ADDITIONAL ENFORCEMENT AUTHORITY IN THE CASE OF FLAGRANT POLITICAL EXPENDITURES.

SEC. 10713. ADDITIONAL ENFORCEMENT AUTHORITY IN THE CASE OF FLAGRANT POLITICAL EXPENDITURES. (a) Authority To Enjoin Flagrant Political Expenditures.— (1) In general.— Subchapter A of chapter 76 (relating to civil actions by the United States) is amended by redesignating section 7409 as section 7410 and by inserting after section 7408 the following new section: “SEC. 7409. ACTION TO ENJOIN FLAGRANT POLITICAL EXPENDITURES OF SECTION 501(c)(3) ORGANIZATIONS. “(a) Authority To Seek Injunction.— “(1) In general.— If the requirements of paragraph (2) are met, a civil action in the name of the United States may be commenced at the request of the Secretary to enjoin any section 501(c)(3) organization from further making political expenditures and for such other relief as may be appropriate to ensure that the assets of such organization are preserved for charitable or other purposes specified in section 501(c)(3). Any action under this section shall be brought in the district court of the United States for the district in which such organization has its principal place of business or for any district in which it has made political expenditures. The court may exercise its jurisdiction over such action (as provided in section 7402(a)) separate and apart from any other action brought by the United States against such organization. “(2) Requirements.— An action may be brought under subsection (a) only if— “(A) the Internal Revenue Service has notified the organization of its intention to seek an injunction under this section if the making of political expenditures does not immediately cease, and “(B) the Commissioner of Internal Revenue has personally determined that— “(i) such organization has flagrantly participated in, or intervened in (including the publication or distribution of statements), any political campaign on behalf of (or in opposition to) any candidate for public office, and “(ii) injunctive relief is appropriate to prevent future political expenditures. “(b) Adjudication and Decree.— In any action under subsection (a), if the court finds on the basis of clear and convincing evidence that— “(1) such organization has flagrantly participated in, or intervened in (including the publication or distribution of statements), any political campaign on behalf of (or in opposition to) any candidate for public office, and “(2) injunctive relief is appropriate to prevent future political expenditures, the court may enjoin such organization from making political expenditures and may grant such other relief as may be appropriate 101 STAT. 1330–469to ensure that the assets of such organization are preserved for charitable or other purposes specified in section 501(c)(3). “(c) Definitions.— For purposes of this section, the terms ‘section 501(c)(3) organization’ and ‘political expenditures’ have the respective meanings given to such terms by section 4955.” (2) Clerical amendment.— The table of sections for subchapter A of chapter 76 is amended by striking the item relating to section 7409 and inserting in lieu thereof the following: “Sec. 7409. Action to enjoin flagrant political expenditures of section 501(c)(3) organizations. “Sec. 7410. Cross references.” (b) Authority To Make Immediate Assessments.— (1) In general.— Part I of subchapter A of chapter 70 (relating to termination of taxable year) is amended by adding at the end thereof the following new section: “SEC. 6852. TERMINATION ASSESSMENTS IN CASE OF FLAGRANT POLITICAL EXPENDITURES OF SECTION 501(c)(3) ORGANIZATIONS. “(a) Authority To Make.— “(1) In general.— If the Secretary finds that— “(A) a section 501(c)(3) organization has made political expenditures, and “(B) such expenditures constitute a flagrant violation of the prohibition against making political expenditures, the Secretary shall immediately make a determination of any income tax payable by such organization for the current or immediately preceding taxable year, or both, and shall immediately make a determination of any tax payable under section 4955 by such organization or any manager thereof with respect to political expenditures during the current or preceding taxable year, or both. Notwithstanding any other provision of law, any such tax shall become immediately due and payable. The Secretary shall immediately assess the amount of tax so determined (together with all interest, additional amounts, and additions to the tax provided by law) for the current year or the preceding taxable year, or both, and shall cause notice of such determination and assessment to be given to the organization or any manager thereof, as the case may be, together with a demand for immediate payment of such tax. “(2) Computation of tax.— In the case of a current taxable year, the Secretary shall determine the taxes for the period beginning on the 1st day of such current taxable year and ending on the date of the determination under paragraph (1) as though such period were a taxable year of the organization, and shall take into account any prior determination made under this subsection with respect to such current taxable year. “(3) Treatment of amounts collected.— Any amounts collected as a result of any assessments under this subsection shall, to the extent thereof, be treated as a payment of income tax for such taxable year, or tax under section 4955 with respect to the expenditure, as the case may be. “(4) Section inapplicable to assessments after due date.— This section shall not authorize any assessment of tax for the preceding taxable year which is made after the due date of the organization’s return for such taxable year (determined with regard to any extensions). 101 STAT. 1330–470 “(b) Definitions and Special Rules.— “(1) Definitions.— For purposes of this section, the terms ‘section 501(c)(3) organization’, ‘political expenditure’, and ‘organization manager’ have the respective meanings given to such terms by section 4955. “(2) Certain rules made applicable.— The provisions of sections 6851(b), 6861(f), and 6861(g) shall apply with respect to any assessment made under subsection (a), except that determinations under section 6861(g) shall be made on the basis of whether the requirements of subsection (a)(1)(B) of this section are met in lieu of whether jeopardy exists.” (2) Technical and conforming amendments.— (A) Clause (v) of section 6091(b)(1)(B) is amended by striking out “section 6851(a)” and inserting in lieu thereof “section 6851(a) or 6852(a)”. (B) Paragraph (1) of section 6211(b) is amended by striking out “section 6851” and inserting in lieu thereof “section 6851 or 6852”. (C) Paragraph (1) of section 6212(c) is amended by striking out “section 6851” and inserting in lieu thereof “section 6851 or 6852”. (D) Subsection (a) of section 6213 is amended by striking out “section 6851 or section 6861” and inserting in lieu thereof “section 6851, 6852, or 6861”. (E) Section 6863 is amended— (i) by striking out “6851” in subsection (a) and inserting in lieu thereof “6851, 6852,”, (ii) by striking out “6851 or 6861” in subsection (b)(3)(A) and inserting in lieu thereof “6851, 6852, or 6861”, and (iii) by striking out “6851(a) or 6861(a)” and inserting in lieu thereof “6851(a), 6852(a), or 6861(a)”. (F) Section 7429 is amended— (i) by striking out “6851(a),” each place it appears and inserting in lieu thereof “6851(a), 6852(a),”, and (ii) by striking out “6851,” each place it appears and inserting in lieu thereof “6851, 6852,”. (G) Paragraph (3) of section 7611(i) is amended by striking out “or section 6861” and inserting in lieu thereof “section 6852 relating to termination assessments in case of political expenditures of section 501(c)(3), or 6861”. (H) The table of sections for part I of subchapter 70 is amended by adding at the end thereof the following new item: “Sec. 6852. Termination assessments in case of flagrant political expenditures of section 501(c)(3) organizations, (c) Effective Date.— The amendments made by this section shall take effect on the date of the enactment of this Act.