PUBLIC LAW 100-203—DEC. 22, 1987
101 STAT. 1330-469
to ensure that the assets of such organization are preserved for charitable or other purposes specified in section 501(c)(3). "(c) DEFINITIONS.—For purposes of this section, the terms 'section 501(c)(3) organization' and 'political expenditures' have the respective meanings given to such terms by section 4955." (2) CLERICAL AMENDMENT.—The table of sections for sub" chapter A of chapter 76 is amended by striking the item relating to section 7409 and inserting in lieu thereof the 1^. following: "Sec. 7409. Action to enjoin flagrant political expenditures of section 501(c)(3) organizations. "Sec. 7410. Cross references." (h) AUTHORITY TO MAKE IMMEDIATE ASSESSMENTS.—
(1) IN GENERAL.—Part I of subchapter A of chapter 70 (relating to termination of taxable year) is amended by adding at the end thereof the following new section:
"SEC. 6852. TERMINATION ASSESSMENTS IN CASE OF FLAGRANT POLITICAL EXPENDITURES OF SECTION 501(c)(3) ORGANIZATIONS. ^
26 USC 6852.
"(a) AUTHORITY TO MAKE.—
"(1) IN GENERAL.—If the Secretary finds that— „• "(A) a section 501(c)(3) organization has made political ^,' [;: expenditures, and (B) such expenditures constitute a flagrant violation of the prohibition against making political expenditures, the Secretary shall immediately make a determination of any income tax payable by such organization for the current or immediately preceding teixable year, or both, and shall immediately make a determination of any tax payable under section 4955 by such organization or any maneiger thereof with respect ,. to political expenditures during the current or preceding taxable year, or both. Notwithstanding any other provision of law, any such tax shall become immediately due and payable. The Secretary shall immediately assess the amount of tax so deterI mined (together with all interest, additional amounts, and addi' tions to the tax provided by law) for the current year or the preceding taxable year, or both, and shall cause notice of such ^ determination and assessment to be given to the organization or
any manager thereof, as the case may be, together with a . demand for immediate payment of such tax. ^ "(2) COMPUTATION OF TAX.—In the case of a current taxable . year, the Secretary shall determine the taxes for the period ' beginning on the 1st day of such current taxable year and ending on the date of the determination under paragraph (1) as though such period were a taxable year of the organization, and shall take into account any prior determination made under this subsection with respect to such current taxable year. • "(3) TREATMENT OF AMOUNTS COLLECTED.—Any amounts collected as a result of any assessments under this subsection shall, to the extent thereof, be treated as a payment of income tax for such taxable year, or tax under section 4955 with respect to the expenditure, as the case may be. (4) SECTION INAPPUCABLE TO ASSESSMENTS AFTER DUE DATE.—
This section shall not authorize any assessment of tax for the preceding taxable year which is made after the due date of the organization's return for such taxable year (determined with regard to any extensions).
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