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


expenditures and permitted lobbying
expenditures on the attached schedule.
column (b), the amounts that apply to
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.
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
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.
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
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
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
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
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
Instructions for Schedule A (Form 990 or 990-EZ)


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