(1)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
(2)is not an organization described in section
(A)by reason of carrying on propaganda, or otherwise attempting, to influence legislation, or
(B)by reason of participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for public office,
shall not at any time thereafter be treated as an organization described in section
(b) Regulations to prevent avoidance
The Secretary shall prescribe such regulations as may be necessary or appropriate to prevent the avoidance of subsection (a), including regulations relating to a direct or indirect transfer of all or part of the assets of an organization to an organization controlled (directly or indirectly) by the same person or persons who control the transferor organization.
(c) Churches, etc.
Subsection (a) shall not apply to any organization which is a disqualified organization within the meaning of section
501(h)(5) (relating to churches, etc.) for the taxable year immediately preceding the first taxable year for which such organization is described in paragraph (2) of subsection (a).
A prior section
504, acts Aug. 16, 1954, ch. 736, 68A Stat. 168; Oct. 22, 1968, Pub. L. 90–630, § 6(a),
82 Stat. 1330, related to denial of exemption, prior to repeal by Pub. L. 91–172, title I, § 101(j)(15),Dec. 30, 1969, 83 Stat. 527. For effective date of repeal, see section 101(k)(2)(B) ofPub. L. 91–172, set out as an Effective Date note under section
4940 of this title.
1987—Pub. L. 100–203, § 10711(b)(2)(A), substituted “substantial lobbying or because of political activities” for “substantial lobbying” in section catchline.
Subsec. (a)(2). Pub. L. 100–203, § 10711(b)(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “is not an organization described in section
501(c)(3) by reason of carrying on propaganda, or otherwise attempting, to influence legislation,”.
Effective Date of 1987 Amendment
Amendment by Pub. L. 100–203applicable with respect to activities after Dec. 22, 1987, see section 10711(c) ofPub. L. 100–203, set out as a note under section
170 of this title.
Construction of Amendment
Section 1307(a)(3) ofPub. L. 94–455provided that: “It is the intent of Congress that enactment of this section [amending section
501 and enacting section
504 of this title] is not to be regarded in any way as an approval or disapproval of the decision of the Court of Appeals for the Tenth Circuit in Christian Echoes National Ministry, Inc. versus United States, 470 F.2d 849 (1972), or of the reasoning in any of the opinions leading to that decision.”
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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