No IRS deduction for lobbying expenses

ryanteaguebeckwith — Thu, 30 Apr 2009 09:28:59 -0400

Lobbying expenses are not deductible from the federal income tax.

As noted previously, former lobbyist Don Beason is being investigated by the N.C. Secretary of State over the amount of income he reported as lobbying related. (Instead, he may have considered some of his pay for consulting.)

Raleigh attorney Michael Weisel, who is working for some of Beason's former clients, tells Dome that there is a "natural tension" on the issue.

"Any costs/expenses characterized as lobbying are not deductible as a business expense," he writes in an e-mail. "Therefore, a business seeks to minimize the amount attributable to lobbying as defined by the IRS."

On the other hand, state law clearly outlines lobbying expenses.

Weisel took issue with Dome's use of the word "underreporting" for lobbyists who do not report income for consulting expenses.

"There is no 'underreporting' of compensation despite the investigators characterization," he wrote.

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No IRS deduction for lobbying expenses