Us Code § 4912 - Tax on disqualifying lobbying expenditures of certain organizations
Full text of Us Code United States Code § 4912 — Tax on disqualifying lobbying expenditures of certain organizations, with citation guidance and answers to common questions.
§ 4912. Tax on disqualifying lobbying expenditures of certain organizations
(a) Tax on organization
If an organization to which this section applies is not described in section 501(c)(3) for any taxable year by reason of making lobbying expenditures, there is hereby imposed a tax on the lobbying expenditures of such organization for such taxable year equal to 5 percent of the amount of such expenditures. The tax imposed by this subsection shall be paid by the organization.
(b) On management
If tax is imposed under subsection (a) on the lobbying expenditures of any organization, there is hereby imposed on the agreement of any organization manager to the making of any such expenditures, knowing that such expenditures are likely to result in the organization not being described in section 501(c)(3), a tax equal to 5 percent of the amount of such expenditures, unless such agreement is not willful and is due to reasonable cause. The tax imposed by this subsection shall be paid by any manager who agreed to the making of the expenditures.
(c) Organizations to which section applies
(1) In general
Except as provided in paragraph (2), this section shall apply to any organization which was exempt (or was determined by the Secretary to be exempt) from taxation under section 501(a) by reason of being an organization described in section 501(c)(3).
(2) Exceptions
This section shall not apply to any organization—
(A) to which an election under section 501(h) applies,
(B) which is a disqualified organization (within the meaning of section 501(h)(5)), or
(C) which is a private foundation.
(d) Definitions
(1) Lobbying expenditures
The term "lobbying expenditure" means any amount paid or incurred by the organization in carrying on propaganda, or otherwise attempting to influence legislation.
(2) Organization manager
The term "organization manager" has the meaning given to such term by section 4955(f)(2).
(3) Joint and several liability
If more than 1 person is liable under subsection (b), all such persons shall be jointly and severally liable under such subsection.
(Added Pub. L. 100–203, title X, §10714(a), Dec. 22, 1987, 101 Stat. 1330–470.)
Statutory Notes and Related Subsidiaries
Effective Date
Pub. L. 100–203, title X, §10714(e), Dec. 22, 1987, 101 Stat. 1330–472, provided that: "The amendments made by this section [enacting this section and amending sections 6501 and 7454 of this title] shall apply to taxable years beginning after the date of the enactment of this Act [Dec. 22, 1987]."
CHAPTER 42—PRIVATE FOUNDATIONS; AND CERTAIN OTHER TAX-EXEMPT ORGANIZATIONS
Editorial Notes
Amendments
2017—Pub. L. 115–97, title I, §13701(b), Dec. 22, 2017, 131 Stat. 2168, added item for subchapter H.
2006—Pub. L. 109–280, title XII, §1231(b)(2), Aug. 17, 2006, 120 Stat. 1098, which directed the addition of item for subchapter G to the analysis for chapter 42 without specifying the act to be amended, was executed by adding the item to this analysis, which is for chapter 42 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress.
Pub. L. 109–222, title V, §516(a)(2), May 17, 2006, 120 Stat. 371, added item for subchapter F.
1996—Pub. L. 104–168, title XIII, §1311(c)(6), July 30, 1996, 110 Stat. 1478, struck out item for subchapter D "Abatement of first and second-tier taxes in certain cases" and added items for subchapters D and E.
1987—Pub. L. 100–203, title X, §10712(c)(7), (9), Dec. 22, 1987, 101 Stat. 1330–467, substituted in chapter heading "AND CERTAIN OTHER TAX-EXEMPT ORGANIZATIONS" for "BLACK LUNG BENEFIT TRUSTS", struck out item for subchapter C "Abatement of first and second tier taxes in certain cases", and added items for subchapters C and D.
1984—Pub. L. 98–369, div. A, title III, §305(b)(3), July 18, 1984, 98 Stat. 784, substituted "Abatement of first and second tier taxes in certain cases" for "Abatement of second tier taxes where there is correction during correction period" in item for subchapter C.
1980—Pub. L. 96–596, §2(c)(3), Dec. 24, 1980, 94 Stat. 3474, added item for subchapter C.
1978—Pub. L. 95–227, §4(c)(2)(A), Feb. 10, 1978, 92 Stat. 22, in chapter heading inserted "; BLACK LUNG BENEFIT TRUSTS" after "FOUNDATIONS", and added items for subchapters A and B.
1969—Pub. L. 91–172, title I, §101(b), Dec. 30, 1969, 83 Stat. 498, added chapter heading "PRIVATE FOUNDATIONS".
1 Section numbers editorially supplied.
Subchapter A—Private Foundations
Editorial Notes
Amendments
1978—Pub. L. 95–227, §4(c)(2)(A), Feb. 10, 1978, 92 Stat. 22, added subchapter A heading and designated sections 4940 to 4948 as subchapter A.
1969—Pub. L. 91–172, title I, §101(b), Dec. 30, 1969, 83 Stat. 498, added analysis of sections.
About This Section
26 U.S.C. § 4912 is part of Title 26 of the United States Code. The United States Code is the official codification of federal statutes maintained by the Office of the Law Revision Counsel of the U.S. House of Representatives. Congress amends the Code through new public laws, which are eventually incorporated into the relevant title.
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