I.R.C. § 4912(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.
I.R.C. § 4912(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.
I.R.C. § 4912(c) Organizations To Which Section Applies
I.R.C. § 4912(c)(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).
I.R.C. § 4912(c)(2) Exceptions —
This section shall not apply to any organization—
I.R.C. § 4912(c)(2)(A) —
to which an election under section 501(h) applies,
I.R.C. § 4912(c)(2)(B) —
which is a disqualified organization
(within the meaning of section 501(h)(5)), or
I.R.C. § 4912(c)(2)(C) —
which is a private foundation.
I.R.C. § 4912(d) Definitions
I.R.C. § 4912(d)(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.
I.R.C. § 4912(d)(2) Organization Manager —
The term “organization manager” has the meaning given to such term by section 4955(f)(2).
I.R.C. § 4912(d)(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.)
BACKGROUND NOTES
EFFECTIVE DATE
Section 10714(e) of Pub. L. 100-203 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].”
