§ 4912. — Tax on disqualifying lobbying expenditures of certain organizations.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 26USC4912]
TITLE 26--INTERNAL REVENUE CODE
Subtitle D--Miscellaneous Excise Taxes
CHAPTER 41--PUBLIC CHARITIES
Sec. 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, Sec. 10714(a), Dec. 22, 1987, 101 Stat.
1330-470.)
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].''
Section Referred to in Other Sections
This section is referred to in sections 6033, 6501, 6511, 7454 of
this title.
