Sec. 302. Denial of business expense deductions for certain businesses failing to report donations and independent Federal election-related activity expenditures
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Paragraph
(1)of section 162(e) of the Internal Revenue Code of 1986 is amended to read as follows: No deduction shall be allowed under subsection
(a)for— any independent Federal election-related activity expenditure (as defined in section 7701(a)(51)), or any amount paid or incurred in connection with— influencing legislation, participation in, or intervention in, any political campaign on behalf of (or in opposition to) any candidate for public office, any attempt to influence the general public, or segments thereof, with respect to elections, legislative matters, or referendums, or any direct communication with a covered executive branch official in an attempt to influence the official actions or positions of such official. . Section 162(e)(2)(A) of such Code is amended by striking paragraph (1)(A) and inserting paragraph (1)(B)(i) . Section 162(e)(5)(B) of such Code is amended by striking paragraph (1)(A) and
(D)each place it appears and inserting paragraph (1)(B)(i) and
(iv). Section 6033(e)(1)(B)(ii) of such Code is amended by striking subparagraphs
(A)and
(D)of section 162(e)(1) and inserting clauses
(i)and
(iv)of section 162(e)(1)(B) . Subparagraph
(A)of section 162(e)(5) of the Internal Revenue Code of 1986 is amended— by striking In the case of and inserting the following: Except as provided in clause (ii), in the case of , and by adding at the end the following new clauses: Clause
(i)shall not apply to any activity described in paragraph
(1)which is a independent Federal election-related activity expenditure (as defined in section 7701(a)(51)) unless the taxpayer has complied with the requirements of sections 303, 304, 353 and 354 of the Federal Election Campaign Act of 1971. . Section 6662(b) of the Internal Revenue Code of 1986 is amended by inserting after paragraph
(7)the following new paragraph: Any improper independent Federal election-related activity expenditure deduction. . Section 6662 of such Code is amended by adding at the end the following new subsection: For purposes of this subsection, the term improper independent Federal election-related activity expenditure deduction means, for any taxable year, any portion of an understatement for such taxable year which is attributable to any independent Federal election-related activity expenditure (as defined in section 7701(a)(51)) improperly claimed as a deduction under section 162. . The Secretary of the Treasury, or the Secretary's delegate, shall revise appropriate tax forms to provide that the chief executive officer (or the equivalent) of any person claiming a trade or business expense as a deduction under section 162 of the Internal Revenue Code of 1986 on an income tax return provide an answer to the following questions on such return: Has the taxpayer made a independent Federal election-related activity expenditure (as defined in section 7701(a)(51) of the Internal Revenue Code of 1986) during the period covered by the tax return? Has the taxpayer claimed a deduction for any independent Federal election-related activity expenditure (as so defined) on the tax return? . Section 7207 of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: Any person required to provide an answer with respect to election-related activity expenditures pursuant to section 303(d)(1) of the . Follow the Money Act of 2013 who willfully provides a false or fraudulent answer with respect to such expenditures shall be fined not more than $1,000,0000, or imprisoned not more than 10 years, or both. Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2014. The amendments made by subsection
(d)shall apply to returns required to be filed after December 31, 2014.