribution or expenditure, and 
which shall be complete as of the twentieth day before 
the election, and 
"(III) a post-general election report, which shall 
be filed not later than the thirtieth day after the gen-
eral election and which shall be complete as of the 
twentieth day after such general election, and 
"(ii) in the case of any other calendar year, a report 
covering the period beginning January 1 and ending June 
30, which shall be filed no later than July 31 and a report 
covering the period beginning July 1 and ending December 
31, which shall be filed no later than January 31 of the 
following calendar year, or 
"(B) monthly reports for the calendar year, beginning 
with the first month of the calendar year in which a con-
tribution is accepted or expenditure is made, which shall 
be filed not later than the twentieth day after the last 
day of the month and shall be complete as if the last 
day of the month, except that, in lieu of filing the reports 
otherwise due in November and December of £iny yeeir 
in which a regularly scheduled general election is held, 
a pre-general election report shall be filed in accordance 
with subparagraph (A)(i)(II), a post-general election report 
shall be filed in accordance with subparagraph (A)(i)(III), 
and a year end report shall be filed not later than January 
31 of the following calendar year. 
"(3) CONTENTS OF REPORT.—^A report required under para-
graph (2) shall contain the following information: 
"(A) The amount of each expenditure made to a person 
if the aggregate amount of expenditures to such person 
during the calendar year equals or exceeds $500 and the 
name and address of the person (in the case of an indi-
vidual, including the occupation and name of employer 
of such individual). 
"(B) The name and address (in the case of an indi-
vidual, including the occupation and name of employer 
of such individual) of all contributors which contributed 
an aggregate amount of $200 or more to the organization 
during the calendar year and the amount of the contribu-
tion. 
Any expenditure or contribution disclosed in a previous 
reporting period is not required to be included in the current 
reporting period. 
"(4) CONTRACTS TO SPEND OR CONTRIBUTE.—For purposes 
of this subsection, a person shall be treated as having made 
PUBLIC LAW 106-230—JULY 1, 2000 
114 STAT. 481 
an expenditure or contribution if the person has contracted 
or is otherwise obhgated to make the expenditure or contribu-
tion. 
"(5) COORDINATION WITH OTHER REQUIREMENTS.—This sub-
section shall not apply— 
"(A) to any person 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 committee, 
"(B) to any State or local committee of a political party 
or political committee of a State or local candidate, 
"(C) to any organization which reasonably anticipates 
that it will not have gross receipts of $25,000 or more 
for any taxable year, 
"(D) to any organization to which this section applies 
solely by reason of subsection (f)(1), or 
"(E) with respect to any expenditure which is an inde-
pendent expenditure (as defined in section 301 of such 
Act). 
"(6) ELECTION.—For purposes of this subsection, the term 
'election' means— 
"(A) a general, special, primary, or runoff election for 
a Federal office, 
"(B) a convention or caucus of a political party which 
has authority to nominate a candidate for Federal office, 
"(C) a primary election held for the selection of dele-
gates to a national nominating convention of a political 
party, or 
"(D) a primary election held for the expression of a 
preference for the nomination of individuals for election 
to the office of President.", 
(b) PUBLIC DISCLOSURE OF REPORTS.— 
(1) IN GENERAL.—Section 6104(d) of the Internal Revenue 
Code of 1986 (relating to public inspection of certain annual 
26 USC 6104. 
returns and applications for exemption), as amended by section 
1(b)(4), is amended— 
(A) by inserting "REPORTS," after "RETURNS," in the 
heading; 
(B) in paragraph (1)(A), by striking "and" at the end 
of clause (i), by inserting "and" at the end of clause (ii), 
and by inserting after clause (ii) the following new clause: 
"(iii) the reports filed under section 527(j) (relating 
to required disclosure of expenditures and contribu-
tions) by such organization,"; and 
(C) in paragraph (1)(B), by inserting ", reports," after 
"return". 
(2) 
DISCLOSURE 
OF CONTRIBUTORS ALLOWED.—Section 
6104(d)(3)(A) of such Code (relating to nondisclosure of contribu-
tors, etc.) is amended by inserting "or a political organization 
exempt from taxation under section 527" after "509(a))". 
(3) DISCLOSURE BY INTERNAL REVENUE SERVICE.—Section 
6104(d) of such Code is amended by adding at the end the 
following new paragraph: 
"(6) 
DISCLOSURE 
OF REPORTS BY INTERNAL 
REVENUE 
SERVICE.—^Any report filed by an organization under section 
527(j) (relating to required disclosure of expenditures and con-
tributions) shall be made available to the public at such times 
and in such places as the Secretary may prescribe.". 
114 STAT. 482 
PUBLIC LAW 106-230—JULY 1, 2000 
(c) FAILURE TO MAKE PUBLIC—Section 6652(c)(1)(C) of the 
26 use 6652. 
Internal Revenue Code of 1986 (relating to public inspection of 
annual returns) is amended— 
(1) by inserting "or report required under section 527(j)" 
after "filing)"; 
(2) by inserting "or report" after "1 return"; and 
(3) by inserting "AND REPORTS" after "RETURNS" in the 
heading. 
Applicability. 
(d) EFFECTIVE DATE.—The amendment made by subsection (a) 
26 use 527 note, shall apply to expenditures made and contributions received after 
the date of the enactment of this Act, except that such amendment 
shall not apply to expenditures made, or contributions received, 
after such date pursuant to a contract entered into on or before 
such date. 
SEC. 3. RETURN REQUIREMENTS RELATING TO SECTION 527 
ORGANIZATIONS. 
(a) RETURN REQUIREMENTS.— 
(1) ORGANIZATIONS REQUIRED TO FILE.—Section 6012(a)(6) 
26 use 6012. 
of the Internal Revenue Code of 1986 (relating to political 
organizations required to make returns of income) is amended 
by inserting "or which has gross receipts of $25,000 or more 
for the taxable year (other than an organization to which section 
527 applies solely by reason of subsection (f)(1) of such section)" 
after "taxable year". 
(2) INFORMATION REQUIRED TO BE INCLUDED ON RETURN.— 
26 use 6033. 
Section 6033 of such Code (relating to returns by exempt 
organizations) is amended by redesignating subsection (g) as 
subsection (h) and inserting after subsection (f) the following 
new subsection: 
"(g) RETURNS REQUIRED BY POLITICAL ORGANIZATIONS.—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 com-
pl3dng with the other requirements, under subsection (a)(1) 
for organizations exempt fi-om taxation under section 
501(a), and 
"(B) containing such other information as the Secretary 
deems necessary to carry out the provisions of this sub-
section, and 
"(2) subsection (a)(2)(B) (relating to discretionary excep-
tions) shall apply with respect to such return.". 
(b) PUBLIC DISCLOSURE OF RETURNS.— 
(1) RETURNS MADE AVAILABLE BY SECRETARY.— 
(A) IN GENERAL.—Section 6104(b) of the Internal Rev-
26 use 6104. 
enue Code of 1986 (relating to inspection of annual informa-
tion returns) is amended by inserting "6012(a)(6)," before 
"6033". 
(B) CONTRIBUTOR INFORMATION.—Section 6104(b) of 
such Code is amended by inserting "or a political organiza-
tion exempt 
fi*om 
taxation under section 527" after "509(a)". 
(2) RETURNS MADE AVAILABLE BY ORGANIZATIONS.— 
(A) IN GENERAL.—Paragraph (l)(A)(i) of section 6104(d) 
of such Code (relating to public inspection of certain annual 
returns, reports, applications for exemption, and notices 
of status) is amended by inserting "or section 6012(a)(6) 
PUBLIC LAW 106-230^JULY 1, 2000 
114 STAT. 483 
(relating to returns by political organizations)" after 
"organizations)". 
(B) CONFORMINOAMENDMENTS.— 
(i) Section 6104(d)(1) of such Code is amended 26USC6104. 
in the matter preceding subparagraph (A) by inserting 
"or an organization exempt from tsixation under section 
527(a)" after "501(a)". 
(ii) Section 6104(d)(2) of such Code is amended 
by inserting "or section 6012(a)(6)" after "section 6033". 
(c) FAILURE TO FILE RETURN.—Section 6652(c)(1) of the Internal 
Revenue Code of 1986 (relating to annual returns under section 26 USC 6652. 
6033) is amended— 
(1) by inserting "or section 6012(a)(6) (relating to returns 
by political organizations)" after "organizations)" in subpara-
graph (A)(i); 
(2) by inserting "or section 6012(a)(6)" after "section 6033" 
in subparagraph (A)(ii); 
(3) by inserting "or section 6012(a)(6)" after "section 6033" 
in the third sentence of subparagraph (A); and 
(4) by inserting "OR 6012(a)(6)" after "SECTION 6033" in the 
heading. 
(d) EFFECTIVE DATE.—The amendments made by this section Applicability. 
shall apply to returns for taxable years beginning after June 30, 26 USC 6012 
2000. 
^°^-
Approved July 1, 2000. 
LEGISLATIVE HISTORY—H.R. 4762 (S. 2742): 
CONGRESSIONAL RECORD, Vol. 146 (2000): 
June 27, considered and passed House. 
June 28, 29, considered and passed Senate.