Page:United States Statutes at Large Volume 101 Part 2.djvu/1259

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101 STAT. 1330-465
101 STAT. 1330-465
PUBLIC LAW 100-000—MMMM. DD, 1987

PUBLIC LAW 100-203—DEC. 22, 1987

101 STAT. 1330-465

(c) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 170 note. apply with respect to activities after the date of the enactment of this Act. SEC. 10712. EXCISE TAXES ON POLITICAL EXPENDITURES BY SECTION 501(c)(3) ORGANIZATIONS. (a) GENERAL RULE.—Chapter 42 (relating to excise taxes on private foundations and black lung benefit trusts) is amended by redesignating subchapter C as subchapter D and by inserting after subchapter B the following new subchapter: ... "Subchapter C—Political Expenditures of Section 501(c)(3) Organizations "Sec. 4955. Taxes on political expenditures of section 501(c)(3) organizations. "SEC. 4955. TAXES ON POLITICAL EXPENDITURES OF SECTION 501(c)(3) ORGANIZATIONS. "(a) INITIAL TAXES.—

a

"(1) O N THE ORGANIZATION.—There is hereby imposed on each political expenditure by a section 501(c)(3) organization a tax i equal to 10 percent of the amount thereof. The tax imposed by • this paragraph shall be paid by the organization. "(2) O N THE MANAGEMENT.—There is hereby imposed on the agreement of any organization manager to the making of any expenditure, knowing that it is a political expenditure, a tax equal to 2y2 percent of the amount thereof, unless such agreement is not willful and is due to reasonable cause. The tax imposed by this paragraph shall be paid by any organization manager who agreed to the making of the expenditure. "(b) ADDITIONAL TAXES.—

"(1) O N THE ORGANIZATION.—In any case in which an initial tax is imposed by subsection (a)(1) on a political expenditure and such expenditure is not corrected within the taxable period, there is hereby imposed a tax equal to 100 percent of the ^ amount of the expenditure. The tax imposed by this paragraph ^ ' shall be paid by the organization. "(2) O N THE MANAGEMENT.—In any case in which an additional tax is imposed by paragraph (1), if an organization man^' ager refused to agree to part or all of the correction, there is hereby imposed a tax equal to 50 percent of the amount of the political expenditure. The tax imposed by this paragraph shall be paid by any organization manager who refused to agree to part or all of the correction. "(c) SPECIAL RULES.—For purposes of subsections (a) and 0))— "(1) JOINT AND SEVERAL LIABILITY.—If more than 1 person is liable under subsection (a)(2) or (b)(2) with respect to the making of a political expenditure, all such persons shall be jointly and severally liable under such subsection with respect to such . expenditure. "(2) LIMIT FOR MANAGEMENT.—With respect to any 1 political

5 expenditure, the maximum amount of the tax imposed by

subsection (a)(2) shall not exceed $5,000, and the maximum

amount of the tax imposed by subsection (b)(2) shall not exceed $10,000. "(d) POUTICAL EXPENDITURE.—For purposes of this section—

26 USC 4955.