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Tax Exempt Focus: Political Action Committees

April 30, 2024 (3 min read)

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."

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