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

Summary

When a charity flagrantly spends money on political campaigns, the government can go to federal court to stop it. The IRS must first warn the organization that it will seek an injunction unless the political spending stops immediately, and the Commissioner of Internal Revenue must personally find that the charity flagrantly took part in a campaign for or against a candidate and that a court order is needed to prevent future political spending. The court can block further political expenditures and order other relief to preserve the charity's assets for charitable purposes, but only if it finds the violation by clear and convincing evidence. The case is filed where the organization has its main place of business or where it made the political expenditures.

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