Instructions For Schedule A (Form 990 Or 990-Ez)

•

Column (b) for the electing member

lobbying does not establish eligibility to

year beginning in 2003 must complete

of the group.

file a group return, a group return can

columns (a) through (e) of lines 45

If there are no excess lobbying

sometimes meet the filing requirements

through 50 except in the following

expenditures on either line 43 or 44 of

of more than one member of an

situations:

column (a), treat each electing member

affiliated group. (General Instruction R

1. An organization first treated as a

as having no excess lobbying

of the Instructions for Form 990 and

section 501(c)(3) organization in its tax

expenditures.

Form 990-EZ explains who may file a

year beginning in 2003 does not have

group return.)

However, if there are excess

to complete any part of lines 45 through

lobbying expenditures on either line 43

If a central or parent organization

50.

files a group return on behalf of two or

or 44 of column (a), treat each electing

2. An organization does not have to

more members of the group, complete

member as having excess lobbying

complete lines 45 through 50 for any

column (a), Part VI-A, for the affiliated

expenditures. In such case, each

period before it is first treated as a

group as a whole. Include the central,

electing member must file Form 4720,

section 501(c)(3) organization.

electing, and nonelecting members.

Return of Certain Excise Taxes on

3. If 2003 is the first year for which

Charities and Other Persons Under

In column (b), except on lines 43 and

an organization’s first section 501(h)

Chapters 41 and 42 of the Internal

44, include the amounts that apply to all

election is effective, that organization

Revenue Code, and must pay the tax

electing members of the group if they

must complete line 45, columns (a) and

on its proportionate share of the

are included in the group return.

(e).

affiliated group’s excess lobbying

Attach the schedule described above

The organization must then

expenditures.

under Affiliated groups. Show what

complete all of column (e) to determine

To find a member’s proportionate

amounts apply to each group member.

whether the amount on line 47, column

share, see Regulations section

If the group return includes

(e), is equal to or less than the lobbying

56.4911-8(d). Enter the proportionate

organizations that belong to more than

ceiling amount calculated on line 46

share in column (b) on line 43 or line

one affiliated group, show in column (a)

and whether the amount on line 50 is

44, or on both lines.

the totals for all such groups. On the

equal to or less than the grassroots

Attached schedule. Attach a

attached schedule, show the amounts

ceiling amount calculated on line 49.

schedule showing each affiliated group

that apply to each affiliated group and

The organization does not satisfy

member’s name, address, EIN, and

to each group member.

both tests if either its total lobbying

expenses. Use the format of Part VI-A

If the parent organization has made

expenditures or grassroots lobbying

for this schedule. Show which members

the lobbying expenditure election, its

expenditures exceed the applicable

elected and which did not.

separate return must also show in

ceiling amounts. When this occurs, all

Include each electing member’s

column (a) the amounts that apply to

five columns must be completed and a

share of the excess lobbying

the affiliated group as a whole and, in

recomputation made unless exception 1

expenditures on the attached schedule.

column (b), the amounts that apply to

or 2 above applies.

Nonelecting members do not owe tax,

the parent organization only.

4. If 2003 is the second or third tax

but remain subject to the general rule,

A subordinate organization not

year for which the organization’s first

which provides that no substantial part

included in the group return would also

section 501(h) election is in effect, that

of their activities may consist of carrying

complete column (a) for the affiliated

organization is required to complete

on propaganda or otherwise trying to

group as a whole and column (b) for

only the columns for the years in which

influence legislation.

itself only.

the election has been in effect, entering

Limited control. If two

However, if “limited control” (defined

the totals for those years in column (e).

organizations are affiliated because

above) exists, complete only column (b)

The organization must determine, for

their governing instruments provide that

in Part VI-A of the group return for the

those 2 or 3 years, whether the amount

the decisions of one will control the

electing members in the group.

entered in column (e), line 47, is equal

other only on national legislation, apply

Attach a schedule to show the

to or less than the lobbying ceiling

expenditures as follows:

amounts that apply to each electing

amount reported on line 46, and

1. Charge the controlling

member.

whether the amount entered in column

organization with its own lobbying

In the separate returns filed by the

(e), line 50, is equal to or less than the

expenditures and the national

parent and by any subordinate

grassroots ceiling amount calculated on

legislation expenditures of the affiliated

organizations not included in the group

line 49.

organizations.

return, complete only column (b).

The organization does not satisfy

2. Do not charge the controlling

both tests if either its total lobbying

organization with other lobbying

Lines 36 through 44. Complete

expenditures (or other exempt-purpose

expenditures or grassroots lobbying

column (b) for any organization using

expenditures) of the affiliated

expenditures exceed applicable ceiling

Part VI-A but complete column (a) only

organizations.

amounts. When that occurs, all five

for affiliated groups.

3. Treat each local organization as

columns must be completed and a

Use lines 36 through 44 to determine

though it were not a member of an

recomputation made, unless exception

whether any of the organization’s

affiliated group; i.e., the local

1 or 2 above applies.

current year lobbying expenditures are

organization should account for its own

subject to tax. File Form 4720 if you

If the organization is not required to

expenditures only and not any of the

need to report and pay the excise tax.

complete all five columns, attach a

national legislation expenditures

Lines 45 through 50. Lines 45

statement explaining why. In the

deemed as incurred by the controlling

through 50 are used to determine if the

statement, show the ending date of the

organization in 1 above.

organization exceeded lobbying

tax year in which the organization made

When this type of limited control is

expenditure limits during the 4-year

its first section 501(h) election and state

present, each member of the affiliated

averaging period.

whether or not that first election was

group should complete column (b) only.

Any organization for which a

revoked before the start of the

Group returns. Although

lobbying expenditure election under

organization’s tax year that began in

membership in a group affiliated for

section 501(h) was in effect for its tax

2003.

-11-

Instructions for Schedule A (Form 990 or 990-EZ)

Instructions For Schedule A (Form 990 Or 990-Ez) - 2003 Page 11

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