Tax Exempt Focus: Political Action Committees

Section 527 of the Internal Revenue Code provides a broad tax exemption for Political Action Committees (PACs) involved only in campaign activity. Section 527 applies only to "political organizations." For a PAC to qualify, it must be organized and operated primarily for the purpose of directly or indirectly accepting contributions or making expenditures, or both, for an "exempt function." Read this guidance to learn more about the meaning of the term "exempt function."

Read now »

Related Content

• Tax-Exempt Organizations Compliance
  Review the different types of tax-exempt organizations and the process required for maintaining compliance with the Internal Revenue Service, the tax advantages of a tax-exempt organization, and the filing of Form 990, Form 990-EZ, Form 990-PF, and Form 990-N (e-Postcard).

• Lobbying Disclosure Act Registration and Disclosure
  Learn how Section 15 of the Lobbying Disclosure Act (LDA) acknowledges that the Internal Revenue Code has slightly different definitions of what constitutes lobbying under the tax laws than are set forth in the LDA. But certain entities can ease LDA compliance by electing to accept certain Code definitions and calculated monetary amounts in lieu of those set forth in the LDA.

Practical Guidance Updates 
Featuring the latest updates from your Practical Guidance account.   

•  Tax Key Legal Developments Tracker (Federal)—keep up to date with key legal developments!
  • Business Entities. IRS and Treasury propose regulations that would provide guidance regarding reporting and payment of the new excise tax on repurchases of corporate stock made after December 31, 2022, and would affect certain publicly traded corporations that repurchase their stock or whose stock is acquired by certain specified affiliates. 89 Fed. Reg. 25829 (Apr. 12, 2024).
  • Individual Income Tax. IRS addresses the Federal income tax treatment of amounts paid toward the purchase of energy efficient property and improvements under Department of Energy Home Energy Rebate Programs pursuant to Sections 50121 and 50122 of the Inflation Reduction Act of 2022. Announcement 2024-19.
• Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts. 
• For related Practical Guidance content on important recent trends, please review these easy-to-use Resource Kits on a variety of emerging topics:

• • Generative Artificial Intelligence (AI) Resource Kit
  • Environmental, Social, and Governance (ESG) Resource Kit
  • Public Interest, Pro Bono, and Non-Profit Resource Kit
  • Bank Failure Resource Kit

• Explore the Practical Guidance Journal Spring 2024 Edition, featuring guidance on protecting attorney-client privilege and work product in a generative AI world, using AI to manage the attorney client relationship, an overview of privacy regulations in the United States, and a primer on the new Corporate Transparency Act requirements.
• Learn about the 2000+ leading attorney authors contributing to our 26 practice areas in the Practical Guidance Author Center. Interested in becoming a Practical Guidance author? Click here for details. Practical Guidance is committed to amplifying diverse voices of attorneys across all differences, including gender and race.  
• Legal Developments provide the latest updates and analyses of emerging topics impacting your practice area. Visit the Legal Developments page to see the latest topics, which also include breaking legal news and related Practical Guidance content. 
• Listen Up! The Practical Guidance and Law360 Podcasts Resource Kit features interviews with industry-leading attorneys on innovative issues in the law: NFTs, Artificial Intelligence, and more.

• New and Recently Updated Practical Guidance Content
  • Conservation Easements, Donor Advised Funds, and Sponsoring Organizations: Governing Principles
  • Partnership Taxation: Partner Contributions under Code Section 721(a)
  • Partnership Taxation: Partnership Distributions under Code Section 731
  • Section 367(b) Proposed Regulations on Triangular Reorganizations and Inbound Nonrecognition Transactions
  • Proposed Regulations on Transfer of Clean Vehicle Credits Under I.R.C. Sections 25E and 30D

PRACTICAL GUIDANCE CUSTOMER EMAIL EDITION ON THE WEB

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+