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column (c) the tax each foundation

Initial tax on organization managers

schedule of excess lobbying

or foundation managers. An initial

manager will pay.

expenditures that must be attached to

tax of 2

% of the amount involved (up

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

Carry the total amount in column (d)

to $5,000 of tax on any one

the instructions for Schedule C (Form

for each foundation manager to page 1,

expenditure) is imposed on any

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

Part II-A, column (e).

manager who agrees to an expenditure,

discussion of the lobbying provisions,

knowing that it is a political expenditure,

including how to figure the taxable

Schedule F—Initial

unless the agreement is not willful and

amount.

is due to reasonable cause.

Taxes on Political

Any manager who agreed to the

Schedule H—Taxes on

Expenditures (Section

expenditure must pay the tax.

Disqualifying Lobbying

Specific Instructions

4955)

Expenditures (Section

Part I. Complete this part for all

General Instructions

political expenditures.

4912)

Part II. Enter in column (a) the names

Requirement. Complete Schedule F if

of all managers who took part in

you answered “Yes” to question 5a(2)

General Instructions

making the political expenditures listed

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

in Part I. See Initial tax on organization

Requirement. Schedule H must be

Complete Schedule F if you entered an

managers or foundation managers

completed by certain organizations

amount on line 2 of Schedule C (Form

above.

whose section 501(c)(3) status is

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

revoked because of excess lobbying

Schedule F if you are otherwise a

If more than one manager is listed in

activities.

section 501(c)(3) organization that

column (a), each is individually liable for

made a political expenditure.

the entire amount of tax on the

Exceptions. These taxes are not

expenditure. However, the managers

Political expenditures. These include

imposed on a private foundation

who are liable for the tax may prorate

any amount paid or incurred by a

(whose lobbying expenditures may be

payment among themselves. Enter in

section 501(c)(3) organization that

subject to the tax on taxable

column (c) the tax each manager will

participates or intervenes in (including

expenditures). These taxes also are not

pay.

the publication or distribution of

imposed on any organization for which

statements) any political campaign on

Carry the total amount in column (d)

a section 501(h) election was in effect

behalf of, or in opposition to, any

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

at the time of the lobbying expenditures

candidate for public office. The tax is

column (f).

or that was not eligible to make a

imposed even if the political

section 501(h) election.

expenditure gives rise to a revocation

Tax on organization. A tax of 5% of

Schedule G—Tax on

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

the lobbying expenditures is imposed

status.

Excess Lobbying

on the organization whose section

These taxes apply in the case of

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

Expenditures (Section

both public charities and private

excess lobbying activities.

foundations. When tax is imposed

4911)

Tax on organization managers. A

under this provision in the case of a

tax of 5% of the lobbying expenditures

private foundation, however, the

Requirement. Schedule G must be

is also imposed on any manager who

expenditure in question will not be

completed by eligible section 501(c)(3)

willfully and without reasonable cause

treated as a taxable expenditure under

organizations that elected to be subject

consented to the lobbying expenditures,

section 4945.

to the limitations on lobbying

knowing that they would likely result in

For an organization formed primarily

expenditures under section 501(h) and

the organization no longer qualifying

to promote the candidacy or

that made excess lobbying

under section 501(c)(3).

prospective candidacy of an individual

expenditures as defined in section

There is no limit on the amount of

for public office (or that is effectively

4911(b).

this tax that may be imposed against

controlled by a candidate or prospective

Except as noted below, follow the

either the organization or its managers.

candidate and is used primarily for such

line instructions on Schedule G.

Any organization manager who agreed

purposes), amounts paid or incurred for

Affiliated groups. If you are a

to the expenditure must pay the tax.

any of the following purposes are

nonelecting member of an affiliated

deemed political expenditures:

Specific Instructions

group, you are not required to file Form

•

Remuneration to the candidate or

4720.

prospective candidate for speeches or

Part I. Complete this part for all

If you are an electing member of an

other services;

disqualifying lobbying expenditures.

•

affiliated group and are filing a separate

Travel expenses of the individual;

•

Part II. Enter in column (a) the names

return, enter on line 1 the amount from

Expenses of conducting polls,

of all organization managers who took

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

surveys, or other studies, or preparing

part in making disqualifying lobbying

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

papers or other material for use by the

expenditures listed in Part I. See Tax

the amount from Schedule C (Form 990

individual;

•

on organization managers above.

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

Expenses of advertising, publicity,

1i.

and fundraising for such individual; and

If more than one organization

•

Any other expense which has the

If you are an electing member of an

manager is listed in column (a), each is

primary effect of promoting public

affiliated group and are included in a

individually liable for the entire amount

recognition or otherwise primarily

group return, enter on line 1 your share

of tax in connection with the

accruing to the benefit of the individual.

of the excess grassroot lobbying

expenditure. However, the managers

Initial tax on organization or

expenditures of the affiliated group, and

who are liable for the tax may prorate

foundation. The initial tax on the

on line 2 your share of the excess

payment among themselves. Enter in

organization or foundation is 10% of the

lobbying expenditures of the affiliated

column (c) the tax each manager will

amount involved.

group. Take these amounts from the

pay.

-11-

Form 4720 Instructions

Instructions For Form 4720 - Instructions For Return Of Certain Excise Taxes - Department Of The Treasury - 2010 Page 11

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