Federal Election Campaign Laws (124

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§ 606. Intimidation to secure political contributions

Whoever, being one of the officers or employees of the United

States mentioned in section 602 of this title, discharges, or promotes, or

degrades, or in any manner changes the official rank or compensation of

any other officer or employee, or promises or threatens so to do, for giving

or withholding or neglecting to make any contribution of money or other

valuable thing for any political purpose, shall be fined under this title or

imprisoned not more than three years, or both.

§ 607. Place of solicitation

(a) Prohibition.

(1) In general. It shall be unlawful for any person to solicit

or receive a donation of money or other thing of value in connection

with a Federal, State, or local election from a person who is located

in a room or building occupied in the discharge of official duties

by an officer or employee of the United States. It shall be unlaw-

ful for an individual who is an officer or employee of the Federal

Government, including the President, Vice President, and Members

of Congress, to solicit or receive a donation of money or other thing

of value in connection with a Federal, State, or local election, while

in any room or building occupied in the discharge of official duties

by an officer or employee of the United States, from any person.

(2) Penalty. A person who violates this section shall be fined

not more than $5,000, imprisoned not more than 3 years, or both.

(b) The prohibition in subsection (a) shall not apply to the receipt

of contributions by persons on the staff of a Senator or Representative

in, or Delegate or Resident Commissioner to, the Congress or Executive

Office of the President, provided, that such contributions have not been

solicited in any manner which directs the contributor to mail or deliver a

contribution to any room, building, or other facility referred to in subsection

(a), and provided that such contributions are transferred within seven days

of receipt to a political committee within the meaning of section 302(e)

of the Federal Election Campaign Act of 1971 [2 U.S.C. § 432(e)].

§ 606

Section 302 of the Bipartisan Campaign Reform Act of 2002 (BCRA), Pub. L. No. 107-

155, amended section 607, effective as of November 6, 2002.

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§ 610. Coercion of political activity

It shall be unlawful for any person to intimidate, threaten, com-

mand, or coerce, or attempt to intimidate, threaten, command, or coerce,

any employee of the Federal Government as defined in section 7322(l) of

title 5, United States Code, to engage in, or not to engage in, any political

activity, including, but not limited to, voting or refusing to vote for any

candidate or measure in any election, making or refusing to make any

political contribution, or working or refusing to work on behalf of any

candidate. Any person who violates this section shall be fined under this

title or imprisoned not more than three years, or both.

§ 1001. Statements of entries generally

(a) Except as otherwise provided in this section, whoever, in any

matter within the jurisdiction of the executive, legislative, or judicial branch

of the Government of the United States knowingly and willfully—

(1) falsifies, conceals, or covers up by any trick, scheme, or

device a material fact;

(2) makes any materially false, fictitious, or fraudulent state-

ment or representation; or

(3) makes or uses any false writing or document knowing the

same to contain any materially false, fictitious, or fraudulent state-

ment or entry;

shall be fined under this title or imprisoned not more than 5 years or

both.

(b) Subsection (a) does not apply to a party to a judicial proceed-

ing, or that party’s counsel, for statements, representations, writings or

documents submitted by such party or counsel to a judge or magistrate

in that proceeding.

branch, subsection (a) shall apply only to—

(1) administrative matters, including a claim for payment, a

matter related to the procurement of property or services, personnel

or employment practices, or support services, or a document required

by law, rule, or regulation to be submitted to the Congress or any

office or officer within the legislative branch; or

(2) any investigation or review, conducted pursuant to the

authority of any committee, subcommittee, commission or office

of the Congress, consistent with applicable rules of the House or

Senate.

Title 18. Crimes and Criminal Procedure

§ 1001

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Whoever corruptly, or by threats or force, or by any threatening letter or

communication influences, obstructs, or impedes or endeavors to influence,

obstruct, or impede the due and proper administration of the law under

which any pending proceeding is being had before any department or

agency of the United States, or the due and proper exercise of the power

of inquiry under which any inquiry or investigation is being had by either

House, or any committee of either House, or any joint committee of the

Congress—

Shall be fined under this title or imprisoned not more than five years,

or both.

§ 1505. Obstruction of proceedings before departments, agencies

and committees

Whoever, with intent to avoid, evade, prevent, or obstruct compli-

ance, in whole or in part, with any civil investigative demand duly and

properly made under the Antitrust Civil Process Act, willfully withholds,

misrepresents, removes from any place, conceals, covers up, destroys,

mutilates, alters, or by other means falsifies any documentary material,

answers to written interrogatories, or oral testimony, which is the subject

of such demand; or attempts to do so or solicits another to do so; or

§ 1505

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TITLE 26. INTERNAL REVENUE CODE

(Selected Excerpts)

§ 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.

the term “political organization” has the meaning given to such term by

section 527(e)(1).

§ 271. Debts owed by political parties, etc.

(a) General rule. In the case of a taxpayer (other than a bank as

defined in section 581) no deduction shall be allowed under section 166

(relating to bad debts) or under section 165(g) (relating to worthlessness of

securities) by reason of the worthlessness of any debt owed by a political

party.

(b) Definitions.

(1) Political party. For purposes of subsection (a), the term

“political party” means—

(A) a political party;

(B) a national, State, or local committee of a political

party; or

cepts contributions or makes expenditures for the purpose of

influencing or attempting to influence the election of presidential

or vice-presidential electors or of any individual whose name

is presented for election to any Federal, State, or local elective

public office, whether or not such individual is elected.

Title 26. Internal Revenue Code

§ 271

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(2) Contributions. For purposes of paragraph (1)(C), the term

“contributions” includes a gift, subscription, loan, advance, or deposit,

of money, or anything of value, and includes a contract, promise, or

agreement to make a contribution, whether or not legally enforce-

able.

(3) Expenditures. For purposes of paragraph (1)(C), the term

“expenditures” includes a payment, distribution, loan, advance, de-

posit, or gift, of money, or anything of value, and includes a contract,

promise, or agreement to make an expenditure, whether or not legally

enforceable.

of accounting, subsection (a) shall not apply to a debt which accrued as a

receivable on a bona fide sale of goods or services in the ordinary course

of the taxpayer’s trade or business if—

(1) for the taxable year in which such receivable accrued,

more than 30 percent of all receivables which accrued in the ordinary

course of the trades and businesses of the taxpayer were due from

political parties, and

(2) the taxpayer made substantial continuing efforts to collect

on the debt.

§ 276. Certain indirect contributions to political parties

(a) Disallowance of deduction. No deduction otherwise allow-

able under this chapter shall be allowed for any amount paid or incurred

for—

(1) advertising in a convention program of a political party,

or in any other publication if any part of the proceeds of such pub-

lication directly or indirectly inures (or is intended to inure) to or

for the use of a political party or a political candidate,

(2) admission to any dinner or program, if any part of the

proceeds of such dinner or program directly or indirectly inures (or

is intended to inure) to or for the use of a political party or a politi-

cal candidate, or

(3) admission to an inaugural ball, inaugural gala, inaugural

parade, or inaugural concert, or to any similar event which is identi-

fied with a political party or a political candidate.

(b) Definitions. For purposes of this section—

(1) Political party. The term “political party” means—

(A) a political party;

(B) a National, State, or local committee of a political

party; or

§ 271

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incorporated or not, which directly or indirectly accepts contri-

butions (as defined in section 271(b)(2)) or makes expenditures

(as defined in section 271 (b)(3)) for the purpose of influencing

or attempting to influence the selection, nomination, or election

of any individual to any Federal, State, or local elective public

office, or the election of presidential and vice-presidential elec-

tors, whether or not such individual or electors are selected,

nominated, or elected.

(2) Proceeds inuring to or for the use of political candidates.

Proceeds shall be treated as inuring to or for the use of a political

candidate only if—

(A) such proceeds may be used directly or indirectly for

the purpose of furthering his candidacy for selection, nomina-

tion, or election to any elective public office, and

(B) such proceeds are not received by such candidate in

the ordinary course of a trade or business (other than the trade

or business of holding elective public office).

expenses, see section 274.

§ 501. Exemption from tax on corporations, certain trusts, etc.

(a) Exemption from taxation. An organization described in subsec-

tion (c) or (d) or section 401(a) shall be exempt from taxation under this

subtitle unless such exemption is denied under section 502 or 503.

referred to in subsection (a):

(3) Corporations, and any community chest, fund, or foun-

dation, organized and operated exclusively for religious, charitable,

scientific, testing for public safety, literary, or educational purposes,

or to foster national or international amateur sports competition

(but only if no part of its activities involve the provision of athletic

facilities or equipment), or for the prevention of cruelty to children

or animals, no part of the net earnings of which inures to the benefit

of any private shareholder or individual, no substantial part of the

Title 26. Internal Revenue Code

§ 501

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130

activities of which is carrying on propaganda, or otherwise attempting,

to influence legislation (except as otherwise provided in subsection

(h)), and which does not participate in, or intervene in (including

the publishing or distributing of statements), any political campaign

on behalf of (or in opposition to) any candidate for public office.

(4) (A) Civic leagues or organizations not organized for profit

but operated exclusively for the promotion of social welfare,

or local associations of employees, the membership of which

is limited to the employees of a designated person or persons

in a particular municipality, and the net earnings of which are

devoted exclusively to charitable, educational, or recreational

purposes.

(B) Subparagraph (A) shall not apply to an entity unless

no part of the net earnings of such entity inures to the benefit

of any private shareholder or individual.

(5) Labor, agricultural, or horticultural organizations.

(6) Business leagues, chambers of commerce, real-estate

boards, boards of trade, or professional football leagues (whether

or not administering a pension fund for football players), not orga-

nized for profit and no part of the net earnings of which inures to

the benefit of any private shareholder or individual.

(7) Clubs organized for pleasure, recreation, and other non-

profitable purposes, substantially all of the activities of which are

for such purposes and no part of the net earnings of which inures

to the benefit of any private shareholder.

§ 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

§ 501

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of the tax imposed by paragraph (1), there is hereby imposed a tax

(if such 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.

(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 modi-

fications 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 deductions shall be allowed

under section 172, and

chapter 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,

ment 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,

Title 26. Internal Revenue Code

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(2) contributes any amount to or for the use of any organi-

zation 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 fund of any State or local government,

such amount shall be treated as an amount not diverted for the per-

sonal 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.

(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 mak-

ing 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)—

§ 527

Section 527 was amended by Pub. L. 107-276, subsection 2(b), to add new subparagraph

(e)(5) on November 2, 2002. The law stipulated that this amendment shall take effect as

if it was included in the amendments made by Pub. L. 106-230, which became effective

July 1, 2000.

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(I) information regarding each separate ex-

penditure from and contribution to such organization,

and

(II) information regarding the person who

makes such contribution or receives such expendi-

ture,

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 orga-

nization 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:

(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 re-

ceives 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 orga-

nization.

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

Title 26. Internal Revenue Code

§ 527

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134

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 direc-

tion 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

(f) Exempt organization which is not political organization must

include certain amounts in gross income.

(1) In general. If an organization described in section 501(c)

which is exempt from tax under section 501(a) expends any amount

during the taxable year directly (or through another organization) for

an exempt function (within the meaning of subsection (e)(2)), then,

notwithstanding any other provision of law, there shall be included in

the gross income of such organization for the taxable year, and shall

be subject to tax under subsection (b) as if it constituted political

organization taxable income, an amount equal to the lesser of—

(A) the net investment income of such organization for

the taxable year, or

(B) the aggregate amount so expended during the taxable

year for such an exempt function.

(2) Net investment income. For purposes of this subsection,

the term “net investment income” means the excess of—

(A) the gross amount of income from interest, dividends,

rents, and royalties, plus the excess (if any) of gains from the

sale or exchange of assets over the losses from the sale or

exchange of assets, over

(B) the deductions allowed by this chapter which are

directly connected with the production of the income referred

to in subparagraph (A). For purposes of the preceding sentence,

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there shall not be taken into account items taken into account

for purposes of the tax imposed by section 511 (relating to tax

on unrelated business income).

(3) Certain separate segregated funds. For purposes of this

subsection and subsection (e)(1), a separate segregated fund (within

the meaning of section 610 of Title 18 or of any similar State statute,

or within the meaning of any State statute which permits the segre-

gation of dues moneys for exempt functions (within the meaning of

subsection (e)(2)) which is maintained by an organization described

in section 501(c) which is exempt from tax under section 501(a) shall

be treated as a separate 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 be allowed.

(3) Candidate. For purposes of paragraph (1), the term can-

didate” means, with respect to any Federal, State, or local elective

public office, an individual who—

(A) publicly announces that he is a candidate for nomi-

nation 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 high-

est 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—

Title 26. Internal Revenue Code

§ 527

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(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 designa-

tion 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 or-

ganization shall not be treated as an organization described in this

section—

(A) unless it has given notice to the Secretary, electroni-

cally 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 oc-

curs 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,

§ 527

Section 527(i) was amended by Pub. L. 107-276, enacted November 2, 2002. That law

stipulated that the amendments to subsections 527(i)(1) and (5) shall take effect as if included

in the amendments made by Pub. L. 106-230, which became effective July 1, 2000.

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pensated employees, contact person, custodian of records, and

members of its Board of Directors,

(D) the name and address of, and relationship to, any

related entities (within the meaning of section 168(h)(4)),

(E) whether the organization intends to claim an exemp-

tion 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 tax-

able 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 an exempt function.

(5) Exceptions. This subsection shall not apply to any

organization—

(A) to which this section applies solely by 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

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 subsec-

tion) 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,

Title 26. Internal Revenue Code

§ 527

Section 527(j) was amended by Pub. L. 107-276, enacted November 2, 2002.

Page 15

Federal Election Campaign Laws

138

(B) a failure to include any of the information required

to be shown by such disclosures or to show the correct infor-

mation,

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 purposes 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 ac-

cepts a contribution, or makes an expenditure, for an exempt function

during any calendar year shall file with the Secretary either—

(A) (i) inthecaseofacalendar 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,

(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 gen-

eral 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

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than the twentieth day after the last day of the month and shall

be complete as if the last day of the month, except that, in lieu

of filing the reports otherwise due in November and December

of any year in which a regularly scheduled general election is

held, a pre-general election report shall be filed in accordance

with subparagraph (A)(i)(II), a post-general election report

shall be filed in accordance with subparagraph (A)(i)(III), and

a year end report shall be filed not later than January 31 of the

following calendar year.

(3) Contents of report. A report required under paragraph

(2) shall contain the following information:

(A) The amount, 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 indi-

vidual) 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 pe-

riod 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 sub-

section) 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,

political organization,

(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

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(F) with respect to any expenditure which is an inde-

pendent expenditure (as defined in section 301 of such Act (2

U.S.C. § 431)).

(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,

to a national nominating convention of a political party, or

(D) a primary election held for the expression of a prefer-

ence 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, contribu-

tions 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, di

rectors, and general purposes of the organizations.

(B) Entities related 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

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141

(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.

§ 2501. Imposition of [gift] tax

(a) Taxable transfers.

(1) General rule. A tax, computed as provided in section

2502, is hereby imposed for each calendar year on the transfer of

property by gift during such calendar year by any individual, resident

or nonresident.

(5) Transfers to political organizations. Paragraph (1) shall

not apply to the transfer of money or other property to a political

organization (within the meaning of section 527(e)(1)) for the use

of such organization.

§ 6012. Persons required to make returns of income

(a) General rule. Returns with respect to income taxes under subtitle

A shall be made by the following:

(6) Every political organization (within the meaning of sec-

tion 527(e)(1)) and every fund treated under section 527(g) as if it

constituted a political organization, which has political organization

taxable income (within the meaning of section 527(c)(1)) for the

taxable year; and

Title 26. Internal Revenue Code

§ 6012

So in original. Section 3(a) of Pub. L. 107-276 revised subparagraph (a)(6) to strike

out “or which has gross receipts of $25,000 or more for the taxable year (other than

an organization to which section 527 applies solely by reason of subsection (f)(1) of

such section)” from the end. That law stipulated that the amendment to subparagraphs

6012(a)(6) shall take effect as if included in the amendments made by Pub. L. 106-230,

which became effective July 1, 2000.

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142

§ 6033. Returns by exempt organizations

(a) Organizations required to file.

(1) In general. Except as provided in paragraph (2), every

organization exempt from taxation under section 501(a) shall file an

annual return, stating specifically the items of gross income, receipts,

and disbursements, and such other information for the purpose of

carrying out the internal revenue laws as the Secretary may by forms

or regulations prescribe, and shall keep such records, render under

oath such statements, make such other returns, and comply with

such rules and regulations as the Secretary may from time to time

prescribe; except that, in the discretion of the Secretary, any orga-

nization described in section 401(a) may be relieved from stating in

its return any information which is reported in returns filed by the

employer which established such organization.

(2) Exceptions from filing.

(A) Mandatory exceptions. Paragraph (1) shall not apply

to—

(i) churches, their integrated auxiliaries, and con-

ventions or associations of churches,

(ii) any organization (other than a private founda-

tion, as defined in section 509(a)) described in subpara-

graph (C), the gross receipts of which in each taxable year

are normally not more than $5,000, or

(iii) the exclusively religious activities of any reli-

gious order.

(B) Discretionary exceptions. The Secretary may relieve

any organization required under paragraph (1) to file an infor-

mation return from filing such a return where he determines

that such filing is not necessary to the efficient administration

of the internal revenue laws.

to in subparagraph (A)(ii) are—

(i) a religious organization described in section

501(c)(3);

(ii) an educational organization described in section

170(b)(1)(A)(ii);

(iii) a charitable organization, or an organization for

the prevention of cruelty to children or animals, described

in section 501(c)(3), if such organization is supported, in

whole or in part, by funds contributed by the United States

or any State or political subdivision thereof, or is primarily

supported by contributions of the general public;

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143

(iv) an organization described in section 501(c)(3),

if such organization is operated, supervised, or controlled

by or in connection with a religious organization described

in clause (i);

(v) an organization described in section 501(c)(8);

and

(vi) an organization described in section 501(c)(1),

if such organization is a corporation wholly owned by the

United States or any agency or instrumentality thereof, or

a wholly-owned subsidiary of such a corporation.

(e) Special rules relating to lobbying activities.

(1) Reporting requirements.

(A) In general. If this subsection applies to an organiza-

tion for any taxable year, such organization—

(i) shall include on any return required to be filed

under subsection (a) for such year information setting

forth the total expenditures of the organization to which

section 162(e)(1) applies and the total amount of the dues

or other similar amounts paid to the organization to which

such expenditures are allocable, and

(ii) except as provided in paragraphs (2)(A)(i) and

(3), shall, at the time of assessment or payment of such

dues or other similar amounts, provide notice to each

person making such payment which contains a reason-

able estimate of the portion of such dues or other similar

amounts to which such expenditures are so allocable.

(B) Organizations to which subsection applies.

(i) In general. This subsection shall apply to any

organization which is exempt from taxation under sec-

tion 501 other than an organization described in section

501(c)(3).

(ii) Special rule for in-house expenditures. This

subsection shall not apply to the in-house expenditures

(within the meaning of section 162(e)(5)(B)(ii)) of an

organization for a taxable year if such expenditures do

not exceed $2,000. In determining whether a taxpayer

exceeds the $2,000 limit under this clause, there shall not

be taken into account overhead costs otherwise allocable

to activities described in subparagraphs (A) and (D) of

section 162(e)(1).

Title 26. Internal Revenue Code

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144

(iii) Coordination with section 527(f). This sub-

section shall not apply to any amount on which tax is

imposed by reason of section 527(f).

(g) Returns required by political organizations.

(1) In general. This section shall apply to a political orga-

nization (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 organiza-

tion (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 para-

graph (1) shall file an annual return

(A) containing the information required, and comply-

ing 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 subsec-

tion.

(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,

section 301(6) of the Federal Election Campaign Act of 1971

(2 U.S.C. § 431(6)) of a candidate for Federal office,

(D) which is a national committee (as defined in sec-

tion 301(14) of the Federal Election Campaign Act of 1971 (2

U.S.C. § 431(14)) 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 (2 U.S.C. § 431(4)), or

§ 6033