§6852 Termination assessments in case of flagrant political expenditures of section 501(c)(3) organizations

Summary

The Secretary must act when a 501(c)(3) group makes political spending that is a clear, serious break of the rule against such spending. For the current tax year, the Secretary will figure the tax from the 1st day of that year up to the date of the finding as if that period were a full taxable year, and must consider any earlier related finding for that year. Money collected counts as payment of income tax for that year or as the tax under section 4955 for the spending. No tax can be charged for a past year after the return’s due date (including extensions). The words “section 501(c)(3) organization,” “political expenditure,” and “organization manager” use the meanings in section 4955. The rules in sections 6851(b), 6861(f), and 6861(g) apply to these assessments, except that decisions under 6861(g) are based on whether the spending meets the flagrant-violation test in subsection (a)(1)(B) instead of on jeopardy.