[EL] eBay grassroots lobbying

[BZall at aol.com]

The IRS would likely treat this like any other kind of grassroots lobbying: 
 non-deductible under IRC 162(e). There are regulations on how such costs  
are accounted for. See, e.g., 
http://www.irs.gov/pub/irs-tege/eotopicb95.pdf. 
 
As to your point about "it is an interesting example of  how consumers can 
turn into mobilization targets, an advantage that only large  organizations 
would have", that's likely no longer true. In an age where Gundam style 
dancing and all sorts of other  "mobilizations" go viral, technology has given 
everyone a chance to speak in the  "big town hall." Ask the "pink slime" 
opponents. 

Barnaby Zall 
Of Counsel 
Weinberg, Jacobs  & Tolani, LLP 
10411 Motor City Drive, Suite 500
Bethesda, MD  20817
301-231-6943 (direct dial) 
bzall at aol.com  
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Any U.S. federal tax advice included in  this communication (including 
any attachments) was not intended or written  to be used, and cannot be 
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In a message dated 4/22/2013 12:01:38 P.M. Eastern Daylight Time,  
douglasrhess at gmail.com writes:

I just  got the email below. (I must have purchased something eBay
years ago. Maybe  a hand-knitted teapot cozy?)

I'm wondering: How is this sort of  mobilization counted for in
corporate taxes? If it is counted, what amount  do you think they would
put on this? Sending email is nearly free at the  margin for a large
list but database costs, staff time are not. Costs  aside, it is an
interesting example of how consumers can turn into  mobilization
targets, an advantage that only large organizations would  have.

-Doug
-----

Dear Douglas,

Congress is  considering online sales tax legislation that is
wrongheaded and unfair,  and I am writing to ask for your help in
telling Congress "No!" to new  sales taxes and burdens for small
businesses.

Whether you're a  consumer who loves the incredible selection and value
that small businesses  provide online, or a small-business seller who
relies on the Internet for  your livelihood, this legislation
potentially affects you. For consumers,  it means more money out of
your pocket when you shop online from your  favorite seller or small
business shop owner. For small business sellers,  it means you would be
required to collect sales taxes nationwide from the  more than 9,600
tax jurisdictions across the U.S. You also would face the  prospect of
being audited by out-of-state tax collectors. That's just  wrong, and
an unnecessary burden on you.

Big national retailers are  aggressively lobbying Congress to pass
online sales tax legislation to  "level the playing field" with Amazon.
And, as they compete with big  retail, Amazon is advocating for this
legislation too, while at the same  time they are seeking local tax
exemptions across the country to build  warehouses. This is a "big
retail battle" in which small businesses and  consumers have a lot to
lose. But eBay is fighting, as we have for more  than 15 years, to
protect small online businesses and sellers and ensure  healthy
competition, value, and selection that benefit consumers  online.

The solution is simple: if Congress passes online sales  tax
legislation, we believe small businesses with less than 50  employees
or less than $10 million in annual out-of-state sales should be  exempt
from the burden of collecting sales taxes nationwide. To put that  in
perspective, Amazon does more than $10 million in sales every  90
minutes. So we believe this is a reasonable exemption to protect  small
online businesses. That's what we're fighting for, and what  big
companies such as Amazon are fighting against.

I hope you agree  that imposing unnecessary tax burdens on small online
businesses is a bad  idea. Join us in letting your Members of Congress
know they should protect  small online businesses, not potentially put
them out of business. Click  here to make your voice heard. Together, I
believe our voices can make a  difference.

Sincerely,

John Donahoe
President and CEO
eBay  Inc.
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