Sec. 201. Excise tax on certain tax-exempt organizations failing to report election-related expenditures
518 words·~2 min read·
/bill/113/s/791/is/section-201A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Chapter 42 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subchapter: Sec. 4968. Taxes on failure to report certain election-related activity. There is hereby imposed on each failure to report described in subsection
(b)by a covered tax-exempt organization a tax equal to 10 percent of the unreported amount. The tax imposed by this paragraph shall be paid by the organization. Unless a failure to report described in subsection
(b)is not due to negligence or intentional disregard, there is hereby imposed on the responsible individual with respect to the organization to which the failure to report relates, a tax equal to 2 1/2 percent of the amount thereof. The tax imposed by this paragraph shall be paid by the responsible individual. A failure to report is described in this subsection if such failure is a failure to report a covered contribution or an independent Federal election-related activity expenditure under section 354 of such Act. For purposes of this section, a failure to accurately report an amount shall be treated as a failure to report such amount to the extent of the difference between the amount required to be reported and the amount so reported. The tax imposed under subsection (a)(1) shall be reduced by any amount paid by such organization in connection with the failure to report described in subsection (b)— under any conciliation agreement with the Federal Election Commission under section 309 of the Federal Election Campaign Act of 1971, or under a civil penalty imposed by the Commission. The tax imposed under subsection (a)(2) shall be reduced by any amount paid by such responsible individual in connection with the failure to report described in subsection (b)— under any conciliation agreement with the Federal Election Commission under section 309 of the Federal Election Campaign Act of 1971, or under a civil penalty imposed by the Commission. For purposes of this section— The term covered tax-exempt organization means any organization which— without regard to any failure described in subsection (b)— would be described in section 501(c) and exempt from taxation under section 501(a), or is a political organization (as defined in section 527), and is an independent political actor (as defined in section 351(1) of such Act). The term responsible individual means, with respect to any covered tax-exempt organization, the individual designated as a responsible individual under section 352(a) of the Federal Election Campaign Act of 1971. If it is established to the satisfaction of the Secretary that a failure to report described in subsection
(b)was due to reasonable cause and not negligence or intentional disregard, then any tax imposed under subsection
(a)with respect to such failure (including interest) shall not be assessed and, if assessed, the assessment shall be abated and, if collected, shall be credited or refunded as an overpayment. . The table of subchapters for chapter 42 of such Code is amended by adding at the end the following new item: SUBCHAPTER H—Reporting election-related activity . The amendments made by this section shall apply to contributions and expenditures made after December 31, 2014.