26 U.S.C. § 4912 — Tax on disqualifying lobbying expendi-

Page 3014 TITLE 26—INTERNAL REVENUE CODE § 4912 1 Section numbers editorially supplied. Editorial Notes AMENDMENTS 1978—Subsec. (c)(2). Pub. L. 95–600 substituted ‘‘ex- empt purpose expenditures’’ for ‘‘proposed expendi- tures’’ in heading of table. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–600 effective Oct. 4, 1976, see section 703(r) of Pub. L. 95–600, set out as a note under section 46 of this title. § 4912. Tax on disqualifying lobbying expendi- tures of certain organizations (a) Tax on organization If an organization to which this section ap- plies is not described in section 501(c)(3) for any taxable year by reason of making lobbying ex- penditures, there is hereby imposed a tax on the lobbying expenditures of such organization for such taxable year equal to 5 percent of the amount of such expenditures. The tax imposed by this subsection shall be paid by the organiza- tion. (b) On management If tax is imposed under subsection (a) on the lobbying expenditures of any organization, there is hereby imposed on the agreement of any orga- nization manager to the making of any such ex- penditures, knowing that such expenditures are likely to result in the organization not being de- scribed in section 501(c)(3), a tax equal to 5 per- cent of the amount of such expenditures, unless such agreement is not willful and is due to rea- sonable cause. The tax imposed by this sub- section shall be paid by any manager who agreed to the making of the expenditures. (c) Organizations to which section applies (1) In general Except as provided in paragraph (2), this sec- tion shall apply to any organization which was exempt (or was determined by the Secretary to be exempt) from taxation under section 501(a) by reason of being an organization de- scribed in section 501(c)(3). (2) Exceptions This section shall not apply to any organiza- tion— (A) to which an election under section 501(h) applies, (B) which is a disqualified organization (within the meaning of section 501(h)(5)), or (C) which is a private foundation. (d) Definitions (1) Lobbying expenditures The term ‘‘lobbying expenditure’’ means any amount paid or incurred by the organization in carrying on propaganda, or otherwise at- tempting to influence legislation. (2) Organization manager The term ‘‘organization manager’’ has the meaning given to such term by section 4955(f)(2). (3) Joint and several liability If more than 1 person is liable under sub- section (b), all such persons shall be jointly and severally liable under such subsection. (Added Pub. L. 100–203, title X, § 10714(a), Dec. 22, 1987, 101 Stat. 1330–470.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 100–203, title X, § 10714(e), Dec. 22, 1987, 101 Stat. 1330–472, provided that: ‘‘The amendments made by this section [enacting this section and amending sections 6501 and 7454 of this title] shall apply to tax- able years beginning after the date of the enactment of this Act [Dec. 22, 1987].’’ CHAPTER 42—PRIVATE FOUNDATIONS; AND CERTAIN OTHER TAX-EXEMPT ORGANIZA- TIONS Subchapter Sec.1 A. Private foundations ............................... 4940 B. Black lung benefit trusts ....................... 4951 C. Political expenditures of section 501(c)(3) organizations ........................ 4955 D. Failure by certain charitable organiza- tions to meet certain qualification requirements ...................................... 4958 E. Abatement of first and second tier taxes in certain cases ......................... 4961 F. Tax shelter transactions ....................... 4965 G. Donor advised funds .............................. 4966 H. Excise tax based on investment income of private colleges and universities ... 4968 Editorial Notes AMENDMENTS 2017—Pub. L. 115–97, title I, § 13701(b), Dec. 22, 2017, 131 Stat. 2168, added item for subchapter H. 2006—Pub. L. 109–280, title XII, § 1231(b)(2), Aug. 17, 2006, 120 Stat. 1098, which directed the addition of item for subchapter G to the analysis for chapter 42 without specifying the act to be amended, was executed by add- ing the item to this analysis, which is for chapter 42 of the Internal Revenue Code of 1986, to reflect the prob- able intent of Congress. Pub. L. 109–222, title V, § 516(a)(2), May 17, 2006, 120 Stat. 371, added item for subchapter F. 1996—Pub. L. 104–168, title XIII, § 1311(c)(6), July 30, 1996, 110 Stat. 1478, struck out item for subchapter D ‘‘Abatement of first and second-tier taxes in certain cases’’ and added items for subchapters D and E. 1987—Pub. L. 100–203, title X, § 10712(c)(7), (9), Dec. 22, 1987, 101 Stat. 1330–467, substituted in chapter heading ‘‘AND CERTAIN OTHER TAX-EXEMPT ORGANIZA- TIONS’’ for ‘‘BLACK LUNG BENEFIT TRUSTS’’, struck out item for subchapter C ‘‘Abatement of first and second tier taxes in certain cases’’, and added items for subchapters C and D. 1984—Pub. L. 98–369, div. A, title III, § 305(b)(3), July 18, 1984, 98 Stat. 784, substituted ‘‘Abatement of first and second tier taxes in certain cases’’ for ‘‘Abatement of second tier taxes where there is correction during correction period’’ in item for subchapter C. 1980—Pub. L. 96–596, § 2(c)(3), Dec. 24, 1980, 94 Stat. 3474, added item for subchapter C. 1978—Pub. L. 95–227, § 4(c)(2)(A), Feb. 10, 1978, 92 Stat. 22, in chapter heading inserted ‘‘; BLACK LUNG BEN- EFIT TRUSTS’’ after ‘‘FOUNDATIONS’’, and added items for subchapters A and B. 1969—Pub. L. 91–172, title I, § 101(b), Dec. 30, 1969, 83 Stat. 498, added chapter heading ‘‘PRIVATE FOUNDA- TIONS’’. Subchapter A—Private Foundations Sec. 4940. Excise tax based on investment income.