With the midterm election cycle in full swing, 2018 promises to be an active year on the political front. Tax-exempt organizations may engage in political activities without even knowing it. For 501(c)(3) organizations, the result can be loss of exemption. Other organizations, like 501(c)(4)s and 501(c)(6)s, may engage in such activities either directly or through a related or unrelated PAC, but they are subject to limits, reporting obligations, and possible excise taxes under federal tax law. Organizations must also navigate different definitions and requirements for reporting under campaign finance laws, to the FEC or state authorities. This session will help attendees identify what constitutes political activity for tax law purposes, assess the tax or other impact to various tax-exempt organizations, and properly report such activity on Form 990 and Form 1120-POL.
Learning Objectives: Attendees will be able to:
- Recognize the different organizational structures that may be employed to engage in political activity
- Identify what does and does not constitute political activity for tax-exempt organizations
- Understand the limits on political activity by different types of organization and the possible tax liabilities for electoral activity
- Properly capture and report political activity on Forms 990 and 1120-POL