,,ii #aacth ,,congress #ast ,session ,s4 #gia ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #bc1 #bjac ,mr4 ,wyden 7for himself and ,ms4 ,murkowski7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,federal ,election ,campaign ,act of #aiga and the ,internal ,revenue ,code of #aihf to require the disclosure of contributions and expenditures for independent ,federal election-related activity1 and for other purposes4 #a4 ,short title1 etc 7a7 ,short title ,this ,act may be cited as the ,follow the ,money ,act of #bjac4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title1 etc4 ,,title ,i--,comprehensive reporting of independent ,federal election-related expenditures and contributions ,sec4 #aja4 ,reporting of independent ,federal election-related activity expenditures and covered contributions4 ,sec4 #ajb4 ,increase in reporting thresholds for candidate only political committees4 ,sec4 #ajc4 ,instant disclosure system for contributions4 ,sec4 #ajd4 ,modification of rules relating to disclaimer statements required for certain communications4 ,sec4 #aje4 ,statements disavowing communications4 ,sec4 #ajf4 ,filing by ,senate candidates with commission4 ,,title ,,ii--,regulation of independent ,federal election-related activity by tax-exempt entities ,sec4 #bja4 ,excise tax on certain tax-exempt organizations failing to report election-related expenditures4 ,sec4 #bjb4 ,loss of tax-exempt status for certain organizations failing to register or report election-related expenditures and contributions4 ,sec4 #bjc4 ,section #ebg political organizations required to file with ,,fec4 ,sec4 #bjd4 ,application of whistleblower protections4 ,,title ,,iii--,other provisions ,sec4 #cja4 ,joint regulatory authority and advisory opinions4 ,sec4 #cjb4 ,denial of business expense deductions for certain businesses failing to report donations and independent ,federal election-related activity expenditures4 ,sec4 #cjc4 ,prohibition on discrimination against donors4 ,sec4 #cjd4 ,severability4 ,i ,comprehensive reporting of independent ,federal election-related expenditures and contributions #aja4 ,reporting of independent ,federal election-related activity expenditures and covered contributions 7a7 ,definitions ,section #ggja7;a7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraphs3 7#ea7 ,independent ,federal election-related activity expenditure 7,a7 ,in general ,the term independent ,federal election-related activity expenditure means-- 7i7 any expenditure that-- 7,i7 considering the facts and circumstances1 a reasonable person would conclude is made solely or substantially for the purpose of influencing or attempting to influence the nomination or election of any individual to any ,federal office 7including an expenditure for a public communication that promotes1 attacks1 supports1 or opposes a candidate72 and 7,,ii7 that is not made in concert or cooperation with1 or at the suggestion of a candidate1 the candidate's authorized committee1 or a political party committee2 and 7ii7 any payment made to another person if the transferor knows or has reason to know that such payment will be used to fund an expenditure described in clause 7i74 7,b7 ,regulations and advisory opinions ,for authority with respect joint regulations and advisory opinions1 see section #cja of the ,follow the ,money ,act of #bjac4 7,c7 ,other terms ,for purposes of this paragraph1 the terms candidate1 ,federal office1 election1 and public communication have the meaning given such terms under section #cja of the ,federal ,election ,campaign ,act of #aiga4 7#eb7 ,covered contribution 7,a7 ,in general ,the term covered contribution means anything of value received by an independent political actor 7as defined in section #cea7a7 of the ,federal ,election ,campaign ,act of #aiga7 which can be used by such person to make an independent ,federal election-related activity expenditure4 7,b7 ,exceptions ,a receipt from another person shall not be taken into account under subparagraph 7,a7-- 7i7 if such receipt occurred in a commercial transaction in the ordinary course of business2 7ii7 to the extent of the fair market value of any goods or services provided by the organization to such person in consideration for such amount2 or 7iii7 if such receipt was derived from investments made by the independent political actor 7as so defined74 7,c7 ,regulations and advisory opinions ,for authority with respect joint regulations and advisory opinions1 see section #cja of the ,follow the ,money ,act of #bjac4 4 7b7 ,registration and reporting ,title ,,iii of the ,federal ,election ,campaign ,act of #aiga 7#b ,u4,s4,c4 #dca7 is amended-- 7#a7 by inserting before section #cja the following3 ,a ,funds provided to candidates 1 and 7#b7 by adding at the end the following new subtitle3 ,b ,disclosure of other election-related expenditures and receipts #cea4 ,definitions ,in this subtitle3 7#a7 ,independent political actor 7,a7 ,in general ,the term independent political actor means1 with respect to any ,federal election cycle1 any person that-- 7i7 makes independent ,federal election-related activity expenditures of #aj1jjj or more during such ,federal election cycle2 7ii7 receives contributions which-- 7,i7 are intended by the transferor and understood by the recipient to be substantially used for making ,independent ,federal election-related activity expenditures1 and 7,,ii7 aggregate #aj1jjj or more during such ,federal election cycle2 or 7iii7 makes qualified solicitations to #ejj or more persons during such ,federal election cycle4 ,for purposes of clause 7iii71 the term qualified solicitation means any solicitation which discloses to contributors that a portion of funds received in response to the solicitation will be utilized for independent ,federal election-related activity expenditures4 7,b7 ,exclusion of candidate-only political committees ,the term independent political actor shall not include any political committee that exclusively makes contributions 7whether direct1 in-kind1 or via coordinated communications7 to candidates4 7#b7 ,federal election cycle ,the term ,federal election cycle means the period beginning on ,january #a of any odd numbered year and ending on ,december #ca of the following year4 7#c7 ,independent ,federal election-related activity expenditure ,the term independent ,federal election-related activity expenditure has the meaning given such term under section #ggja7ea7 of the ,internal ,revenue ,code of #aihf4 7#d7 ,covered contribution ,the term covered contribution has the meaning given such term under section #ggja7eb7 of the ,internal ,revenue ,code of #aihf4 #ceb4 ,organization of independent political actors 7a7 ,personnel 7#a7 ,in general ,each independent political actor shall designate-- 7,a7 a treasurer2 and 7,b7 a responsible individual4 7#b7 ,treasurer ,as provided by the ,commission in regulations-- 7,a7 the treasurer of an independent political actor shall have similar duties and responsibilities of the treasurer of a political committee under subsections 7b71 7c71 and 7d7 of section #cjb2 and 7,b7 rules similar to the rules of section #cjb7;i7 shall apply4 7#c7 ,joint and several liability ,the treasurer and responsible individual shall be jointly and severally liable with the independent political actor for any acts or omissions to which this ,act applies4 7b7 ,organization of accounts of independent political actors 7#a7 ,safe harbor account ,each independent political actor may elect to have a segregated safe harbor account with respect to each ,federal election cycle consisting of so much of the covered contributions 7including dues7 received from a person during the ,federal election cycle as does not exceed the lesser of-- 7,a7 #a1jjj2 or 7,b7 the amount of covered contributions 7including dues7 received from such person4 7#b7 ,supplemental contributions account ,each independent political actor may elect to have a segregated supplemental contribution account consisting of the dues and other covered contributions that-- 7,a7 are received in that account2 and 7,b7 are to be used only for the purpose of making independent ,federal election-related activity expenditures4 #cec4 ,registration 7a7 ,in general ,every person who is an independent political actor with respect to a ,federal election cycle shall file a registration statement with the ,commission not later than #aj days after such person becomes an independent political actor within the meaning of section #cea7a74 7b7 ,contents of registration statement ,the registration statement shall include the following3 7#a7 ,registrant information ,the name and address of the independent political actor1 the treasurer of the independent political actor1 the responsible individual with respect to the independent political actor1 and such other information as the ,commission may require4 7#b7 ,method for reporting contributions ,an election with respect to which of the following methods the independent political actor elects to use for reporting covered contributions received during the federal election cycle3 7,a7 ,all receipts ,a method under which the independent political actor elects to report all covered contributions received during the ,federal election cycle4 7,b7 ,use of safe harbor contribution account ,a method under which the independent political actor elects to make independent ,federal election-related activity expenditures only from amounts allocated to the safe harbor account of the independent political actor4 7,c7 ,use of supplemental contribution accounts ,a method under which the independent political actor-- 7i7 elects to make independent ,federal election-related expenditures only from amounts allocated to the supplemental contributions account of such independent political actor2 and 7ii7 reports all covered contributions made to the supplemental contribution account of such independent political actor4 7,d7 ,use of safe harbor and supplemental contribution accounts ,a method under which the independent political actor-- 7i7 elects make independent ,federal election-related expenditures only from amounts allocated to the safe harbor and supplemental contributions account of such independent political actor2 and 7ii7 reports all covered contributions made to the supplemental contribution account of such independent political actor4 7,e7 ,alternative allocation plan ,a method under which the independent political actor elects to make independent ,federal election-related expenditures and reports covered contributions under an alternative allocation plan approved by the ,commission4 ,an election under this subsection shall apply to a ,federal election cycle and shall be irrevocable for such ,federal election cycle4 7c7 ,registration number ,the ,commission shall designate a registration number for each independent political actor registered under this subsection4 7d7 ,amendments ,any change in information previously submitted in a registration statement of an independent political actor shall be reported not later than #aj days after the date of the change4 #ced4 ,reporting by independent political actors 7a7 ,requirement ,to file 7#a7 ,in general ,every treasurer of an independent political actor shall file a statement with the ,commission containing the information described in subsection 7b74 7#b7 ,timing of reporting 7,a7 ,in general ,the statement required to be made under paragraph 7#a7 shall be filed with the ,commission at the times such statement would be required to be filed if such person were an authorized political committee of a candidate4 7,b7 ,covered contributions 7i7 ,in general ,on and after the date the ,commission establishes the instant disclosure system described in section #ajc7;a7 of the ,follow the ,money ,act of #bjac1 each treasurer of an independent political actor which accepts a covered contribution shall file1 not later than the time provided under clause 7ii71 a statement with the ,commission containing the information described in clause 7iii74 7ii7 ,timing of reporting ,the statement required to be made under clause 7i7 shall be filed with the ,commission-- 7,i7 in the case of a covered contribution made by check1 before the date on which such check has been cashed or deposited into an account of the independent political actor2 7,,ii7 in the case of a covered contribution made by credit card or debit card1 within #dh hours of the receipt of such contribution2 and 7,,iii7 in any other case1 within #aj days of the receipt of such contribution4 7iii7 ,contents of statement ,each statement required to be filed under this clause shall contain the information required under subsection 7b77#b74 7b7 ,contents of statement ,each statement required to be filed under this subsection shall contain the following3 7#a7 independent ,federal election-related activity expenditures ,with respect to each independent ,federal election-related activity expenditure made by the person-- 7,a7 ,the date and amount of such expenditure4 7,b7 ,the name and address of the person to whom such expenditure is made4 7,c7 ,the purpose of the expenditure4 7,d7 ,whether such expenditure is in support of1 or in opposition to1 a candidate1 as well as the name and office sought by such candidate4 7,e7 ,whether the source of any ,federal-related activity expenditures was from-- 7i7 the safe harbor account of the independent political actor1 7ii7 a supplemental contributions account of the independent political actor1 or 7iii7 another source4 7#b7 ,covered contributions 7,a7 ,in general ,with respect to each covered contribution1 subject to subparagraphs 7,a71 7,b71 and 7,c71 the date and amount of each covered contribution received by an independent political actor4 7i7 ,all receipts method ,in the case of any independent political actor who has made an election under section #ceb7;b77#b77;,a71 the identification of each person who made covered contributions to such independent political actor during the ,federal election cycle4 7ii7 ,supplemental contributions accounts ,in the case of an independent political actor who has made an election under section #cec7;b77#b77;,b71 the identification of each person who made a covered contribution deposited into any such account during the ,federal election cycle4 7iii7 ,alternative allocation plan ,in the case of an independent political actor who enters into an alternative allocation plan with the ,commission under section #cec7;b77#b77;,c71 the information required to be reported under such alternative allocation plan4 7,b7 ,look through reporting for certain transfers ,in the case of any covered contribution received by an independent political actor which is a independent ,federal election-related activity expenditure of another independent political actor 7hereinafter in this subparagraph referred to as the transferor7 which is described in clause 7ii7 of section #ggja7;a77#ea77;,a7 of the ,internal ,revenue ,code of #aihf1 the independent political actor receiving such covered contribution shall attribute the amount of the covered contribution to the transferee and to each person identified in a report of the transferee under this paragraph before the date of such contribution in the proportion that the amount of covered contributions so identified by the transferee in such reports bears to the amount of the covered contribution received by the independent political actor4 7c7 ,confidentiality protections ,the ,commission may prescribe regulations to provide for an exception to the public disclosure of the identity of a person who makes a covered contribution under this section if-- 7#a7 the aggregate such contributions made by such person was #e1jjj or less2 and 7#b7 such person has demonstrated that disclosure of the person's identity will place the person at a particularized and specific risk of substantial injury to his or her person or business as a consequence of the disclosure4 #cee4 ,enforcement ,for purposes of section #cji-- 7#a7 a violation of section #ced7;a7 shall be treated as a violation of section #cjd7;a7 for purposes of subsection 7#d77;,c7 thereof1 and 7#b7 the amount required to be paid under any conciliation agreement or civil penalty imposed for a violation of section #cjd or section #ced shall be reduced by the amount of any tax imposed and paid under section #difi of the ,internal ,revenue ,code of #aihf4 4 7c7 ,coordination with existing requirements 7#a7 ,definition of political committee ,section #cja7d7 of the ,federal ,election ,campaign ,act of #aiga 7#b ,u4,s4,c4 #dcd7d77 is amended by adding at the end the following flush sentence3 ,such term shall not include any person who is an independent political actor1 as defined in section #cea7a744 7#b7 ,prohibition on transfer of funds from political committees ,section #cac7;b7 of such ,act 7#b ,u4,s4,c4 #dci;a7b77 is amended by adding at the end the following new paragraph3 7#c7 ,transfers for independent ,federal election-related activity expenditures ,a contribution to a political committee may not be-- 7,a7 transferred to a safe harbor account or a supplemental contribution account of an independent political actor 7as defined by section #cea72 or 7,b7 otherwise used for an independent ,federal election-related activity expenditure 7as defined in section #cea74 4 7#c7 ,termination of duplicate reporting requirements 7,a7 ,independent expenditures 7i7 ,in general ,section #cjd7;c7 of such ,act 7#b ,u4,s4,c4 #dcd7;c77 is amended by adding at the end the following new paragraph3 7#d7 ,termination ,this subsection shall not apply to expenditures made after ,december #ca1 #bjad4 4 7ii7 ,conforming amendment ,section #cjd77;g7 of such ,act 7#b ,u4,s4,c4 #dcd7;g77 is amended by adding at the end the following new paragraph3 7#e7 ,termination ,this subsection shall not apply to expenditures made after ,december #ca1 #bjad4 4 7,b7 ,electioneering communications ,section #cjd7;f7 of such ,act 7#b ,u4,s4,c4 #dcd7;f77 is amended by adding at the end the following new paragraph3 7#h7 ,termination ,paragraph 7#a7 shall not apply to expenditures made after ,december #ca1 #bjad4 4 7d7 ,effective date ,the amendments made by this section shall apply to contributions and expenditures made after ,december #ca1 #bjad4 #ajb4 ,increase in reporting thresholds for candidate only political committees 7a7 ,in general ,subparagraphs 7,a7 and 7,f7 of section #cjd7;b77#c7 of the ,federal ,election ,campaign ,act of #aiga 7#b ,u4,s4,c4 #dcd7;b77#c77;,a77 are each amended by striking in excess of #bjj and inserting in excess of #a1jjj4 7b7 ,political committees ,paragraph 7#c7 of section #cjd7;e7 of such ,act 7#b ,u4,s4,c4 #dcd7;e77 is amended to read as follows3 7#c7 ,itemization ,if a political committee has-- 7,a7 receipts to which this subsection applies from any person in excess of #bjj for any calendar year1 or 7,b7 disbursements to which this subsection applies to any person in excess of #a1jjj for any calendar year1 the political committee shall separately itemize its reporting for such person in the same manner as required in paragraphs 7#c77;,a71 7#e71 and 7#f7 of subsection 7b74 4 7c7 ,effective date ,the amendments made by this section shall apply to contributions and expenditures made after ,december #ca1 #bjad4 #ajc4 ,instant disclosure system for contributions 7a7 ,in general ,not later than ,january #a1 #bjae1 the ,federal ,election ,commission shall make available an instant disclosure system for use in reporting contributions under section #cjd of the ,federal ,election ,campaign ,act of #aiga 7#b ,u4,s4,c4 #dcd7 and covered contributions under section #ced of such ,act4 ,such system shall include a free internet-based system or free software through which participants may report4 7b7 ,use of system by political committees ,section #cjd7;a7 of the ,federal ,election ,campaign ,act of #aiga 7#b ,u4,s4,c4 #dcd7 is amended by adding at the end the following new paragraph3 7#ac7 ,reporting of contributions for certain political committees 7,a7 ,in general ,on and after the date the ,commission establishes the instant disclosure system described in section #ajc7;a7 of the ,follow the ,money ,act of #bjac1 each treasurer of a political committee which accepts a reportable contribution shall file1 not later than the time provided under subparagraph 7,b71 a statement with the ,commission containing the information described in subparagraph 7,c74 7,b7 ,timing of reporting ,the statement required to be made under subparagraph 7,a7 shall be filed with the ,commission-- 7i7 in the case of a reportable contribution made by check1 before the date on which such check has been cashed or deposited into an account of the independent political actor2 7ii7 in the case of a reportable contribution made by credit card or debit card1 within #dh hours of the receipt of such contribution2 and 7iii7 in any other case1 within #aj days of the receipt of such contribution4 7,c7 ,contents of statement ,each statement required to be filed under this subsection shall contain-- 7i7 the identification of the person who made the contribution1 and 7ii7 the date and amount of each contribution made by such person during the federal election cycle4 7,d7 ,reportable contribution ,for purposes of this paragraph1 the term reportable contribution means any contribution which would be required to be reported by the political committee under subparagraphs 7,a7 or 7,b7 of subsection 7b77#c7 on a report submitted under paragraph 7#b71 7#c71 or 7#d7 if such report covered activity through the day the statement under subparagraph 7,a7 were filed4 4 #ajd4 ,modification of rules relating to disclaimer statements required for certain communications 7a7 ,applying requirements to all independent ,federal election-,related activity expenditures ,section #cah7;a7 of the ,federal ,election ,campaign ,act of #aiga 7#b ,u4,s4,c4 #dda;d7a77 is amended by striking or whenever any person makes a disbursement for the purpose of financing communications expressly advocating the election or defeat of a clearly identified candidate1 or and inserting whenever an independent political actor makes a independent ,federal election-related activity expenditure consisting of a public communication1 or whenever any person4 7b7 ,stand by your ad requirements 7#a7 ,maintenance of existing requirements for communications by political parties and other political committees ,section #cah7;d77#b7 of such ,act 7#b ,u4,s4,c4 #dda;d7d77#b77 is amended-- 7,a7 in the heading1 by striking others and inserting political committees2 7,b7 by striking subsection 7a7 and inserting subsection 7a7 which is paid for by a political committee 7including a political committee of a political party72 and 7,c7 by striking or other person each place it appears4 7#b7 ,special disclaimer requirements for radio and television communications ,section #cah of such ,act 7#b ,u4,s4,c4 #dda;d7 is amended by adding at the end the following new subsection3 7e7 ,communications by others 7#a7 ,in general ,any communication described in paragraph 7#c7 of subsection 7a7 which is paid for by an independent political actor and transmitted through radio or television shall include1 in addition to the requirements of that paragraph1 the following3 7,a7 ,the name of the independent political actor1 conveyed by audio4 7,b7 ,the registration number of the independent political actor1 conveyed by audio4 7,c7 ,the top #c funders with respect to the registrant 7as described in paragraph 7#b771 together with the city or residence of each such funder1 unless1 on the basis of criteria established in regulations promulgated by the ,commission1 the communication is of such short duration that including the top #c funders with respect to the registrant would constitute a hardship to the person paying for the communication by requiring a disproportionate amount of the communication's content to consist of the top #c funders4 7#b7 ,top #c funders ,for purposes of paragraph 7#a71 the top #c funders described in this paragraph are the #c persons who provided the largest covered contributions to the independent political actor during the ,federal election cycle4 ,the ,commission shall provide for rules determining the top #c funders in any case in which #b or more persons are reported as having provided covered contributions4 7#c7 ,manner of statement ,the information required under paragraph 7#a7 4 7#c7 ,application to certain mass mailings ,section #cah7;a77#c7 of such ,act 7#b ,u4,s4,c4 #dda;d7a77#c77 is amended to read as follows3 7#c7 if not authorized by a candidate1 an authorized political committee of a candidate1 or its agents1 shall clearly state-- 7,a7 the name and permanent street address1 telephone number1 and1 if applicable1 the ,world ,wide ,web address of the person who paid for the communication2 7,b7 if the communication is a independent ,federal election-related activity expenditure made by an independent political actor-- 7i7 the name1 registration number1 and permanent street address1 telephone number1 and1 if applicable1 the ,world ,wide ,web address of the independent political actor2 7ii7 the name of the treasurer of the independent political actor2 and 7iii7 each person who would be included in the top #c funders which would be submitted with respect to the communication if the communication were transmitted through television1 if any 7as determined in accordance with subsection 7e77#b72 and 7,c7 that the communication is not authorized by any candidate or candidate's committee4 4 7#d7 ,application to political robocalls ,section #cah of such ,act 7#b ,u4,s4,c4 #dda;d71 as amended by paragraph 7#b71 is further amended by adding at the end the following new subsection3 7f7 ,special rules for political robocalls 7#a7 ,requiring communications to include certain disclaimer statements ,any communication consisting of a political robocall which would be subject to the requirements of subsection 7e7 if the communication were transmitted through radio or television shall include the following3 7,a7 ,the name and city and state of residence of the independent political actor4 7,b7 ,the registration number of the independent political actor4 7,c7 ,a phone number associated with the independent political actor where individuals may call with questions and comments and which is staffed during all hours in which such political robocalls are made and for #a hour after the last such political robocall was made4 7,d7 ,the top #c funders with respect to the registrant 7as described in subsection 7e77#b774 7#b7 ,timing of certain statement ,the statements required to be included under paragraph 7#a7 shall be made at the beginning of the political robocall1 unless1 on the basis of criteria established in regulations promulgated by the ,commission1 the communication is of such short duration that including the statement in the communication would constitute a hardship to the person paying for the communication by requiring a disproportionate amount of the communication's content to consist of the statement4 7#c7 ,political robocall defined ,in this subsection1 the term political robocall means any outbound telephone call-- 7,a7 in which a person is not available to speak with the person answering the call1 and the call instead plays a recorded message2 and 7,b7 which promotes1 supports1 attacks1 or opposes a candidate for election for ,federal office4 4 7#e7 ,additional authority 7,a7 ,in general ,section #cah of such ,act 7#b ,u4,s4,c4 #dda;d71 as amended by paragraph 7#d71 is further amended by adding at the end the following new subsection3 7g7 ,certain requirements determined by the ,commission ,the ,commission may by regulation prescribe disclosure requirements in addition to those required by this section for communications paid for through independent ,federal election-related activity expenditures1 including requirements for communications using new technologies4 4 7,b7 ,rulemaking ,not later than ,august #a of each odd numbered year beginning with calendar year #bjae1 the ,federal ,election ,commission shall issue an advanced notice of proposed rulemaking with respect to regulations under section #cah7;g7 of the ,federal ,election ,campaign ,act of #aiga4 7c7 ,effective date ,the amendments made by this section shall apply to communications made after ,december #ca1 #bjad1 and shall take effect without regard to whether or not the ,federal ,election ,commission has promulgated regulations to carry out such amendments4 #aje4 ,statements disavowing communications ,section #cjd of the ,federal ,election ,campaign ,act of #aiga 7#b ,u4,s4,c4 #dcd71 as amended by this ,act1 is amended by adding at the end the following new subsection3 7k7 ,statements of disavowal 7#a7 ,in general ,a candidate or an authorized committee of a candidate may file with the ,commission a statement disavowing any public communication which is not made in cooperation1 consultation1 or concert with such candidate or authorized committee4 7#b7 ,publication of statement ,the ,commission shall make such statement publicly available on the ,commission's website4 4 #ajf4 ,filing by ,senate candidates with commission 7a7 ,in general ,section #cjb7;g7 of the ,federal ,election ,campaign ,act of #aiga 7#b ,u4,s4,c4 #dcb7;g77 is amended to read as follows3 7g7 ,filing with the commission ,all designations1 statements1 and reports required to be filed under this ,act shall be filed with the ,commission4 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply to designations1 statements1 and reports required to be filed after the date that is #b months after the date of the enactment of this ,act4 ,,ii ,regulation of independent ,federal election-related activity by tax-exempt entities #bja4 ,excise tax on certain tax-exempt organizations failing to report election-related expenditures 7a7 ,in general ,chapter #db of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subchapter3 ,h ,reporting election-related activity ,sec4 #difh4 ,taxes on failure to report certain election-related activity4 #difh4 ,taxes on failure to report certain election-related activity 7a7 ,in general 7#a7 ,on the organization ,there is hereby imposed on each failure to report described in subsection 7b7 by a covered tax-exempt organization a tax equal to #aj percent of the unreported amount4 ,the tax imposed by this paragraph shall be paid by the organization4 7#b7 ,on the responsible person ,unless a failure to report described in subsection 7b7 is not due to negligence or intentional disregard1 there is hereby imposed on the responsible individual with respect to the organization to which the failure to report relates1 a tax equal to #ba_/b percent of the amount thereof4 ,the tax imposed by this paragraph shall be paid by the responsible individual4 7b7 ,failures ,to report described in this subsection ,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 #ced of such ,act4 ,for purposes of this section1 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 reported4 7c7 ,reduction in amount of tax 7#a7 ,taxes on the organization ,the tax imposed under subsection 7a77#a7 shall be reduced by any amount paid by such organization in connection with the failure to report described in subsection 7b7-- 7,a7 under any conciliation agreement with the ,federal ,election ,commission under section #cji of the ,federal ,election ,campaign ,act of #aiga1 or 7,b7 under a civil penalty imposed by the ,commission4 7#b7 ,taxes on the responsible individual ,the tax imposed under subsection 7a77#b7 shall be reduced by any amount paid by such responsible individual in connection with the failure to report described in subsection 7b7-- 7,a7 under any conciliation agreement with the ,federal ,election ,commission under section #cji of the ,federal ,election ,campaign ,act of #aiga1 or 7,b7 under a civil penalty imposed by the ,commission4 7d7 ,other definitions ,for purposes of this section-- 7#a7 ,covered tax-exempt organization ,the term covered tax-exempt organization means any organization which-- 7,a7 without regard to any failure described in subsection 7b7-- 7i7 would be described in section #eja7;c7 and exempt from taxation under section #eja7;a71 or 7ii7 is a political organization 7as defined in section #ebg71 and 7,b7 is an independent political actor 7as defined in section #cea7a7 of such ,act74 7#b7 ,responsible individual ,the term responsible individual means1 with respect to any covered tax-exempt organization1 the individual designated as a responsible individual under section #ceb7;a7 of the ,federal ,election ,campaign ,act of #aiga4 7e7 ,abatement ,if it is established to the satisfaction of the ,secretary that a failure to report described in subsection 7b7 was due to reasonable cause and not negligence or intentional disregard1 then any tax imposed under subsection 7a7 with respect to such failure 7including interest7 shall not be assessed and1 if assessed1 the assessment shall be abated and1 if collected1 shall be credited or refunded as an overpayment4 4 7b7 ,conforming amendment ,the table of subchapters for chapter #db of such ,code is amended by adding at the end the following new item3 ,,subchapter ,h--,reporting election-related activity 4 7c7 ,effective date ,the amendments made by this section shall apply to contributions and expenditures made after ,december #ca1 #bjad4 #bjb4 ,loss of tax-exempt status for certain organizations failing to register or report election-related expenditures and contributions 7a7 ,in general ,part ,i of subchapter ,f of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #ejf4 ,requirement to register and report independent ,federal election-related activity expenditures 7a7 ,in general 7#a7 ,loss of tax-exempt status ,an organization described in section #eja7;c7 shall not be exempt from taxation under section #eja7;a71 and a political organization described in section #ebg shall not be exempt from tax under such section1 for any period after the date described in paragraph 7#b7 if such organization is required to register under section #cjc or #cec of the ,federal ,election ,campaign ,act of #aiga or report under section #cjd or #ced of such ,act and fails to do so or1 in the case of a report under such section #cjd or #ced1 files an inaccurate report4 7#b7 ,time of loss of exemption ,the date described in this paragraph is the date on which the first failure described in paragraph 7#a7 occurred4 7b7 ,exceptions 7#a7 ,safe harbor ,notwithstanding subsection 7a71 an organization shall not fail to be treated as exempt from tax under section #eja7;a7 or section #ebg if the sums for which there was a failure to report under section #cjd or #ced of the ,federal ,election ,campaign ,act of #aiga aggregates #be1jjj or less4 7#b7 ,best efforts ,an organization shall not fail to be treated as exempt from tax under section #eja7;a7 or section #ebg if the ,secretary determines that the treasurer or responsible person with respect to such organization 7within the meaning of section #ceb of the ,federal ,election ,campaign ,act of #aiga7 has made best efforts to comply with the requirements to which the failure relates4 ,in any case in which such failure relates to a failure to report the identification 7as defined in section #cja of such ,act7 of a person1 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 identification4 7c7 ,denial of reinstatement ,any organization to which subsection 7a7 applies1 and any responsible individual with respect to such organization 7as defined in section #difh7;d77#b77-- 7#a7 shall not be eligible to apply for exemption from taxation under section #eja7;a71 and 7#b7 shall not be treated as a political organization under section #ebg1 before the end of the ,federal election cycle 7as defined in section #cea7b7 of the ,federal ,election ,campaign ,act of #aiga7 in which the failure described in subsection 7a7 occurred4 7d7 ,reasonable cause exception ,if it is established to the satisfaction of the ,secretary that a failure described in subsection 7a77#a7 was due to reasonable cause and not negligence or intentional disregard1 then subsection 7a7 shall not apply4 4 7b7 ,conforming amendments 7#a7 ,section #eja7;a7 of such ,code is amended by striking or #ejc and inserting #ejc1 or #ejf4 7#b7 ,the table of sections for part ,i of subchapter ,f of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #ejf4 ,requirement to register and report independent ,federal election-related activity expenditures4 4 7c7 ,effective date ,the amendments made by this section shall apply to contributions and expenditures made after ,december #ca1 #bjad4 #bjc4 ,section #ebg political organizations required to file with ,,fec ,section #ebg7;j7 of such ,code is amended by adding at the end the following new paragraph3 7#h7 ,nonapplication to independent political actors 7,a7 ,in general ,in the case of a political organization which is an independent political actor 7as defined in section #cea of the ,federal ,election ,campaign ,act of #aiga7-- 7i7 such political organization shall file statements and reports in accordance with section #ced of the ,federal ,election ,campaign ,act of #aiga1 and 7ii7 this subsection shall not apply with respect to information required to be included on such statements4 7,b7 ,cross-reference ,for failure to meet the requirements of subparagraph 7,a71 see sections #ejf and #difh4 4 #bjd4 ,application of whistleblower protections ,paragraph 7#e7 of section #gfbc7;b7 of the ,internal ,revenue ,code of #aihf is amended by striking any action and inserting any action which relates to a violation of section #ejf or to any other action4 ,,iii ,other provisions #cja4 ,joint regulatory authority and advisory opinions 7a7 ,regulations and forms 7#a7 ,joint regulations ,not later than ,september #cj1 #bjad1 the ,secretary of the ,treasury1 or the ,secretary's delegate1 and the ,federal ,election ,commission shall prescribe joint regulations with respect to-- 7,a7 the definitions of the terms independent ,federal election-related activity expenditure and covered contribution1 as defined in section #ggja7;a7 of the ,internal ,revenue ,code of #aihf and section #cea of the ,federal ,election ,campaign ,act of #aiga1 as added by this ,act1 and 7,b7 forms and regulations necessary to carry out the registration and reports required under sections #cec and #ced of the ,federal ,election ,campaign ,act of #aiga4 7#b7 ,treasury regulations ,in the case that the joint regulations described in paragraph 7#a7 have not been prescribed by ,september #ca1 #bjad1 the ,secretary of the ,treasury1 or the ,secretary's delegate1 shall prescribe such regulations not later than ,december #a1 #bjad1 and such regulations shall apply with respect to the administration1 application1 and enforcement of the ,federal ,election ,campaign ,act of #aiga4 7#c7 ,rule of construction ,the regulations promulgated under this subsection shall prescribe that the substance of any transaction shall control over the form of the transaction4 7b7 ,advisory opinions 7#a7 ,in general ,the ,secretary of the ,treasury1 or the ,secretary's delegate1 in consultation with the ,federal ,election ,commission1 shall issue advisory opinions on requests relating to the matters described under subsection 7a77#a74 7#b7 ,user fees ,the ,secretary of the ,treasury is authorized to impose user fees to cover the costs of any advisory opinions requested under paragraph 7#a71 and the ,secretary is authorized to transfer to the ,federal ,election ,commission1 and the ,commission is authorized to accept1 the portion of such fees which is determined to be related to costs incurred by the ,commission in connection with an advisory opinion4 7#c7 ,sense of ,congress ,it is the sense of ,congress that advisory opinions under this section shall be furnished within #cj days of the request unless public interest requires otherwise4 #cjb4 ,denial of business expense deductions for certain businesses failing to report donations and independent ,federal election-related activity expenditures 7a7 ,denial of deduction for election-,related activity expenditures 7#a7 ,in general ,paragraph 7#a7 of section #afb7;e7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#a7 ,in general ,no deduction shall be allowed under subsection 7a7 for-- 7,a7 any independent ,federal election-related activity expenditure 7as defined in section #ggja7;a77#ea771 or 7,b7 any amount paid or incurred in connection with-- 7i7 influencing legislation1 7ii7 participation in1 or intervention in1 any political campaign on behalf of 7or in opposition to7 any candidate for public office1 7iii7 any attempt to influence the general public1 or segments thereof1 with respect to elections1 legislative matters1 or referendums1 or 7iv7 any direct communication with a covered executive branch official in an attempt to influence the official actions or positions of such official4 4 7#b7 ,conforming amendments 7,a7 ,section #afb7;e77#b77;,a7 of such ,code is amended by striking paragraph 7#a77;,a7 and inserting paragraph 7#a77;,b77i74 7,b7 ,section #afb7;e77#e77;,b7 of such ,code is amended by striking paragraph 7#a77;,a7 and 7,d7 each place it appears and inserting paragraph 7#a77;,b77i7 and 7iv74 7,c7 ,section #fjcc7;e77#a77;,b77ii7 of such ,code is amended by striking subparagraphs 7,a7 and 7,d7 of section #afb7;e77#a7 and inserting clauses 7i7 and 7iv7 of section #afb7;e77#a77;,b74 7b7 ,exception to allowance of deduction for amounts expended on behalf of another person ,subparagraph 7,a7 of section #afb7;e77#e7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking ,in the case of and inserting the following3 7i7 ,in general ,except as provided in clause 7ii71 in the case of 1 and 7#b7 by adding at the end the following new clauses3 7ii7 ,exception not to apply with respect to certain organizations failing to file reports ,clause 7i7 shall not apply to any activity described in paragraph 7#a7 which is a independent ,federal election-related activity expenditure 7as defined in section #ggja7;a77#ea77 unless the taxpayer has complied with the requirements of sections #cjc1 #cjd1 #cec and #ced of the ,federal ,election ,campaign ,act of #aiga4 4 7c7 ,penalty for improperly claiming deduction 7#a7 ,in general ,section #fffb7;b7 of the ,internal ,revenue ,code of #aihf is amended by inserting after paragraph 7#g7 the following new paragraph3 7#h7 ,any improper independent ,federal election-related activity expenditure deduction4 4 7#b7 ,improper election-related activity expenditure deduction ,section #fffb of such ,code is amended by adding at the end the following new subsection3 7k7 ,improper independent ,federal election-related activity expenditure deduction ,for purposes of this subsection1 the term improper independent ,federal election-related activity expenditure deduction means1 for any taxable year1 any portion of an understatement for such taxable year which is attributable to any independent ,federal election-related activity expenditure 7as defined in section #ggja7;a77#ea77 improperly claimed as a deduction under section #afb4 4 7d7 ,certification of compliance on tax return 7#a7 ,in general ,the ,secretary of the ,treasury1 or the ,secretary's delegate1 shall revise appropriate tax forms to provide that the chief executive officer 7or the equivalent7 of any person claiming a trade or business expense as a deduction under section #afb of the ,internal ,revenue ,code of #aihf on an income tax return provide an answer to the following questions on such return3 7#a7 ,has the taxpayer made a independent ,federal election-related activity expenditure 7as defined in section #ggja7;a77#ea7 of the ,internal ,revenue ,code of #aihf7 during the period covered by the tax return8 7#b7 ,has the taxpayer claimed a deduction for any independent ,federal election-related activity expenditure 7as so defined7 on the tax return8 4 7#b7 ,penalty ,section #gbjg of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new sentence3 ,any person required to provide an answer with respect to election-related activity expenditures pursuant to section #cjc7;d77#a7 of the ,follow the ,money ,act of #bjac who willfully provides a false or fraudulent answer with respect to such expenditures shall be fined not more than #a1jjj1jjjj1 or imprisoned not more than #aj years1 or both44 7e7 ,effective date 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjad4 7#b7 ,certification and penalty ,the amendments made by subsection 7d7 shall apply to returns required to be filed after ,december #ca1 #bjad4 #cjc4 ,prohibition on discrimination against donors ,chapter #dc of title #ah1 ,united ,states ,code1 is amended by adding at the end the following new section3 #aibe4 ,prohibition on discrimination against donors in connection with ,federal elections ,whoever1 being an officer or employee of the ,united ,states or of any department or agency thereof1 discriminates against any person on the basis of any information reported under section #cjd or #ced of the ,federal ,election ,campaign ,act of #aiga shall be fined under this title #ah1 or imprisoned not more than one year1 or both2 and shall be removed from office or employment4 4 #cjd4 ,severability ,if any provision of this ,act or any amendment made by this ,act1 or the application of a provision to any person or circumstance1 is held to be unconstitutional1 the remainder of this ,act and the amendments made by this ,act1 and the application of the provisions to any person or circumstance1 shall not be affected by the holding4