The “Stealth PAC” law of 2000 requires political action committees (PACs) exempt under Section 527 of the federal tax code to register with the IRS and report their contributions and expenditures. (Contributions to 527 organizations are not tax dedcutible.) The National Federation of Republican Assemblies filed a constitutional challenge to the law in federal court in Alabama soon after it passed. On August 27 Judge Richard Vollmer of the U.S. District Court for Southern Alabama upheld part of the law and overturned part as unconstitutional. The ruling upheld a requirement that PACs disclose contributors in federal elections, but said expenditures do not have to be reported. The court also held that the provisions requiring disclosure of expenditures and contributors in state and local elections violates states’ rights. It is not yet clear whether or not the Justice Department will appeal the case to the Circuit Court. However, the IRS has said it will continue to enforce the law. Implementation and enforcement have been problematic, especially for PACs that only work on state and local elections. See this previous Watcher article for details.