SECTION 1. INCREASED FREQUENCY OF DISCLOSURE BY POLITICAL 
              ORGANIZATIONS.

    (a) In General.--Paragraph (2) of section 527(j) of the Internal 
Revenue Code of 1986 (relating to required disclosure) is amended to 
read as follows:
            ``(2) Required disclosures.--
                    ``(A) In general.--A political organization which 
                accepts a contribution, or makes an expenditure, for an 
                exempt function during any calendar year shall file 
                with the Secretary the reports required by 
                subparagraphs (B) and (C).
                    ``(B) Election years.--
                            ``(i)  monthly disclosures for 
                        organizations receiving or expending $25,000 or 
                        more in election year.--In the case of an 
                        organization that has, or has reason to expect 
                        to have, contributions which equal or exceed 
                        $25,000, or expenditures which equal or exceed 
                        $25,000, for an exempt function in a calendar 
                        year in which a regularly scheduled election is 
                        held, the reports required by this clause are 
                        monthly reports, beginning with the first month 
                        of the calendar year in which a contribution is 
                        accepted or expenditure is made. Such reports 
                        shall be filed not later than the 20th day 
                        after the last day of the month and shall be 
                        complete as of the last day of the month.
                            ``(ii) Quarterly disclosures for 
                        organizations receiving or expending less than 
                        $25,000.--Except as provided by clause (i), in 
                        the case of contributions accepted or 
                        expenditures made during a calendar year in 
                        which a regularly scheduled election is held, 
                        the reports required by this clause are 
                        quarterly reports, beginning with the first 
                        quarter of the calendar year in which a 
                        contribution is accepted or expenditure is 
                        made. Such reports shall be complete as of the 
                        last day of the quarter and shall be filed--
                                    ``(I) for each of the first three 
                                calendar quarters not later than the 
                                15th day after the last day of the 
                                calendar quarter, and
                                    ``(II) for the calendar quarter 
                                ending on December 31 not later than 
                                January 31 of the following calendar 
                                year.
                            ``(iii) Change to monthly reporting when 
                        contributions or expenditures in excess of 
                        $25,000.--An organization which, at any time 
                        during the election year, is required to report 
                        under clause (ii), and receives contributions 
                        in excess of $25,000 or makes expenditures in 
                        excess of $25,000, shall be subject to clause 
                        (i) beginning with the next reporting period in 
                        which such excess first occurs. The first 
                        report required in a calendar year under clause 
                        (i) by reason of this clause shall include a 
                        monthly report for each of the preceding months 
                        of such calendar year in which the organization 
                        would have been required to report under clause 
                        (i) if such clause applied without regard to 
                        this clause.
                            ``(iv) Pre- and post- election reports.--
                        With respect to a regularly scheduled election, 
                        the reports required by this clause are--
                                    ``(I) a pre-election report, which 
                                shall be filed not later than the 12th 
                                day before (or posted by registered or 
                                certified mail not later than the 15th 
                                day before) any election with respect 
                                to which the organization makes a 
                                contribution or expenditure and which 
                                shall be complete as of the 20th day 
                                before the election, and
                                    ``(II) a post-general election 
                                report, which shall be filed not later 
                                than the 30th day after the general 
                                election and which shall be complete as 
                                of the 20th day after such general 
                                election.
                    ``(C) Nonelection year.--In the case of a calendar 
                year other than a calendar year in which a regularly 
                scheduled election is held, the reports required by 
                this subparagraph are 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,
                    ``(D) Election to file monthly reports.--An 
                organization may elect to file monthly reports for the 
                calendar year, beginning with the first month of the 
                calendar year in which a contribution is accepted or 
                expenditure is made. Each such report for a month shall 
                be filed not later than the 20th day after the last day 
                of the month and shall be complete as of the last day 
                of the month. In lieu of filing reports otherwise due 
                under this subparagraph in November and December of any 
                year in which a regularly scheduled general election is 
                held, a pre-general election report shall be filed in 
                accordance with subparagraph (B)(iv)(I), a post-general 
                election report shall be filed in accordance with 
                subparagraph (B)(iv)(II), and a year end report shall 
                be filed not later than January 31 of the following 
                calendar year.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to years beginning after December 31, 2004.

SEC. 2. IMPROVED ELECTRONIC DISCLOSURE AND LINKAGE WITH FEDERAL 
              ELECTION COMMISSION.

    (a) In General.--The Secretary of the Treasury, in consultation 
with the Federal Election Commission, shall take such actions as may be 
necessary to increase disclosure to the public by improving the 
database and disclosure system for reports required to be filed by 
political organizations under section 527 of the Internal Revenue Code 
of 1986.
    (b) Improved Linkage With Federal Election Commission.--The 
Secretary of the Treasury and the Federal Election Commission shall 
take such actions as may be necessary to improve the linkage between 
the databases for public disclosure of election-related information 
maintained by the Department of the Treasury and the Federal Election 
Commission.
    (c) Report to Congress.--The Secretary of the Treasury and the 
Federal Election Commission shall each submit reports to the Congress 
on the actions taken under subsections (a) and (b). The first report 
shall be an interim report submitted not later than July 15, 2004, and 
the second report shall be a final report submitted not later than 
January 15, 2005.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as may be necessary to carry out this section.
Output: Amends the Internal Revenue Code to revise disclosure requirements for tax-exempt political organizations. Requires such an organization to make monthly reports in any election year in which it accepts contributions or makes expenditures of $25,000 or more. Requires quarterly reports for organizations with less than $25,000 in contributions or expenditures, but requires a change to monthly reporting upon receipt of contributions in excess of $25,000 or the making of expenditures greater than $25,000. Requires: (1) pre-election and post-election reports; and (2) semiannual reports in years in which a regularly scheduled election is not held.

Requires: (1) the Secretary of the Treasury to take actions to increase disclosure to the public of tax-exempt political organization reporting; and (2) the Secretary and the Federal Election Commission (FEC) to take actions to improve the linkage between the databases for public disclosure of election related information maintained by the Department of the Treasury and the FEC.