[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4168 Introduced in House (IH)]
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. Clayton, 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.
Edwards, 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 Indiana, 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. Velazquez, 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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Underground Campaign Disclosure Act
of 2000''.
SEC. 2. INCREASED REPORTING BY POLITICAL ORGANIZATIONS.
(a) In General.--Subpart A of part III of subchapter 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 Secretary (in such form
and manner as the Secretary shall prescribe) which contains the
information described 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 organization
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 information 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 indirectly related to
or affiliated with such political organization,
``(C) the name, address, and position of the
custodian of books and accounts of the political
organization,
``(D) the name and address of the treasurer of the
political organization, and
``(E) a listing of all banks, safety deposit boxes,
and other depositories used by the political
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 accurate, the political
organization shall file a corrected 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 directly or indirectly related to
or affiliated with a political organization if such person, at
any time during the 3-year period ending on the date such
statement is submitted to the Secretary--
``(A) was in a position to exercise substantial
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 substantial,
overall direct or indirect influence over the
activities of such organization.
``(b) Statements of Contributions and Disbursements.--
``(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 described in paragraph (2) with respect to each
reporting period.
``(2) Information described.--The information 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 perjury,
whether such disbursement is made in cooperation,
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 employer) who made
(in the aggregate for the reporting period) a
contribution in excess of $200 to the political
organization,
``(D) the name, address, and business purpose 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 contribution in excess of $200 to the
political organization, 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 contributions which are in any way
earmarked or otherwise 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 paragraph (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 annually.--
``(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
statement required by this subsection
shall be the due date (without regard
to extensions) for filing the return of
tax for such year, whether or not such
organization 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 organization
which is organized and operated exclusively for
the purpose of securing the nomination,
election, or appointment of a clearly
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 subsection.
``(c) Political Organization.--For purposes of this section, the
term `political organization' has the meaning given to such term by
section 527(e) without regard 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 Secretary, under penalty of perjury, a certified statement that the
organization has made a filing, which is publicly available, with
another Federal agency which includes all of the information requested
by subsection (a) or (b), whichever 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 business hours by any
individual at the principal office of such organization
and, if such organization 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
reproduction 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 immediately 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 returns.--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 required 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 paragraph (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
required under section 6033A (relating to
returns 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
information required to be shown on a statement
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 organization subject to
penalty under subparagraph (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 demand.--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 expiration of the time specified
in such demand during which such failure
continues. The maximum penalty imposed under
this subparagraph on all persons for failures
with respect to any 1 statement shall not
exceed $5,000.
``(C) Public inspection of statements.--In the case
of a failure to comply with the requirements of section
6104(e) on the date and in the manner prescribed
therefor (determined 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 maximum
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 inspection
requirements for certain tax-exempt organizations) 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 ``return,
application, or statement''.
(B) Section 7207 of such Code (relating to
fraudulent returns, statements, and other documents) is
amended by striking ``subsection (d)'' and inserting
``subsection (d) or (e)''.
(d) Modification of Gift Tax Rules.--Paragraph (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 sentence 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 section 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.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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