What political organizations are tax-exempt?

Political parties; campaign committees for candidates for federal, state or local office; and political action committees are all political organizations under IRC § 527. Among other requirements, most tax-exempt political organizations have a requirement to file periodic reports on Form 8872 with the IRS.

Can tax-exempt organizations endorse political candidates?

Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office.

Are local governments tax-exempt?

Most state and local government entities are not required to pay federal income tax. For non-tax reasons, though, government entities are sometimes asked to provide a tax-exempt number or determination letter to prove their status as a tax-exempt organization.

What is tax-exempt list some examples of entities that are tax-exempt?

Organizations apply for tax-exempt status using the IRS Form 1023. Other types of organizations which may qualify include veterans’ groups, labor unions, fraternal organizations, business trade associations, agricultural or horticultural groups, social welfare groups, and even social clubs.

Is a political committee tax-exempt?

Under IRC 527(a), a political organization is deemed exempt from income taxes for purposes of any law referring to such organizations. The tax on political organizations is imposed by IRC 527(b).

Can a 501c4 endorse a political candidate?

Can a tax-exempt organization endorse candidates for public office? The rating of candidates, even on a nonpartisan basis, is also prohibited. On the other hand, a section 501(c)(4), (5), or (6) organization may engage in political campaigns, provided that such activities are not the organization’s primary activity.