Number: RS21716
Title: Political Organizations Under Section 527 of the Internal Revenue Code
Authors: Erika Lunder, American Law Division 
Abstract: Political organizations have the primary purpose of influencing federal, state, or local elections and conducting similar activities. Those that qualify under Section 527 of the Internal Revenue Code are taxed only on certain income. Under the Code, 527 organizations are subject to reporting requirements that involve registration, the periodic disclosure of contributions and expenditures, and the annual filing of tax returns. Section 527 organizations must also comply with applicable campaign finance laws. In the 110th Congress, the 527 Transparency Act of 2007 (H.R. 1204) would change the frequency of the periodic disclosure requirements and the penalties for violating them, and the State and Local Candidate Fairness Act of 2007 (H.R. 3771) would change the tax rates at which state and local candidates' principal campaign committees are taxed. This report describes these organizations, the reporting requirements they face under the Internal Revenue Code, and the two bills.
Pages: 6
Date: January 28, 2008