Page:United States Statutes at Large Volume 88 Part 2.djvu/803

 88 STAT. ]

PUBLIC LAW 93-625-JAN. 3, 1975

2119

elected to, or is a candidate (within the meaning of section 41(c) (2)) for nomination or election to, any Federal, State, or local elective public office for use by such individual exclusively for the preparation and circulation of such individual's newsletter shall, except as provided in paragraph (2), be treated as if such fund constituted a political organization, " (2) ADDITIONAL MODIFICATIONS.—In the case of any fund described in paragraph (1)— " (A) the exempt function shall be only the preparation and circulation of the newsletter, and " (B) the specific deduction provided by subsection (c) (2)(A) shall not be allowed." (b) REQUIREMENT OF RETURN.—Section 6012(a)

(relating to per-

sons required to make returns of income) is amended by striking out "and" at the end of paragraph (4), by inserting "and" at the end of paragraph (5), and by inserting after paragraph (5) the following new paragraph: "(6) Every political organization (within the meaning of section 6 2 7 (e)(1)), and every fund treated under section 527(g) as if it constituted a political organization, which has political organization taxable income (within the meaning of section 527(c)(1)) for the taxable year;". Section 6012(a) is amended by striking out the last sentence thereof. (c) CONFORMING AMENDMENT.—Section 501(b) (relating to tax on

^^ ^^'^ '*^-

^^ ^^^ ^°^^-

An^e, p. 2116.

^"'^' p-1297. 26 USC 501.

unrelated business income and certain other activities) is amended by striking out "parts II and III " each place it appears and inserting in lieu thereof "parts II, III, and VI". (d) CLERICAL AMENDMENT.—The table of parts for subchapter F is amended by adding at the end thereof the following new item: "Part VI. Political Organizations.".

(e) EFFECTIVE DATE.—The amendments made by subsections (a), (b), (c), and (d) shall apply to taxable years beginning after December 31, 1974. (f) EXEMPTION FROM F I L I N G REQUIREMENT FOR PRIOR YEARS W H E R E INCOME OF POLITICAL PARTY W A S $100 OR LESS.—In the case

of a taxable year beginning after December 31, 1971, and before January 1, 1975, nothing in the Internal Revenue Code of 1954 shall be deemed to require any organization described in section 527(e)(1) of such Code to file a return for the taxable year under such Code if such organization would be exempt from so filing under section 6012(a)(6) of such Code if such section applied to such taxable year. (g) TECHNICAL AMENDMENT.—The Act entitled "An Act to amend the Internal Revenue Code of 1954 with respect to advertising in a convention program of a national political convention", approved June 18, 1968 (82 Stat. 183; Public Law 90-346) is repealed. SEC. 11. EXTENSION OF EXISTING CREDIT AND DEDUCTION PROVISIONS FOR POLITICAL CONTRIBUTIONS TO CONTRIBUTIONS FOR NEWSLETTERS; TWO-YEAR RULE FOR ANNOUNCING CANDIDACY. (a) GENERAL RULE.—Section 41(a) (relating to contributions to candidates for public office) is amended by inserting "and all newsletter fund contributions" after "all political contributions". (b) VERIFICATION.—Section 41(b)(3) (relating to verification) is amended— (1) by striking out "political contribution" the first place it appears and inserting in lieu thereof "political contribution or newsletter fund contribution", and (2) by striking out "political contribution" the second place it appears and inserting in lieu thereof "contribution".

26 USC

527

note.

26 USC 6012 note.

26 USC 1 et seq. Ante, p,.

211f

Supra. Repeal.

26 USC

276

note.

26 USC

41.

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