[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1676 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 1676
To amend the Internal Revenue Code of 1986 to avoid duplicate reporting
of information on political activities of certain State and local
political organizations, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 2, 2001
Mr. Doggett (for himself, Mr. Stark, Mr. Matsui, Mr. Coyne, Mr. Levin,
Mr. Cardin, Mr. McDermott, Mr. Kleczka, Mr. Lewis of Georgia, Mr.
McNulty, Mr. Jefferson, Mr. Becerra, Mrs. Thurman, Mr. Allen, Mr. Baca,
Mr. Baldacci, Mr. Bentsen, Mr. Clement, Mr. Davis of Florida, Mr.
Dooley of California, Mr. Edwards, Mr. Etheridge, Mr. Farr of
California, Mr. Filner, Mr. Frost, Mr. Gonzalez, Mr. Gordon, Mr. Green
of Texas, Mr. Hall of Ohio, Mr. Hinchey, Mr. Hinojosa, Ms. Jackson-Lee
of Texas, Ms. Eddie Bernice Johnson of Texas, Mrs. Jones of Ohio, Mr.
Turner, Mr. LaFalce, Mr. Lampson, Mr. McGovern, Mr. McIntyre, Mr.
Moore, Mr. Nadler, Mr. Olver, Mr. Reyes, Ms. Rivers, Mr. Rodriguez, Ms.
Sanchez, Mr. Sandlin, Mr. Ortiz, Mr. Stenholm, Mr. Waxman, and Ms.
Woolsey) 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 avoid duplicate reporting
of information on political activities of certain State and local
political organizations, 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. MODIFICATIONS OF REPORTING REQUIREMENTS FOR CERTAIN STATE
AND LOCAL POLITICAL ORGANIZATIONS.
(a) Notification.--Paragraph (5) of section 527(i) of the Internal
Revenue Code of 1986 (relating to organizations must notify Secretary
that they are section 527 organizations) is amended by striking ``or''
at the end of subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, or'', and by adding at the end the
following new subparagraph:
``(C) which is a political committee of a State or
local candidate.''.
(b) Reporting.--Paragraph (5) of section 527(j) of such Code
(relating to required disclosures of expenditures and contributions) is
amended by striking ``or'' at the end of at the end of subparagraph
(D), by redesignating subparagraphs (C), (D), and (E) as subparagraphs
(D), (E), and (F), respectively, and by inserting after subparagraph
(B) the following new subparagraph:
``(C) to any organization which is an exempt State
or local political organization,''.
(c) Annual Return Requirements.--Paragraph (6) of section 6012(a)
of such Code is amended to read as follows:
``(6)(A) Except as provided by subparagraphs (B) and (C),
every political organization (within the meaning of section
527(e)(1)), and every fund treated under section 527(g) as if
it constituted a political organization, which has--
``(i) political organization taxable income (within
the meaning of section 527(c)(1)) for the taxable year,
or
``(ii) 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).
``(B) Subparagraph (A)(ii) shall not apply to an
organization which is a political committee of a State or local
candidate (within the meaning of section 527(i)(5)(C)).
``(C) In the case of an exempt State or local political
organization (as defined in section 527(e)(5)), subparagraph
(A)(ii) shall be applied by substituting `$100,000' for
`$25,000'.''.
(d) Exempt State or Local Political Organization.--Subsection (e)
of section 527 of such (relating to other definitions) is amended by
adding at the end the following new paragraph:
``(5) Exempt state or local political organization.--
``(A) In general.--The term `exempt State or local
political organization' means a political organization
which--
``(i) does not engage in exempt function
activity other than solely in influencing or
attempting to influence the selection,
nomination, election, or appointment of any
individual to any State or local public office
or office in a State or local political
organization,
``(ii) is subject to State or local
requirements to submit reports (and so
reports)--
``(I) regarding each separate
expenditure from and contribution to,
such organization, and
``(II) including information
regarding the person who makes such
contribution or receives such
expenditure,
which would otherwise be required to be
reported under this section, and
``(iii) with respect to which the reports
referred to in clause (ii) are made public by
the agency with which such reports are filed
and are publicly available for inspection in a
manner similar to that required by section
6104(d)(1).
``(B) Minimum reportable amounts.--An organization
shall not be treated as failing to meet the
requirements of subparagraph (A)(ii) solely because the
minimum amount of any expenditure or contribution
required to be reported under State or local law is not
more than $100 greater than the minimum amount required
to be reported under subsection (j) with respect to
such expenditure or contribution.
``(C) Participation of federal candidate or office
holder.--The term `exempt State or local political
organization' shall not include any organization
otherwise described in subparagraph (A) if a candidate
for nomination or election to Federal elective office
or an individual who holds such office--
``(i) controls or materially participates
in the direction of the organization,
``(ii) solicits contributions to the
organization, or
``(iii) directs, in whole or in part,
disbursements by the organization.''.
(e) Waiver of Filing Penalties.--Section 527 of such Code is
amended by adding at the end the following:
``(k) Authority To Waive.--The Secretary may waive all or any
portion of the--
``(1) tax assessed on an organization by reason of the
failure of the organization to give notice under subsection
(i), or
``(2) penalty imposed under subsection (j) for a failure to
file a report,
on a showing that such failure was due to reasonable cause and not due
to willful neglect.''.
(f) Effective Date.--The amendments made by this section shall take
effect as if included in the amendments made by Public Law 106-230.
SEC. 2. TECHNICAL CORRECTIONS TO SECTION 527 ORGANIZATION DISCLOSURE
PROVISIONS.
(a) Unsegregated Funds Not To Avoid Penalty.--Paragraph (4) of
section 527(i) of the Internal Revenue Code of 1986 (relating to
failure to notify) is amended by adding at the end the following new
sentence: ``For purposes of the preceding sentence, the term `exempt
function income' means any amount described in a subparagraph of
subsection (c)(3), whether or not segregated for use for an exempt
function.''
(b) Procedures for Assessment and Collection of Penalty.--Paragraph
(1) of section 527(j) of such Code (relating to required disclosure of
expenditures and contributions) is amended by adding at the end the
following new sentence: ``For purposes of subtitle F, the penalty
imposed by this paragraph shall be assessed and collected in the same
manner as penalties imposed by section 6652(c).''
(c) Application of Fraud Penalty.--Section 7207 of such Code
(relating to fraudulent returns, statements, and other documents) is
amended by striking ``pursuant to subsection (b) of section 6047 or
pursuant to subsection (d) of section 6104'' and inserting ``pursuant
to section 6047(b), section 6104(d), or subsection (i) or (j) of
section 527''.
(d) Duplicate Electronic and Written Filings Not Required.--
(1) Subparagraph (A) of section 527(i)(1) of such Code is
amended by striking ``, electronically and in writing,''.
(2) Subsection (i) of section 527 of such Code is amended
by adding at the end the following new paragraph:
``(7) Electronic filing.--The Secretary shall develop
procedures for submission in electronic form of notices
required to be filed under this subsection and reports required
to be filed under subsection (j).''
(e) Effective Date.--The amendments made by this section shall take
effect as if included in the amendments made by Public Law 106-230.
<all>