    [United States Senate Manual, 112th Congress]
    [S. Doc. 112-1]
    [USCODETITLE]
    [Pages 994-1019]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    [[Page 994]]

                              TITLE 26.--INTERNAL REVENUE CODE

                                  Subtitle A.--INCOME TAXES

                            Chapter 1.--NORMAL TAXES AND SURTAXES

                                        * * * * * * *

                        Subchapter B.--Computation of Taxable Income

                                        * * * * * * *

                    Part II.--ITEMS SPECIFICALLY INCLUDED IN GROSS INCOME

                                        * * * * * * *

          1375  Sec. 84. Transfer of appreciated property to political
                    organization.
                (a) General rule
                    If--
                                (1) any person transfers property to a
                            political organization, and
                                (2) the fair market value of such property
                            exceeds its adjusted basis,

                then for purposes of this chapter the transferor shall be
                treated as having sold such property to the political
                organization on the date of the transfer, and the transferor
                shall be treated as having realized an amount equal to the
                fair market value of such property on such date.

                (b) Basis of property
                    In the case of a transfer of property to a political
                organization to which subsection (a) applies, the basis of
                such property in the hands of the political organization
                shall be the same as it would be in the hands of the
                transferor, increased by the amount of gain recognized to
                the transferor by reason of such transfer.
                (c) Political organization defined
                    For purposes of this section, the term ``political
                organization'' has the meaning given to such term by section
                527(e)(1). (Jan. 3, 1975, Pub.L. 93-625, Sec. 13(a), 88
                Stat. 2120.)

                                        * * * * * * *

                     Part VI.--ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND
                                        CORPORATIONS

                                        * * * * * * *

          1376

                Sec. 162. Trade or business expenses.
                (a) In general
                    There shall be allowed as a deduction all the ordinary
                and necessary expenses paid or incurred during the taxable
                year in carrying on any trade or business, including--

    [[Page 995]]

                                (1) a reasonable allowance for salaries or
                            other compensation for personal services
                            actually rendered;
                                (2) traveling expenses (including amounts
                            expended for meals and lodging other than
                            amounts which are lavish or extravagant under
                            the circumstances) while away from home in the
                            pursuit of a trade or business; and
                                (3) rentals or other payments required to be
                            made as a condition to the continued use or
                            possession, for purposes of the trade or
                            business, of property to which the taxpayer has
                            not taken or is not taking title or in which he
                            has no equity.

                For purposes of the preceding sentence, the place of
                residence of a Member of Congress (including any Delegate
                and Resident Commissioner) within the State, congressional
                district, or possession which he represents in Congress
                shall be considered his home, but amounts expended by such
                Members within each taxable year for living expenses shall
                not be deductible for income tax purposes in excess of
                $3,000. For purposes of paragraph (2), the taxpayer shall
                not be treated as being temporarily away from home during
                any period of employment if such period exceeds 1 year. The
                preceding sentence shall not apply to any Federal employee
                during any period for which such employee is certified by
                the Attorney General (or the designee thereof) as traveling
                on behalf of the United States in temporary duty status to
                investigate or prosecute, or provide support services for
                the investigation or prosecution of, a Federal crime. (Aug.
                16, 1954, ch. 736, 68A Stat. 45; Oct. 16, 1962, Pub.L. 87-
                834, Sec. 4(b), 76 Stat. 960, 976; Oct. 4, 1976, Pub.L. 94-
                455, Sec. 1901(c) (4), 90 Stat. 1803; Oct. 1, 1981, Pub.L.
                97-51, Sec. 139(b)(1), 95 Stat. 967; July 18, 1982, Pub.L.
                97-216, Sec. 215(a), 96 Stat. 194; Oct. 24, 1992, Pub.L.
                102-486, Sec. 1938(a), 106 Stat. 3033; Aug. 5, 1997, Pub.L.
                105-34, Sec. 1204(a), 111 Stat. 995; July 22, 1998, Pub.L.
                105-206, Sec. 6012(a), 112 Stat. 818.)

                                        * * * * * * *

                             Subchapter F.--Exempt Organizations

                                        * * * * * * *

                              Part VI.--POLITICAL ORGANIZATIONS

          1377  Sec. 527. Political organizations.
                (a) General rule
                    A political organization shall be subject to taxation
                under this subtitle only to the extent provided in this
                section. A political organization shall be considered an
                organization exempt from income taxes for the purpose of any
                law which refers to organizations exempt from income taxes.
                (b) Tax imposed
                    (1) In general.--A tax is hereby imposed for each
                taxable year on the political organization taxable income of
                every political organization. Such tax shall be computed by
                multiplying the political organization taxable income by the
                highest rate of tax specified in section 11(b).
                    (2) Alternative tax in case of capital gains.--If for
                any taxable year any political organization has a net
                capital gain, then, in lieu of the tax imposed by paragraph
                (1), there is hereby imposed a tax (if such

    [[Page 996]]

                a tax is less than the tax imposed by paragraph (1)) which
                shall consist of the sum of--
                                (A) a partial tax, computed as provided by
                            paragraph (1), on the political organization
                            taxable income determined by reducing such
                            income by the amount of such gain, and
                                (B) an amount determined as provided in
                            section 1201(a) on such gain.
                (c) Political organization taxable income defined
                    (1) Taxable income defined.--For purposes of this
                section, the political organization taxable income of any
                organization for any taxable year is an amount equal to the
                excess (if any) of--
                                (A) the gross income for the taxable year
                            (excluding any exempt function income), over
                                (B) the deductions allowed by this chapter
                            which are directly connected with the production
                            of the gross income (excluding exempt function
                            income), computed with the modifications
                            provided in paragraph (2).
                    (2) Modifications.--For purposes of this subsection--
                                (A) there shall be allowed a specific
                            deduction of $100,
                                (B) no net operating loss deduction shall be
                            allowed under section 172, and
                                (C) no deduction shall be allowed under part
                            VIII of subchapter B (relating to special
                            deductions for corporations).
                    (3) Exempt function income.--For purposes of this
                subsection, the term ``exempt function income'' means any
                amount received as--
                                (A) a contribution of money or other
                            property,
                                (B) membership dues, a membership fee or
                            assessment from a member of the political
                            organization,
                                (C) proceeds from a political fundraising or
                            entertainment event, or proceeds from the sale
                            of political campaign materials, which are not
                            received in the ordinary course of any trade or
                            business, or
                                (D) proceeds from the conducting of any
                            bingo game (as defined in section 513(f)(2)),

                to the extent such amount is segregated for use only for the
                exempt function of the political organization.

                (d) Certain uses not treated as income to candidate
                    For purposes of this title, if any political
                organization--
                                (1) contributes any amount to or for the use
                            of any political organization which is treated
                            as exempt from tax under subsection (a) of this
                            section,
                                (2) contributes any amount to or for the use
                            of any organization described in paragraph (1)
                            or (2) of section 509(a) which is exempt from
                            tax under section 501(a), or
                                (3) deposits any amount in the general fund
                            of the Treasury or in the general funds of any
                            State or local government,

                such amount shall be treated as an amount not diverted for
                the personal use of the candidate or any other person. No
                deduction shall be allowed under this title for the
                contribution or deposit of any amount described in the
                preceding sentence.

    [[Page 997]]

                (e) Other definitions
                    For purposes of this section--
                                (1) Political organization.--The term
                            ``political organization'' means a party,
                            committee, association, fund, or other
                            organization (whether or not incorporated)
                            organized and operated primarily for the purpose
                            of directly or indirectly accepting
                            contributions or making expenditures, or both,
                            for an exempt function.
                                (2) Exempt function.--The term ``exempt
                            function'' means the function of influencing or
                            attempting to influence the selection,
                            nomination, election, or appointment of any
                            individual to any Federal, State, or local
                            public office or office in a political
                            organization, or the election of Presidential or
                            Vice-Presidential electors, whether or not such
                            individual or electors are selected, nominated,
                            elected, or appointed. Such term includes the
                            making of expenditures relating to an office
                            described in the preceding sentence which, if
                            incurred by the individual, would be allowable
                            as a deduction under section 162(a).
                                (3) Contributions.--The term
                            ``contributions'' has the meaning given to such
                            term by section 271(b)(2).
                                (4) Expenditures.--The term ``expenditures''
                            has the meaning given to such term by section
                            271(b)(3).
                                (5) Qualified State or Local Political
                            Organization--

                                    (A) In general.--The term ``qualified
                                State or local political organization''
                                means a political organization--

                                            (i) all the exempt functions of
                                        which are solely for the purposes of
                                        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) which is subject to State
                                        law that requires the organization
                                        to report (and it so reports)--

                                                    (I) information
                                                regarding each separate
                                                expenditure from and
                                                contribution to such
                                                organization, and
                                                    (II) 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 (I) made public by the agency
                                        with which such reports are filed,
                                        and (II) made publicly available for
                                        inspection by the organization in
                                        the manner described in section
                                        6104(d).

                                    (B) Certain State law differences
                                disregarded.--An organization shall not be
                                treated as failing to meet the requirements
                                of subparagraph (A)(ii) solely by reason of
                                1 or more of the following:

                                            (i) The minimum amount of any
                                        expenditure or contribution required
                                        to be reported under State law is
                                        not more than $300 greater than the
                                        minimum amount required to be
                                        reported under subsection (j).

                                            (ii) The State law does not
                                        require the organization to identify
                                        1 or more of the following:

    [[Page 998]]

                                                    (I) The employer of any
                                                person who makes
                                                contributions to the
                                                organization.
                                                    (II) The occupation of
                                                any person who makes
                                                contributions to the
                                                organization.
                                                    (III) The employer of
                                                any person who receives
                                                expenditures from the
                                                organization.
                                                    (IV) The occupation of
                                                any person who receives
                                                expenditures from the
                                                organization.
                                                    (V) The purpose of any
                                                expenditure of the
                                                organization.
                                                    (VI) The date any
                                                contribution was made to the
                                                organization.
                                                    (VII) The date of any
                                                expenditure of the
                                                organization.

                                    (C) De Minimis Errors.--An organization
                                shall not fail to be treated as a qualified
                                State or local political organization solely
                                because such organization makes de minimis
                                errors in complying with the State reporting
                                requirements and the public inspection
                                requirements described in subparagraph (A)
                                as long as the organization corrects such
                                errors within a reasonable period after the
                                organization becomes aware of such errors.

                                    (D) Participation of Federal candidate
                                or office holder.--The term ``qualified
                                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 public 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 (unless the
                                        Secretary determines that such
                                        solicitations resulted in de minimis
                                        contributions and were made without
                                        the prior knowledge and consent,
                                        whether explicit or implicit, of the
                                        organization or its officers,
                                        directors, agents, or employees, or

                                            (iii) directs, in whole or in
                                        part, disbursements by the
                                        organization.

                                        * * * * * * *

                (g) Treatment of newsletter funds
                    (1) In general.--For purposes of this section, a fund
                established and maintained by an individual who holds, has
                been elected to, or is a candidate (within the meaning of
                paragraph (3)) for nomination or election to, any Federal,
                State, or local elective public office for use by such
                individual exclusively for the preparation and circulation
                of such individual's newsletter shall, except as provided in
                paragraph (2), be treated as if such fund constituted a
                political organization.
                    (2) Additional modifications.--In the case of any fund
                described in paragraph (1)--
                                (A) the exempt function shall be only the
                            preparation and circulation of the newsletter,
                            and
                                (B) the specific deduction provided by
                            subsection (c)(2)(A) shall not be allowed.

    [[Page 999]]

                    (3) Candidate.--For purposes of paragraph (1), the term
                ``candidate'' means, with respect to any Federal, State, or
                local elective public office, an individual who--
                                (A) publicly announces that he is a
                            candidate for nomination or election to such
                            office, and
                                (B) meets the qualifications prescribed by
                            law to hold such office.
                (h) Special rule for principal campaign committees
                    (1) In general.--In the case of a political organization
                which is a principal campaign committee, paragraph (1) of
                subsection (b) shall be applied by substituting ``the
                appropriate rates'' for ``the highest rate''.
                    (2) Principal campaign committee defined--
                                (A) In general.--For purposes of this
                            subsection, the term ``principal campaign
                            committee'' means the political committee
                            designated by a candidate for Congress as his
                            principal campaign committee for purposes of--

                                    (i) section 302(e) of the Federal
                                Election Campaign Act of 1971 (2 U.S.C.
                                432(e)), and

                                    (ii) this subsection.

                                (B) Designation.--A candidate may have only
                            1 designation in effect under subparagraph
                            (A)(ii) at any time and such designation--

                                    (i) shall be made at such time and in
                                such manner as the Secretary may prescribe
                                by regulations, and

                                    (ii) once made, may be revoked only with
                                the consent of the Secretary.

                        Nothing in this subsection shall be construed to
                        require any designation where there is only one
                        political committee with respect to a candidate.
                (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 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 or, in the case of any
                            material change in the information required
                            under paragraph (3), for the period beginning on
                            the date on which the material change occurs and
                            ending on the date on which 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 or,
                in the case of any material change in the information
                required under paragraph (3), not later than 30 days after
                such material change.
                    (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,

    [[Page 1000]]

                                (D) the name and address of, and
                            relationship to, any related entities (within
                            the meaning of section 168(h)(4)),
                                (E) whether the organization intends to
                            claim an exemption from the requirements of
                            subsection (j) or section 6033, and
                                (F) 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) or in the case of a failure relating to a
                material change, by taking into account such income and
                deductions only during the period beginning on the date on
                which the material change occurs and ending on the date on
                which notice is given under this subsection. 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 any exempt
                function.
                    (5) Exceptions.--This subsection shall not apply to any
                organization--
                                (A) to which this section applies solely be
                            reason of subsection (f)(1),
                                (B) which reasonably anticipates that it
                            will not have gross receipts of $25,000 or more
                            for any taxable year, or,
                                (C) which is a political committee of a
                            State or local candidate or which is a State or
                            local committee of a political party.
                    (6) Coordination with other requirements.--This
                subsection shall not apply 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.
                (j) Required disclosure of expenditures and contributions
                    (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
                the rate of tax specified in subsection (b)(1) multiplied by
                the amount to which the failure relates. For purpose of
                subtitle F, the amount imposed by this paragraph shall be
                assessed and collected in the same manner as penalties
                imposed by section 6652(c).

                    (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 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,

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                                    (II) a pre-election report, which shall
                                be filed not later than the twelfth day
                                before (or posted by registered 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 general 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 contribution 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 of 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, date, and purpose 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 employer of such individual).
                                (B) The name and address (in the case of an
                            individual, 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 and date 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 (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 is a qualified
                            State or local political organization,

    [[Page 1002]]

                                (D) to any organization which reasonably
                            anticipates that it will not have gross receipts
                            of $25,000 or more for any taxable year,
                                (E) to any organization to which this
                            section applies solely by reason of subsection
                            (f)(1), or
                                (F) 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.
                    (7) Electronic filing.--Any report required under
                paragraph (2) with respect to any calendar year shall be
                filed in electronic form if the organization has, or has
                reason to expect to have, contributions exceeding $50,000 or
                expenditures exceeding $50,000 in such calendar year.
                (k) Public availability of notices and reports
                    (1) In general.--The Secretary shall make any notice
                described in subsection (i)(1) or report described in
                subsection (j)(7) available for public inspection on the
                Internet not later than 48 hours after such notice or report
                has been filed (in addition to such public availability as
                may be made under section 6104(d)(7)).
                    (2) Access.--The Secretary shall make the entire
                database of notices and reports which are made available to
                the public under paragraph (1) searchable by the following
                items (to the extent the items are required to be included
                in the notices and reports):
                                (A) Names, States, zip codes, custodians of
                            records, directors, and general purposes of the
                            organizations.
                                (B) Entities related to the organizations.
                                (C) Contributors to the organizations.
                                (D) Employers of such contributors.
                                (E) Recipients of expenditures by the
                            organizations.
                                (F) Ranges of contributions and
                            expenditures.
                                (G) Time periods of the notices and reports.
                                Such database shall be downloadable.
                (l) 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
                            comply with the requirements of subsection (i),
                            or
                                (2) amount imposed under subsection (j) for
                            a failure to comply with the requirements
                            thereof,

                on a showing that such failure was due to reasonable cause
                and not due to willful neglect. (Jan. 3, 1975, Pub.L. 93-
                625, Sec. 10(a), 88 Stat. 2116; Oct. 4, 1976, Pub.L. 94-455,
                Sec. 1901(b)(33)(c), 90 Stat. 1801; Oct. 21, 1978, Pub.L.
                95-502, Sec. 302(a), 92 Stat. 1702; Nov. 6, 1978, Pub.L. 95-
                600, Sec. 301(b)(6), 92 Stat. 2821; Aug. 13, 1981, Pub.L.
                97-34, Sec. 128,

    [[Page 1003]]

                95 Stat. 203; July 18, 1984, Pub.L. 98-369,
                Sec. Sec. 474(r)(16), 722(c), 98 Stat. 843, 973; Oct. 22,
                1986, Pub.L. 99-514, Sec. 112(b)(1), 100 Stat. 2085; Nov.
                10, 1988, Pub.L. 100-647, Sec. 1001(b)(3)(B), 102 Stat.
                3349; July 1, 2000, Pub.L. 106-230, Sec. Sec. 1(a), 2(a),
                114 Stat. 477, 479; Nov. 2, 2002, Pub.L. 107-276,
                Sec. Sec. 1(a), 2, 5(a), 6, 116 Stat. 1929, 1932-1934.)

                                        * * * * * * *

                 Subchapter N.--Tax Based on Income From Sources Within or
                                 Without the United States

                                        * * * * * * *

                    Part II.--NONRESIDENT ALIENS AND FOREIGN CORPORATIONS

                                        * * * * * * *

                            Subpart D.--Miscellaneous Provisions

                                        * * * * * * *

          1378  Sec. 896. Adjustment of tax on nationals, residents, and
                    corporations of certain foreign countries.

                                        * * * * * * *

                (d) Notification of Congress required
                    No proclamation shall be issued by the President
                pursuant to this section unless, at lest 30 days prior to
                such proclamation, he has notified the Senate and the House
                of Representatives of his intention to issue such
                proclamation. (Nov. 13, 1966, Pub.L. 89-809, Sec. 105(b), 80
                Stat. 1563.)

                           Subchapter P.--Capital Gains and Losses

                                        * * * * * * *

                 Part III.--GENERAL RULES FOR DETERMINING CAPITAL GAINS AND
                                           LOSSES

          1379  Sec. 1221. Capital asset defined.
                    (a) In general.--For purposes of this subtitle, the term
                ``capital asset'' means property held by the taxpayer
                (whether or not connected with his trade or business), but
                does not include--

                                        * * * * * * *

                    (5) a publication of the United States Government
                (including the Congressional Record) which is received from
                the United States Government or any agency thereof, other
                than by purchase at the price at which it is offered for
                sale to the public, and which is held by--
                                (A) a taxpayer who so received such
                            publication, or
                                (B) a taxpayer in whose hands the basis of
                            such publication is determined, for purposes of
                            determining gain from a sale or exchange, in
                            whole or in part by reference to the basis of
                            such publication in the hands of a taxpayer
                            described in subparagraph (A). (Aug. 16, 1954,
                            ch. 736. 68A Stat. 321; Oct. 4, 1976, Pub.L. 94-
                            455, Sec. 2132 (a), 90 Stat. 1925; Aug. 13,
                            1981, Pub.L. 97-34, Sec. 505

    [[Page 1004]]

                            (a), 95 Stat. 331; Dec. 17, 1999, Pub.L. 106-
                            170, Sec. 532(a), 113 Stat. 1928.

                                        * * * * * * *

                          SUBTITLE F.--PROCEDURE AND ADMINISTRATION

                            Chapter 61.--INFORMATION AND RETURNS

                             Subchapter A.--Returns and Records

                                        * * * * * * *

                               Part III.--INFORMATION RETURNS

                   Subpart A.--Information Concerning Persons Subject to
                                     Special Provisions

                                        * * * * * * *

          1380  Sec. 6033. Returns by exempt organizations.

                                        * * * * * * *

                (g) Returns required by political organizations
                    (1) In general.--This section shall apply to a political
                organization (as defined by section 527(e)(1)) which has
                gross receipts of $25,000 or more for the taxable year. In
                the case of a political organization which is a qualified
                State or local political organization (as defined in section
                527(e)(5)), the preceding sentence shall be applied by
                substituting ``$100,000'' for ``$25,000''.
                    (2) Annual returns.--Political organizations described
                in paragraph (1) shall file an annual 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), with such
                            modifications as the Secretary considers
                            appropriate to require only information which is
                            necessary for the purposes of carrying out
                            section 527, and
                                (B) containing such other information as the
                            Secretary deems necessary to carry out the
                            provisions of this subsection.
                    (3) Mandatory exceptions from filing.--Paragraph (2)
                shall not apply to an organization--
                                (A) which is a State or local committee of a
                            political party, or political committee of a
                            State or local candidate,
                                (B) which is a caucus or association of
                            State or local officials,
                                (C) which is an authorized committee (as
                            defined in section 301(6) of the Federal
                            Election Campaign Act of 1971) of a candidate
                            for Federal office,
                                (D) which is a national committee (as
                            defined in section 301(14) of the Federal
                            Election Campaign Act of 1971) of a political
                            party,
                                (E) which is a United States House of
                            Representatives or United States Senate campaign
                            committee of a political party committee,
                                (F) which is required to report under the
                            Federal Election campaign Act of 1971 as a
                            political committee (as defined in section
                            301(4) of such Act), or
                                (G) to which section 527 applies for the
                            taxable year solely by reason of subsection
                            (f)(1) of such section.

    [[Page 1005]]

                    (4) Discretionary exception.--The Secretary may relieve
                any organization required under paragraph (2) to file an
                information return from filing such a return if the
                Secretary determines that such filing is not necessary to
                the efficient administration of the Internal Revenue laws.
                (Nov. 2, 2002, Pub.L. 107-276, Sec. 3(c), 116 Stat. 1931.)

                                        * * * * * * *

                           Subchapter B.--Miscellaneous Provisions

                                        * * * * * * *

          1381  Sec. 6103. Confidentiality and disclosure of returns and
                    return information.

                                        * * * * * * *

                (f) Disclosure to committees of Congress
                    (1) Committee on Ways and Means, Committee on Finance,
                and Joint Committee on Taxation.--Upon written request from
                the chairman of the Committee on Ways and Means of the House
                of Representatives, the chairman of the Committee on Finance
                of the Senate, or the chairman of the Joint Committee on
                Taxation, the Secretary shall furnish such committee with
                any return or return information specified in such request,
                except that any return or return information which can be
                associated with, or otherwise identify, directly or
                indirectly, a particular taxpayer shall be furnished to such
                committee only when sitting in closed executive session
                unless such taxpayer otherwise consents in writing to such
                disclosure.
                    (2) Chief of Staff of Joint Committee on Taxation.--Upon
                written request by the Chief of Staff of the Joint Committee
                on Taxation, the Secretary shall furnish him with any return
                or return information specified in such request. Such Chief
                of Staff may submit such return or return information to any
                committee described in paragraph (1), except that any return
                or return information which can be associated with, or
                otherwise identify, directly or indirectly, a particular
                taxpayer shall be furnished to such committee only when
                sitting in closed executive session unless such taxpayer
                otherwise consents in writing to such disclosure.
                    (3) Other committees.--Pursuant to an action by, and
                upon written request by the chairman of, a committee of the
                Senate or the House of Representatives (other than a
                committee specified in paragraph (1)) specially authorized
                to inspect any return or return information by a resolution
                of the Senate or the House of Representatives or, in the
                case of a joint committee (other than the joint committee
                specified in paragraph (1)) by concurrent resolution, the
                Secretary shall furnish such committee, or a duly authorized
                and designated subcommittee thereof, sitting in closed
                executive session, with any return or return information
                which such resolution authorizes the committee or
                subcommittee to inspect. Any resolution described in this
                paragraph shall specify the purpose for which the return or
                return information is to be furnished and that such
                information cannot reasonably be obtained from any other
                source.
                    (4) Agents of committees and submission of information
                to Senate or House of Representatives--

    [[Page 1006]]

                                (A) Committees described in paragraph (1).--
                            Any committee described in paragraph (1) or the
                            Chief of Staff of the Joint Committee on
                            Taxation shall have the authority, acting
                            directly, or by or through such examiners or
                            agents as the chairman of such committee or such
                            chief of staff may designate or appoint, to
                            inspect returns and return information at such
                            time and in such manner as may be determined by
                            such chairman or chief of staff. Any return or
                            return information obtained by or on behalf of
                            such committee pursuant to the provisions of
                            this subsection may be submitted by the
                            committee to the Senate or the House of
                            Representatives, or to both. The Joint Committee
                            on Taxation may also submit such return or
                            return information to any other committee
                            described in paragraph (1), except that any
                            return or return information which can be
                            associated with, or otherwise identify, directly
                            or indirectly, a particular taxpayer shall be
                            furnished to such committee only when sitting in
                            closed executive session unless such taxpayer
                            otherwise consents in writing to such
                            disclosure.
                                (B) Other committees.--Any committee or
                            subcommittee described in paragraph (3) shall
                            have the right, acting directly, or by or
                            through no more than four examiners or agents,
                            designated or appointed in writing in equal
                            numbers by the chairman and ranking minority
                            member of such committee or subcommittee, to
                            inspect returns and return information at such
                            time and in such manner as may be determined by
                            such chairman and ranking minority member. Any
                            return or return information obtained by or on
                            behalf of such committee or subcommittee
                            pursuant to the provisions of this subsection
                            may be submitted by the committee to the Senate
                            or the House of Representatives, or to both,
                            except that any return or return information
                            which can be associated with, or otherwise
                            identify, directly or indirectly, a particular
                            taxpayer, shall be furnished to the Senate or
                            the House of Representatives only when sitting
                            in closed executive session unless such taxpayer
                            otherwise consents in writing to such
                            disclosure.
                    (5) Disclosure by whistleblower.--Any person who
                otherwise has or had access to any return or return
                information under this section may disclose such return or
                return information to a committee referred to in paragraph
                (1) or any individual authorized to receive or inspect
                information under paragraph (4)(A) if such person believes
                such return or return information may relate to possible
                misconduct, maladministration, or taxpayer abuse.
                (g) Disclosure to President and certain other persons

                                        * * * * * * *

                (5) Reporting requirements
                    Within 30 days after the close of each calendar quarter,
                the President and the head of any agency requesting returns
                and return information under this subsection shall each file
                a report with the Joint Committee on Taxation setting forth
                the taxpayers with respect to whom such requests were made
                during such quarter under this subsection, the returns or
                return information involved, and the reasons for such
                requests. The President shall not be required to report on
                any request for returns and return information pertaining to
                an individual who was an officer or employee of the
                executive branch of the Federal Government at the

    [[Page 1007]]

                time such request was made. Reports filed pursuant to this
                paragraph shall not be disclosed unless the Joint Committee
                on Taxation determines that disclosure thereof (including
                identifying details) would be in the national interest. Such
                reports shall be maintained by the Joint Committee on
                Taxation for a period not exceeding 2 years unless, within
                such period, the Joint Committee on Taxation determines that
                a disclosure to the Congress is necessary. (Pub.L. 105-65,
                Title V, (Sec. 542(b), 111 Stat. 1412; July 22, 1998, Pub.L.
                105-206, Title I, Sec. 1101(b), Title III,
                Sec. Sec. 3702(a), (b), 3708(a), 3711(b), Title VI,
                Sec. Sec. 6007(f)(4), 6009(d), 6012(b)(2), (4), 6019(c),
                6023(22), 112 Stat. 696, 776, 777, 778, 781, 810, 812, 819,
                823, 826; Oct. 21, 1998, Pub.L. 105-277, Div. J, Title I,
                Sec. 1006, Title IV, Sec. Sec. 4002(a), (h), 4006(a), 112
                Stat. 2681-900, 2681-906, 2681-907, 2681-912; Dec. 17, 1999,
                Pub.L. 106-170, Title V, Sec. 521(a)(1), 113 Stat. 1925.)

                                        * * * * * * *

          1382  Sec. 6104. Publicity of information required from certain
                    exempt organizations and certain trusts.
                (a) Inspection of applications for tax exemption or notice
                    of status
                    (1) Public inspection--
                                (A) Organizations described in section 501
                            or 527.--If an organization described in section
                            501(c) or (d) is exempt from taxation under
                            section 501(a) for any taxable year or a
                            political organization is exempt from taxation
                            under section 527 for any taxable year, the
                            application filed by the organization with
                            respect to which the Secretary made his
                            determination that such organization was
                            entitled to exemption under section 501(a) or
                            notice of status filed by the organization under
                            section 527(i), together with any papers
                            submitted in support of such application or
                            notice, and any letter or other document issued
                            by the Internal Revenue Service with respect to
                            such application or notice shall be open to
                            public inspection at the national office of the
                            Internal Revenue Service. In the case of any
                            application or notice filed after the date of
                            the enactment of this subparagraph, a copy of
                            such application or notice and such letter or
                            document shall be open to public inspection at
                            the appropriate field office of the Internal
                            Revenue Service (determined under regulations
                            prescribed by the Secretary). Any inspection
                            under this subparagraph may be made at such
                            times, and in such manner, as the Secretary
                            shall by regulations prescribe. After the
                            application of any organization for exemption
                            from taxation under section 501(a) has been
                            opened to public inspection under this
                            subparagraph, the Secretary shall, on the
                            request of any person with respect to such
                            organization, furnish a statement indicating the
                            subsection and paragraph of section 501 which it
                            has been determined describes such organization.
                                (B) Pension, etc., plans.--The following
                            shall be open to public inspection at such times
                            and in such places as the Secretary may
                            prescribe:

                                    (i) any application filed with respect
                                to the qualification of a pension, profit-
                                sharing, or stock bonus plan under section
                                401(a) or 403(a), an individual retirement
                                account described in

    [[Page 1008]]

                                section 408(a), or an individual retirement
                                annuity described in section 408(b),

                                    (ii) any application filed with respect
                                to the exemption from tax under section
                                501(a) of an organization forming part of a
                                plan or account referred to in clause (i),

                                    (iii) any papers submitted in support of
                                an application referred to in clause (i) or
                                (ii), and

                                    (iv) any letter or other document issued
                                by the Internal Revenue Service and dealing
                                with the qualification referred to in clause
                                (i) or the exemption from tax referred to in
                                clause (ii).

                        Except in the case of a plan participant, this
                        subparagraph shall not apply to any plan referred to
                        in clause (i) having not more than 25 participants.
                                (C) Certain names and compensation not to be
                            open to public inspection.--In the case of any
                            application, document, or other papers, referred
                            to in subparagraph (B), information from which
                            the compensation (including deferred
                            compensation) of any individual may be
                            ascertained shall not be opened to public
                            inspection under subparagraph (B).
                                (D) Withholding of certain other
                            information.--Upon request of the organization
                            submitting any supporting papers described in
                            subparagraph (A) or (B), the Secretary shall
                            withhold from public inspection any information
                            contained therein which he determines relates to
                            any trade secret, patent, process, style of
                            work, or apparatus, of the organization, if he
                            determines that public disclosure of such
                            information would adversely affect the
                            organization. The Secretary shall withhold from
                            public inspection any information contained in
                            supporting papers described in subparagraph (A)
                            or (B) the public disclosure of which he
                            determines would adversely affect the national
                            defense.
                    (2) Inspection by committee of Congress.--Section
                6103(f) shall apply with respect to--
                                (A) the application for exemption of any
                            organization described in section 501(c) or (d)
                            which is exempt from taxation under section
                            501(a) for any taxable year or notice of status
                            of any political organization which is exempt
                            from taxation under section 527 for any taxable
                            year, and any application referred to in
                            subparagraph (B) of subsection (a)(1) of this
                            section, and
                                (B) any other papers which are in the
                            possession of the Secretary and which relate to
                            such application,

                as if such papers constituted returns.

                    (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).

    [[Page 1009]]

                (Sept. 2, 1958, Pub.L. 85-866, Sec. 75(a) 72 Stat. 1660;
                Sept. 2, 1974, Pub.L. 93-406, Sec. 1022(g)(1), (2), 88 Stat.
                940; Oct. 4, 1976, Pub.L. 94-455, Sec. Sec. 1201(d),
                1906(b)(13)(A), 90 Stat. 1667, 1834; Nov. 6, 1978, Pub.L.
                95-600, Sec. 703(m), 92 Stat. 2943; July 18, 1984, Pub.L.
                98-369 Sec. 491(d)(49), 98 Stat. 852; July 1, 2000, Pub.L.
                106-230, Sec. 1(b), 114 Stat. 478.)

                                        * * * * * * *

                Chapter 78.--DISCOVERY OF LIABILITY AND ENFORCEMENT OF TITLE

                          Subchapter A.--Examination and Inspection

                                        * * * * * * *

          1383  Sec. 7608. Authority of internal revenue enforcement
                    officers.

                                        * * * * * * *

                (c) Rules relating to undercover operations

                                        * * * * * * *

                    (4) Audits--
                                (A) The Service shall conduct a detailed
                            financial audit of each undercover investigative
                            operation which is closed in each fiscal year;
                            and

                                    (i) submit the results of the audit in
                                writing to the Secretary; and

                                    (ii) not later than 180 days after such
                                undercover operation is closed, submit a
                                report to the Congress concerning such
                                audit.

                                (B) The Service shall also submit a report
                            annually to the Congress specifying as to its
                            undercover investigative operations--

                                    (i) the number, by programs, of
                                undercover investigative operations pending
                                as of the end of the 1-year period for which
                                such report is submitted;

                                    (ii) the number, by programs, of
                                undercover investigative operations
                                commenced in the 1-year period for which
                                such report is submitted;

                                    (iii) the number, by programs, of
                                undercover investigative operations closed
                                in the 1-year period for which such report
                                is submitted; and

                                    (iv) the following information with
                                respect to each undercover investigative
                                operation pending as of the end of the 1-
                                year period for which such report is
                                submitted or closed during such 1-year
                                period--

                                            (I) the date the operation began
                                        and the date of the certification
                                        referred to in the last sentence of
                                        paragraph (1),

                                            (II) the total expenditures
                                        under the operation and the amount
                                        and use of the proceeds from the
                                        operation,

                                            (III) a detailed description of
                                        the operation including the
                                        potential violation being
                                        investigated and whether the
                                        operation is being conducted under
                                        grand jury auspices, and

                                            (IV) the results of the
                                        operation including the results of
                                        criminal proceedings.

    [[Page 1010]]

                (Nov. 18, 1988, Pub.L. 100-690, Sec. 7601(c)(2), 102 Stat.
                4504; July 30, 1996, Pub.L. 104-168, Sec. 1205(c)(1), 110
                Stat. 1471.)

                                        * * * * * * *

                                  Chapter 79.--DEFINITIONS

          1384  Sec. 7701. Definitions.

                                        * * * * * * *

                (j) Tax treatment of Federal Thrift Savings Fund
                    (1) In general.--For purposes of this title--
                                (A) the Thrift Savings Fund shall be treated
                            as a trust described in section 401(a) which is
                            exempt from taxation under section 501(a);
                                (B) any contribution to, or distribution
                            from, the Thrift Savings Fund shall be treated
                            in the same manner as contributions to or
                            distributions from such a trust; and
                                (C) subject to section 401(k)(4)(B) and any
                            dollar limitation on the application of section
                            402(e)(3), contributions to the Thrift Savings
                            Fund shall not be treated as distributed or made
                            available to an employee or Member nor as a
                            contribution made to the Fund by an employee or
                            Member merely because the employee or Member
                            has, under the provisions of subchapter III of
                            chapter 84 of title 5, United States Code, and
                            section 8351 of such title 5, an election
                            whether the contribution will be made to the
                            Thrift Savings Fund or received by the employee
                            or Member in cash.
                    (2) Nondiscrimination requirements.--Notwithstanding any
                other provision of the law, the Thrift Savings Fund is not
                subject to the nondiscrimination requirements applicable to
                arrangements described in section 401(k) or to matching
                contributions (as described in section 401(m)), so long as
                it meets the requirements of this section.
                    (3) Coordination with Social Security Act.--Paragraph
                (1) shall not be construed to provide that any amount of the
                employee's or Member's basic pay which is contributed to the
                Thrift Savings Fund shall not be included in the term
                ``wages'' for the purposes of section 209 of the Social
                Security Act or section 3121(a) of this title.
                    (4) Definitions.--For purposes of this subsection, the
                terms ``Member'', ``employee'', and ``Thrift Savings Fund''
                shall have the same respective meanings as when used in
                subchapter III of chapter 84 of title 5, United States Code.
                    (5) Coordination with other provisions of law.--No
                provision of law not contained in this title shall apply for
                purposes of determining the treatment under this title of
                the Thrift Savings Fund or any contribution to, or
                distribution from, such Fund. (Oct. 22, 1986, Pub.L. 99-514,
                Sec. 1147(a), 100 Stat. 2493; Dec. 22, 1987, Pub.L. 100-202,
                Sec. 624(a), 101 Stat. 1329-429; Nov. 10, 1988, Pub.L. 100-
                647, Sec. 1011A(m)(1), 102 Stat. 3483; Nov. 5, 1990, Pub.L.
                101-508, Sec. 11704(a)(34), 104 Stat. 1388-519; July 3,
                1992, Pub.L. 102-318, Sec. 521(b)(43), 106 Stat. 313.)
                (k) Treatment of certain amounts paid to charity
                    In the case of any payment which, except for section
                501(b) of the Ethics in Government Act of 1978, might be
                made to any officer or employee of the Federal Government
                but which is made instead on behalf of such officer or
                employee to an organization described in section 170(c)--

    [[Page 1011]]

                                (1) such payment shall not be treated as
                            received by such officer or employee for all
                            purposes of this title and for all purposes of
                            any tax law of a State or political subdivision
                            thereof, and
                                (2) no deduction shall be allowed under any
                            provision of this title (or of any law of a
                            State or political subdivision thereof) to such
                            officer or employee by reason of having such
                            payment made to such organization.

                For purposes of this subsection, a Senator, a Representative
                in, or a Delegate or Resident Commissioner to, the Congress
                shall be treated as an officer or employee of the Federal
                Government. (Nov. 30, 1989, Pub.L. 101-194, Sec. 602, 103
                Stat. 1762; Aug. 14, 1991, Pub.L. 102-90, Sec. 314(e), 103
                Stat. 469-470.)

                                        * * * * * * *

                                 Chapter 80.--GENERAL RULES

                     Subchapter A.--Application of Internal Revenue Laws

                                        * * * * * * *

          1385  Sec. 7802. Internal Revenue Service Oversight Board.

                                        * * * * * * *

                (d) Specific responsibilities

                                        * * * * * * *

                    (4) Budget.--To--
                                (A) review and approve the budget request of
                            the Internal Revenue Service prepared by the
                            Commissioner;
                                (B) submit such budget request to the
                            Secretary of the Treasury; and
                                (C) ensure that the budget request supports
                            the annual and long-range strategic plans.

                                        * * * * * * *

                The Secretary shall submit the budget request referred to in
                paragraph (4)(B) for any fiscal year to the President who
                shall submit such request, without revision, to Congress
                together with the President's annual budget request for the
                Internal Revenue Service for such fiscal year.

                                        * * * * * * *

                (f) Administrative matters

                                        * * * * * * *

                    (3) Reports--
                                (A) Annual.--The Oversight Board shall each
                            year report with respect to the conduct of its
                            responsibilities under this title to the
                            President, the Committees on Ways and Means,
                            Government Reform and Oversight, and
                            Appropriations of the House of Representatives
                            and the Committees on Finance, Governmental
                            Affairs, and Appropriations of the Senate.
                                (B) Additional report.--Upon a determination
                            by the Oversight Board under subsection
                            (c)(1)(B) that the organization and operation of
                            the Internal Revenue Service are not allowing it
                            to carry out its mission, the Oversight Board
                            shall report such determination to the Committee
                            on Ways and Means of the House of Representa

    [[Page 1012]]

                            tives and the Committee on Finance of the
                            Senate. (July 22, 1998, Pub.L. 105-206,
                            Sec. 1101(a), 112 Stat. 691.)

                                        * * * * * * *

          1386  Sec. 7803. Commissioner of Internal Revenue; other
                    officials.

                                        * * * * * * *

                (c) Office of the Taxpayer Advocate

                                        * * * * * * *

                    (2) Functions of office.

                                        * * * * * * *

                    (B) Annual reports--
                                (i) Objectives.--Not later than June 30 of
                            each calendar year, the National Taxpayer
                            Advocate shall report to the Committee on Ways
                            and Means of the House of Representatives and
                            the Committee on Finance of the Senate on the
                            objectives of the Office of the Taxpayer
                            Advocate for the fiscal year beginning in such
                            calendar year. Any such report shall contain
                            full and substantive analysis, in addition to
                            statistical information.
                                (ii) Activities.--Not later than December 31
                            of each calendar year, the National Taxpayer
                            Advocate shall report to the Committee on Ways
                            and Means of the House of Representatives and
                            the Committee on Finance of the Senate on the
                            activities of the Office of the Taxpayer
                            Advocate during the fiscal year ending during
                            such calendar year. (July 22, 1998, Pub.L. 105-
                            206, Sec. 1102(a), 112 Stat. 697.)

                                        * * * * * * *

          1387  Sec. 7805. Rules and regulations.

                                        * * * * * * *

                (b) Retroactivity of regulations

                                        * * * * * * *

                    (6) Congressional authorization.--The limitation of
                paragraph (1) may be superseded by a legislative grant from
                Congress authorizing the Secretary to prescribe the
                effective date with respect to any regulation. (July 30,
                1996, Pub.L. 104-168, Sec. 1101(a), 110 Stat. 1468.)

                                        * * * * * * *

                        SUBTITLE G.--THE JOINT COMMITTEE ON TAXATION

                   Chapter 91.--ORGANIZATION AND MEMBERSHIP OF THE JOINT
                                         COMMITTEE

          1388  Sec. 8001. Authorization.
                    There shall be a joint congressional committee known as
                the Joint Committee on Taxation (hereinafter in this
                subtitle referred to as the ``Joint Committee''). (Aug. 16,
                1954, ch. 736, 68A Stat. 925; Oct. 4, 1976, Pub.L. 94-455,
                Sec. 1907(a)(1), 90 Stat. 1835.)
          1389  Sec. 8002. Membership.
                (a) Number and selection
                    The Joint Committee shall be composed of 10 members as
                follows:

    [[Page 1013]]

                                (1) From Committee on Finance.--Five members
                            who are members of the Committee on Finance of
                            the Senate, three from the majority and two from
                            the minority party, to be chosen by such
                            Committee; and
                                (2) From Committee on Ways and Means.--Five
                            members who are members of the Committee on Ways
                            and Means of the House of Representatives, three
                            from the majority and two from the minority
                            party, to be chosen by such Committee.
                (b) Tenure of office
                    (1) General limitation.--No person shall continue to
                serve as a member of the Joint Committee after he has ceased
                to be a member of the committee by which he was chosen,
                except that--
                    (2) Exception.--The members chosen by the Committee on
                Ways and Means who have been reelected to the House of
                Representatives may continue to serve as members of the
                Joint Committee notwithstanding the expiration of the
                Congress.
                (c) Vacancies
                    A vacancy in the Joint Committee--
                                (1) Effect.--Shall not affect the power of
                            the remaining members to execute the functions
                            of the Joint Committee; and
                                (2) Manner of filling.--Shall be filled in
                            the same manner as the original selection,
                            except that--

                                    (A) Adjournment or recess of Congress.--
                                In case of a vacancy during an adjournment
                                or recess of Congress for a period of more
                                than 2 weeks, the members of the Joint
                                Committee who are members of the Committee
                                entitled to fill such vacancy may designate
                                a member of such Committee to serve until
                                his successor is chosen by such Committee;
                                and

                                    (B) Expiration of Congress.--In the case
                                of a vacancy after the expiration of a
                                Congress which would be filled by the
                                Committee on Ways and Means, the members of
                                such Committee who are continuing to serve
                                as members of the Joint Committee may
                                designate a person who, immediately prior to
                                such expiration, was a member of such
                                Committee and who is reelected to the House
                                of Representatives, to serve until his
                                successor is chosen by such Committee.

                (d) Allowances
                    The members shall serve without compensation in addition
                to that received for their services as members of Congress;
                but they shall be reimbursed for travel, subsistence, and
                other necessary expenses incurred by them in the performance
                of the duties vested in the Joint Committee, other than
                expenses in connection with meetings of the Joint Committee
                held in the District of Columbia during such times as the
                Congress is in session. (Aug. 16, 1954, ch. 736, 68A Stat.
                925.)
          1390  Sec. 8003. Election of chairman and vice chairman.
                    The Joint Committee shall elect a chairman and vice
                chairman from among its members. (Aug. 16, 1954, ch. 736,
                68A Stat. 926.)
          1391  Sec. 8004. Appointment and compensation of staff.
                    Except as otherwise provided by law, the Joint Committee
                shall have power to appoint and fix the compensation of the
                Chief of Staff of

    [[Page 1014]]

                the Joint Committee and such experts and clerical,
                stenographic, and other assistants as it deems advisable.
                (Aug. 16, 1954, ch. 736, 68A Stat. 926; Oct. 4, 1976, Pub.L.
                94-455, Sec. 1907(a)(2), 90 Stat. 1835.)
          1392  Sec. 8005. Payment of expenses.
                    The expenses of the Joint Committee shall be paid one-
                half from the contingent fund of the Senate and one-half
                from the contingent fund of the House of Representatives,
                upon vouchers signed by the chairman or the vice chairman.
                (Aug. 16, 1954, ch. 736, 68A Stat. 926.)

                    Chapter 92.--POWERS AND DUTIES OF THE JOINT COMMITTEE

          1393  Sec. 8021. Powers.
                (a) To obtain data and inspect income returns
                    For powers of the Joint Committee to obtain and inspect
                income returns, see section 6103(f).
                (b) Relating to hearings and sessions
                    The Joint Committee, or any subcommittee thereof, is
                authorized--
                                (1) To hold.--To hold hearings and to sit
                            and act at such places and times;
                                (2) To require attendance of witnesses and
                            production of books.--To require by subpoena (to
                            be issued under the signature of the chairman or
                            vice chairman) or otherwise the attendance of
                            such witnesses and the production of such books,
                            papers, and documents;
                                (3) To administer oaths.--To administer such
                            oaths; and
                                (4) To take testimony.--To take such
                            testimony;

                as it deems advisable.

                (c) To procure printing and binding
                    The Joint Committee, or any subcommittee thereof, is
                authorized to have such printing and binding done as it
                deems advisable.
                (d) To make expenditures
                    The Joint Committee, or any subcommittee thereof, is
                authorized to make such expenditures as it deems advisable.
                (e) Investigations
                    The Joint Committee shall review all requests (other
                than requests by the chairman or ranking member of a
                committee or subcommittee) for investigations of the
                Internal Revenue Service by the Government Accountability
                Office, and approve such requests when appropriate, with a
                view towards eliminating overlapping investigations,
                ensuring that the Government Accountability Office has the
                capacity to handle the investigation, and ensuring that
                investigations focus on areas of primary importance to tax
                administration.
                (f) Relating to joint reviews
                                (1) In general.--The Chief of Staff, and the
                            staff of the Joint Committee, shall provide such
                            assistance as is required for joint reviews
                            described in paragraph (2).
                                (2) Joint reviews.--Before June 1 of each
                            calendar year after 1998 and before 2005, there
                            shall be a joint review of the strategic plans

    [[Page 1015]]

                            and budget for the Internal Revenue Service and
                            such other matters as the Chairman of the Joint
                            Committee deems appropriate. Such joint review
                            shall be held at the call of the Chairman of the
                            Joint Committee and shall include two members of
                            the majority and one member of the minority from
                            each of the Committees on Finance,
                            Appropriations, and Governmental Affairs of the
                            Senate, and the Committees on Ways and Means,
                            Appropriations, and Government Reform and
                            Oversight of the House of Representatives. (Aug.
                            16, 1954, ch. 736, 68A Stat. 927; Oct. 4, 1976,
                            Pub.L. 94-455, Sec. 1907(a)(3), 90 Stat. 1835;
                            Nov. 10, 1988, Pub.L. 100-647, Sec. 1018(s)(1),
                            102 Stat. 3586; July 22, 1998, Pub.L. 105-206,
                            Sec. 4001(a), 112 Stat. 783; Oct. 4, 2004,
                            Pub.L. 108-311, Title III, Sec. 321(a), 118
                            Stat. 1182; Dec. 21, 2005, Pub.L. 109-135, Title
                            IV, Sec. 412(rr)(5), 119 Stat. 2640.)
          1394  Sec. 8022. Duties.
                    It shall be the duty of the Joint Committee--
                                (1) Investigation--

                                    (A) Operation and effects of law.--To
                                investigate the operation and effects of the
                                Federal system of internal revenue taxes;

                                    (B) Administration.--To investigate the
                                administration of such taxes by the Internal
                                Revenue Service or any executive department,
                                establishment, or agency charged with their
                                administration; and

                                    (C) Other investigations.--To make such
                                other investigations in respect of such
                                system of taxes as the Joint Committee may
                                deem necessary.

                                (2) Simplification of law--

                                    (A) Investigation of methods.--To
                                investigate measures and methods for the
                                simplification of such taxes, particularly
                                the income tax; and

                                    (B) Publication of proposals.--To
                                publish, from time to time, for public
                                examination and analysis, proposed measures
                                and methods for the simplification of such
                                taxes.

                                (3) Reports--

                                    (A) To report, from time to time, to the
                                Committee on Finance and the Committee on
                                Ways and Means, and, in its discretion, to
                                the Senate or House of Representatives, or
                                both, the results of its investigations,
                                together with such recommendations as it may
                                deem advisable.

                                    (B) Subject to amounts specifically
                                appropriated to carry out this subparagraph,
                                to report, at least once each Congress, to
                                the Committee on Finance and the Committee
                                on Ways and Means on the overall state of
                                the Federal tax system, together with
                                recommendations with respect to possible
                                simplification proposals and other matters
                                relating to the administration of the
                                Federal tax system as it may deem advisable.

                                    (C) To report, for each calendar year
                                after 1998 and before 2005, to the
                                Committees on Finance, Appropriations, and
                                Governmental Affairs of the Senate, and to
                                the Committees on Ways and Means,
                                Appropriations, and Government Reform and
                                Oversight of the House of Representatives,
                                with respect to the matter addressed in the
                                joint review referred to in section
                                8021(f)(2).

    [[Page 1016]]

                                (4) Cross reference--

                                    For duties of the Joint Committee
                                relating to refunds of income and estate
                                taxes, see section 6405. (Aug. 16, 1954, ch.
                                736, 68A Stat. 927; July 22, 1998, Pub.L.
                                105-206, Sec. 4002(a), 112 Stat. 784; Oct.
                                4, 2004, Pub.L. 108-311, Title III,
                                Sec. 321(b), 118 Stat. 1182.)

          1395  Sec. 8023. Additional powers to obtain data.
                (a) Securing of data
                    The Joint Committee or the Chief of Staff of the Joint
                Committee, upon approval of the Chairman or Vice Chairman,
                is authorized to secure directly from the Internal Revenue
                Service or the office of the Chief Counsel for the Internal
                Revenue Service, or directly from any executive department,
                board, bureau, agency, independent establishment, or
                instrumentality of the Government, information, suggestions,
                rulings, data, estimates, and statistics, for the purpose of
                making investigations, reports, and studies relating to
                internal revenue taxation. In the investigation by the Joint
                Committee on Taxation of the administration of the internal
                revenue taxes by the Internal Revenue Service, the Chief of
                Staff of the Joint Committee on Taxation is authorized to
                secure directly from the Internal Revenue Service such tax
                returns, or copies of tax returns, and other relevant
                information, as the Chief of Staff deems necessary for such
                investigation, and the Internal Revenue Service is
                authorized and directed to furnish such tax returns and
                information to the Chief of Staff together with a brief
                report, with respect to each return, as to any action taken
                or proposed to be taken by the Service as a result of any
                audit of the return.
                (b) Furnishing of data
                    The Internal Revenue Service, the office of the Chief
                Counsel for the Internal Revenue Service, executive
                departments, boards, bureaus, agencies, independent
                establishments, and instrumentalities are authorized and
                directed to furnish such information, suggestions, rulings,
                data, estimates, and statistics directly to the Joint
                Committee or to the Chief of Staff of the Joint Committee,
                upon request made pursuant to this section.
                (c) Application of subsections (a) and (b)
                    Subsections (a) and (b) shall be applied in accordance
                with their provisions without regard to any reorganization
                plan becoming effective on, before, or after the date of the
                enactment of this subsection. (Aug. 16, 1954, ch. 736, 68A
                Stat. 928; Sept. 22, 1959, Pub.L. 86-368, Sec. 2(b), 73
                Stat. 648; Oct. 4, 1976, Pub.L. 94-455, Sec. Sec. 1210(c),
                1907(a)(4), 90 Stat. 1711, 1835.)

    [[Page 1017]]

                  SUBTITLE H.--FINANCING OF PRESIDENTIAL ELECTION CAMPAIGNS

                      Chapter 95.--PRESIDENTIAL ELECTION CAMPAIGN FUND

                                        * * * * * * *

          1396  Sec. 9009. Reports to Congress; regulations.
                (a) Reports
                    The Commission shall, as soon as practicable after each
                presidential election, submit a full report to the Senate
                and House of Representatives setting forth--
                                (1) the qualified campaign expenses (shown
                            in such detail as the Commission determines
                            necessary) incurred by the candidates of each
                            political party and their authorized committees;
                                (2) the amounts certified by it under
                            section 9005 for payment to the eligible
                            candidates for each political party;
                                (3) the amount of payments, if any, required
                            from such candidates under section 9007, and the
                            reasons for each payment required;
                                (4) the expenses incurred by the national
                            committee of a major party or minor party with
                            respect to a presidential nominating convention;
                                (5) the amounts certified by it under
                            section 9008(g) for payment to each such
                            committee; and
                                (6) the amount of payments, if any, required
                            from such committees under section 9008(h), and
                            the reasons for each such payment.

                Each report submitted pursuant to this section shall be
                printed as a Senate document.

                (b) Regulations, etc.
                    The Commission is authorized to prescribe such rules and
                regulations in accordance with the provisions of subsection
                (c), to conduct such examinations and audits (in addition to
                the examinations and audits required by section 9007(a)), to
                conduct such investigations, and to require the keeping and
                submission of such books, records, and information, as it
                deems necessary to carry out the functions and duties
                imposed on it by this chapter.
                (c) Review of regulations
                    (1) The Commission, before prescribing any rule or
                regulation under subsection (b), shall transmit a statement
                with respect to such rule or regulation to the Senate and to
                the House of Representatives, in accordance with the
                provisions of this subsection. Such statement shall set
                forth the proposed rule or regulation and shall contain a
                detailed explanation and justification of such rule or
                regulation.
                    (2) If either such House does not, through appropriate
                action, disapprove the proposed rule or regulation set forth
                in such statement no later than 30 legislative days after
                receipt of such statement, then the Commission may prescribe
                such rule or regulation. Whenever a committee of the House
                of Representatives reports any resolution relating to any
                such rule or regulation, it is at any time thereafter in
                order (even though a previous motion to the same effect has
                been disagreed to) to move to proceed to the consideration
                of the resolution. The motion is highly privileged and is
                not debatable. An amendment to the motion

    [[Page 1018]]

                is not in order, and it is not in order to move to
                reconsider the vote by which the motion is agreed to or
                disagreed to. The Commission may not prescribe any rule or
                regulation which is disapproved by either such House under
                this paragraph.
                    (3) For purposes of this subsection, the term
                ``legislative days'' does not include any calendar day on
                which both Houses of the Congress are not in session.
                    (4) For purposes of this subsection, the term ``rule or
                regulation'' means a provision or series of interrelated
                provisions stating a single separable rule of law. (Dec. 10,
                1971, Pub.L. 92-178, Sec. 801, 85 Stat. 569; Oct. 15, 1974,
                Pub.L. 93-443, Sec. Sec. 404(c)(12), (13), 406(b), 88 Stat.
                1292, 1296; May 11, 1976, Pub.L. 94-283, Sec. 304(a), 90
                Stat. 498.)

                                        * * * * * * *

                 Chapter 96.--PRESIDENTIAL PRIMARY MATCHING PAYMENT ACCOUNT

                                        * * * * * * *

          1397  Sec. 9039. Reports to Congress; regulations.
                (a) Reports
                    The Commission shall, as soon as practicable after each
                matching payment period, submit a full report to the Senate
                and House of Representatives setting forth--
                                (1) the qualified campaign expenses (shown
                            in such detail as the Commission determines
                            necessary) incurred by the candidates of each
                            political party and their authorized committees,
                                (2) the amounts certified by it under
                            section 9036 for payment to each eligible
                            candidate, and
                                (3) the amount of payments, if any, required
                            from candidates under section 9038, and the
                            reasons for each payment required.

                Each report submitted pursuant to this section shall be
                printed as a Senate document.

                (b) Regulations, etc.
                    The Commission is authorized to prescribe rules and
                regulations in accordance with the provisions of subsection
                (c), to conduct examinations and audits (in addition to the
                examinations and audits required by section 9038(a)), to
                conduct investigations, and to require the keeping and
                submission of any books, records, and information, which it
                determines to be necessary to carry out its responsibilities
                under this chapter.
                (c) Review of regulations
                    (1) The Commission, before prescribing any rule or
                regulation under subsection (b), shall transmit a statement
                with respect to such rule or regulation to the Senate and to
                the House of Representatives, in accordance with the
                provisions of this subsection. Such statement shall set
                forth the proposed rule or regulation and shall contain a
                detailed explanation and justification of such rule or
                regulation.
                    (2) If either such House does not, through appropriate
                action, disapprove the proposed rule or regulation set forth
                in such statement no later than 30 legislative days after
                receipt of such statement, then the Commission may prescribe
                such rule or regulation. Whenever a committee of the House
                of Representatives reports any resolution relat

    [[Page 1019]]

                ing to any such rule or regulation, it is at any time
                thereafter in order (even though a previous motion to the
                same effect has been disagreed to) to move to proceed to the
                consideration of the resolution. The motion is highly
                privileged and is not debatable. An amendment to the motion
                is not in order, and it is not in order to move to
                reconsider the vote by which the motion is agreed to or
                disagreed to. The Commission may not prescribe any rule or
                regulation which is disapproved by either such House under
                this paragraph.
                    (3) For purposes of this subsection, the term
                ``legislative days'' does not include any calendar day on
                which both Houses of the Congress are not in session.
                    (4) For purposes of this subsection, the term ``rule or
                regulation'' means a provision or series of interrelated
                provisions stating a single separable rule of law. (Oct. 15,
                1974, Pub.L. 93-443, Sec. 408(c), 88 Stat. 1301; May 11,
                1976, Pub.L. 94-283, Sec. 304(b), 90 Stat. 499.)

                                        * * * * * * *

                                SUBTITLE I.--TRUST FUND CODE

                                Chapter 98.--TRUST FUND CODE

                                        * * * * * * *

                              Subchapter B.--General Provisions

                                        * * * * * * *

          1398  Sec. 9602. Management of Trust Funds.
                (a) Report
                    It shall be the duty of the Secretary of the Treasury to
                hold each Trust Fund established by subchapter A, and (after
                consultation with any other trustees of the Trust Fund) to
                report to the Congress each year on the financial condition
                and the results of the operations of each such Trust Fund
                during the preceding fiscal year and on its expected
                condition and operations during the next 5 fiscal years.
                Such report shall be printed as a House document of the
                session of the Congress to which the report is made. (Dec.
                29, 1981, Pub.L. 97-119, Sec. 103(a), 95 Stat. 1638.)
                         28 u.s.c.--judiciary and judicial procedure

                      general and permanent laws relating to the senate