Technical topics regarding tax preparation.
501(c)(6) Business league Political contributions
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26-Oct-2020 8:58am

A 501 (c) (6) organization wants to make a political contributions for $250. If the political contributions for the organization exceed $2000 would the proxy tax apply ?

26-Oct-2020 6:34pm

That’s a really good question. I do a union that makes political contributions.

27-Oct-2020 7:48am

I looked at the instructions for the 990-T and the proxy tax. It looks like the political contributions and lobbying expenses would be subject to the proxy tax at 21%. In lieu of the proxy tax it looks like you can notify the members that part of their business dues would be not deductible.
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