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Publication Date: January 2005
Publisher: Library of Congress. Congressional Research Service
Author(s):
Research Area: Banking and finance; Politics
Type:
Abstract:
IRS Revenue Ruling 2004-6 provides guidance on the definition of "exempt function" in section 527 of the Internal Revenue Code. The ruling, released in December 2003, was intended to be an election-year reminder to tax-exempt 501(c)(4), 501(c)(5), and 501(c)(6) organizations that, in addition to their responsibility to comply with campaign finance laws, they are subject to tax on certain political expenditures. The ruling lists criteria that the IRS uses when determining whether an expenditure for an issue advocacy communication is taxable and provides examples.