(Sec. 2) Exempts a "qualified State or local political organization" from specified reporting requirements. Defines "qualified State or local political organization."
(Sec. 3) Requires an annual income tax return from political organizations only with respect to political organization taxable income. (Currently, such a return is required with respect to such income or if gross receipts exceed $25,000.) Exempts such returns from disclosure.
Requires the filing of an annual information return by a political organization with gross receipts of $25,000 or more or with gross receipts of $100,000 or more in the case of a qualified State or local political organization, except for certain organizations including: (1) a State or local committee of a political party, or political committee of a State or local candidate; (2) a caucus or association of State or local officials; (3) an authorized committee of a candidate for Federal office; (4) a national committee of a political party; or (5) a U.S. House of Representatives or U.S. Senate campaign committee of a political party committee.
(Sec. 4) Requires the Secretary of the Treasury to publicize the effects of this Act and the interaction of IRC requirements with Federal Election Campaign Act of 1971 requirements.
(Sec. 5) Permits the waiver of an organization's failure to comply tax if due to reasonable cause and not to willful neglect.
(Sec. 6) Makes additional amendments to IRC section 527 (Political Organizations) concerning: (1) unsegregated funds; (2) penalty assessment and collection procedures; (3) electronic filing; (4) public availability of notices and reports; and (5) timing of notice of material change.