The Congressional Research Service issued a report on June 19 regarding legislation pending which would reclassify the regulation of some 527 groups. Section 527 provides tax-exempt status to “political organizations.” The 527 Reform Act of 2007 (H.R. 420 and S. 463) would amend the Federal Election Campaign Act (FECA), switching 527 groups involved in federal elections from “political organizations” to “political committees,” which do not receive beneficial tax treatment. “Political organizations” are regulated under Section 527, whereas “political committees” fall under FECA oversight. According to the report summary, some groups that qualify for beneficial tax treatment as “political organizations” seemingly intend to influence federal elections in ways that may place them outside the FECA definition of “political committee.” Exceptions in the legislation include organizations that are not required to notify the IRS of their Section 527 status, that are used solely to fund office expenses or newsletters, or that have a state or local election focus.