Form 990 Schedule C: Mastering Complex Reporting of Political Campaign and Lobbying Activities

Schedule C, Political Campaign and Lobbying Activities is required for exempt organizations that engage in political and lobbying activities. In practice, it can be challenging to discern how an organization should report to the IRS.

Depending on the filing organization’s exempt status, information reported on Form 990 Schedule C may include, among other things, a description of such activities, the amounts paid to Section 527 political organizations (if applicable), and a calculation of the organization’s lobbying limit and expenditures. Errors in tracking or reporting political and lobbying activities can result in excise taxes, penalties, fines and in some cases revocation of tax-exempt status.

Further complicating matters is that the IRS instructions do not always provide clear guidance on how to report certain items. The combination of limited guidance and the complexity of the reporting requirements present a particular challenge to nonprofit advisers.

Listen as our experienced panel provides detailed guidance on completing Form 990 Schedule C, with concrete examples of completed forms and schedules.

1. Reporting political activities and lobbying on Form 990 Schedule C (three parts)
   1. Overview of Schedule C
   2. Political campaign activities overview
2. Lobbying activities overview
   1. Substantial part test
   2. Expenditure test
3. Form 990 Schedule C
   1. Form 990, Part IV, Lines 3-4: trigger questions
   2. Sch. C Part I: Political Campaign Activities
   3. Sch. C Part II: Lobbying Activities
   4. Part III: Proxy Tax (501(c)(4), 501(c)(5), and 501(c)(6) organizations only)

The panel will discuss these and other important topics:

• How to identify which political and lobbying activities cross the line
• Understanding the political campaign activity scenarios provided by the IRS Revenue Ruling 2007-41
• Understanding differences between direct lobbying and grassroots lobbying
• Learn by example, reporting of Form 990, Schedule C in three parts

Learning Objectives

After completing this course, you will be able to:

• Identify which political and lobbying activities cross the line
• Discern what an organization can and cannot do
• Recognize differences between direct lobbying and grassroots lobbying

• Field of Study: Accounting
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules; supervisory authority over other preparers/accountants. Specific knowledge and understanding of Form 990 and all supporting schedules.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).