Imposes escalating tax penalties on tax-exempt groups that give money to political committees or certain political nonprofits after receiving contributions from foreign nationals within the prior two years.

• Sets a penalty equal to twice the amount of any covered political contribution made by a tax-exempt organization with gross receipts of at least $200,000 or assets of at least $500,000
• Defines a covered contribution as one made to a political committee or a 501(c)(4) organization by a group that received a contribution or gift from a foreign national during the prior two years
• Adds escalating excise taxes under the tax-exempt organization rules, with a possible loss of tax-exempt status after a third or later violation within a 2-year period
• Applies to contributions made one year after the date of enactment

• Ways and Means Committee (House)

Taxation