Sec. 202. Loss of tax-exempt status for certain organizations failing to register or report election-related expenditures and contributions
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Part I of subchapter F of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: An organization described in section 501(c) shall not be exempt from taxation under section 501(a), and a political organization described in section 527 shall not be exempt from tax under such section, for any period after the date described in paragraph
(2)if such organization is required to register under section 303 or 353 of the Federal Election Campaign Act of 1971 or report under section 304 or 354 of such Act and fails to do so or, in the case of a report under such section 304 or 354, files an inaccurate report. The date described in this paragraph is the date on which the first failure described in paragraph
(1)occurred. Notwithstanding subsection (a), an organization shall not fail to be treated as exempt from tax under section 501(a) or section 527 if the sums for which there was a failure to report under section 304 or 354 of the Federal Election Campaign Act of 1971 aggregates $25,000 or less. An organization shall not fail to be treated as exempt from tax under section 501(a) or section 527 if the Secretary determines that the treasurer or responsible person with respect to such organization (within the meaning of section 352 of the Federal Election Campaign Act of 1971) has made best efforts to comply with the requirements to which the failure relates. In any case in which such failure relates to a failure to report the identification (as defined in section 301 of such Act) of a person, such best efforts shall not be considered to have been made unless the treasurer or responsible person made efforts to contact the person through multiple means of communication and attempted to use publicly available information to establish such identification. Any organization to which subsection
(a)applies, and any responsible individual with respect to such organization (as defined in section 4968(d)(2))— shall not be eligible to apply for exemption from taxation under section 501(a), and shall not be treated as a political organization under section 527, before the end of the Federal election cycle (as defined in section 351(2) of the Federal Election Campaign Act of 1971) in which the failure described in subsection
(a)occurred. If it is established to the satisfaction of the Secretary that a failure described in subsection (a)(1) was due to reasonable cause and not negligence or intentional disregard, then subsection
(a)shall not apply. . Section 501(a) of such Code is amended by striking or 503 and inserting 503, or 506 . The table of sections for part I of subchapter F of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 506. Requirement to register and report independent Federal election-related activity expenditures. . The amendments made by this section shall apply to contributions and expenditures made after December 31, 2014.