[EL] "I.R.S. Begins Enforcing Rule on Gifts to Political Nonprofits"

[WewerLacy at aol.com]

No, Ellen, I am sorry, you are misinformed.   Contributions to  501(c)(4)s 
are not deductible as charitable  contributions under Section 170 of the 
Internal Revenue  Code.  Hence the required disclaimer, "Contributions and 
gifts to the (name  of organization) are not deductible as charitble 
contributions."  They  are, however, deductible as business expenses  under Section 
162, just as similar payments for 501(c)(6) chambers of commerce  are 
deductible, where a business expense can be rationalized by the activities  of the 
organization.  Such dues and payments from corporations to  501(c)(4)s are 
routinely deducted in quite large sums.  What I  articulated in my prior email 
is a correct statement of the tax law.
 
 
Best wishes,
 
Jim Lacy
Wewer & Lacy, LLP
_www.wewerlacy.com_ (http://www.wewerlacy.com) 
 
 
In a message dated 5/13/2011 11:04:30 A.M. Pacific Daylight Time,  
Ellen.Aprill at lls.edu writes:

Contributions  to 501(c)(4)’s are not deductible.  They are not going to be 
162 expenses  if given directly to a c-4.   
The  audit you describe seems a wrong conclusion to me as to the lower beer 
taxes –  it seems to me lobbying for which no deduction is allowed under 
162(e).   I don’t know what you mean by an unpublished opinion by the IRS – 
would you be  referring to a private letter ruling, the term we use in  tax?
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