Page:United States Statutes at Large Volume 101 Part 2.djvu/1262

 101 STAT. 1330-468

PUBLIC L A W 100-203—DEC. 22, 1987 "SUBCHAPTER C. Political expenditures of section 501(c)(3) organizations. "SUBCHAPTER D. Abatement of first and second-tier taxes in certain cases."

26 USC 4955 note.

(d) EFFECTIVE DATES.—The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. SEC. 10713. ADDITIONAL ENFORCEMENT AUTHORITY IN THE CASE OF FLAGRANT POLITICAL EXPENDITURES. (a) AUTHORITY TO ENJOIN FLAGRANT POLITICAL EXPENDITURES.—

-''

26 USC 7409.

(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.—

^j^ ^^

"(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 5 .J 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 prin•£5, cipal place of business or for any district in which it has made '(jfT^ political expenditures. The court may exercise its jurisdiction over such action (as provided in section 7402(a)) separate and ty. apart from any other action brought by the United States tc against such organization. "(2) REQUIREMENTS.—An action may be brought under subsecj0 tion (a) only if— "(A) the Internal Revenue Service has notified the i;f«ivC organization of its intention to seek an injunction under bfis f 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, liif •;' or intervened in (including the publication or distribution of statements), any political campaign on behalf of aB (or in opposition to) any candidate for public office, and 31 "(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 interK vened in (including the publication or distribution of state' • ments), 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

�