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PAC Company Comments on Proposed EO Donor Disclosure Regs 

SEP. 18, 2019

PAC Company Comments on Proposed EO Donor Disclosure Regs 

DATED SEP. 18, 2019
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September 18, 2019

CC:PA:LPD:PR (REG-102508-16)
Room 5203
Internal Revenue Service
P.O. Box 7604 Ben Franklin Station
Washington, DC 20044

Greetings:

If the Service is truly interested in its "efficient use of resources" may I suggest that the requirement that Section 527 organizations that have registered and are complying with the state campaign disclosure laws that materially reflect what is required with respect to those entities that register and report to the Federal Election Commission (FEC) be exempted from filing Form 990 or Form 990S.

These entities are referred in the regulations as Qualified State and Local Political Organizations (QSLOPs) and are required to file Form 8871 notifying the Service that such an entity is being created and in which state(s) the entity will be registering and reporting. Years ago, the law was amended to drop the requirement that QSLOPs file periodic financial activity reports with the Service because that information was being furnished to the state campaign law regulators in the state(s) where the QSLOP was registered on regularly scheduled filing dates. And those agencies have websites the public can access for such information.

At present, QSLOPs that have annual receipts under $100,000 are exempt from the 990 filing requirements. Keep in mind those entities are filing, for example, six times a year in New York, listing all receipts from individuals over $100, including detailed information about the donors and all disbursements regardless of the amount. All the states have robust disclosure schedules that are much more detailed than what is required to be reported on Form 990. Currently if a QSLOP exceeds the $100,000 cap, it is required to file Form 990 or Form 990S, and that report isn't due until May 15th in the following year. One would have to agree that preparing and filing a report of political financial activity months after the fact is of little public value and relevancy.

To conclude: Requiring QSLOPs to file Form 990 or Form 990S irrespective of the level of financial activity is a drain on the resources of the filer, fails to provide timely and relevant information to the public, and does not improve compliance or aid to the effectiveness of the Code. The only possible beneficiary of this reporting requirement might be a CPA or tax preparer, and my guess would be they'd as soon use their time more efficiently serving their clients.

Respectfully submitted,

Wade S. Williams
President
PAC OUTSOURCING
Alexandria, VA

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