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Line 2. Enter the amount of taxes

the affiliated group’s members have

amounts paid or incurred for the planning

different tax years, the tax year of the

of legislative activities).

incurred by the organization managers

affiliated group is the calendar year,

under section 4955, unless abated. If no

In-house expenditures do not

unless all the members of the group elect

tax was incurred, enter -0-.

include: Any payments to other

otherwise. See Regulations section

Line 3. If the filing organization reported

taxpayers engaged in lobbying or political

56.4911-7(e)(3).

a section 4955 tax on a Form 4720,

activities as a trade or business or any

Return of Certain Excise Taxes Under

Limited control. Two organizations

dues paid to another organization that are

Chapters 41 and 42 of the Internal

that are affiliated because their governing

allocable to lobbying or political activities.

Revenue Code, for the tax year, answer

instruments provide that the decisions of

“Yes.”

one will control the other only on national

Line 4. Describe in Part IV the steps

legislation are subject to the following

Specific Instructions

provisions.

taken by the organization to correct the

•

The controlling organization is charged

activity that subjected it to the section

with its own lobbying expenditures and

4955 tax. Correction of a political

Part I-A. Political Activity

the national legislation expenditures of

expenditure means recovering the

of Exempt Organizations

the affiliated organizations,

expenditure to the extent possible and

•

The controlling organization is not

establishing safeguards to prevent future

Note. Section 501(c) organizations other

charged with other lobbying expenditures

political expenditures. Recovery of the

than those exempt under section

(or other exempt-purpose expenditures)

expenditure means recovering part or all

501(c)(3) may establish section 527(f)(3)

of the affiliated organizations, and

of the expenditure to the extent possible,

separate segregated funds to engage in

•

Each local organization is treated as

and, where full recovery cannot be

political activity. Separate segregated

though it were not a member of an

accomplished, by any additional

funds are subject to their own filing

affiliated group. For example, the local

corrective action that is necessary. (The

requirements. A section 501(c)

organization should account for its own

organization that made the political

organization that engages a separate

expenditures only and not any of the

expenditure is not under any obligation to

segregated fund to conduct political

national legislation expenditures deemed

attempt to recover the expenditure by

activity should report transfers to the fund

as incurred by the controlling

legal action if the action would in all

in Parts I-A and I-C. The separate

organization.

probability not result in the satisfaction of

segregated fund should report specific

execution on a judgment.)

Definitions (Part III)

activities on its own Form 990 if the fund

is required to file.

Part I-C. Section 527

Definitions in this section are applicable

only to Part III.

Line 1. Section 501(c) organizations

Exempt Function Activity

should provide a detailed description of

Lobbying and political

of Section 501(c)

their direct and indirect political

expenditures. For purposes of this

campaign activities in Part IV. If the

Organizations Other Than

section only, lobbying and political

section 501(c) organization collects

expenditures do not include direct

Section 501(c)(3)

political contributions or member dues

lobbying expenditures made to influence

earmarked for a separate segregated

local legislation. Nor does it include any

Note. Section 501(c) organizations that

fund, and promptly and directly transfers

political campaign expenditures for which

collect political contributions or member

them to that fund as prescribed in

the tax under section 527(f) was paid (see

dues earmarked for a separate

Regulations section 1.527-6(e), do not

Part I-C). They do include any

segregated fund, and promptly and

report them here. Such amounts should

expenditures for communications with a

directly transfer them to that fund as

be reported in Part I-C, line 5e.

covered executive branch official in an

prescribed in Regulations section

attempt to influence the official actions or

Section 527 organizations should

1.527-6(e), do not report them on lines 1

positions of that official.

provide a detailed description of their

or 2. Such amounts are reported on line

exempt function activities in Part IV.

5e.

Covered executive branch official.

Covered executive branch officials

Line 1. Enter the amount of the

Line 2. Enter the total amount that the

include the President, Vice-President,

organization’s funds that it expended for

filing organization has spent conducting

officers and employees of the Executive

section 527 exempt function activities.

the activities described on line 1.

Office of the President, the two senior

See Regulations section 1.527-6(b).

Line 3. If the organization used

level officers of each of the other

Line 2. Enter the amount of the

volunteer labor for its political campaign

agencies in the Executive Office,

organization’s funds that it transferred to

activities or section 527 exempt function

individuals in level I positions of the

other organizations, including a separate

activities, provide the total number of

Executive Schedule and their immediate

segregated section 527(f)(3) fund created

hours. Any reasonable method may be

deputies, and individuals designated as

by the organization, for section 527

used to estimate this amount.

having Cabinet level status and their

exempt function activity.

immediate deputies.

Part I-B. Section 501(c)(3)

Line 3. Total exempt function

Direct contact lobbying. This is a:

expenditures. Add lines 1 and 2 and enter

Organizations—

on line 3 and on Form 1120-POL, line

1. Meeting,

17b.

Disclosure of Excise Taxes

2. Telephone conversation,

Line 4. If the filing organization reported

3. Letter, or

Imposed Under Section

4. Similar means of communication

taxable political expenditures on Form

that is with a:

1120-POL for this year, answer “Yes.”

4955

a. Legislator (other than a local

Line 5. In columns (a), (b), and (c), enter

Section 501(c)(3) organizations must

legislator), or

the name, address and employer

disclose any excise tax incurred during

b. Covered executive branch official

identification number (EIN) of each

the year under section 4955 (political

and that is an attempt to influence the

section 527 political organization to which

expenditures), unless abated. See

official actions or positions of that official.

payments were made. In column (d),

sections 4962 and 6033(b).

enter the amount paid from the filing

In-house expenditures include:

Line 1. Enter the amount of taxes

organization’s funds. In column (e), enter

1. Salaries, and

incurred by the organization itself under

the amount of political contributions

2. Other expenses of the

section 4955, unless abated. If no tax was

received and promptly and directly

organization’s officials and staff (including

incurred, enter -0-.

delivered to a separate political

-3-

Instructions For Schedule C (Form 990 Or 990-Ez) - Political Campaign And Lobbying Activities - 2010 Page 3

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