{
  "id": "RL33888",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "RL33888",
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  "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 347750,
      "date": "2008-02-08",
      "retrieved": "2016-04-07T03:40:49.127591",
      "title": "Section 527 Political Organizations: Background and Issues for Federal Election and Tax Laws",
      "summary": "Several prominent groups organized under \u00a7 527 of the Internal Revenue Code (IRC) were prominent players in the 2004 presidential election, raising and spending approximately $435 million and being widely seen as having an impact on the outcome of the race. Yet, some so-called \u201c527\u201d organizations remain outside the purview of federal election law. Section 527, added to the IRC in 1975, provides tax-exempt status to federal, state, and local political organizations. At first, it was generally thought that, with respect to federal election activities, political organizations correlated directly with political committees as defined under the Federal Election Campaign Act (FECA). It became clear by 2000, however, that this was not necessarily true because prevailing judicial interpretation of Supreme Court precedent has permitted FECA regulation of only those communications containing express advocacy (i.e., explicitly urging the election or defeat of clearly identified federal candidates). By avoiding such terms, groups could arguably promote issue positions in reference to particular federal elected officials without triggering FECA\u2019s disclosure, contribution limits, and source restrictions. Still, the groups qualified for the favorable tax treatment of \u00a7 527 organizations because that benefit is not limited to groups that conduct express advocacy.\nIn 2002, the Bipartisan Campaign Reform Act (BCRA) addressed express advocacy, but regulated only messages broadcast within 30 days of a primary or 60 days of a general election that referred to a federal office candidate. BCRA left unregulated such areas as broadcasts aired before elections and voter mobilization efforts. Groups wishing to engage in these activities and still avail themselves of the unlimited funding sources no longer available to political parties generally qualify for tax-exempt status under IRC \u00a7 527. Supporters of BCRA have led the effort to extend federal election law regulation to these types of 527 organizations, seeing the enormous amounts of money raised and spent in recent years as a result of the FEC\u2019s failure to enforce existing law. BCRA critics, however, insist that what occurred since 2004 was the predictable result of the ban on soft money activity by national parties, thus redirecting massive amounts of unregulated money to outside groups that are less accountable to the political system; they insist that many of these groups not engaging in express advocacy cannot be constitutionally regulated.\nIn the 109th Congress, the House twice passed similar bills to add 527 organizations to FECA\u2019s political committee definition, unless involved solely in state and local elections. The Senate Rules and Administration Committee reported a similar measure, but the Senate did not act on it. Similar bills (H.R. 420 and S. 463) have been offered in the 110th Congress. Other bills (H.R. 2316; H.R. 1204) that would affect 527s have also been introduced in the 110th Congress. This report explores the evolution of the 527 issue and attempts to address it in the courts, the Federal Election Commission, and Congress. It will be updated periodically to reflect further developments.",
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    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc813195/",
      "id": "RL33888_2007Feb21",
      "date": "2007-02-21",
      "retrieved": "2016-03-19T13:57:26",
      "title": "Section 527 Political Organizations: Background and Issues for Federal Election and Tax Laws",
      "summary": null,
      "type": "CRS Report",
      "typeId": "REPORT",
      "active": false,
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    }
  ],
  "topics": [
    "Constitutional Questions"
  ]
}