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

expenditures and permitted lobbying

expenditures on the attached schedule.

column (b), the amounts that apply to

expenditures.

Nonelecting members do not owe tax,

the parent organization only.

but remain subject to the general rule,

Two organizations are affiliated if

A subordinate organization not

which provides that no substantial part

one is bound by the other

included in the group return would also

of their activities may consist of carrying

organization’s decisions on legislative

complete column (a) for the affiliated

on propaganda or otherwise trying to

issues (control) or if enough

group as a whole and column (b) for

influence legislation.

representatives of one belong to the

itself only.

other organization’s governing board to

Limited control. If two

However, if limited control (defined

cause or prevent action on legislative

organizations are affiliated because

above) exists, complete only column (b)

issues (interlocking directorate).

their governing instruments provide that

in Part VI-A of the group return for the

the decisions of one will control the

If the organization is not sure

electing members in the group.

other only on national legislation, apply

whether its group is affiliated, it may

Attach a schedule to show the

expenditures as follows:

ask the IRS for a ruling letter. There is

•

amounts that apply to each electing

Charge the controlling organization

a fee for this ruling.

member.

with its own lobbying expenditures and

For Information on requesting

the national legislation expenditures of

In the separate returns filed by the

rulings, see Rev. Proc. 2007-4, 2007-1

the affiliated organizations.

parent and by any subordinate

I.R.B. 118.

•

Do not charge the controlling

organizations not included in the group

Members of an affiliated group

organization with other lobbying

return, complete only column (b).

measure both lobbying expenditures

expenditures (or other exempt-purpose

Lines 36 through 44. Complete

and permitted lobbying expenditures on

expenditures) of the affiliated

column (b) for any organization using

the basis of the affiliated group’s tax

organizations, and

Part VI-A but complete column (a) only

•

year. If all members of the affiliated

Treat each local organization as

for affiliated groups.

group have the same tax year, that

though it were not a member of an

Use lines 36 through 44 to determine

year is the tax year of the affiliated

affiliated group; for example, the local

whether any of the organization’s

group.

organization should account for its own

current year lobbying expenditures are

expenditures only and not any of the

However, if the affiliated group’s

subject to tax. File Form 4720 if the

national legislation expenditures

members have different tax years, the

organization needs to report and pay

deemed as incurred by the controlling

tax year of the affiliated group is the

the excise tax.

organization.

calendar year, unless all the members

Lines 45 through 50. Lines 45

of the group elect otherwise. See

When this type of limited control is

through 50 are used to determine if the

Regulations section 56.4911-7(e)(3).

present, each member of the affiliated

organization exceeded lobbying

group should complete column (b) only.

If the electing organization belongs

expenditure limits during the 4-year

to an affiliated group, complete in Part

Group returns. Although

averaging period.

VI-A, lines 36 through 44:

membership in a group affiliated for

•

Any organization for which a

Column (a) for the affiliated group as

lobbying does not establish eligibility to

lobbying expenditure election under

a whole, and

file a group return, a group return can

•

section 501(h) was in effect for its tax

Column (b) for the electing member

sometimes meet the filing requirements

year beginning in 2007 must complete

of the group.

of more than one member of an

columns (a) through (e) of lines 45

If there are no excess lobbying

affiliated group. (General Instruction R

through 50 except in the following

expenditures on either line 43 or 44 of

of the Instructions for Form 990 and

situations.

column (a), treat each electing member

Form 990-EZ explains who may file a

1. An organization first treated as a

as having no excess lobbying

group return.)

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

expenditures.

If a central or parent organization

year beginning in 2007 does not have

However, if there are excess

files a group return on behalf of two or

to complete any part of lines 45 through

lobbying expenditures on either line 43

more members of the group, complete

50.

or 44 of column (a), treat each electing

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

2. An organization does not have to

member as having excess lobbying

group as a whole. Include the central,

complete lines 45 through 50 for any

expenditures. In such case, each

electing, and nonelecting members.

period before it is first treated as a

electing member must file Form 4720,

section 501(c)(3) organization.

In column (b), except on lines 43 and

Return of Certain Excise Taxes Under

3. If 2007 is the first year for which

44, include the amounts that apply to all

Chapters 41 and 42 of the Internal

an organization’s first section 501(h)

electing members of the group if they

Revenue Code, and must pay the tax

election is effective, that organization

are included in the group return.

on its proportionate share of the

must complete line 45, columns (a) and

affiliated group’s excess lobbying

Attach the schedule described above

(e).

expenditures.

under Affiliated groups. Show what

The organization must then

amounts apply to each group member.

To find a member’s proportionate

complete all of column (e) to determine

share, see Regulations section

If the group return includes

whether the amount on line 47, column

56.4911-8(d). Enter the proportionate

organizations that belong to more than

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

share in column (b) on line 43 or line

one affiliated group, show in column (a)

ceiling amount calculated on line 46

44, or on both lines.

the totals for all such groups. On the

and whether the amount on line 50 is

attached schedule, show the amounts

Attached schedule. Attach a

equal to or less than the grassroots

that apply to each affiliated group and

schedule showing each affiliated group

ceiling amount calculated on line 49.

to each group member.

member’s name, address, EIN, and

The organization does not satisfy

expenses. Use the format of Part VI-A

If the parent organization has made

both tests if either its total lobbying

for this schedule. Show which members

the lobbying expenditure election, its

expenditures or grassroots lobbying

elected and which did not.

separate return must also show in

expenditures exceed the applicable

Include each electing member’s

column (a) the amounts that apply to

ceiling amounts. When this occurs, all

share of the excess lobbying

the affiliated group as a whole and, in

five columns must be completed and a

-13-

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

Instructions For Schedule A (Form 990 Or 990-Ez) - 2007 Page 13

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