What is Section 527 of the tax code?
IRC 527 imposes a tax on the “political organization taxable income” of political organizations – broadly speaking, income Page 2 from sources other than contributions, membership dues, and fundraising events.
Are 527 donations tax deductible?
Congressional response was to enact IRC 527, effective for tax years beginning after December 31, 1974. IRC 527 provides that “political organizations” are subject to tax only to the extent provided for in that section. For all other purposes under federal law, they are treated as tax exempt organizations.
Are contributions to 527 tax deductible?
IRC 527(a) provides that a “political organization” is subject to tax only under that section. Under IRC 527(a), a political organization is deemed exempt from income taxes for purposes of any law referring to such organizations. The tax on political organizations is imposed by IRC 527(b).
What are section 527 exempt function activities?
Section 527 exempt function activities include all functions that influence or attempt to influence the selection, nomination, election, or appointment of any individual to any federal, state, or local public office or office in a political organization, or the election of Presidential or Vice-Presidential electors.
What is a 527 group AP Gov?
Ap government key terms canvas. 527 groups, a tax exempt organization created to influence the selection, nomination, election, appointment or defeat of candidates to federal, an interest group composed of companies in the same business or industy that group that seeks changes in spending regulations,…
Do 527 groups have to disclose donors?
Yes, especially in terms of raising and disclosing money. A quick rundown of rules set by the IRS, Federal Election Commission, Congress and Supreme Court: Sec. 527 political organizations can support or attack candidates. No contribution limits, but mandatory disclosure of donors to the IRS.
What is a section 527 political organization?
527 Organizations Law and Legal Definition. 527 Organisations are named after a section of the US Tax code, 26 U.S.C. ยง 527. They are political campaign groups officially unaffiliated to individual parties or candidates, and therefore not liable for campaign spending restrictions. Although candidate committees and Political Action Committees(PAC)…