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

Summary

If the IRS finds that a charity exempt under section 501(c)(3) has spent money on political campaigns in a way that flagrantly violates the ban on political spending, it can immediately cut the charity's tax year short and assess tax right away rather than waiting for normal filing deadlines. The IRS treats the period from the start of the current tax year up to the date of its finding as a completed tax year and figures the tax owed for it. Amounts collected count as payments of income tax or of the political expenditure tax under section 4955. The IRS cannot use this fast-track power for a prior year once that year's return due date, including extensions, has passed. The organization gets the same procedural protections that apply to other emergency assessments.