Ezel / IRS Rulings / 200944042

CCA 200944042: Fundraising expenses may count toward the section 4955 excise tax

Number
200944042
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Political Intervention by 501(c)(3) Exempt Organizations
Topics
Tax-exempt organizations
Code sections
§ 4955
Ruling dated
October 23, 2008
Publicly released
October 30, 2009
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2009, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2009
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

This Chief Counsel Advice considers whether fundraising materials should be included when evaluating a potential political campaign intervention violation by an exempt organization. The Advice agrees that the materials should be considered because of their tone and volume. It therefore states that the related fundraising expenses should be included in calculating the excise tax under IRC § 4955.

Ruling snapshot

  • Question: Should fundraising expenses be included in calculating a potential IRC § 4955 excise tax?
  • Outcome: Advice given
  • Key authorities: IRC § 4955

Full text (IRS public release)

ID: CCA-102314-08 Number: 200944042
Release Date: 10/30/2009
Office:
UILC: 501.42-00

From: ----------------------
Sent: Thursday, October 23, 2008 11:26 AM
To: ------------------
Cc: ----------------------------------------------
Subject: RE: ----------------

--------

I just met with ----- regarding your question about the section 4955 issue.

For the most part, we agree with--------------characterization of the conversation yesterday. Namely, we believe that -------- was of the view that the fundraising materials should be considered when determining a potential PACI violation due to their tone and sheer volume. As such, we believe that the fundraising expenses should be included in the calculation of the 4955 excise tax.

-----

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