This bill would penalize tax-exempt organizations that make political contributions if those organizations have accepted money from foreign nationals. Specifically, if a tax-exempt group with at least $200,000 in annual gross receipts or $500,000 in assets receives a foreign donation within a two-year period and then contributes to a political committee or political action group, it would owe a penalty equal to twice the amount of that political contribution. The penalties escalate with repeated violations: the first violation triggers a 100 percent tax on the contribution amount, the second triggers a 200 percent tax, and any subsequent violations result in a 200 percent tax plus loss of tax-exempt status for two years. The bill would take effect one year after enactment and allows organizations to rely on donors' representations about their nationality unless the organization knew or should have known the information was false.
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