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
This section shall not apply to any organization—
(A)to which an election under section
(B)which is a disqualified organization (within the meaning of section
(C)which is a private foundation.
(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
(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.
Section 10714(e) ofPub. L. 100–203provided that: “The amendments made by this section [enacting this section and amending sections
7454 of this title] shall apply to taxable years beginning after the date of the enactment of this Act [Dec. 22, 1987].”
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.
Description of Change
Statutes at Large
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