State and Local Reporter - 08/05/2003 (Plain Text Version)

Debora Trimpe, Chair
Flower Mound, Texas

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In this issue:
Brookings' Report on Impact Fees Is Flawed, Says NAHB
Texas Adopts Major Building Industry Reform Package
Big Picture Look at State, Local Governments' Fiscal Crises
Notice and Opportunity to Repair Legislation Recap
New IRS Web Site for Sec. 527 Groups
Legal News: Two Precedent-Setting Cases Could Reach Supreme Court
Get State, Federal Legislative Information on Enhanced NAHB Web Site
NAHB-Supported Federal Tax Bill a Plus for Builders and Small Businesses
SLGA Conference Helps Alaska Association Advance NOR Bill
Industry News
Tools Available to Promote Positive Industry Image

New IRS Web Site for Sec. 527 Groups

The IRS recently unveiled its new Internet disclosure system of the financial activity of Section 527 groups, which are political organizations that can collect unlimited soft money contributions from special interests and spend it to influence elections.

The system includes a range of search features, such as contributor name and range of contributions. Users can also download some information for use in other databases.

Some of the improvements in the system include:

Section 527 committee names can be searched with wild-card characters and even if the user knows only part of the name. Previously, the exact spelling of a complete name had to be typed into the search engine to find that group.
Electronically filed data can be searched by contributor name, occupation, range of contributions by dollar amount, date of contribution and a number of other specific criteria.
Data files can be easily downloaded and converted into other, more useful database programs, such as Excel or SPSS.
Section 527 groups that raise or spend $50,000 or more are required to file electronically beginning with this year’s biannual reports at the end of July, making the information available to the public sooner (presumably within 48 hours of filing).
Section 527s must now include the date of each contribution and the purpose of expenditure in their disclosure reports.

Only those reports that have been filed electronically with the IRS are searchable by contributor or are downloadable. That means that the "advanced search" engine works only for the few reports that some groups voluntarily filed in electronic format. (The IRS Web site does not warn that only electronic reports may be searched with the advanced search engine.) Similarly, only the few reports filed electronically may be downloaded. Over time this will improve because Section 527s with $50,000 or more in financial activity are required to file electronic reports in the future, beginning this month.

In November 2002, Congress passed a Section 527 disclosure law, known as the Brady-Lieberman law (H.R. 5595), mandating that the IRS enhance the quality of the information filed by 527s and post this information promptly on the Internet in a searchable and downloadable fashion. The law required that the IRS meet these requirements by July 1, 2003.

Click here to visit the IRS’ Section 527 disclosure Web site.