TaxProTalk.com

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 ?

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

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.