CLARIFICATION OF PROHIBITED POLITICAL ACTIVITIES.

SEC. 10711. CLARIFICATION OF PROHIBITED POLITICAL ACTIVITIES. (a) General Rule.— The following provisions are each amended by striking out “on behalf of any candidate” and inserting in lieu thereof “on behalf of (or in opposition to) any candidate”: (1) Section 170(c)(2)(D). (2) Section 501(c)(3). (3) Paragraphs (2) and (3) of section 2055(a). (4) Clauses (ii) and (iii) of section 2106(a)(2)(A). (5) Section 2522(a)(2). (6) Paragraphs (2) and (3) of section 2522(b). (b) Status After Disqualification Because of Political Activities.— (1) In general.— Paragraph (2) of section 504(a) (relating to status after organization ceases to qualify for exemption under section 501(c)(3) because of substantial lobbying) is amended to read as follows: “(2) is not an organization described in section 501(c)(3)— “(A) by reason of carrying on propaganda, or otherwise attempting, to influence legislation, or “(B) by reason of participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for public office,”. (2) Clerical amendments.— (A) The section heading for section 504 is amended by striking out “SUBSTANTIAL LOBBYING” and inserting in lieu thereof “SUBSTANTIAL LOBBYING OR BECAUSE OF POLITICAL ACTIVITIES”. (B) The table of sections for part I of subchapter F of chapter 1 is amended by striking out “substantial lobbying” in the item relating to section 504 and inserting in lieu thereof “substantial lobbying or because of political activities”. 101 STAT. 1330–465 (c) Effective Date.— The amendments made by this section shall apply with respect to activities after the date of the enactment of this Act.