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

[Beth Kingsley]

Of course that has nothing to do with the deductibility of dues under 162(e).  Political activity for tax purposes is not limited to express advocacy.  

 

And the statement that 501(c)(4) contributions/dues/payments are deductible as business expenses applies only when there is a business connection to the payment.  It is certainly not true of all such payments.  

 

Beth

 

 

Elizabeth Kingsley 
Harmon, Curran, Spielberg & Eisenberg, LLP 
1726 M St., NW 
Suite 600 
Washington, DC 20036 
202-328-3500 

 

 

From: law-election-bounces at department-lists.uci.edu [mailto:law-election-bounces at department-lists.uci.edu] On Behalf Of Jim Lacy
Sent: Friday, May 13, 2011 4:48 PM
To: Ellen Aprill
Cc: law-election at uci.edu
Subject: Re: [EL] "I.R.S. Begins Enforcing Rule on Gifts toPolitical Nonprofits"

 

Correct, however, consider Wisconsin Right to Life and how far the Court has said a nonprofit c4 can go in criticizing an officeholder before it becomes express advocacy!

James V. Lacy

Sent from my iPhone

Confidentiality applies


On May 13, 2011, at 1:42 PM, Ellen Aprill <Ellen.Aprill at lls.edu> wrote:

	Yes, I stand corrected.  Thank you.  But not to the extent the expenses are for lobbyng or political activities because of 162(e).
	 
	  Ellen   
	
	----- Original Message -----
	From: WewerLacy at aol.com
	Date: Friday, May 13, 2011 12:31 pm
	Subject: Re: [EL] "I.R.S. Begins Enforcing Rule on Gifts to Political Nonprofits"
	To: Ellen.Aprill at lls.edu, rhasen at law.uci.edu
	Cc: law-election at uci.edu
	
	
	
	

> > 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
> > <http://www.wewerlacy.com/> 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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	Ellen P. Aprill 
	John E. Anderson Professor of Tax Law 
	Loyola Law School 
	919 Albany Street 
	Los Angeles, California 90015 
	Telephone: 213.736.1157 
	Fax: 213,380.3769 
	Ellen.Aprill at lls.edu 
	http://www.lls.edu/academics/faculty/aprill.html

	<Ellen.Aprill.vcf>

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