PRIA, Government Policy, Made Personal

Summary

Allows the United States, when the Secretary asks, to sue a 501(c)(3) nonprofit to get a court order stopping it from making political expenditures and to protect the group’s assets for charitable purposes. The suit must be filed in the federal district where the nonprofit’s main office is or where it spent the money. The court can handle this case separately from other government cases. A suit can only start after the IRS warns the group that it plans to seek a court order if the political spending does not stop, and after the Commissioner of Internal Revenue personally decides the group clearly and openly took part in a political campaign (including publishing or distributing statements) and that a court order is needed to stop future spending. If a court finds, by strong and convincing proof, those things are true, it may bar the group from political spending and order other steps to keep its assets for charitable use. The terms “section 501(c)(3) organization” and “political expenditures” are defined in section 4955.

Title 26, §7409

Internal Revenue Code, Source: USLM XML via OLRC

(a)Authority to seek injunction

(1)In general

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)Requirements

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)Adjudication and decree

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,

the court may enjoin such organization from making political expenditures and may grant 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).

(c)Definitions

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