§6852 Termination Assessments in Case of Flagrant Political Expenditures of Section 501(c)(3) Organizations

Summary

If the IRS Secretary finds that a 501(c)(3) group made political spending that was a flagrant violation, the Secretary must figure the tax for the current tax year from the first day of that year up to the day of the finding, treating that time as a taxable year and using any earlier determinations for that year. Money collected because of these assessments counts as payment of the income tax for that year or as the tax under section 4955 for the spending. No tax can be assessed for a past year after the return due date (including extensions). The words “section 501(c)(3) organization,” “political expenditure,” and “organization manager” mean what section 4955 says. The procedures in sections 6851(b), 6861(f), and 6861(g) apply, but decisions under 6861(g) must be based on whether the spending was a flagrant violation instead of whether there is jeopardy.