Internal talk:Public Policy Committee resolution

Under IRC 4911, Tax on excess expenditures to influence legislation, the definition of influencing legislation can be found. There is a 25% tax on "excess lobbying expenditures of any organization". The lobbying nontaxable amount for any organization for any taxable year is the lesser of (A) $ 1,000,000 or (B) the amount determined under the following:

If the exempt purpose ex- The lobbying nontaxable

 penditures are--             amount is--  

Not over $ 500,000 ....... 20 percent of the exempt

                              purpose expenditures. 

(d)Influencing legislation.

(1)General rule. Except as otherwise provided in paragraph (2), for purposes of this section, the term "influencing legislation" means--

(A) any attempt to influence any legislation through an attempt to affect the opinions of the general public or any segment thereof, and

(B) any attempt to influence any legislation through communication with any member or employee of a legislative body, or with any government official or employee who may participate in the formulation of the legislation.

(2) Exceptions. For purposes of this section, the term "influencing legislation", with respect to an organization, does not include--

(A) making available the results of nonpartisan analysis, study, or research;

(B) providing of technical advice or assistance (where such advice would otherwise constitute the influencing of legislation) to a governmental body or to a committee or other subdivision thereof in response to a written request by such body or subdivision, as the case may be;

(C) appearances before, or communications to, any legislative body with respect to a possible decision of such body which might affect the existence of the organization, its powers and duties, tax-exempt status, or the deduction of contributions to the organization;

(D) communications between the organization and its bona fide members with respect to legislation or proposed legislation of direct interest to the organization and such members, other than communications described in paragraph (3); and

(E) any communication with a government official or employee, other than--

(i) a communication with a member or employee of a legislative body (where such communication would otherwise constitute the influencing of legislation), or

(ii) a communication the principal purpose of which is to influence legislation.

(3) Communications with members.

(A) A communication between an organization and any bona fide member of such organization to directly encourage such member to communicate as provided in paragraph (1)(B) shall be treated as a communication described in paragraph (1)(B).

(B) A communication between an organization and any bona fide member of such organization to directly encourage such member to urge persons other than members to communicate as provided in either subparagraph (A) or subparagraph (B) of paragraph (1) shall be treated as a communication described in paragraph (1)(A).