Tuesday, April 9, 2013

Article on Citizens United and the Internal Revenue Code

John L. Buckley, a professor in the graduate tax program at Georgetown University Law Center, and Dallas Woodrum, a Georgetown law student serving as executive articles editor for The Georgetown Law Journal, have published an article in Tax Notes discussing the use of tax-exempt organizations for political purposes following Supreme Court decisions on campaign finance.  They propose legislative reforms, including (1) removing the benefit currently enjoyed by Code section 527 organizations of the income tax exclusion for dues and contributions from a single source that exceed a specified amount; (2) eliminating the exclusion for capital contributions (and consideration in exchange for issued stock) received by corporations when they have been utilized to expend such funds for political purposes without disclosing the ultimate source of funds; (3) deeming political contributions to result in dividend income to corporate insiders who authorize political contributions in the absence of ex ante disclosure to, and authorization by, shareholders; and (4) providing more objective standards for determining whether issue advertising constitutes political campaign activity.  The electronic citation to the article is 2013 TNT 68-5.



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