Description:
H.R. 1295 would amend federal law concerning certain nonprofit and tax exempt civic leagues or organizations operated for the promotion of social welfare—known as 501(c)(4) organizations. Specifically, the bill would:
- Establish new monetary penalties for organizations that do not provide timely notification to the Treasury.
- Require the Treasury to acknowledge receipt of such notifications within 60 days; and
- Establish new monetary penalties for organizations that do not provide timely notification to the Treasury.
CBO and the staff of the Joint Committee on Taxation (JCT) estimate that enacting H.R. 1295 would increase fee and penalty collections (which are recorded in the budget as revenues) by $16 million over the 2016-2025 period. Because enacting the bill would affect revenues, pay-as-you-go procedures apply. Enacting the bill would not affect direct spending. In addition, CBO estimates that implementing H.R. 1295 would cost $5 million over the 2016-2020, assuming appropriation of the necessary amounts.
CBO and JCT have determined that H.R. 1295 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) and would not increase the budgets of state, local, or tribal governments.
