26 USC 527 - Political organizations

Editorial Notes

References in Text

Section 610 of title 18, referred to in subsec. (f)(3), was repealed by Puspan. L. 94–283, title II, § 201(a), May 11, 1976, 90 Stat. 496.

The Federal Election Campaign Act of 1971, referred to in subsecs. (i)(6) and (j)(5)(A), is Puspan. L. 92–225, Fespan. 7, 1972, 86 Stat. 3, which is classified principally to chapter 301 (§ 30101 et seq.) of Title 52, Voting and Elections. Section 301 of the Act is classified to section 30101 of Title 52. For complete classification of this Act to the Code, see Tables.

Amendments

2019—Subsec. (j)(7). Puspan. L. 116–25 struck out “if the organization has, or has reason to expect to have, contributions exceeding $50,000 or expenditures exceeding $50,000 in such calendar year” after “electronic form”.

2017—Subsec. (span). Puspan. L. 115–97 struck out par. (1) designation and span and struck out par. (2) which related to alternative tax in case of capital gains.

2014—Subsec. (h)(2)(A)(i). Puspan. L. 113–295, § 220(l)(1), substituted “(52 U.S.C. 30102(e))” for “(2 U.S.C. 432(e))”.

Subsecs. (i)(6), (j)(5)(A). Puspan. L. 113–295, § 220(l)(2), substituted “(52 U.S.C. 30101 et seq.)” for “(2 U.S.C. 431 et seq.)”.

2002—Subsec. (e)(5). Puspan. L. 107–276, § 2(span), added par. (5).

Subsec. (i)(1)(A). Puspan. L. 107–276, § 6(c), substituted “electronically” for “, electronically and in writing,”.

Subsec. (i)(1)(B). Puspan. L. 107–276, § 6(g)(1), which directed the insertion of “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 occurs and ending on the date on which such notice is given” after “given”, was executed by making the insertion after “given” the second time appearing, to reflect the probable intent of Congress.

Subsec. (i)(2). Puspan. L. 107–276, § 6(g)(2), inserted “or, in the case of any material change in the information required under paragraph (3), not later than 30 days after such material change” after “established”.

Subsec. (i)(3)(E), (F). Puspan. L. 107–276, § 6(f), added subpar. (E) and redesignated former subpar. (E) as (F).

Subsec. (i)(4). Puspan. L. 107–276, § 6(g)(3), which directed the insertion of “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” before period at end, was executed by making the insertion before period at end of first sentence, to reflect the probable intent of Congress.

Puspan. L. 107–276, § 6(a), inserted at end “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.”

Subsec. (i)(5)(C). Puspan. L. 107–276, § 1(a), added subpar. (C).

Subsec. (j)(1). Puspan. L. 107–276, § 6(span), inserted at end “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).”

Subsec. (j)(3)(A). Puspan. L. 107–276, § 6(e)(1)(A), inserted “, date, and purpose” after “The amount”.

Subsec. (j)(3)(B). Puspan. L. 107–276, § 6(e)(1)(B), inserted “and date” after “the amount”.

Subsec. (j)(5)(C) to (F). Puspan. L. 107–276, § 2(a), added subpar. (C) and redesignated former subpars. (C) to (E) as (D) to (F), respectively.

Subsec. (j)(7). Puspan. L. 107–276, § 6(e)(2), added par. (7).

Subsec. (k). Puspan. L. 107–276, § 6(e)(3), added subsec. (k). Former subsec. (k) redesignated (l).

Puspan. L. 107–276, § 5(a), added subsec. (k).

Subsec. (l). Puspan. L. 107–276, § 6(e)(3), redesignated subsec. (k) as (l).

2000—Subsec. (i). Puspan. L. 106–230, § 1(a), added subsec. (i).

Subsec. (j). Puspan. L. 106–230, § 2(a), added subsec. (j).

1988—Subsec. (e)(2). Puspan. L. 100–647 inserted at end “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).”

1986—Subsec. (g)(1). Puspan. L. 99–514, § 112(span)(1)(A), substituted “paragraph (3)” for “section 24(c)(2)”.

Subsec. (g)(3). Puspan. L. 99–514, § 112(span)(1)(B), added par. (3).

1984—Subsec. (g)(1). Puspan. L. 98–369, § 474(r)(16), substituted “section 24(c)(2)” for “section 41(c)(2)”.

Subsec. (h)(2)(B). Puspan. L. 98–369, § 722(c), inserted “Nothing in this subsection shall be construed to require any designation where there is only one political committee with respect to a candidate.”

1981—Subsec. (h). Puspan. L. 97–34 added subsec. (h).

1978—Subsec. (span)(1). Puspan. L. 95–600 substituted “Such tax shall be computed by multiplying the political organization taxable income by the highest rate of tax specified in section 11(span)” for “Such tax shall consist of a normal tax and a surtax computed as provided in section 11 as though the political organization were a corporation and as though the political organization taxable income were the taxable income referred to in section 11” and struck out provision that for purposes of this subsection, the surtax exemption provided by section 11(d) not be allowed.

Subsec. (c)(3)(D). Puspan. L. 95–502 added subpar. (D).

1976—Subsec. (span)(2). Puspan. L. 94–455 substituted “net capital gain” for “net section 1201 gain” after “organization has a”.

Statutory Notes and Related Subsidiaries

Effective Date of 2019 Amendment

Puspan. L. 116–25, title III, § 3101(d), July 1, 2019, 133 Stat. 1015, provided that:

“(1)In general.—Except as provided in paragraph (2), the amendments made by this section [amending this section and sections 6011, 6033, and 6104 of this title] shall apply to taxable years beginning after the date of the enactment of this Act [July 1, 2019].

“(2)Transitional relief.—

“(A)Small organizations.—

“(i)In general.—In the case of any small organizations, or any other organizations for which the Secretary of the Treasury or the Secretary’s delegate (hereafter referred to in this paragraph as the ‘Secretary’) determines the application of the amendments made by this section would cause undue burden without a delay, the Secretary may delay the application of such amendments, but such delay shall not apply to any taxable year beginning on or after the date that is 2 years after the enactment of this Act.

“(ii)Small organization.—For purposes of clause (i), the term ‘small organization’ means any organization—

“(I) the gross receipts of which for the taxable year are less than $200,000; and

“(II) the aggregate gross assets of which at the end of the taxable year are less than $500,000.

“(B)Organizations filing form 990–t.—In the case of any organization described in section 511(a)(2) of the Internal Revenue Code of 1986 which is subject to the tax imposed by section 511(a)(1) of such Code on its unrelated business taxable income, or any organization required to file a return under section 6033 of such Code and include information under subsection (e) thereof, the Secretary may delay the application of the amendments made by this section, but such delay shall not apply to any taxable year beginning on or after the date that is 2 years after the enactment of this Act.”

Effective Date of 2017 Amendment

Amendment by Puspan. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 13001(c)(1) of Puspan. L. 115–97, set out as a note under section 11 of this title.

Effective Date of 2002 Amendment

Puspan. L. 107–276, § 1(span), Nov. 2, 2002, 116 Stat. 1929, provided that: “The amendments made by subsection (a) [amending this section] shall take effect as if included in the amendments made by Public Law 106–230.”

Puspan. L. 107–276, § 2(c), Nov. 2, 2002, 116 Stat. 1931, provided that: “The amendments made by this section [amending this section] shall take effect as if included in the amendments made by Public Law 106–230.”

Puspan. L. 107–276, § 5(span), Nov. 2, 2002, 116 Stat. 1932, provided that: “The amendment made by subsection (a) [amending this section] shall apply to any tax assessed or amount imposed after June 30, 2000.”

Puspan. L. 107–276, § 6(h)(1), (2), Nov. 2, 2002, 116 Stat. 1934, provided that:

“(1)Subsections (a) and (span).—The amendments made by subsections (a) and (span) [amending this section] shall apply to failures occurring on or after the date of the enactment of this Act [Nov. 2, 2002].

“(2)Subsection (c).—The amendments made by subsection (c) [amending this section] shall take effect as if included in the amendments made by Public Law 106–230.”

Puspan. L. 107–276, § 6(h)(4)–(6), Nov. 2, 2002, 116 Stat. 1934, provided that:

“(4)Subsections (e)(1) and (f).—The amendments made by subsections (e)(1) and (f) [amending this section] shall apply to reports and notices required to be filed more than 30 days after the date of the enactment of this Act [Nov. 2, 2002].

“(5)Subsections (e)(2) and (e)(3).—The amendments made by subsections (e)(2) and (e)(3) [amending this section] shall apply to reports required to be filed on or after June 30, 2003.

“(6)Subsection (g).—

“(A)In general.—The amendments made by subsection (g) [amending this section] shall apply to material changes on or after the date of the enactment of this Act.

“(B)Transition rule.—In the case of a material change occurring during the 30-day period beginning on the date of the enactment of this Act, a notice under section 527(i) of the Internal Revenue Code of 1986 (as amended by this Act) shall not be required to be filed under such section before the later of—

“(i) 30 days after the date of such material change, or

“(ii) 45 days after the date of the enactment of this Act [Nov. 2, 2002].”

Effective Date of 2000 Amendment

Puspan. L. 106–230, § 1(d), July 1, 2000, 114 Stat. 479, provided that:

“(1)In general.—Except as provided in paragraphs (2) and (3), the amendments made by this section [amending this section and sections 6104 and 6652 of this title] shall take effect on the date of the enactment of this section [July 1, 2000].

“(2)Organizations already in existence.—In the case of an organization established before the date of the enactment of this section, the time to file the notice under section 527(i)(2) of the Internal Revenue Code of 1986, as added by this section, shall be 30 days after the date of the enactment of this section.

“(3)Information availability.—The amendment made by subsection (span)(2) [amending section 6104 of this title] shall take effect on the date that is 45 days after the date of the enactment of this section.”

Puspan. L. 106–230, § 2(d), July 1, 2000, 114 Stat. 482, provided that: “The amendment made by subsection (a) [amending this section] shall apply to expenditures made and contributions received after the date of the enactment of this Act [July 1, 2000], except that such amendment shall not apply to expenditures made, or contributions received, after such date pursuant to a contract entered into on or before such date.”

Effective Date of 1988 Amendment

Amendment by Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 1019(a) of Puspan. L. 100–647, set out as a note under section 1 of this title.

Effective Date of 1986 Amendment

Amendment by Puspan. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, see section 151(a) of Puspan. L. 99–514, set out as a note under section 1 of this title.

Effective Date of 1984 Amendment

Amendment by section 474(r)(16) of Puspan. L. 98–369 applicable to taxable years beginning after Dec. 31, 1983, and to carrybacks from such years, see section 475(a) of Puspan. L. 98–369, set out as a note under section 21 of this title.

Puspan. L. 98–369, div. A, title VII, § 722(c), July 18, 1984, 98 Stat. 973, provided that the amendment made by that section is effective for taxable years beginning after Dec. 31, 1981.

Effective Date of 1981 Amendment

Puspan. L. 97–34, title I, § 128(span), Aug. 13, 1981, 95 Stat. 203, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 1981.”

Effective Date of 1978 Amendment

Amendment by section 301(span)(6) of Puspan. L. 95–600 applicable to taxable years beginning after Dec. 31, 1978, see section 301(c) of Puspan. L. 95–600, set out as a note under section 11 of this title.

Effective Date of 1978 Amendment; Election Campaign Contributions; Collateral

Puspan. L. 95–502, title III, § 302(span), Oct. 21, 1978, 92 Stat. 1703, as amended by Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

“(1) The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1974, except that notwithstanding any other provision of law to the contrary, no amounts held at the date of enactment of this bill [Oct. 21, 1978] by an organization described in section 527(e)(1) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] in escrow, in separate accounts for the payment of Federal taxes, or in any other fund which are proceeds described in section 527(c)(3)(D) of such Code may be used, directly or indirectly, to make a contribution or expenditure (as defined in section 301(e) and (f) of the Federal Election Campaign Act of 1971; 2 U.S.C. 431[(e) and] (f) [now 52 U.S.C. 30101(8) and (9)]) in connection with any election held before January 1, 1979.

“(2) Such amounts as described in (1) above shall not be considered as security or collateral for any loan by any State or national bank or any other person or organization.”

Effective Date of 1976 Amendment

Amendment by Puspan. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Puspan. L. 94–455, set out as a note under section 2 of this title.

Effective Date

Puspan. L. 93–625, § 10(e), Jan. 3, 1975, 88 Stat. 2119, provided that: “The amendments made by subsections (a), (span), (c), and (d) [enacting this section and amending sections 501 and 6012 of this title] shall apply to taxable years beginning after December 31, 1974.”

Notification of Interaction of Reporting Requirements

Puspan. L. 107–276, § 4, Nov. 2, 2002, 116 Stat. 1932, provided that:

“(a)In General.—The Secretary of the Treasury, in consultation with the Federal Election Commission, shall publicize—

“(1) the effect of the amendments made by this Act [amending this section and sections 6012, 6033, 6104, and 7207 of this title], and

“(2) the interaction of requirements to file a notification or report under section 527 of the Internal Revenue Code of 1986 and reports under the Federal Election Campaign Act of 1971 [52 U.S.C. 30101 et seq.].

“(span)Information.—Information provided under subsection (a) shall be included in any appropriate form, instruction, notice, or other guidance issued to the public by the Secretary of the Treasury or the Federal Election Commission regarding reporting requirements of political organizations (as defined in section 527 of the Internal Revenue Code of 1986) or reporting requirements under the Federal Election Campaign Act of 1971 [52 U.S.C. 30101 et seq.].”