PACs Get Extension for Filing IRS Reports - May 13, 2002 Vol. 3 No. 10

May 13, 2002 Vol. 3 No. 10:

Published: 05/13/2002

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PACs Get Extension for Filing IRS Reports

The IRS has extended the deadline for PACs to file their registration and disclosure reports to July 15.

Since the Stealth PAC law became effective in July 2000 there has been confusion about which political committees exempt under Section 527 of the tax code are required to file reports at the Internal Revenue Service (IRS). Many state and local PACs wrongly assumed they were exempt because they do not support federal candidates and file reports at the state level. Efforts to exempt such groups have failed to pass in Congress, and many could have been liable for millions in fines for non-filing.

The IRS has extended the deadline for PACs to file their registration and disclosure reports to July 15. (See IRS Notice 2002-34) After that date any group failing to file will be subject to the penalties. In an effort to encourage voluntary compliance and educate Section 527 organizations about their obligations under the law, the IRS has issued a new fact sheet detailing what forms are needed, and how the deadlines are determined.