NAACP avoiding taxes?

PoliticalJunkie — Thu, 30 Apr 2009 11:01:09 -0400

Is that why Rev. Barber refuses to register as a lobbyist despite the fact he is constantly at the legislature lobbying?

Excess lobbying taxed heavily

ryanteaguebeckwith — Thu, 30 Apr 2009 10:05:13 -0400

The IRS heavily taxes "excess lobbying expenses" by nonprofits.

According to Section 4911 of U.S.C. 26(D)(41), nonprofit organizations and public charities' lobbying expenditures are taxed at 25 percent above a certain threshold.

As with all federal tax questions, the rules are a little tricky, but the nontaxable amount can be as high as $1 million.

The IRS considers lobbying separate from grassroots activity aimed at influencing legislation. It also does not include nonpartisan research, providing technical advice to lawmakers, appearing before committees or communicating with members.

As noted previously, this sets up a "tension" between nonprofits who wish to keep their taxes low and state reporting requirements on lobbying, which follow different rules.

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NAACP avoiding taxes?

Excess lobbying taxed heavily