Page:United States Statutes at Large Volume 101 Part 2.djvu/1265

 PUBLIC LAW 100-203—DEC. 22, 1987

101 STAT. 1330-471

year by reason of making lobbying expenditures, there is hereby imposed a tax on the lobbying expenditures of such organization for such taxable year equal to 5 percent of the amount of such expenditures. The tax imposed by this subsection shall be paid by the organization. "(b) O N MANAGEMENT.—If tax is imposed under subsection (a) on the lobbying expenditures of any organization, there is hereby imposed on the agreement of any organization manager to the making of any such expenditures, knowing that such expenditures are likely to result in the organization not being described in section 501(c)(3), a tax equal to 5 percent of the amount of such expenditures, unless such agreement is not willful and is due to reasonable cause. The tax imposed by this subsection shall be paid by any manager who agreed to the making of the expenditures. "(c) ORGANIZATIONS TO WHICH SECTION APPLIES.—

"(1) IN GENERAL.—Except as provided in paragraph (2), this section shall apply to any organization which was exempt (or was determined by the Secretary to be exempt) from taxation under section 501(a) by reason of being an organization described in section 501(c)(3). "(2) EXCEPTIONS.—This section shall not apply to any organization— "(A) to which an election under section 501(h) applies, "(B) which is a disqualified organization (within the meaning of section 501(h)(5)), or "(C) which is a private foundation. "(d) DEFINITIONS.— "(1) LOBBYING EXPENDITURES.—The term 'lobbying expendi-

ture' means any amount paid or incurred by the organization in carrying on propaganda, or otherwise attempting to influence legislation. "(2) ORGANIZATION MANAGER.—The term 'organization manager' has the meaning given to such term by section 4955(fK2). "(3) JOINT AND SEVERAL LIABILITY.—If more than 1 person is liable under subsection (b), all such persons shall be jointly and severally liable under such subsection." (b) BURDEN OF PROOF.—Subsection (b) of section 7454 (as amended by this Act) is amended by striking out "the burden of proof and inserting in lieu thereof ", or whether an organization manager (as defined in section 4912(d)(2)) has 'knowingly' agreed to the making of disqualifying lobbying expenditures within the meaning of section 49120)), the burden of proof'. (c) TECHNICAL AMENDMENT.—Paragraph (1) of section 6501(1) is amended by striking out "by chapter 42 (other than section 4940)" and inserting in lieu thereof "by section 4912, by chapter 42 (other than section 4940),". (d) CLERICAL AMENDMENT.—The table of sections for chapter 41 is amended by adding at the end thereof the following new item: "Sec. 4912. Tax on disqualifying lobbying expenditures of certain organizations."

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