Text: H.R.4168 — 106th Congress (1999-2000)All Information (Except Text)

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Introduced in House (04/04/2000)

 
[Congressional Bills 106th Congress]
[From the U.S. Government Printing Office]
[H.R. 4168 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4168

    To amend the Internal Revenue Code of 1986 to require increased 
                 reporting by political organizations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 4, 2000

  Mr. Doggett (for himself, Mr. Gephardt, Mr. Bonior, Mr. Frost, Mr. 
Menendez, Mr. Rangel, Mr. Neal of Massachusetts, Mr. Stark, Mr. Matsui, 
Mr. Coyne, Mr. Levin, Mr. Cardin, Mr. McDermott, Mr. Kleczka, Mr. Lewis 
of Georgia, Mr. McNulty, Mr. Jefferson, Mrs. Thurman, Mr. Becerra, Ms. 
  DeLauro, Ms. Pelosi, Mr. Hoyer, Mr. Abercrombie, Mr. Ackerman, Mr. 
Allen, Mr. Andrews, Mr. Baca, Mr. Baird, Mr. Baldacci, Ms. Baldwin, Mr. 
  Barrett of Wisconsin, Ms. Berkley, Mr. Berry, Mr. Blagojevich, Mr. 
 Blumenauer, Mr. Boswell, Mr. Brown of Ohio, Mrs. Capps, Mr. Capuano, 
   Mrs. Clayton, Mr. Clyburn, Mr. Crowley, Ms. Danner, Mr. Davis of 
Illinois, Mr. Davis of Florida, Mr. DeFazio, Mr. Delahunt, Mr. Deutsch, 
   Mr. Dicks, Mr. Dingell, Mr. Dixon, Mr. Dooley of California, Mr. 
 Edwards, Mr. Engel, Ms. Eshoo, Mr. Etheridge, Mr. Evans, Mr. Farr of 
      California, Mr. Filner, Mr. Forbes, Mr. Ford, Mr. Frank of 
  Massachusetts, Mr. Gejdenson, Mr. Gonzalez, Mr. Green of Texas, Mr. 
    Hall of Ohio, Mr. Hastings of Florida, Mr. Hill of Indiana, Mr. 
Hilliard, Mr. Hinchey, Mr. Hinojosa, Mr. Hoeffel, Mr. Holt, Ms. Hooley 
  of Oregon, Mr. Inslee, Mr. Jackson of Illinois, Ms. Jackson-Lee of 
  Texas, Ms. Eddie Bernice Johnson of Texas, Mrs. Jones of Ohio, Mr. 
  Kanjorski, Ms. Kaptur, Ms. Kilpatrick, Mr. Kind, Mr. Kucinich, Mr. 
Lampson, Mr. Lantos, Mr. Larson, Ms. Lee, Ms. Lofgren, Mrs. Lowey, Mr. 
  Luther, Mrs. Maloney of New York, Mr. Markey, Mrs. McCarthy of New 
York, Ms. McCarthy of Missouri, Mr. McGovern, Ms. McKinney, Mr. Meehan, 
 Mrs. Meek of Florida, Mr. Meeks of New York, Ms. Millender-McDonald, 
 Mr. George Miller of California, Mr. Minge, Mrs. Mink of Hawaii, Mr. 
 Moakley, Mr. Mollohan, Mr. Moore, Mr. Moran of Virginia, Mr. Nadler, 
 Mrs. Napolitano, Mr. Ortiz, Mr. Owens, Mr. Pallone, Mr. Pascrell, Mr. 
Payne, Mr. Peterson of Minnesota, Mr. Phelps, Mr. Pomeroy, Mr. Price of 
North Carolina, Mr. Reyes, Ms. Rivers, Mr. Rodriguez, Mr. Rothman, Mr. 
Rush, Mr. Sabo, Ms. Sanchez, Mr. Sanders, Mr. Sandlin, Mr. Sawyer, Ms. 
    Schakowsky, Mr. Serrano, Mr. Shows, Ms. Slaughter, Mr. Smith of 
  Washington, Mr. Snyder, Mr. Spratt, Ms. Stabenow, Mr. Stenholm, Mr. 
Strickland, Mrs. Tauscher, Mr. Thompson of Mississippi, Mr. Thompson of 
California, Mr. Tierney, Mr. Turner, Mr. Udall of New Mexico, Mr. Udall 
  of Colorado, Ms. Velazquez, Mr. Waxman, Mr. Weiner, Mr. Wexler, Mr. 
 Weygand, Ms. Woolsey, Mr. Wu, and Mr. Wynn) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to require increased 
                 reporting by political organizations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Underground Campaign Disclosure Act 
of 2000''.

SEC. 2. INCREASED REPORTING BY POLITICAL ORGANIZATIONS.

    (a) In General.--Subpart A of part III of subchapter A of chapter 
61 of the Internal Revenue Code of 1986 (relating to information 
concerning persons subject to special provisions) is amended by 
inserting after section 6033 the following new section:

``SEC. 6033A. RETURNS BY POLITICAL ORGANIZATIONS.

    ``(a) Statement of Organization.--
            ``(1) In general.--Every political organization shall file 
        a statement of organization with the Secretary (in such form 
        and manner as the Secretary shall prescribe) which contains the 
        information described in paragraph (2). Such statement shall be 
        filed not later than 10 days after the date that such 
        organization is established (or, in the case of an organization 
        in existence on the date of the enactment of this section, not 
        later than 10 days after such date of enactment).
            ``(2) Statement of organization.--The information described 
        in this paragraph is--
                    ``(A) the name and address of the political 
                organization,
                    ``(B) the name, address, relationship, and type of 
                any person which is directly or indirectly related to 
                or affiliated with such political organization,
                    ``(C) the name, address, and position of the 
                custodian of books and accounts of the political 
                organization,
                    ``(D) the name and address of the treasurer of the 
                political organization, and
                    ``(E) a listing of all banks, safety deposit boxes, 
                and other depositories used by the political 
                organization.
            ``(3) Changes in information.--If there is a change in 
        circumstances such that the most recent statement filed under 
        this subsection is no longer accurate, the political 
        organization shall file a corrected statement with the 
        Secretary (in such manner as the Secretary shall prescribe) not 
        later than 10 days after the date that the statement first 
        ceased to be accurate.
            ``(4) Related and affiliated persons.--For purposes of 
        paragraph (2)(B), a person is directly or indirectly related to 
        or affiliated with a political organization if such person, at 
        any time during the 3-year period ending on the date such 
        statement is submitted to the Secretary--
                    ``(A) was in a position to exercise substantial 
                direct or indirect influence over the process of 
                collecting or disbursing the exempt purpose funds of 
                such organization, or
                    ``(B) was in a position to exercise substantial, 
                overall direct or indirect influence over the 
                activities of such organization.
    ``(b) Statements of Contributions and Disbursements.--
            ``(1) In general.--Every political organization shall file 
        a statement with the Secretary (at such time and in such form 
        and manner as the Secretary shall prescribe) which contains the 
        information described in paragraph (2) with respect to each 
        reporting period.
            ``(2) Information described.--The information described in 
        this paragraph is--
                    ``(A) the name and address of each person to whom 
                the political organization made any disbursement during 
                the reporting period in an aggregate amount or value in 
                excess of $200 within the calendar year,
                    ``(B) a certification, under penalty of perjury, 
                whether such disbursement is made in cooperation, 
                consultation, or concert, with, or at the request or 
                suggestion of, any candidate for public office or any 
                authorized committee of such candidate or agent of such 
                committee or candidate,
                    ``(C) the name, address, and occupation of each 
                person (and the name of his or her employer) who made 
                (in the aggregate for the reporting period) a 
                contribution in excess of $200 to the political 
                organization,
                    ``(D) the name, address, and business purpose of 
                any entity, as well as whether the entity purports to 
                be exempt from tax under this title and (if so) the 
                provision under which the entity purports to be so 
                exempt, which made (in the aggregate for the reporting 
                period) a contribution in excess of $200 to the 
                political organization, and
                    ``(E) the original source and the intended ultimate 
                recipient of all contributions made by a person, either 
                directly or indirectly, on behalf of any particular 
                person, including contributions which are in any way 
                earmarked or otherwise directed through any 
                intermediary.
            ``(3) Reporting periods and due dates for filing 
        statements.--
                    ``(A) In general.--The reporting periods and 
                deadlines for filing statements required by this 
                subsection shall be the same as the periods and 
                deadlines set forth for reports under paragraph (4) of 
                section 304(a) of Federal Election Campaign Act of 1971 
                (2 U.S.C. 434(a)). The Secretary shall issue such 
                guidance as may be necessary concerning the filing 
                deadlines for such statements.
                    ``(B) Certain organizations file annually.--
                            ``(i) In general.--In the case of a 
                        political organization described in clause 
                        (ii)--
                                    ``(I) subparagraph (A) shall not 
                                apply,
                                    ``(II) the reporting period shall 
                                be such organization's taxable year, 
                                and
                                    ``(III) the due date for the 
                                statement required by this subsection 
                                shall be the due date (without regard 
                                to extensions) for filing the return of 
                                tax for such year, whether or not such 
                                organization is required to file a 
                                return for such taxable year.
                            ``(ii) Organization described.--An 
                        organization is described in this clause if 
                        such organization is a political organization 
                        which is organized and operated exclusively for 
                        the purpose of securing the nomination, 
                        election, or appointment of a clearly 
                        identified candidate for State, local, or 
                        judicial office.
            ``(4) Electronic filing.--The Secretary shall develop 
        procedures for submission in electronic form of statements 
        required to be filed under this subsection.
    ``(c) Political Organization.--For purposes of this section, the 
term `political organization' has the meaning given to such term by 
section 527(e) without regard to whether such organization claims a tax 
exemption under section 527.
    ``(d) Paperwork and Burden Reduction.--An organization shall be not 
be required to file any statement under subsection (a) or (b) for any 
period if, with respect to such period, such organization submits to 
the Secretary, under penalty of perjury, a certified statement that the 
organization has made a filing, which is publicly available, with 
another Federal agency which includes all of the information requested 
by subsection (a) or (b), whichever is applicable, and which specifies 
the public location where such information may be found.''
    (b) Public Inspection of Statements.--
            (1) In general.--Section 6104 of such Code (relating to 
        publicity of information required from certain exempt 
        organizations and certain trusts) is amended by adding at the 
        end the following new subsection:
    ``(e) Inspection of Statements of Political Organizations.--
            ``(1) In general.--In the case of a political organization 
        (as defined in section 6033A(c))--
                    ``(A) a copy of the statements filed under section 
                6033A shall be made available by such organization for 
                inspection during regular business hours by any 
                individual at the principal office of such organization 
                and, if such organization regularly maintains 1 or more 
                regional or district offices having 3 or more 
                employees, at each such regional or district office, 
                and
                    ``(B) upon request of an individual made at such 
                principal office or such a regional or district office, 
                a copy of such statements shall be provided to such 
individual without charge other than a reasonable fee for any 
reproduction and mailing costs.
        The request described in subparagraph (B) must be made in 
        person or in writing. If such request is made in person, such 
        copy shall be provided immediately and, if made in writing, 
        shall be provided within 30 days.
            ``(2) 3-year limitation on inspection of statements.--
        Paragraph (1) shall apply to any statement filed under section 
        6033A only during the 3-year period beginning on the last day 
        prescribed for filing such statement (determined with regard to 
        any extension of time for filing).
            ``(3) Limitation on providing copies.--A rule similar to 
        the rule of subsection (d)(4) shall apply for purposes of this 
        subsection.''
            (2) Inspection of annual information returns.--Subsection 
        (b) of section 6104 of such Code (relating to inspection of 
        annual information returns) is amended--
                    (A) by inserting ``6033A,'' after ``6033,'',
                    (B) by striking ``509(a))'' and inserting ``509(a), 
                or a political organization, as defined in section 
                6033A(c))'', and
                    (C) by adding at the end the following: ``To the 
                extent practicable, the statements required to be made 
                under section 6033A shall also be made available to the 
                public on the worldwide web.''.
    (c) Penalties for Failure To File Statements or Provide Public 
Inspection.--
            (1) In general.--Subsection (c) of section 6652 of such 
        Code is amended by redesignating paragraphs (2), (3), and (4) 
        as paragraphs (3), (4), and (5), respectively, and by inserting 
        after paragraph (1) the following new paragraph:
            ``(2) Statements under section 6033a.--
                    ``(A) Penalty on organization.--In the case of--
                            ``(i) a failure to file a statement 
                        required under section 6033A (relating to 
                        returns by political organizations) on the date 
                        and in the manner prescribed therefor 
                        (determined with regard to any extension of 
                        time for filing), or
                            ``(ii) a failure to include any of the 
                        information required to be shown on a statement 
                        filed under section 6033A or to show the 
                        correct information,
                there shall be paid by the political organization $100 
                for each day during which such failure continues. The 
                maximum penalty under this subparagraph on failures 
                with respect to any 1 statement shall not exceed 
                $50,000.
                    ``(B) Managers.--
                            ``(i) In general.--The Secretary may make a 
                        written demand on any organization subject to 
                        penalty under subparagraph (A) specifying 
                        therein a reasonable future date by which the 
                        statement shall be filed (or the information 
                        furnished) for purposes of this subparagraph.
                            ``(ii) Failure to comply with demand.--If 
                        any person fails to comply with any demand 
                        under clause (i) on or before the date 
                        specified in such demand, there shall be paid 
                        by the person failing to so comply $10 for each 
                        day after the expiration of the time specified 
                        in such demand during which such failure 
                        continues. The maximum penalty imposed under 
                        this subparagraph on all persons for failures 
                        with respect to any 1 statement shall not 
                        exceed $5,000.
                    ``(C) Public inspection of statements.--In the case 
                of a failure to comply with the requirements of section 
                6104(e) on the date and in the manner prescribed 
                therefor (determined with regard to any extension of 
                time for filing), there shall be paid by the person 
                failing to meet such requirements $20 for each day 
                during which such failure continues. The maximum 
                penalty imposed under this subparagraph on all persons 
                for failures with respect to any 1 statement shall not 
                exceed $10,000.''
            (2) Other penalties.--
                    (A) Section 6685 of such Code (relating to 
                assessable penalty with respect to public inspection 
                requirements for certain tax-exempt organizations) is 
                amended--
                            (i) by striking ``subsection (d)'' and 
                        inserting ``subsection (d) or (e)'', and
                            (ii) by striking ``return or application'' 
                        each place it appears and inserting ``return, 
                        application, or statement''.
                    (B) Section 7207 of such Code (relating to 
                fraudulent returns, statements, and other documents) is 
                amended by striking ``subsection (d)'' and inserting 
                ``subsection (d) or (e)''.
    (d) Modification of Gift Tax Rules.--Paragraph (5) of section 
2501(a) of such Code (relating to transfers to political organizations) 
is amended by adding at the end the following new sentence: ``The 
preceding sentence shall not apply in the case of any such organization 
which is not in substantial compliance with sections 6033A and 
6104(e).''
    (e) Conforming Amendments.--
            (1) Section 527 of such Code is amended by adding at the 
        end the following new subsection:
    ``(i) Cross References.--

                                ``(1) For reporting requirements, see 
sections 6033A and 6104.
                                ``(2) For penalties for failure to file 
reports, see sections 6652, 6685, and 7207.
                                ``(3) For modification of gift tax 
rules, see section 2501(a)(5).''
            (2) The table of sections for subpart A of part III of 
        subchapter A of chapter 61 of such Code is amended by inserting 
        after the item relating to section 6033 the following new item:

                              ``Sec. 6033A. Returns of political 
                                        organizations.''
    (f) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
                                 <all>