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U.S. Code as of:
01/19/04
Section 4912. Tax on disqualifying lobbying expenditures of certain organizations
(a) Tax on organization
If an organization to which this section applies is not described
in section 501(c)(3) for any taxable year by reason of making
lobbying expenditures, there is hereby imposed a tax on the
lobbying expenditures of such organization for such taxable year
equal to 5 percent of the amount of such expenditures. The tax
imposed by this subsection shall be paid by the organization.
(b) On management
If tax is imposed under subsection (a) on the lobbying
expenditures of any organization, there is hereby imposed on the
agreement of any organization manager to the making of any such
expenditures, knowing that such expenditures are likely to result
in the organization not being described in section 501(c)(3), a tax
equal to 5 percent of the amount of such expenditures, unless such
agreement is not willful and is due to reasonable cause. The tax
imposed by this subsection shall be paid by any manager who agreed
to the making of the expenditures.
(c) Organizations to which section applies
(1) In general
Except as provided in paragraph (2), this section shall apply
to any organization which was exempt (or was determined by the
Secretary to be exempt) from taxation under section 501(a) by
reason of being an organization described in section 501(c)(3).
(2) Exceptions
This section shall not apply to any organization -
(A) to which an election under section 501(h) applies,
(B) which is a disqualified organization (within the meaning
of section 501(h)(5)), or
(C) which is a private foundation.
(d) Definitions
(1) Lobbying expenditures
The term "lobbying expenditure" means any amount paid or
incurred by the organization in carrying on propaganda, or
otherwise attempting to influence legislation.
(2) Organization manager
The term "organization manager" has the meaning given to such
term by section 4955(f)(2).
(3) Joint and several liability
If more than 1 person is liable under subsection (b), all such
persons shall be jointly and severally liable under such
subsection.
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