Makes information on organizations that file such notices, and such notices, publicly available.
Prohibits treating an organization as a political organization unless it makes required disclosures.
Makes such disclosures publicly available and prescribes monetary penalties for failures to make disclosures available for inspection.
Requires political organizations which have gross receipts of $25,000 or more per taxable year, with an exception, to file tax returns. Provides for public disclosure of such returns and prescribes monetary penalties for failures to file or provide correct information.
Title II: Tax-Exempt Business and Labor Organizations Engaging in Political Activity - Requires any labor organization described in paragraph 5 or any business league, chamber of commerce, or board of trade described in paragraph 6 of section 501(c) (tax exempt organizations) from being considered a 501 (c) organization unless specified information is submitted to the Secretary of the Treasury concerning the organization's activities, contributors, and expenditures.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2742 Placed on Calendar Senate (PCS)]
Calendar No. 606
106th CONGRESS
2d Session
S. 2742
To amend the Internal Revenue Code of 1986 to increase disclosure for
certain political organizations exempt from tax under section 527 and
section 501(c), and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 15, 2000
Mr. Smith of Oregon (for himself, Mr. Abraham, Mr. Ashcroft, Mr. Burns,
Mr. Santorum, Mr. Gorton, Mrs. Hutchison, Mr. Allard, Mr. Bennett, Mr.
Coverdell, Mr. Gregg, Mr. Helms, Mr. Thomas, Mr. Inhofe, Mr. Mack, Mr.
Warner, Mr. Bunning, Mr. Lott, Mr. McConnell, Mr. Crapo, and Mr.
Roberts) introduced the following bill; which was read the first time.
June 16, 2000
Read the second time and placed on the calendar
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to increase disclosure for
certain political organizations exempt from tax under section 527 and
section 501(c), and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Tax-Exempt
Political Disclosure Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--SECTION 527 ORGANIZATIONS
Sec. 101. Required notification of section 527 status.
Sec. 102. Disclosures by political organizations.
Sec. 103. Return requirements relating to section 527 organizations.
TITLE II--TAX-EXEMPT BUSINESS AND LABOR ORGANIZATIONS ENGAGING IN
POLITICAL ACTIVITY
Sec. 201. Notification and disclosures of certain section 501
organizations.
Sec. 202. Random audits.
Sec. 203. Nonseverability.
TITLE I--SECTION 527 ORGANIZATIONS
SEC. 101. 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 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,
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 required under
paragraph (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 under
paragraph (1) shall include information regarding--
``(A) the name and address of the organization
(including any business address, if different) and its
electronic mailing address,
``(B) the purpose of the organization,
``(C) the names and 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 shall 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--
``(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 requirements.--This
subsection shall not apply to any person required to report
under the Federal Election Campaign Act of 1971 (2 U.S.C. 431
et seq.) as a political committee.''.
(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 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 available.--The
Secretary 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 organization.--
Section 6104(d) of such Code (relating to public inspection of
certain annual returns and applications for exemption) is
amended--
(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 (1)(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 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.--
(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 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. 102. DISCLOSURES BY POLITICAL ORGANIZATIONS.
(a) Required Disclosure of 527 Organizations.--Section 527 of the
Internal Revenue Code of 1986 (relating to political organizations), as
amended by section 101(a), is amended by adding at the end the
following new section:
``(j) Required Disclosure of Expenditures and Contributions.--
``(1) Denial of exemption.--An organization shall not be
treated as an organization described in this section unless it
makes the required disclosures under paragraph (2).
``(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
regularly scheduled election is held--
``(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
15th 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 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
``(III) 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, 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 contribution is accepted or expenditure is
made, which shall be filed not later than the 20th 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 any year 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
paragraph (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 individual, including the occupation and name of the
employer of such individual).
``(B) The name and address (in the case of an
individual, including the occupation and name of the
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 contribution.
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 an
expenditure or contribution if the person has contracted or is
otherwise obligated to make the expenditure or contribution.
``(5) Coordination with other requirements.--This
subsection shall not apply--
``(A) to any person required 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
independent 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
delegates 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
returns and applications for exemption), as amended by section
101(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 contributions) 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
contributors, 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, as amended by section 101(b)(4), is
amended by adding at the end the following new paragraph:
``(7) Disclosure of reports by internal revenue service.--
Any report filed by an organization under section 527(j)
(relating to required disclosure of expenditures and
contributions) shall be made available to the public at such
times and in such places as the Secretary may prescribe.''.
(c) Failure To Make Public.--Section 6652(c)(1)(C) of the 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.
(d) Effective Date.--The amendment made by subsection (a) shall
apply to expenditures made and contributions received after the date of
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. 103. RETURN REQUIREMENTS RELATING TO SECTION 527 ORGANIZATIONS.
(a) Return Requirements.--
(1) Organizations required to file.--Section 6012(a)(6) 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.--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
complying with the other requirements, under subsection
(a)(1) for organizations exempt 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 discretionary
exceptions) 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
Revenue Code of 1986 (relating to inspection of annual
information 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
organization exempt from taxation under section 527''
after ``509(a)''.
(2) Returns made available by organizations.--
(A) In general.--Paragraph (1)(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) (relating to returns
by political organizations)'' after ``organizations)''.
(B) Conforming amendments.--
(i) Section 6104(d)(1) of such Code is
amended in the matter preceding subparagraph
(A) by inserting ``or an organization exempt
from taxation 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 6033) is
amended--
(1) by inserting ``or section 6012(c)(6) (relating to
returns by political organizations)'' after ``organizations)''
in subparagraph (A)(i),
(2) by inserting ``or section 6012(c)(6)'' after ``section
6033'' in subparagraph (A)(ii),
(3) by inserting ``or section 6012(c)(6)'' after ``section
6033'' in the third sentence of subparagraph (A), and
(4) by inserting ``or 6012(c)(6)'' after ``section 6033''
in the heading.
(d) Effective Date.--The amendments made by this section shall
apply to returns for taxable years beginning after June 30, 2000.
TITLE II--TAX-EXEMPT BUSINESS AND LABOR ORGANIZATIONS ENGAGING IN
POLITICAL ACTIVITY
SEC. 201. NOTIFICATION AND DISCLOSURES OF CERTAIN SECTION 501
ORGANIZATIONS.
(a) Notification; Annual Report.--Part I of subchapter F of chapter
1 of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 506. ADDITIONAL DISCLOSURE REQUIREMENTS FOR CERTAIN
ORGANIZATIONS DESCRIBED IN PARAGRAPH (5) OR (6) OF
SECTION 501(C).
``(a) Required Disclosures.--
``(1) In general.--An organization described in paragraph
(2) shall not be treated as an organization described in
section 501(c) for any taxable year if such organization does
not meet the requirements under subsections (b) and (c) for any
portion of such taxable year.
``(2) Organization.--An organization is described in this
paragraph if--
``(A) such organization is--
``(i) a labor organization described in
section 501(c)(5), or
``(ii) a business league, chamber of
commerce, or board of trade described in
section 501(c)(6), and
``(B) such organization makes, or is reasonably
anticipated to make, directly or indirectly, an
aggregate amount of expenditures in excess of $25,000
for any calendar year for communications to the general
public which--
``(i) mention--
``(I) an election for Federal
office,
``(II) a candidate for Federal
office,
``(III) an individual holding
Federal office, or
``(IV) a political party, or
``(ii) contain the likeness of such
candidate or individual.
``(3) Affiliated organizations.--
``(A) In general.--For purposes this section, if an
organization described in paragraph (2)(A) is a member
of an affiliated group, the contributions and
expenditures of each member of such group shall be
treated as contributions and expenditures of the
organization. The Secretary shall prescribe such
regulations as necessary to ensure that such
contributions and expenditures are not taken into
account more than once with respect to such
organization.
``(B) Special rule.--Notwithstanding subparagraph
(A), contributions and expenditures of a member of an
affiliated group which is higher in the chain of
includible members of the group than the organization
described in paragraph (2)(A) shall not be treated as
contributions or expenditures of such organization.
This subparagraph shall not apply to contributions and
expenditures between members of the affiliated group.
``(C) Affiliated group.--For purposes of
subparagraph (A), persons shall be treated as members
of the same affiliated group if--
``(i) such persons are treated as one
employer under subsection (a) or (b) of section
52,
``(ii) such persons are related entities
under section 168(h)(4), or
``(iii) such persons are related in such
other manner as may be prescribed in
regulations as the Secretary determines
necessary to prevent avoidance of the
requirements of this section.
If an organization establishes or maintains a separate
segregated fund which is not a political committee
under section 301(4) of the Federal Election Campaign
Act of 1971 (2 U.S.C. 431(4)), such organization and
fund shall be treated as a member of the same
affiliated group.
``(b) Required Notice.--
``(1) In general.--An organization described in subsection
(a)(2) shall file a notice with the Secretary, in such manner
as the Secretary requires, that such organization is so
described.
``(2) Time to give notice.--The notice required under
paragraph (1) shall be transmitted not later than 24 hours
after the date such organization first makes, or reasonably
expects to make, an aggregate amount of expenditures described
in subsection (a)(2)(B).
``(3) Contents of notice.--The notice required under
paragraph (1) shall include information regarding--
``(A) the name and address of the organization
(including any business address, if different) and its
electronic mailing address,
``(B) the purpose of the organization,
``(C) the names and 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.
``(c) Required Reports.--An organization described in subsection
(a)(2) shall file with the Secretary--
``(1)(A) in the case of a calendar year in which a
regularly scheduled election is held--
``(i) quarterly reports, beginning with the first
quarter of the calendar year in which an amount of
expenditures described in subsection (a)(2)(B) is made,
which shall be filed not later than the 15th 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 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 an expenditure, and which shall be
complete as of the 20th day before the election, and
``(iii) 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, and
``(B) 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
``(2) monthly reports for the calendar year, beginning with
the first month of the calendar year in which an amount of
expenditures described in subsection (a)(2)(B) is made, which
shall be filed not later than the 20th 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 any year in which a regularly scheduled general
election is held, a pre-general election report shall be filed in
accordance with paragraph (1)(A)(ii), a post-general election report
shall be filed in accordance with paragraph (1)(A)(iii), and a year end
report shall be filed not later than January 31 of the following
calendar year.
``(d) Contents of Report.--
``(1) In general.--The report required under subsection (c)
shall contain itemized information and the amount of any item
contained in the report, including--
``(A) any direct or indirect expenditure in an
aggregate amount of $500 or more for the calendar year
made in connection with a communication to any person
which--
``(i) mentions--
``(I) a Federal election,
``(II) a candidate for Federal
office,
``(III) an individual holding
Federal office, or
``(IV) a political party, or
``(ii) contains the likeness of such
candidate or individual,
``(B) the name and address of any person (in the
case of an individual, including the occupation and
name of the employer of such individual) to whom
expenditures described in subparagraph (A) are made in
an aggregate amount of $500 or more during the calendar
year,
``(C) the name, occupation, annual salary, and the
name of the employer of an individual who is employed
by an organization described in subsection (a)(2) or
any member of the affiliated group of organizations
with respect to such organization (within the meaning
of subsection (a)(3)), if such individual spends more
than 20 percent of their paid working hours during any
month in connection with a communication described in
subparagraph (A),
``(D) the name and address of any person (in the
case of an individual, including the occupation and
name of the employer of such individual) which makes an
aggregate amount of contributions to such organization
or any such affiliated organization in an amount of
$200 or more for the calendar year, and
``(E) the aggregate amount of membership dues or
fees received by such organization for the reporting
period.
Any expenditure, contribution, or other amount disclosed in a
previous reporting period is not required to be included in the
current reporting period.
``(2) Itemization.--For purposes of paragraph (1),
information required to be reported shall be reported in such
detail and manner to allow a determination of the nature and
purpose of such item, including--
``(A) the identity of the candidate, individual
holding Federal office, or political party mentioned in
a communication or the identity of such candidate or
individual the likeness of whom appears in the
communication,
``(B) the purposes of such communication, and
``(C) which organization or such related
organization made such expenditure.
``(f) Definitions.--For purposes of this section--
``(1) Contribution.--The term `contribution' shall have the
meaning given such term in section 271(b)(3), except such term
shall not include any amount received as a membership due or
fee.
``(2) Expenditure.--The term `expenditure' shall have the
same meaning given such term in section 271(b)(4).
``(g) Contract to Use Funds.--For purposes of this section, an
organization shall be treated as having made or received any
contribution or expenditure if the organization has otherwise obligated
to make or receive such contribution or expenditure.
``(h) Coordination With Other Requirements.--This section shall
apply to any person in addition to any report required under the
Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.).''.
(b) Availability of Notice by IRS.--Section 6104(a) of the Internal
Revenue Code of 1986, as amended by section 101(b)(2), is amended by
adding at the end the following new paragraph:
``(4) Notice information available in person.--
``(A) In general.--The Secretary shall make
publicly available at the offices of the Internal
Revenue Service--
``(i) a list of all organizations which
file a notice with the Secretary under section
506(b), and
``(ii) the name, address, electronic
mailing list, custodian of records, and contact
person for such organization.
``(B) Time to make information available.--The
Secretary shall make available the information required
under subparagraph (A) not later than 10 business days
after the Secretary receives notice from an
organization under section 506(b).''.
(c) Availability of Reports.--
(1) By the organization.--Section 6104(d)(1)(A)(iii) of the
Internal Revenue Code of 1986, as added by section 102(b)(1),
is amended by inserting ``or section 506(c)'' after
``contributions)''.
(2) Disclosure of contributors allowed.--Section
6104(d)(3)(A) of such Code, as amended by section 102(b)(2), is
amended by inserting ``or an organization described in section
506(a)(2)'' after ``527''.
(3) By the irs.--Section 6104(d) of such Code, as amended
by section 102(b)(3), is amended by adding at the end the
following new paragraph:
``(8) Certain reports available in person and on
internet.--
``(A) In general.--The Secretary shall make
publicly available, on the Internet and at the offices
of the Internal Revenue Service, any report filed by an
organization under section 506(c).
``(B) Time to make information available.--The
Secretary shall make available the information required
under subparagraph (A) not later than 10 business days
after the Secretary receives such information from an
organization under section 506(c).''.
(d) Regulations.--The Secretary of the Treasury shall promulgate
such regulations as the Secretary determines necessary to carry out the
provisions of this section.
(e) Conforming Amendment.--The table of sections for part I of
subchapter F of chapter 1 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new item:
``Sec. 506. Additional disclosure
requirements for certain
organizations described in
paragraph (5) or (6) of section
501(c).''.
(f) Effective Dates.--
(1) In general.--Except as provided in paragraphs (2) and
(3), the amendments made by this section shall take effect on
the date which is 60 days after the date of the enactment of
this section.
(2) Organizations already in existence.--In the case of an
organization established before the date of enactment of this
section, the time to file the notice required under section
506(b) of the Internal Revenue Code of 1986, as added by
subsection (a), shall be the later of--
(A) 30 days after the date of the enactment of this
section, or
(B) the date required under such section.
(3) Subsection (a).--The amendment made by subsection (a)
shall apply to amounts disbursed or received after the date of
enactment of this section, except that such amendment shall not
apply to amounts disbursed or received after such date pursuant
to a contract entered into on or before such date.
SEC. 202. RANDOM AUDITS.
The Secretary of the Treasury may conduct random audits and
investigations of any organization to ensure compliance with this Act
and the amendments made by this Act.
SEC. 203. NONSEVERABILITY.
If any provision of or amendment made by this title, or the
application of any provision or amendment made by this title to any
person, is held to be invalid, all provisions of and any amendments
made by this title shall be invalid.
Calendar No. 606
106th CONGRESS
2d Session
S. 2742
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to increase disclosure for
certain political organizations exempt from tax under section 527 and
section 501(c), and for other purposes.
_______________________________________________________________________
June 16, 2000
Read the second time and placed on the calendar
Introduced in Senate
Sponsor introductory remarks on measure. (CR S5268)
Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 606.
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