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Political expenditures. These include

If more than one manager is listed in

any amount paid or incurred by a

column (a), each is individually liable for

Schedule H—Taxes on

section 501(c)(3) organization that

the entire amount of tax on the

Disqualifying Lobbying

participates or intervenes in (including

expenditure. However, the managers

the publication or distribution of

who are liable for the tax may prorate

Expenditures (Section

statements) any political campaign on

payment among themselves. Enter in

behalf of, or in opposition to, any

column (c) the tax each manager will

4912)

candidate for public office. The tax is

pay.

imposed even if the political

Carry the total amount in column (d)

General Instructions

expenditure gives rise to a revocation

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

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

Requirement. Schedule H must be

column (f).

status.

completed by certain organizations

whose section 501(c)(3) status is

These taxes apply in the case of

Schedule G—Tax on

revoked because of excess lobbying

both public charities and private

activities.

foundations. When tax is imposed

Excess Lobbying

under this provision in the case of a

Exceptions. These taxes are not

Expenditures (Section

private foundation, however, the

imposed on a private foundation

expenditure in question will not be

4911)

(whose lobbying expenditures may be

treated as a taxable expenditure under

subject to the tax on taxable

section 4945.

Requirement. Schedule G must be

expenditures). These taxes also are not

completed by eligible section 501(c)(3)

For an organization formed primarily

imposed on any organization for which

organizations that elected to be subject

to promote the candidacy or

a section 501(h) election was in effect

to the limitations on lobbying

prospective candidacy of an individual

at the time of the lobbying expenditures

expenditures under section 501(h) and

for public office (or that is effectively

or that was not eligible to make a

that made excess lobbying

controlled by a candidate or prospective

section 501(h) election.

expenditures as defined in section

candidate and is used primarily for such

4911(b).

Tax on organization. A tax of 5% of

purposes), amounts paid or incurred for

any of the following purposes are

the lobbying expenditures is imposed

Except as noted below, follow the

deemed political expenditures:

on the organization whose section

line instructions on Schedule G.

•

Remuneration to the candidate or

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

Affiliated groups. If you are a

prospective candidate for speeches or

excess lobbying activities.

nonelecting member of an affiliated

other services;

group, you are not required to file Form

•

Tax on organization managers. A

Travel expenses of the individual;

4720.

•

tax of 5% of the lobbying expenditures

Expenses of conducting polls,

If you are an electing member of an

is also imposed on any manager who

surveys, or other studies, or preparing

affiliated group and are filing a separate

willfully and without reasonable cause

papers or other material for use by the

return, enter on line 1 the amount from

consented to the lobbying expenditures,

individual;

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

•

knowing that they would likely result in

Expenses of advertising, publicity,

VI-A, column (b), line 43. Enter on line

the organization no longer qualifying

and fundraising for such individual; and

2 the amount from Schedule A (Form

•

under section 501(c)(3).

Any other expense which has the

990 or 990-EZ), Part VI-A, column (b),

primary effect of promoting public

line 44.

There is no limit on the amount of

recognition or otherwise primarily

If you are an electing member of an

this tax that may be imposed against

accruing to the benefit of the individual.

affiliated group and are included in a

either the organization or its managers.

Initial tax on organization or

group return, enter on line 1 your share

Any organization manager who agreed

foundation. The initial tax on the

of the excess grassroot lobbying

to the expenditure must pay the tax.

organization or foundation is 10% of the

expenditures of the affiliated group, and

amount involved.

on line 2 your share of the excess

Specific Instructions

lobbying expenditures of the affiliated

Initial tax on organization managers

Part I. Complete this part for all

group. Take these amounts from the

or foundation managers. An initial

disqualifying lobbying expenditures.

schedule of excess lobbying

tax of 2

% of the amount involved (up

expenditures that must be attached to

to $5,000 of tax on any one

Part II. Enter in column (a) the names

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

expenditure) is imposed on any

of all organization managers who took

the instructions for Schedule A (Form

manager who agrees to an expenditure,

part in making disqualifying lobbying

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

knowing that it is a political expenditure,

expenditures listed in Part I. See Tax

discussion of the lobbying provisions,

unless the agreement is not willful and

on organization managers above.

including how to figure the taxable

is due to reasonable cause.

amount.

If more than one organization

Any manager who agreed to the

manager is listed in column (a), each is

expenditure must pay the tax.

individually liable for the entire amount

Specific Instructions

of tax in connection with the

expenditure. However, the managers

Part I. Complete this part for all

who are liable for the tax may prorate

political expenditures.

payment among themselves. Enter in

Part II. Enter in column (a) the names

column (c) the tax each manager will

of all managers who took part in

pay.

making the political expenditures listed

Carry the total amount in column (d)

in Part I. See Initial tax on organization

for each organization manager to page

managers or foundation managers

1, Part II-A, column (g).

above.

-11-

Form 4720 Instructions

Instructions For Form 4720 - Return Of Certain Excise Taxes On Charities And Other Persons - Department Of The Treasury - 2007 Page 11

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