Instructions For Form 4720 - 2016 (Page 12 of 19) in pdf

column (c) the tax each foundation

or foundation is 10% of the amount

persons who are specifically designated

manager will pay.

involved.

representatives of another such

organization or are members of the

Carry the total amount in column (d)

Initial tax on organization managers

government, officers or paid executive

for each foundation manager to Part

or foundation managers. An initial tax

staff members of such other

II-A, column (e).

of 2

% of the amount involved (up to

organization, and who, by aggregating

$5,000 of tax on any one expenditure) is

their votes, hold sufficient voting power

imposed on any manager who agrees to

Schedule F—Initial Taxes

to cause or prevent action on legislative

an expenditure, knowing that it is a

on Political Expenditures

activities by the first organization. See

political expenditure, unless the

section 4911(f) and Regulations section

(Section 4955)

agreement isn't willful and is due to

56.4911-7.

reasonable cause.

General Instructions

A nonelecting member of an affiliated

Any manager who agreed to the

group doesn’t file Form 4720.

expenditure must pay the tax.

Requirement. Complete Schedule F if

Electing members of an affiliated

you answered “Yes,” to question 5a(2)

Specific Instructions

group may file a group return or may file

and 5b of Form 990-PF, Part VII-B.

separately. An electing member of an

Complete Schedule F if you entered an

Part I. Complete this part for all political

affiliated group that files a separate

amount on line 2 of Schedule C (Form

expenditures.

return, should enter on line 1 the

990 or 990-EZ), Part 1-A. Complete

Part II. Enter in column (a) the names

amount from Schedule C (Form 990 or

Schedule F if you are otherwise a

of all managers who took part in making

990-EZ), Part II-A, column (a), line 1h.

section 501(c)(3) organization that

the political expenditures listed in Part I.

Enter on line 2 the amount from

made a political expenditure.

See Initial tax on organization managers

Schedule C (Form 990 or 990-EZ), Part

Political expenditures. These include

or foundation managers, earlier.

II-A, column (a), line 1i.

any amount paid or incurred by a

If more than one manager is listed in

An electing member of an affiliated

section 501(c)(3) organization that

column (a), each is individually liable for

group that is included in a group return,

participates or intervenes in (including

the entire amount of tax on the

should enter on line 1 its share of the

the publication or distribution of

expenditure. However, the managers

excess grass root lobbying

statements) any political campaign on

who are liable for the tax may prorate

expenditures of the affiliated group, and

behalf of, or in opposition to, any

payment among themselves. Enter in

on line 2 its share of the excess

candidate for public office. The tax is

column (c) the tax each manager will

lobbying expenditures of the affiliated

imposed even if the political expenditure

pay.

group. Take these amounts from the

gives rise to a revocation of the

schedule of excess lobbying

Carry the total amount in column (d)

organization's section 501(c)(3) status.

expenditures that must be attached to

for each manager to Part II-A, column

These taxes apply in the case of both

Schedule C (Form 990 or 990-EZ). See

(f).

public charities and private foundations.

the instructions for Schedule C (Form

When tax is imposed under this

990 or 990-EZ), Part II-A, for a

Schedule G—Tax on

provision in the case of a private

discussion of the lobbying provisions,

foundation, however, the expenditure in

Excess Lobbying

including how to figure the taxable

question won't be treated as a taxable

Expenditures (Section

amount.

expenditure under section 4945.

4911)

For an organization formed primarily

Schedule H—Taxes on

to promote the candidacy or prospective

Requirement. Schedule G must be

Disqualifying Lobbying

candidacy of an individual for public

completed by eligible section 501(c)(3)

Expenditures (Section

office (or that is effectively controlled by

organizations that elected to be subject

a candidate or prospective candidate

to the limitations on lobbying

4912)

and is used primarily for such

expenditures under section 501(h) and

purposes), amounts paid or incurred for

General Instructions

that made excess lobbying

any of the following purposes are

expenditures as defined in section

Requirement. Schedule H must be

deemed political expenditures:

4911(b).

completed by certain organizations

Remuneration to the candidate or

Except as noted below, follow the

whose section 501(c)(3) status is

prospective candidate for speeches or

line instructions on Schedule G.

revoked because of excess lobbying

other services;

activities.

Travel expenses of the individual;

Affiliated groups. Two or more

Expenses of conducting polls,

organizations are members of an

Exceptions. These taxes aren't

surveys, or other studies, or preparing

affiliated group of organizations for the

imposed on a private foundation (whose

papers or other material for use by the

purposes of section 4911 only if:

lobbying expenditures may be subject to

individual;

The governing instrument of one

the tax on taxable expenditures). These

Expenses of advertising, publicity,

organization requires it to be bound by

taxes also aren't imposed on any

and fundraising for such individual; and

decisions of the other organization on

organization for which a section 501(h)

Any other expense which has the

legislative issues; or

election was in effect at the time of the

primary effect of promoting public

The governing instrument of one

lobbying expenditures or that was not

recognition or otherwise primarily

organization requires it to be bound by

eligible to make a section 501(h)

accruing to the benefit of the individual.

decisions of the other organization on

election.

legislative issues, or the governing

Initial tax on organization or founda

Tax on organization. A tax of 5% of

board of one organization includes

tion. The initial tax on the organization

the lobbying expenditures is imposed

Instructions for Form 4720 (2016)

Instructions For Form 4720 - 2016 Page 12

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