Looking for a Form 4720 Templates? Download it for free!

expenditure) is imposed on any

Schedule C (Form 990 or 990-EZ). See

Schedule F—Initial

manager who agrees to an expenditure,

the instructions for Schedule C (Form

knowing that it is a political expenditure,

990 or 990-EZ), Part II-A, for a

Taxes on Political

unless the agreement is not willful and

discussion of the lobbying provisions,

is due to reasonable cause.

including how to figure the taxable

Expenditures (Section

amount.

Any manager who agreed to the

4955)

expenditure must pay the tax.

Specific Instructions

Schedule H—Taxes on

General Instructions

Part I. Complete this part for all

Disqualifying Lobbying

Requirement. Complete Schedule F if

political expenditures.

you answered “Yes” to question 5a(2)

Expenditures (Section

and 5b of Form 990-PF, Part VII-B.

Part II. Enter in column (a) the names

Complete Schedule F if you entered an

of all managers who took part in

4912)

amount on line 2 of Schedule C (Form

making the political expenditures listed

990 or 990-EZ), Part 1-A. Complete

in Part I. See Initial tax on organization

General Instructions

Schedule F if you are otherwise a

managers or foundation managers

section 501(c)(3) organization that

above.

Requirement. Schedule H must be

made a political expenditure.

completed by certain organizations

If more than one manager is listed in

whose section 501(c)(3) status is

Political expenditures. These include

column (a), each is individually liable for

revoked because of excess lobbying

any amount paid or incurred by a

the entire amount of tax on the

activities.

section 501(c)(3) organization that

expenditure. However, the managers

participates or intervenes in (including

who are liable for the tax may prorate

Exceptions. These taxes are not

the publication or distribution of

payment among themselves. Enter in

imposed on a private foundation

statements) any political campaign on

column (c) the tax each manager will

(whose lobbying expenditures may be

behalf of, or in opposition to, any

pay.

subject to the tax on taxable

candidate for public office. The tax is

Carry the total amount in column (d)

expenditures). These taxes also are not

imposed even if the political

imposed on any organization for which

for each manager to page 1, Part II-A,

expenditure gives rise to a revocation

a section 501(h) election was in effect

column (f).

of the organization’s section 501(c)(3)

at the time of the lobbying expenditures

status.

or that was not eligible to make a

Schedule G—Tax on

These taxes apply in the case of

section 501(h) election.

both public charities and private

Tax on organization. A tax of 5% of

Excess Lobbying

foundations. When tax is imposed

the lobbying expenditures is imposed

under this provision in the case of a

Expenditures (Section

on the organization whose section

private foundation, however, the

501(c)(3) status is revoked because of

4911)

expenditure in question will not be

excess lobbying activities.

treated as a taxable expenditure under

Requirement. Schedule G must be

Tax on organization managers. A

section 4945.

completed by eligible section 501(c)(3)

tax of 5% of the lobbying expenditures

For an organization formed primarily

organizations that elected to be subject

is also imposed on any manager who

to promote the candidacy or

to the limitations on lobbying

willfully and without reasonable cause

prospective candidacy of an individual

expenditures under section 501(h) and

consented to the lobbying expenditures,

for public office (or that is effectively

that made excess lobbying

knowing that they would likely result in

controlled by a candidate or prospective

expenditures as defined in section

the organization no longer qualifying

candidate and is used primarily for such

4911(b).

under section 501(c)(3).

purposes), amounts paid or incurred for

Except as noted below, follow the

any of the following purposes are

There is no limit on the amount of

line instructions on Schedule G.

deemed political expenditures:

this tax that may be imposed against

•

Affiliated groups. If you are a

Remuneration to the candidate or

either the organization or its managers.

nonelecting member of an affiliated

prospective candidate for speeches or

Any organization manager who agreed

group, you are not required to file Form

other services;

to the expenditure must pay the tax.

•

4720.

Travel expenses of the individual;

•

Specific Instructions

Expenses of conducting polls,

If you are an electing member of an

surveys, or other studies, or preparing

affiliated group and are filing a separate

Part I. Complete this part for all

papers or other material for use by the

return, enter on line 1 the amount from

disqualifying lobbying expenditures.

individual;

Schedule C (Form 990 or 990-EZ), Part

•

Expenses of advertising, publicity,

Part II. Enter in column (a) the names

II-A, column (a), line 1h. Enter on line 2

and fundraising for such individual; and

of all organization managers who took

the amount from Schedule C (Form 990

•

Any other expense which has the

part in making disqualifying lobbying

or 990-EZ), Part II-A, column (a), line

primary effect of promoting public

expenditures listed in Part I. See Tax

1i.

recognition or otherwise primarily

on organization managers above.

If you are an electing member of an

accruing to the benefit of the individual.

affiliated group and are included in a

If more than one organization

Initial tax on organization or

group return, enter on line 1 your share

manager is listed in column (a), each is

foundation. The initial tax on the

of the excess grassroot lobbying

individually liable for the entire amount

organization or foundation is 10% of the

expenditures of the affiliated group, and

of tax in connection with the

amount involved.

on line 2 your share of the excess

expenditure. However, the managers

Initial tax on organization managers

lobbying expenditures of the affiliated

who are liable for the tax may prorate

or foundation managers. An initial

group. Take these amounts from the

payment among themselves. Enter in

tax of 2

% of the amount involved (up

schedule of excess lobbying

column (c) the tax each manager will

to $5,000 of tax on any one

expenditures that must be attached to

pay.

-11-

Form 4720 Instructions

Instructions For Form 4720 - Return Of Certain Excise Taxes On Charities And Other Persons - Department Of The Treasury - 2009 Page 11

Related Articles

Related forms

Related Categories