[EL] Treatment of independent political expenditures on a company's financial books

[Volokh, Eugene]

               That may well be so, though I'm not sure that I would treat the deductibility of business expenses as a "subsidy."  My point, though, was just to suggest that there is already likely a longstanding practice with regard to this, given that corporations have long been able to speak out about ballot measures.  It seems to me the rule with regard to corporate speech about candidates ought to be the same.

Of course, now that I think of it, since in half the states corporations had been able to speak out about candidates even before Citizens United, there may have been a well-settled practice with regard to deductibility of those expenses as well.

Eugene

From: Fredric Woocher [mailto:fwoocher at strumwooch.com]
Sent: Wednesday, September 28, 2011 2:30 PM
To: Volokh, Eugene; law-election at uci.edu
Subject: RE: [EL] Treatment of political contributions on a company's financial books

Constitutionally protected "speech," yes.  But wouldn't taking a tax deduction for these expenditures as a "business expense" make them taxpayer-subsidized?  I don't think the Constitution requires that.

Fredric D. Woocher
Strumwasser & Woocher LLP
10940 Wilshire Blvd., Ste. 2000
Los Angeles, CA 90024
fwoocher at strumwooch.com<mailto:fwoocher at strumwooch.com>
(310) 576-1233


________________________________
From: law-election-bounces at department-lists.uci.edu [mailto:law-election-bounces at department-lists.uci.edu] On Behalf Of Volokh, Eugene
Sent: Wednesday, September 28, 2011 10:07 AM
To: law-election at uci.edu
Subject: Re: [EL] Treatment of political contributions on a company's financial books
               I take it this refers largely to independent political expenditures, or to contributions to independent organizations that make such expenditures, since Citizens United did not strike down the ban on direct contributions to candidates.  And I would think such an independent expenditure supporting or opposing a candidate would be treated the same way as independent expenditures supporting or opposing ballot measures, which have long been seen as constitutionally protected, no?

               Eugene

From: law-election-bounces at department-lists.uci.edu [mailto:law-election-bounces at department-lists.uci.edu] On Behalf Of Ellen Aprill
Sent: Wednesday, September 28, 2011 10:04 AM
To: law-election at uci.edu
Subject: [EL] Treatment of political contributions on a company's financial books

As has been discussed on this list, Section 162(e) makes these amounts nondeductible for tax purposes.  Especially now that Citizens United has held that corporations can make political contributions and in light of the Super-Pacs, I was hoping that someone on the list knows how auditors treat these amounts for purposes of financial reporting.
Thanks.

   Ellen
--
Ellen P. Aprill
John E. Anderson Professor of Tax Law
Loyola Law School
919 Albany Street
Los Angeles, CA 90015
213-736-1157

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