Write-Offs: I.R.S. on Charity Lobbying; and Forms for 527 Organizations

TAX WATCH

By GRANT WILLIAMS

• The I.R.S. is again assuring charities that lobbying is perfectly permissible.The service answers nine questions about advocacy in a letter to Charity Lobbying in the Public Interest — a project of Independent Sector that works to “dispel the myths that lobbying by charities is unimportant, inappropriate, or illegal.” For example, while charities are prohibited from participating in a political campaign, the I.R.S. notes that groups may educate voters during a campaign if the efforts “do not constitute support or opposition to any candidate.” Copies of the I.R.S. letter may be obtained from the Independent Sector project by calling (202) 387-5048.
• The I.R.S. has released two forms that must be filled out by certain types of tax-exempt lobbying groups, known as 527 organizations because of the section of the Internal Revenue Code under which they are organized. The forms were issued after a law was enacted for such groups (The Chronicle, July 13). Organizations will use the forms to register and to provide details about their contributions and expenditures. The I.R.S. explains the forms — and how to obtain copies of them — in two news releases that are available on its Web site, http://www.irs.ustreas.gov/news/nandf.html.