§7409 — Title 26 Internal Revenue Code | U.S. Code

Summary

The United States can sue, at the request of the Secretary, to stop a 501(c)(3) nonprofit from making political spending and to protect its assets for charitable purposes. The suit must be filed in the U.S. district court where the group’s main office is or where it spent money. The court can hear this case separately from other government cases. A lawsuit can only start if the IRS has warned the group it will seek an injunction unless spending stops, and the Commissioner of Internal Revenue has personally decided the group flagrantly took part in a political campaign (including publishing or distributing statements for or against a candidate) and that an injunction is needed to stop future political spending. The court must find those facts by clear and convincing evidence. The terms “section 501(c)(3) organization” and “political expenditures” mean what section 4955 says.

Title 26, §7409

Internal Revenue Code — Source: USLM XML via OLRC

(a)(1)If the requirements of paragraph (2) are met, a civil action in the name of the United States may be commenced at the request of the Secretary to enjoin any section 501(c)(3) organization from further making political expenditures and for such other relief as may be appropriate to ensure that the assets of such organization are preserved for charitable or other purposes specified in section 501(c)(3). Any action under this section shall be brought in the district court of the United States for the district in which such organization has its principal place of business or for any district in which it has made political expenditures. The court may exercise its jurisdiction over such action (as provided in section 7402(a)) separate and apart from any other action brought by the United States against such organization.

(2)An action may be brought under subsection (a) only if—

(A)the Internal Revenue Service has notified the organization of its intention to seek an injunction under this section if the making of political expenditures does not immediately cease, and

(B)the Commissioner of Internal Revenue has personally determined that—

(i)such organization has flagrantly participated in, or intervened in (including the publication or distribution of statements), any political campaign on behalf of (or in opposition to) any candidate for public office, and

(ii)injunctive relief is appropriate to prevent future political expenditures.

(b)In any action under subsection (a), if the court finds on the basis of clear and convincing evidence that—

(1)such organization has flagrantly participated in, or intervened in (including the publication or distribution of statements), any political campaign on behalf of (or in opposition to) any candidate for public office, and

(2)injunctive relief is appropriate to prevent future political expenditures,

(c)For purposes of this section, the terms “section 501(c)(3) organization” and “political expenditures” have the respective meanings given to such terms by section 4955.

Editorial Notes

Prior Provisions

A prior section 7409 was renumbered section 7410 of this title.

§7409 Action to enjoin flagrant political expenditures of section 501(c)(3) organizations

Summary

Title 26, §7409

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Citations & Metadata