SECTION 3. REQUEST FOR

COMMENTS

.01 The Service is considering whether to publish additional guidance concerning the application of § 527(l) to a political organization that fails to file a completed Form 8871 or Form 8872 in the time and manner prescribed. The Service requests public comment concerning (1) the need for additional guidance and (2) circumstances in which such a failure should be deemed to be due to reasonable cause and not due to willful neglect. For example,

under § 6724 and the regulations thereunder, a failure to comply with certain information reporting requirements is deemed to be due to reasonable cause and not due to willful neglect if the filer acted in a responsible manner and either there are significant mitigating factors with respect to the failure or the failure arose from events beyond the filer’s control. The regulations under § 6724 provide examples of acting in a responsible manner, significant mitigating factors and events beyond the organization’s control. However, the Service recognizes that the reporting requirements under § 527 have significant public disclosure and timeliness concerns (particularly in relation to public disclosure prior to elections) that may differentiate them from other information reporting requirements. Thus, comments should address the following questions:

(1) In applying § 527(l), how might the factors similar to those in the regulations under § 6724 be adapted for purposes of § 527(l)?

(a) Are there any significant mitigating factors that are unique to failures to file Form 8871 or Form 8872 in the time and manner prescribed?

(b) Are there any events beyond the political organization’s control that are unique to failures to file Form 8871 or Form 8872 in the time and manner prescribed?

(c) Are there any factors unique to political organizations that should be considered in determining whether a political organization acted in a responsible manner, both before and after a failure to file Form 8871 or Form 8872 in the time and manner prescribed?

(2) Are there any factors relevant to determining whether all or only a portion of the amounts assessed should be waived?

(3) What documentation should the political organization maintain to establish that any failure to file Form 8871 or

April 2, 2007 888 2007–14 I.R.B.