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Code · U.S. Code · Title 26 - INTERNAL REVENUE CODE · CHAPTER 1— NORMAL TAXES AND SURTAXES · Subchapter F— Exempt Organizations · § 504

§ 504. Status after organization ceases to qualify for exemption under section 501(c)(3) because of substantial lobbying or because of political activities

500 words·~2 min read·/usc/title-26/section-504

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(a)General rule An organization which—
(1)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), and
(2)is not an organization described in section 501(c)(3)—
(A)by reason of carrying on propaganda, or otherwise attempting, to influence legislation, or
(B)by reason of participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for public office,
shall not at any time thereafter be treated as an organization described in section 501(c)(4).
(b)Regulations to prevent avoidance The Secretary shall prescribe such regulations as may be necessary or appropriate to prevent the avoidance of subsection (a), including regulations relating to a direct or indirect transfer of all or part of the assets of an organization to an organization controlled (directly or indirectly) by the same person or persons who control the transferor organization.
(c)Churches, etc. Subsection
(a)shall not apply to any organization which is a disqualified organization within the meaning of section 501(h)(5) (relating to churches, etc.) for the taxable year immediately preceding the first taxable year for which such organization is described in paragraph
(2)of subsection (a).
(Added Pub. L. 94–455, title XIII, § 1307(a)(2), Oct. 4, 1976, 90 Stat. 1721; amended Pub. L. 100–203, title X, § 10711(b)(1), (2)(A), Dec. 22, 1987, 101 Stat. 1330–464.)
Connections19 cite this · traces to 3
17 references not yet in our index
  • Pub. L. 94–455, title XIII, § 1307(a)(2)
  • 90 Stat. 1721
  • Pub. L. 100–203, title X, § 10711(b)(1)
  • 101 Stat. 1330–464
  • Aug. 16, 1954, ch. 736
  • 68A Stat. 168
  • Pub. L. 90–630, § 6(a)
  • 82 Stat. 1330
  • Pub. L. 91–172, title I, § 101(j)(15)
  • 83 Stat. 527
  • section 101(k)(2)(B) of Pub. L. 91–172
  • Pub. L. 100–203, § 10711(b)(2)(A)
  • Pub. L. 100–203, § 10711(b)(1)
  • Pub. L. 100–203
  • section 10711(c) of Pub. L. 100–203
  • Pub. L. 94–455, title XIII, § 1307(a)(3)
  • 90 Stat. 1722
Citation graph
cites case law
§ 504
Status after organization ceases to qualify for exemption under section 501(c)(3) because of substantial lobbying or because of political activities
Stat.×14
U.S.C.×5
Pub. L.Pub. L. 94–455, title XIII, § 1307(a)(2)
Stat.90 Stat. 1721
Pub. L.Pub. L. 100–203, title X, § 10711(b)(1)
Stat.101 Stat. 1330–464
ActAug. 16, 1954, ch. 736
Cites 20 · showing 8Cited by 19 across 2 sources
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