Section 6033 · Returns by exempt organizations

(b) Certain organizations described in section 501(c)(3) Every organization described in section 501(c)(3) which is subject to the requirements of subsection (a) shall furnish annually information, at such time and in such manner as the Secretary may by forms or regulations prescribe, setting forth— (1) its gross income for the year, (2) its expenses attributable to such income and incurred within the year, (3) its disbursements within the year for the purposes for which it is exempt, (4) a balance sheet showing its assets, liabilities, and net worth as of the beginning of such year, (5) the total of the contributions and gifts received by it during the year, and the names and addresses of all substantial contributors, (6) the names and addresses of its foundation managers (within the meaning of section 4946(b)(1)) and highly compensated employees, (7) the compensation and other payments made during the year to each individual described in paragraph (6), (8) in the case of an organization with respect to which an election under section 501(h) is effective for the taxable year, the following amounts for such organization for such taxable year: (A) the lobbying expenditures (as defined in section 4911(c)(1)), (B) the lobbying nontaxable amount (as defined in section 4911(c)(2)), (C) the grass roots expenditures (as defined in section 4911(c)(3)), and (D) the grass roots nontaxable amount (as defined in section 4911(c)(4)), (9) such other information with respect to direct or indirect transfers to, and other direct or indirect transactions and relationships with, other organizations described in section 501(c) (other than paragraph (3) thereof) or section 527 as the Secretary may require to prevent— (A) diversion of funds from the organization’s exempt purpose, or (B) misallocation of revenues or expenses, (10) the respective amounts (if any) of the taxes imposed on the organization, or any organization manager of the organization, during the taxable year under any of the following provisions (and the respective amounts (if any) of reimbursements paid by the organization during the taxable year with respect to taxes imposed on any such organization manager under any of such provisions): (A) section 4911 (relating to tax on excess expenditures to influence legislation), (B) section 4912 (relating to tax on disqualifying lobbying expenditures of certain organizations), (C) section 4955 (relating to taxes on political expenditures of section 501(c)(3) organizations), except to the extent that, by reason of section 4962, the taxes imposed under such section are not required to be paid or are credited or refunded, and (D) section 4959 (relating to taxes on failures by hospital organizations), (11) the respective amounts (if any) of— (A) the taxes imposed with respect to the organization on any organization manager, or any disqualified person, during the taxable year under section 4958 (relating to taxes on private excess benefit from certain charitable organizations), and (B) reimbursements paid by the organization during the taxable year with respect to taxes imposed under such section, except to the extent that, by reason of section 4962, the taxes imposed under such section are not required to be paid or are credited or refunded, (12) such information as the Secretary may require with respect to any excess benefit transaction (as defined in section 4958), (13) such information with respect to disqualified persons as the Secretary may prescribe, (14) such information as the Secretary may require with respect to disaster relief activities, including the amount and use of qualified contributions to which section 1400S(a) applies, (15) in the case of an organization to which the requirements of section 501(r) apply for the taxable year— (A) a description of how the organization is addressing the needs identified in each community health needs assessment conducted under section 501(r)(3) and a description of any such needs that are not being addressed together with the reasons why such needs are not being addressed, and (B) the audited financial statements of such organization (or, in the case of an organization the financial statements of which are included in a consolidated financial statement with other organizations, such consolidated financial statement).1 (16) such other information for purposes of carrying out the internal revenue laws as the Secretary may require. For purposes of paragraph (8), if section 4911(f) applies to the organization for the taxable year, such organization shall furnish the amounts with respect to the affiliated group as well as with respect to such organization.

(e) Special rules relating to lobbying activities (1) Reporting requirements (A) In general If this subsection applies to an organization for any taxable year, such organization— (i) shall include on any return required to be filed under subsection (a) for such year information setting forth the total expenditures of the organization to which section 162(e)(1) applies and the total amount of the dues or other similar amounts paid to the organization to which such expenditures are allocable, and (ii) except as provided in paragraphs (2)(A)(i) and (3), shall, at the time of assessment or payment of such dues or other similar amounts, provide notice to each person making such payment which contains a reasonable estimate of the portion of such dues or other similar amounts to which such expenditures are so allocable. (B) Organizations to which subsection applies (i) In general This subsection shall apply to any organization which is exempt from taxation under section 501 other than an organization described in section 501(c)(3). (ii) Special rule for in-house expenditures This subsection shall not apply to the in-house expenditures (within the meaning of section 162(e)(5)(B)(ii)) of an organization for a taxable year if such expenditures do not exceed $2,000. In determining whether a taxpayer exceeds the $2,000 limit under this clause, there shall not be taken into account overhead costs otherwise allocable to activities described in subparagraphs (A) and (D) of section 162(e)(1). (iii) Coordination with section 527(f) This subsection shall not apply to any amount on which tax is imposed by reason of section 527(f). (C) Allocation For purposes of this paragraph— (i) In general Expenditures to which section 162(e)(1) applies shall be treated as paid out of dues or other similar amounts to the extent thereof. (ii) Carryover of lobbying expenditures in excess of dues If expenditures to which section 162(e)(1) applies exceed the dues or other similar amounts for any taxable year, such excess shall be treated as expenditures to which section 162(e)(1) applies which are paid or incurred by the organization during the following taxable year. (2) Tax imposed where organization does not notify (A) In general If an organization— (i) elects not to provide the notices described in paragraph (1)(A) for any taxable year, or (ii) fails to include in such notices the amount allocable to expenditures to which section 162(e)(1) applies (determined on the basis of actual amounts rather than the reasonable estimates under paragraph (1)(A)(ii)), then there is hereby imposed on such organization for such taxable year a tax in an amount equal to the product of the highest rate of tax imposed by section 11 for the taxable year and the aggregate amount not included in such notices by reason of such election or failure. (B) Waiver where future adjustments made The Secretary may waive the tax imposed by subparagraph (A)(ii) for any taxable year if the organization agrees to adjust its estimates under paragraph (1)(A)(ii) for the following taxable year to correct any failures. (C) Tax treated as income tax For purposes of this title, the tax imposed by subparagraph (A) shall be treated in the same manner as a tax imposed by chapter 1 (relating to income taxes). (3) Exception where dues generally nondeductible Paragraph (1)(A) shall not apply to an organization which establishes to the satisfaction of the Secretary that substantially all of the dues or other similar amounts paid by persons to such organization are not deductible without regard to section 162(e).

(j) Loss of exempt status for failure to file return or notice (1) In general If an organization described in subsection (a)(1) or (i) fails to file an annual return or notice required under either subsection for 3 consecutive years, such organization’s status as an organization exempt from tax under section 501(a) shall be considered revoked on and after the date set by the Secretary for the filing of the third annual return or notice. The Secretary shall publish and maintain a list of any organization the status of which is so revoked. (2) Application necessary for reinstatement Any organization the tax-exempt status of which is revoked under paragraph (1) must apply in order to obtain reinstatement of such status regardless of whether such organization was originally required to make such an application. (3) Retroactive reinstatement if reasonable cause shown for failure If, upon application for reinstatement of status as an organization exempt from tax under section 501(a), an organization described in paragraph (1) can show to the satisfaction of the Secretary evidence of reasonable cause for the failure described in such paragraph, the organization’s exempt status may, in the discretion of the Secretary, be reinstated effective from the date of the revocation under such paragraph.

(n) Cross references For provisions relating to statements, etc., regarding exempt status of organizations, see section 6001. For reporting requirements as to certain liquidations, dissolutions, terminations, and contractions, see section 6043(b). For provisions relating to penalties for failure to file a return required by this section, see section 6652(c). For provisions relating to information required in connection with certain plans of deferred compensation, see section 6058.