
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC4912]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                 Subtitle D--Miscellaneous Excise Taxes
 
                      CHAPTER 41--PUBLIC CHARITIES
 
Sec. 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.

(Added Pub. L. 100-203, title X, Sec. 10714(a), Dec. 22, 1987, 101 Stat. 
1330-470.)


                             Effective Date

    Section 10714(e) of Pub. L. 100-203 provided that: ``The amendments 
made by this section [enacting this section and amending sections 6501 
and 7454 of this title] shall apply to taxable years beginning after the 
date of the enactment of this Act [Dec. 22, 1987].''

                  Section Referred to in Other Sections

    This section is referred to in sections 6033, 6501, 6511, 7454 of 
this title.
