Tuesday, August 1, 2023

A Different ACE Act Targets Exempt Organization Election-Related Activity & Reporting

DownloadRepresentative Bryan Steil, Chairman of the Committee on House Administration, introduced the American Confidence in Elections Act, touting it as "the most conservative election integrity bill to be seriously considered in the House in over 20 years." While most of its provisions relate to election law, several provisions relate directly to tax-exempt organizations:

  • Section 131 would amend section 501(c)(3) to prohibit organizations described in that section from providing "direct funding to any State or unit of local government for the purpose of the administration of elections for public office or any funding to any State or unit of local government in a case in which it is reasonable to expect such funding will be used for the purpose of the administration of elections for public office (except with respect to the donation of space to a State or unit of local government to be used as a polling 10 place in an election for public office)."
  • Section 163 would prohibit donations by foreign nationals to section 501(c) organizations that make or expect to make contributions to a political committee.
  • Section 308 would prohibit the collection of identifying information for any donor to a 501(c) organization, except as permitted under section 6033 and certain non-tax laws, and section 309(d) would amend section 6033 to codify the current administrative position that reporting of such information is not required for 501(c) organizations other than 501(c)(3)s.
  • Section 309 would also increase the section 6033 annual gross receipts filing threshold for an annual return (i.e., Form 990 series) from $5,000 to $50,000.
  • Section 310 would prohibit Treasury from issuing any guidance under section 501(c)(4) (other than guidance limited to a particular taxpayer) relating to whether an organization is operated exclusively for the promotion of social welfare and lock in the standard and definitions relating to this requirement that were used as of January 1, 2010.

Lloyd Mayer


Federal – Legislative | Permalink


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