Instructions For Schedule C (Form 990 Or 990-Ez) 2008 (Page 5 of 8) in pdf

•

Organizations should answer “Yes” or

Section 501(c)(5) (agricultural and

organization for purposes of meeting the

“No” in column (a) to questions 1a

horticultural organizations), or

nondeductible dues exception. See Rev.

•

through 1i and describe in Part IV the

Section 501(c)(6) (business leagues)

Proc. 98-19, 1998-1 C.B. 547.

activities the organization conducted

are subject to the section 6033(e) notice

Line 2. Answer “Yes” for line 2 if the

(through its employees or volunteers)

and reporting requirements, and a

organization satisfies the following criteria

attempting to influence legislation.

potential proxy tax. These organizations

of the $2,000 in-house lobbying

Examples of activities include:

must report their total lobbying expenses,

•

exception.

Sending letters or publications to

political expenses, and membership dues,

government officials or legislators,

or similar amounts.

1. Did not make any political

•

Meeting with or calling government

expenditures or foreign lobbying

Section 6033(e) requires certain

officials or legislators,

expenditures during the 2008 reporting

section 501(c)(4), (5), and (6)

•

Sending or distributing letters or

year, and

organizations to tell their members what

publications (including newsletters,

2. Made lobbying expenditures during

portion of their membership dues were

brochures, etc.) to members or to the

the 2008 reporting year consisting only of

allocable to the political or lobbying

general public, or

in-house direct lobbying expenditures

activities of the organization. If an

•

Using direct mail, placing

totaling $2,000 or less, but excluding:

organization does not give its members

advertisements, issuing press releases,

this information, then the organization is

a. Any allocable overhead expenses,

holding news conferences, or holding

subject to a proxy tax. This tax is reported

and

rallies or demonstrations.

on Form 990-T.

b. All direct lobbying expenses of any

Additionally, organizations must

local council regarding legislation of direct

provide lobbying expenditures paid or

Part III-A

interest to the organization or its

incurred in column (b) for lines 1c through

members.

Line 1. Answer “Yes” if any of the

1i with the total expenditures provided on

following exemptions apply. By doing so,

line 1j.

If the organization’s in-house direct

the organization is declaring that

Line 1f. Grants to other organizations

lobbying expenditures during the 2008

substantially all of its membership dues

are amounts from the organization’s

reporting year were $2,000 or less, but

were nondeductible.

funds given to another organization for

the organization also paid or incurred

1. Local associations of employees’

the purpose of assisting the other

other lobbying or political expenditures

and veterans’ organizations described in

organization conducting lobbying

during the 2008 reporting year, it should

section 501(c)(4), but not section

activities.

answer “No” to question 2. If the

501(c)(4) social welfare organizations.

Line 1g. Direct contact is a personal

organization is required to complete Part

2. Labor unions and other labor

telephone call or visit with legislators,

III-B, the $2,000 or less of in-house direct

organizations described in section

their staffs, or government officials.

lobbying expenditures should not be

501(c)(5), but not section 501(c)(5)

Line 1h. Rallies, demonstrations,

included in the total on line 2a.

agricultural and horticultural

seminars, conventions, speeches, and

organizations.

Line 3. Answer “Yes” for line 3 if the

lectures are examples of public forums

3. Section 501(c)(4), section

organization on its prior year report

conducted directly by the organization or

501(c)(5), and section 501(c)(6)

agreed to carryover an amount to be

paid for out of the organization’s funds.

organizations that receive more than 90%

included in the current year’s reasonable

Line 1i. Provide a detailed description of

of their dues from:

estimate of lobbying and political

any other activity that the organization

a. Organizations exempt from tax

expenses.

engaged in to influence legislation. The

under section 501(a), other than section

description should include all lobbying

501(c)(4), section 501(c)(5), and section

Complete Part III-B only if the

activities, whether expenses are incurred

501(c)(6) organizations,

organization answered “No” to both line 1

or not (for example, even lobbying

b. State or local governments,

and line 2 or if the organization answered

activities carried out by unreimbursed

c. Entities whose income is exempt

“Yes” to line 3.

volunteers). If additional space is needed,

from tax under section 115, or

describe in Part IV.

d. Organizations described in 1 or 2,

Part III-B. Dues Notice,

Line 2a. Answer “Yes” if a section

above.

501(c)(3) organization ceased to be

4. Section 501(c)(4) and section

Reporting Requirements,

described as a section 501(c)(3)

501(c)(5) organizations that receive more

and Proxy Tax

organization because the amount on line

than 90% of their annual dues from:

1j was substantial.

a. Persons,

Dues notices. An organization that

Line 2b. Enter the amount of taxes, if

b. Families, or

checked “No” for both Part III-A, lines 1

any, imposed on the organization itself

c. Entities,

and 2, and is thus responsible for

under section 4912, unless abated.

who each paid annual dues of $97 or less

completing Part III-B, must send dues

Line 2c. Enter the amount of taxes, if

in 2008 (adjusted annually for inflation).

notices to its members at the time of

any, imposed on the organization

5. Any organization that receives a

assessment or payment of dues, unless

managers under section 4912, unless

private letter ruling from the IRS stating

the organization chooses to pay the proxy

abated.

that the organization satisfies the section

tax instead of informing its members of

6033(e)(3) exception.

Line 2d. If the filing organization

the nondeductible portion of its dues.

6. Any organization that keeps

reported a section 4912 tax on a Form

These dues notices must reasonably

records to substantiate that 90% or more

4720 for this year, answer “Yes.”

estimate the dues allocable to the

of its members cannot deduct their dues

nondeductible lobbying and political

Part III. Section 6033(e)

(or similar amounts) as business

expenditures reported in Part III-B, line

expenses whether or not any part of their

2a. An organization that checked “Yes”

Notice and Reporting

dues are used for lobbying purposes.

for Part III-A, line 3, must send dues

7. Any organization that is not a

Requirements and Proxy

notices to its members at the time of

membership organization.

assessment or payment of dues and

Tax

include the amount it agreed to carryover

Only certain organizations that are

Special rules treat affiliated social

in its reasonable estimate of the dues

tax-exempt under:

welfare organizations, agricultural

allocable to the nondeductible lobbying

•

Section 501(c)(4) (social welfare

and horticultural organizations,

and political expenditures reported in Part

CAUTION

organizations),

and business leagues as parts of a single

III-B, line 2a.

-5-

Instructions For Schedule C (Form 990 Or 990-Ez) 2008 Page 5

Related Articles

Related forms

Related Categories